Question 1

Under the UCC,if payment terms are not agreed on,then payment is due within 30 days of delivery of the goods.

Accepted Answer

A) True 
 B)False

Question 2

A lease,under UCC Article 2A does not require that the lessee provide consideration under the agreement.

Accepted Answer

A) True 
 B)False

Question 3

Article 2 of the UCC is not applied by federal courts to sales contracts governed by federal law.

Accepted Answer

A) True 
 B)False

Question 4

Pat places an order with a Seller for 500 red blankets.Seller immediately ships 500 blue blankets.Pat refuses to pay for the blankets.Has a contract been made?

Accepted Answer

A)  Yes there is a contract because Pat's order was considered an offer and the offer was accepted by the Seller's shipment of blankets. 
B)  Yes there is a contract because the Seller's shipment was an accommodation shipment, which is acceptance of Pat's offer. 
C)  Yes there is a contract because the Seller's shipment was an assortment shipment, which is acceptance of Pat's offer. 
D)  No there was not a contract because the Seller's shipment was an assortment shipment, which is not proper acceptance of Pat's offer. 
E)  No there was not a contract because the Seller's shipment was an accommodation shipment, which is not proper acceptance of Pat's offer. 
A)  Yes there is a contract because Pat's order was considered an offer and the offer was accepted by the Seller's shipment of blankets. 
B)  Yes there is a contract because the Seller's shipment was an accommodation shipment, which is acceptance of Pat's offer. 
C)  Yes there is a contract because the Seller's shipment was an assortment shipment, which is acceptance of Pat's offer. 
D)  No there was not a contract because the Seller's shipment was an assortment shipment, which is not proper acceptance of Pat's offer. 
E)  No there was not a contract because the Seller's shipment was an accommodation shipment, which is not proper acceptance of Pat's offer.

Question 5

In a finance lease,who takes title or the right to the possession of the goods?

Accepted Answer

A)  lessor 
B)  lessee 
C)  supplier 
D)  financee 
E)  financier 
A)  lessor 
B)  lessee 
C)  supplier 
D)  financee 
E)  financier

Question 6

If the price is omitted from a sales contract,a "reasonable price" will be implied upon delivery.

Accepted Answer

A) True 
 B)False

Question 7

Under which circumstance would Abby be considered a merchant under the UCC?

Accepted Answer

A)  Abby is a computer dealer and sells her neighbor a computer at a garage sale. 
B)  Abby is a computer dealer and sells her neighbor a set of tools. 
C)  Abby is a computer dealer and offers to fix her neighbors computer. 
D)  Abby is a computer dealer and sells her neighbor a computer service agreement. 
E)  Abby is a computer dealer and teaches her neighbor how to build their own computer. 
A)  Abby is a computer dealer and sells her neighbor a computer at a garage sale. 
B)  Abby is a computer dealer and sells her neighbor a set of tools. 
C)  Abby is a computer dealer and offers to fix her neighbors computer. 
D)  Abby is a computer dealer and sells her neighbor a computer service agreement. 
E)  Abby is a computer dealer and teaches her neighbor how to build their own computer.

Question 8

Matt is a computer dealer.Matt has a garage sale.At the garage sale,Matt sells an old computer.Matt is considered a merchant when he sells the computer at his garage sale?

Accepted Answer

A) True 
 B)False

Question 9

Jake talked to Joan,a salesperson at Hot Cars,about purchasing a Jaguar for $70,000.Jake really liked that specific car because it was the color he wanted and had all the options he liked.Jake,however,wanted to think it over for a few days.Joan told him not to worry,that she would hold the car for him,and she gave him a written and signed assurance that the offer to sell the automobile for $70,000 would be held open for 14 days.Jake thought it over,decided to purchase the car,and returned one week later ready to make the deal.Joan told him that another buyer with ready case wanted the Jaguar and that she sold it.Joan told Jake that he gave no consideration for the agreement to hold the car,that there was no contract,and that she was free to sell it to the ready buyer.Is she right,and why or why not?

Accepted Answer

Joan is incorrect.Under the UCC she made

Question 10

UCC Article 2 defines a good as tangible things that are movable.

Accepted Answer

A) True 
 B)False

Question 11

The parol evidence rule allows a party to present outside evidence to support their interpretation of a contract.

Accepted Answer

A) True 
 B)False

Question 12

Electronic sales and lease contracts are covered by which provisions of the UCC?

Accepted Answer

A)  Article 2 (Sales) and Article 2A (Leases) 
B)  Article 2 (Sales) and Revised Article 2A (Leases) 
C)  Revised Article 2 (Sales) and Article 2A (Leases) 
D)  Revised Article 2 (Sales) and Revised Article 2A (Leases) 
E)  Electronic sales and lease contracts are not covered by the UCC. 
A)  Article 2 (Sales) and Article 2A (Leases) 
B)  Article 2 (Sales) and Revised Article 2A (Leases) 
C)  Revised Article 2 (Sales) and Article 2A (Leases) 
D)  Revised Article 2 (Sales) and Revised Article 2A (Leases) 
E)  Electronic sales and lease contracts are not covered by the UCC.

Question 13

Which of the following is not a defense to the Statute of Frauds?

Accepted Answer

A)  There are no defenses to the Statute of Frauds. 
B)  course of performance 
C)  specifically manufactured goods 
D)  admissions in pleadings or court 
E)  partial acceptance 
A)  There are no defenses to the Statute of Frauds. 
B)  course of performance 
C)  specifically manufactured goods 
D)  admissions in pleadings or court 
E)  partial acceptance

Question 14

UCC Article 2A (Leases)applies to real property leases.

Accepted Answer

A) True 
 B)False

Question 15

The proper relationship between the common law and the UCC regarding sales is:

Accepted Answer

A)  common law no longer applies to sales. 
B)  the UCC no longer applies to sales. 
C)  the UCC controls sales, but where the UCC is silent, common law still controls. 
D)  the common law controls sales, but where the common law is silent, the UCC controls. 
E)  the UCC applies only common law to sales. 
A)  common law no longer applies to sales. 
B)  the UCC no longer applies to sales. 
C)  the UCC controls sales, but where the UCC is silent, common law still controls. 
D)  the common law controls sales, but where the common law is silent, the UCC controls. 
E)  the UCC applies only common law to sales.

Question 16

Is it reasonable for certain provisions of the UCC to apply to merchants only or to apply differently to merchants than non-merchants? Shouldn't anyone who chooses to enter into a commercial transaction be held to the same standard? Is it unfair to have the two standards?

Accepted Answer

The difference in treatment is based on

Question 17

Which of the following is true about the Statute of Frauds?

Accepted Answer

A)  The Statute of Frauds requires that all major terms of a contract must be written and signed by all parties to the contract. 
B)  The Statute of Frauds requires the seller to provide the buyer with a signed invoice upon delivery of goods. 
C)  The Statute of Frauds only applied to merchants. 
D)  The Statute of Frauds is a defense to the "Battle of the Forms" 
E)  The Statute of Frauds requires certain contracts to be in writing and signed by the party against whom enforcement is sought. 
A)  The Statute of Frauds requires that all major terms of a contract must be written and signed by all parties to the contract. 
B)  The Statute of Frauds requires the seller to provide the buyer with a signed invoice upon delivery of goods. 
C)  The Statute of Frauds only applied to merchants. 
D)  The Statute of Frauds is a defense to the "Battle of the Forms" 
E)  The Statute of Frauds requires certain contracts to be in writing and signed by the party against whom enforcement is sought.

Question 18

What is a letter of credit?

Accepted Answer

A)  A letter of credit provides parties with a way to pay for a sale or lease transaction under the UCC. 
B)  A letter of credit is required for any transaction under Revised Articles 2 and 2A. 
C)  A letter of credit promotes international trade and provides sellers with a guaranteed payment by a bank if the buyer fails to pay. 
D)  A letter of credit is an assurance by a bank, that the buyer has the ability to pay for a sale or lease transaction. 
E)  A letter of credit documents the buyer's credit history, so that the seller can determine whether to sell to the buyer on credit or require cash payment. 
A)  A letter of credit provides parties with a way to pay for a sale or lease transaction under the UCC. 
B)  A letter of credit is required for any transaction under Revised Articles 2 and 2A. 
C)  A letter of credit promotes international trade and provides sellers with a guaranteed payment by a bank if the buyer fails to pay. 
D)  A letter of credit is an assurance by a bank, that the buyer has the ability to pay for a sale or lease transaction. 
E)  A letter of credit documents the buyer's credit history, so that the seller can determine whether to sell to the buyer on credit or require cash payment.

Question 19

The UCC applies to a mixed sale of goods and services:

Accepted Answer

A)  whenever a sale of goods is a part of the transaction. 
B)  only if there is no service involved. 
C)  if the sale of the goods is the predominant part of the transaction. 
D)  only if the contract provides that the UCC applies. 
E)  for any mixed sale, but only if the breach was related to the good and not the service. 
A)  whenever a sale of goods is a part of the transaction. 
B)  only if there is no service involved. 
C)  if the sale of the goods is the predominant part of the transaction. 
D)  only if the contract provides that the UCC applies. 
E)  for any mixed sale, but only if the breach was related to the good and not the service.

Question 20

A retailer ordered some inventory by phone from a manufacturer.The order was for 1,000 machines from the manufacturer's inventory at $300 each.Moments later,the manufacturer sent a fax to the retailer detailing the order.The retailer looked at the fax and was satisfied that it stated the terms of the contract,but never responded in any way.When the goods were delivered on time a month later,the retailer refused to accept them,asserting that the contract was unenforceable.Which is true?

Accepted Answer

A)  No writing is needed because of one of the exceptions to the statute of frauds. 
B)  The contract is unenforceable because the retailer has not signed a writing. 
C)  The contract is enforceable because it would be unconscionable to not enforce it. 
D)  The contract is enforceable under the written confirmation rule. 
E)  Because the fax was not responded to, this was an accommodation shipment. 
A)  No writing is needed because of one of the exceptions to the statute of frauds. 
B)  The contract is unenforceable because the retailer has not signed a writing. 
C)  The contract is enforceable because it would be unconscionable to not enforce it. 
D)  The contract is enforceable under the written confirmation rule. 
E)  Because the fax was not responded to, this was an accommodation shipment.

Exam 16: Formation of Sales, Lease, and E-Contracts

Under the UCC,if payment terms are not agreed on,then payment is due within 30 days of delivery of the goods.

A lease,under UCC Article 2A does not require that the lessee provide consideration under the agreement.

Article 2 of the UCC is not applied by federal courts to sales contracts governed by federal law.

Pat places an order with a Seller for 500 red blankets.Seller immediately ships 500 blue blankets.Pat refuses to pay for the blankets.Has a contract been made?

In a finance lease,who takes title or the right to the possession of the goods?

If the price is omitted from a sales contract,a "reasonable price" will be implied upon delivery.

Under which circumstance would Abby be considered a merchant under the UCC?

Matt is a computer dealer.Matt has a garage sale.At the garage sale,Matt sells an old computer.Matt is considered a merchant when he sells the computer at his garage sale?

UCC Article 2 defines a good as tangible things that are movable.

The parol evidence rule allows a party to present outside evidence to support their interpretation of a contract.

Electronic sales and lease contracts are covered by which provisions of the UCC?

Which of the following is not a defense to the Statute of Frauds?

UCC Article 2A (Leases)applies to real property leases.

The proper relationship between the common law and the UCC regarding sales is:

Is it reasonable for certain provisions of the UCC to apply to merchants only or to apply differently to merchants than non-merchants? Shouldn't anyone who chooses to enter into a commercial transaction be held to the same standard? Is it unfair to have the two standards?

Which of the following is true about the Statute of Frauds?

What is a letter of credit?

The UCC applies to a mixed sale of goods and services:

Legal Heritage and the Information Age

Constitutional Law for Business and E-Commerce

Courts and Jurisdiction

Judicial, Alternative, Administrative, and E-Dispute Resolution

Torts and Strict Liability

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Performance of Sales, Leases and E-Contracts

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System, E-Money, and Financial Reform

Credit and Secured Transactions

Bankruptcy and Reorganization

Agency Law

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Company and Limited Liability Partnership

Franchise and Special Forms of Business

Investor Protection,E-Securities Transactions,and Wall Street Reform

Antitrust Law

Consumer Safety, Consumer Financial Protection, and Environmental Protection

Labor, Worker Protection, Employment, and Immigration Law

Equal Opportunity in Employment

Personal Property, Bailment, and Insurance

Real Property, Landlord-Tenant Law, and Land Use Regulation

Family Law, Wills, and Trusts

Accountants' Liability

International and World Trade Law

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