Question 1

In order to be governed by Article 2 of the UCC,goods must be both movable and tangible.

Accepted Answer

A) True 
 B)False

Question 2

A finance lease is a three-party transaction.

Accepted Answer

A) True 
 B)False

Question 3

The UCC requires that lease contracts,but not sale contracts,be in writing.

Accepted Answer

A) True 
 B)False

Question 4

In a contract dispute,would a non-merchant benefit more from the provisions of the UCC Article 2 and Article 2A or under the common law?

Accepted Answer

The common law is stricter than the UCC

Question 5

If an oral modification brings a contract within the Statute of Frauds,then it must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 6

A shipment of nonconforming goods offered as an accommodation constitutes an acceptance by the seller and a breach of contract.

Accepted Answer

A) True 
 B)False

Question 7

Article 2 and 2A and Revised Article 2 and 2A contain the same monetary thresholds for contracts and leases that must be in writing.

Accepted Answer

A) True 
 B)False

Question 8

What is the main difference between Articles 2 and 2A and Revised Articles 2 and 2A?

Accepted Answer

A)  There are no significant differences between Article 2 and 2A and Revised Articles 2 and 2A. 
B)  The existing Articles did not have provisions related to leases, the Revised Articles contain new provisions so that the UCC now covers leases. 
C)  The existing Articles only apply to merchants; the Revised Articles now include non-merchants under the UCC. 
D)  The Revised Articles include provisions to protect non-merchants against merchants, these provision are not in Articles 2 and 2A. 
E)  The Revised Articles include provision related to electronic contracting for the sale and lease of goods; these provisions are not in Articles 2 and 2A. 
A)  There are no significant differences between Article 2 and 2A and Revised Articles 2 and 2A. 
B)  The existing Articles did not have provisions related to leases, the Revised Articles contain new provisions so that the UCC now covers leases. 
C)  The existing Articles only apply to merchants; the Revised Articles now include non-merchants under the UCC. 
D)  The Revised Articles include provisions to protect non-merchants against merchants, these provision are not in Articles 2 and 2A. 
E)  The Revised Articles include provision related to electronic contracting for the sale and lease of goods; these provisions are not in Articles 2 and 2A.

Question 9

What is an accommodation shipment? Would an accommodation shipment be considered a breach of contract under the common law? How does an accommodation shipment further the purposes of the UCC.

Accepted Answer

An accommodation shipment allows a selle

Question 10

Melissa purchased a compact satellite dish as part of a contract to obtain satellite television service.Melissa owns a small bar and plans to use the dish and cable service in her bar.The contract provided that she pay $99 for the dish and $40 per month to receive transmission signals.The dish is specially manufactured such that it can receive only the signals provided by the company that provided her with the dish.The company installed the dish in Melissa's bar as provided in the contract.In the fourth month of the contract,Melissa began having problems.First,the dish became slightly warped.Second,the signals received by the dish began to fail frequently,at least once every week when bar patrons wanted to watch television.The warping of the dish appears to have affected the quality of the picture.Melissa had a friend hold the dish and push it into its original shape while Melissa watched the television,and the picture improved as long as the friend held the dish.Discuss whether the Uniform Commercial Code or common law would apply in resolving each of Melissa's problems and if Melissa is a merchant.

Accepted Answer

This is a mixed sale,and either the UCC

Question 11

The sale of stock is covered by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 12

A contract may be exempt from the Statute of Frauds requirement if it deals with specially manufactured goods.

Accepted Answer

A) True 
 B)False

Question 13

Mike's Dress Mart calls a manufacturer and offers to purchase 100 dresses specifying a particular style number and asking for assorted sized in blue and red.The manufacturer can only accept this offer:

Accepted Answer

A)  by returning the phone call and verbally agreeing. 
B)  by sending a written signed letter agreeing to the terms. 
C)  by sending a written signed contract agreeing to the terms. 
D)  by immediately shipping the 100 dresses in assorted sizes in red and blue. 
E)  All of the above would constitute a valid acceptance. 
A)  by returning the phone call and verbally agreeing. 
B)  by sending a written signed letter agreeing to the terms. 
C)  by sending a written signed contract agreeing to the terms. 
D)  by immediately shipping the 100 dresses in assorted sizes in red and blue. 
E)  All of the above would constitute a valid acceptance.

Question 14

Alan rents textbooks from a law school website.The website requires Alan to sign an electronic contract.Which provision of the UCC would cover Alan's transaction?

Accepted Answer

A)  Article 2 
B)  Revised Article 2 
C)  Article 2A 
D)  Revised Article 2A 
E)  Article 2 or Revised Article 2 
A)  Article 2 
B)  Revised Article 2 
C)  Article 2A 
D)  Revised Article 2A 
E)  Article 2 or Revised Article 2

Question 15

Electronic contracts are not covered by the UCC.

Accepted Answer

A) True 
 B)False

Question 16

Sarah calls John and orders 500 t-shirts over the phone.The t-shirts cost $10,000.John delivers and Sarah accepts 250 of the t-shirts.Before John can deliver the other t-shirts,Sarah cancels the order.Sarah refuses to pay for any of the t-shirts.John sues,who wins?

Accepted Answer

A)  John wins. Sarah has to pay for all 500 of the t-shirts because she accepted the first part of the order. 
B)  John wins. Sarah has to pay for all 500 of the t-shirts because an enforceable contract was created when Sarah placed the order over the phone. 
C)  John wins, but Sarah only has to pay for 250 of the t -shirts because she accepted the first part of the order. 
D)  Sarah wins because the order should have been in writing to be enforceable. 
E)  Sarah wins because Sarah's rejection of part of the order is considered a rejection of the entire order. 
A)  John wins. Sarah has to pay for all 500 of the t-shirts because she accepted the first part of the order. 
B)  John wins. Sarah has to pay for all 500 of the t-shirts because an enforceable contract was created when Sarah placed the order over the phone. 
C)  John wins, but Sarah only has to pay for 250 of the t -shirts because she accepted the first part of the order. 
D)  Sarah wins because the order should have been in writing to be enforceable. 
E)  Sarah wins because Sarah's rejection of part of the order is considered a rejection of the entire order.

Question 17

Matt is a computer dealer in Italy.Marion owns an electronics store in the United States.Matt agrees to sell Marion $10,000 worth of computers.Matt wants Marion to provide him with a guarantee from a bank.The guarantee from the bank would require the bank to pay Matt in the event that Marion fails to pay.What is the guarantee from the bank called?

Accepted Answer

A)  letter of credit 
B)  payment guarantee 
C)  lease guarantee 
D)  finance lease guarantee 
E)  sale guarantee 
A)  letter of credit 
B)  payment guarantee 
C)  lease guarantee 
D)  finance lease guarantee 
E)  sale guarantee

Question 18

The parol evidence rule would not allow which of the following items into evidence when interpreting a written contract?

Accepted Answer

A)  Evidence of a price change agreed upon after the contract was signed. 
B)  Evidence based on prior conduct in similar contracts between the parties to explain the meaning of an ambiguous term in the contract. 
C)  Evidence of an oral statement regarding the contract price made when the written contract was signed that was different from the price in the written contract. 
D)  Evidence of the meaning of a term in the parties' line of business that differs from the meaning of that term in everyday language. 
E)  All the above would be allowed into evidence under the parol evidence rule. 
A)  Evidence of a price change agreed upon after the contract was signed. 
B)  Evidence based on prior conduct in similar contracts between the parties to explain the meaning of an ambiguous term in the contract. 
C)  Evidence of an oral statement regarding the contract price made when the written contract was signed that was different from the price in the written contract. 
D)  Evidence of the meaning of a term in the parties' line of business that differs from the meaning of that term in everyday language. 
E)  All the above would be allowed into evidence under the parol evidence rule.

Question 19

Jim is the manager of an electronic store.Tom is an electronics distributor.On August 1,Jim calls Tom and orders 25 video game systems for $6,000.On August 5,Tom sends Jim an e-mail confirming his order of 25 video game systems for $6,000.On August 20,Jim replies to Tom's email and Jim says he no longer wants the 25 video game systems.Tom ignores Jim's emails and ships the video game systems to Jim.Tom sues Jim for $6,000,who wins and why?

Accepted Answer

A)  Jim wins because the Statute of Frauds has not been satisfied. 
B)  Jim wins because the Statute of Frauds has been satisfied, but Jim properly rejected the order. 
C)  Jim wins because although a contract was created over the phone, Jim properly rejected the order. 
D)  Tom wins because a contract was created when he sent his e-mail and Jim did not properly reject the order. 
E)  Tom wins because an irrevocable contract was created when Jim placed his order over the phone. 
A)  Jim wins because the Statute of Frauds has not been satisfied. 
B)  Jim wins because the Statute of Frauds has been satisfied, but Jim properly rejected the order. 
C)  Jim wins because although a contract was created over the phone, Jim properly rejected the order. 
D)  Tom wins because a contract was created when he sent his e-mail and Jim did not properly reject the order. 
E)  Tom wins because an irrevocable contract was created when Jim placed his order over the phone.

Question 20

What is the difference between proposed additions and the "Battle of the Forms" doctrine?

Accepted Answer

A)  Proposed additions arise between merchants and non-merchants, but Battle of the Forms" arises between merchants. 
B)  Proposed additions arise between only merchants and "Battle of the Forms" only arises between non-merchants. 
C)  Proposed additions and "Battle of the Forms" arise between both merchants and non-merchants. 
D)  A contract is made when proposed additions are made, but not when there is a "Battle of the Forms." 
E)  There is no difference between proposed additions and the "Battle of the Forms" doctrine. 
A)  Proposed additions arise between merchants and non-merchants, but Battle of the Forms" arises between merchants. 
B)  Proposed additions arise between only merchants and "Battle of the Forms" only arises between non-merchants. 
C)  Proposed additions and "Battle of the Forms" arise between both merchants and non-merchants. 
D)  A contract is made when proposed additions are made, but not when there is a "Battle of the Forms." 
E)  There is no difference between proposed additions and the "Battle of the Forms" doctrine.

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

In order to be governed by Article 2 of the UCC,goods must be both movable and tangible.

A finance lease is a three-party transaction.

The UCC requires that lease contracts,but not sale contracts,be in writing.

In a contract dispute,would a non-merchant benefit more from the provisions of the UCC Article 2 and Article 2A or under the common law?

If an oral modification brings a contract within the Statute of Frauds,then it must be in writing to be enforceable.

A shipment of nonconforming goods offered as an accommodation constitutes an acceptance by the seller and a breach of contract.

Article 2 and 2A and Revised Article 2 and 2A contain the same monetary thresholds for contracts and leases that must be in writing.

What is the main difference between Articles 2 and 2A and Revised Articles 2 and 2A?

What is an accommodation shipment? Would an accommodation shipment be considered a breach of contract under the common law? How does an accommodation shipment further the purposes of the UCC.

The sale of stock is covered by Article 2 of the UCC.

A contract may be exempt from the Statute of Frauds requirement if it deals with specially manufactured goods.

Mike's Dress Mart calls a manufacturer and offers to purchase 100 dresses specifying a particular style number and asking for assorted sized in blue and red.The manufacturer can only accept this offer:

Alan rents textbooks from a law school website.The website requires Alan to sign an electronic contract.Which provision of the UCC would cover Alan's transaction?

Electronic contracts are not covered by the UCC.

Sarah calls John and orders 500 t-shirts over the phone.The t-shirts cost $10,000.John delivers and Sarah accepts 250 of the t-shirts.Before John can deliver the other t-shirts,Sarah cancels the order.Sarah refuses to pay for any of the t-shirts.John sues,who wins?

The parol evidence rule would not allow which of the following items into evidence when interpreting a written contract?

What is the difference between proposed additions and the "Battle of the Forms" doctrine?

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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