Question 1

According to the gap-filling rule, if a sales contract does not contain a specific price, ________.

Accepted Answer

A) the contract has to be redrafted to include a price 
B) the contract is considered void due to indefiniteness 
C) the contract can be enforced by either party by fixing an open term price 
D) the contract cannot be enforced upon the buyee 
A) the contract has to be redrafted to include a price 
B) the contract is considered void due to indefiniteness 
C) the contract can be enforced by either party by fixing an open term price 
D) the contract cannot be enforced upon the buyee

Question 2

Article 5 of the UCC governs ________.

Accepted Answer

A) sales of intangible goods 
B) finance leases 
C) letters of credit 
D) general provisions 
A) sales of intangible goods 
B) finance leases 
C) letters of credit 
D) general provisions

Question 3

As per the UCC law of sales, contract modifications do not require considerations.

Accepted Answer

A) True 
 B)False

Question 4

In which of the following situations involving oral contracts can the Statute of Frauds be raised?

Accepted Answer

A) if a written confirmation has not been objected by a party in an oral agreement 
B) if the seller of specially manufactured goods has made a commitment for their procurement 
C) if the party against whom enforcement of an oral contract is sought has not admitted in pleadings in court of such a contract 
D) when a contract that requires written confirmation has been agreed orally 
A) if a written confirmation has not been objected by a party in an oral agreement 
B) if the seller of specially manufactured goods has made a commitment for their procurement 
C) if the party against whom enforcement of an oral contract is sought has not admitted in pleadings in court of such a contract 
D) when a contract that requires written confirmation has been agreed orally

Question 5

The open price term requires for a contract to mention a specific price.

Accepted Answer

A) True 
 B)False

Question 6

The formation of sales and lease contracts requires consideration.

Accepted Answer

A) True 
 B)False

Question 7

A contract is created when ________.

Accepted Answer

A) the acceptance has been received by the offeror 
B) an acknowledgement is sent by the offeror to the offeree of receiving an acceptance 
C) the offeree dispatches the acceptance 
D) a written acceptance has been passed between the offeror and the offeree 
A) the acceptance has been received by the offeror 
B) an acknowledgement is sent by the offeror to the offeree of receiving an acceptance 
C) the offeree dispatches the acceptance 
D) a written acceptance has been passed between the offeror and the offeree

Question 8

Stelwire LLC, a vintage car dealer, advertises the sale of a 1964 Ford Thunderbolt.Ralph responds to the advertisement with an offer of $80, 000 for the car.Stelwire signs a written assurance to keep that offer open to Ralph for a fortnight.Five days before the fortnight is up, Stelwire sells the car to another buyer.At the end of the fortnight period, Ralph tenders $80, 000 for the car, but the car has already been sold.Ralph then buys the same model car from another dealer for $90, 000 and sues Stelwire for breach of contract.The court rules that Stelwire is liable to Ralph for breach of contract, and orders Stelwire to pay Ralph the difference of $10, 000 he paid extra to the second dealer for the car.
-What was the nature of the contract between Ralph and Stelwire?

Accepted Answer

A) counteroffer 
B) open terms contract 
C) option contract 
D) lease contract 
A) counteroffer 
B) open terms contract 
C) option contract 
D) lease contract

Question 9

The rule states that a merchant who offers to buy, sell, or lease goods and gives a written and signed assurance on a separate form that the offer will be held open cannot revoke the offer for the time stated or, if no time is stated, for a reasonable time is referred to as ________.

Accepted Answer

A) gap-filling rule 
B) firm-offer rule 
C) mirror image rule 
D) open term rule 
A) gap-filling rule 
B) firm-offer rule 
C) mirror image rule 
D) open term rule

Question 10

Under the UCC, if the time, place, and manner of delivery of goods are not mentioned in a contract, ________.

Accepted Answer

A) the place of delivery is the buyer's place of business 
B) the contract is void for lack of definiteness 
C) the place of delivery is the seller's place of business 
D) the seller is obligated to pay for shipping to the buyer's place of business 
A) the place of delivery is the buyer's place of business 
B) the contract is void for lack of definiteness 
C) the place of delivery is the seller's place of business 
D) the seller is obligated to pay for shipping to the buyer's place of business

Question 11

A computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual, is known as ________.

Accepted Answer

A) electronic agent 
B) electronic record 
C) digital mapper 
D) automation 
A) electronic agent 
B) electronic record 
C) digital mapper 
D) automation

Question 12

Under the common law, a written contract must be signed by the party against whom enforcement is sought.

Accepted Answer

A) True 
 B)False

Question 13

A contract is only created when the offeror receives the offeree's acceptance.

Accepted Answer

A) True 
 B)False

Question 14

The common law of contract allows for gap-filling terms that are implied in the contract.

Accepted Answer

A) True 
 B)False

Question 15

When is the course of performance considered in a written contract?

Accepted Answer

A) when oral modification is required for a written contract 
B) when a sale or lease contract is not evidenced by writing 
C) when the express terms of a written contract are not clear 
D) when there is a prior oral or written agreement statement contradicting the written agreement 
A) when oral modification is required for a written contract 
B) when a sale or lease contract is not evidenced by writing 
C) when the express terms of a written contract are not clear 
D) when there is a prior oral or written agreement statement contradicting the written agreement

Question 16

Which of the following is true for goods under the purview of Article 2 of the UCC?

Accepted Answer

A) Goods can be replaced by money. 
B) Intangible goods must be exchanged with other intangible goods. 
C) Goods in the contract must be movable. 
D) Immovable goods like real estate must have provisions of service attached to their contracts. 
A) Goods can be replaced by money. 
B) Intangible goods must be exchanged with other intangible goods. 
C) Goods in the contract must be movable. 
D) Immovable goods like real estate must have provisions of service attached to their contracts.

Question 17

The mirror image rule is the default form of acceptance under the UCC.

Accepted Answer

A) True 
 B)False

Question 18

A ________ is defined as the passing of title of goods from a seller to a buyer for a price.

Accepted Answer

A) lease 
B) sale 
C) loan 
D) gift 
A) lease 
B) sale 
C) loan 
D) gift

Question 19

Under the UCC, the offeree's acceptance must be a mirror image rule acceptance.

Accepted Answer

A) True 
 B)False

Question 20

The written confirmation rule requires that both parties to an oral agreement send written confirmation of the sale or lease.

Accepted Answer

A) True 
 B)False

Exam 18: Formation of Sales and Lease Contracts

According to the gap-filling rule, if a sales contract does not contain a specific price, ________.

Article 5 of the UCC governs ________.

As per the UCC law of sales, contract modifications do not require considerations.

In which of the following situations involving oral contracts can the Statute of Frauds be raised?

The open price term requires for a contract to mention a specific price.

The formation of sales and lease contracts requires consideration.

A contract is created when ________.

The rule states that a merchant who offers to buy, sell, or lease goods and gives a written and signed assurance on a separate form that the offer will be held open cannot revoke the offer for the time stated or, if no time is stated, for a reasonable time is referred to as ________.

Under the UCC, if the time, place, and manner of delivery of goods are not mentioned in a contract, ________.

A computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual, is known as ________.

Under the common law, a written contract must be signed by the party against whom enforcement is sought.

A contract is only created when the offeror receives the offeree's acceptance.

The common law of contract allows for gap-filling terms that are implied in the contract.

When is the course of performance considered in a written contract?

Which of the following is true for goods under the purview of Article 2 of the UCC?

The mirror image rule is the default form of acceptance under the UCC.

A ________ is defined as the passing of title of goods from a seller to a buyer for a price.

Under the UCC, the offeree's acceptance must be a mirror image rule acceptance.

The written confirmation rule requires that both parties to an oral agreement send written confirmation of the sale or lease.

Legal Heritage and the Digital Age

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Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

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Consideration and Promissory Estoppel

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Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

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Holder in Due Course and Transferability

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