Question 1

A license which places the license terms on the outside of a box containing software is referred to as which of the following?

Accepted Answer

A)  Click-wrap license 
B)  Browse-wrap agreement 
C)  Shrink-wrap license 
D)  Computer-license agreement 
A)  Click-wrap license 
B)  Browse-wrap agreement 
C)  Shrink-wrap license 
D)  Computer-license agreement

Question 2

Under the UCC statute of frauds,which of the following terms must be in a writing order to satisfy the statute?

Accepted Answer

A)  The price 
B)  The quantity 
C)  The identity of the parties 
D)  The time and place for delivery 
A)  The price 
B)  The quantity 
C)  The identity of the parties 
D)  The time and place for delivery

Question 3

Indicate how a seller may disclaim warranties under the UCC.

Accepted Answer

The seller need not make any express war

Question 4

If a sales contract requires or authorizes the seller to ship goods by carrier,when does the risk of loss pass to the buyer if the contract does not require delivery at a particular destination?

Accepted Answer

A)  At the time the goods are properly delivered to the carrier. 
B)  At the time the carrier tenders the goods to the buyer. 
C)  At the time the contract is initially entered into. 
D)  Not until the buyer has received the goods and had a chance to inspect them. 
A)  At the time the goods are properly delivered to the carrier. 
B)  At the time the carrier tenders the goods to the buyer. 
C)  At the time the contract is initially entered into. 
D)  Not until the buyer has received the goods and had a chance to inspect them.

Question 5

As defined by the UCC,"good faith" involves the observance of objective reasonable commercial standards of fair dealing but there is no requirement as to honesty in fact.

Accepted Answer

A) True 
 B)False

Question 6

Polly sold Jason a used car for $1,000. Their contract provided that the engine in the car was in good shape,a true statement as far as Polly knew. Unfortunately,the day after Jason purchased the car,it broke down and was discovered to have significant engine problems. Jason told Polly that he wanted a refund. Polly told him that he was not entitled to a refund because she did not lie and that as far as she knew,there was nothing wrong with the car. Which of the following is true?

Accepted Answer

A)  Jason is entitled to a refund because of a breach of an express warranty. 
B)  Jason is entitled to a refund because of a breach of the implied warranty of fitness for a particular purpose. 
C)  Jason is entitled to a refund only if he can obtain evidence that Polly lied. 
D)  Jason is not entitled to a refund under any circumstances because the vehicle was used. 
A)  Jason is entitled to a refund because of a breach of an express warranty. 
B)  Jason is entitled to a refund because of a breach of the implied warranty of fitness for a particular purpose. 
C)  Jason is entitled to a refund only if he can obtain evidence that Polly lied. 
D)  Jason is not entitled to a refund under any circumstances because the vehicle was used.

Question 7

Between merchants,what is the affect of an acceptance that includes additional terms without expressly making the contract subject to the offeror's agreeing to those terms?

Accepted Answer

The additional provisions in the accepta

Question 8

UCC Section 2-319 expressly authorizes the buyer and seller to allocate the risk of ________ between them as they see fit.

Accepted Answer

A)  damages 
B)  specific performance 
C)  modification 
D)  loss 
A)  damages 
B)  specific performance 
C)  modification 
D)  loss

Question 9

A contract is ________ if its terms are unduly harsh or oppressive or unreasonably favorable to one side.

Accepted Answer

A)  substantively unconscionable 
B)  procedurally unconscionable 
C)  procedurally impracticable 
D)  substantively impracticable 
A)  substantively unconscionable 
B)  procedurally unconscionable 
C)  procedurally impracticable 
D)  substantively impracticable

Question 10

What are items of personal property that are attached to real property and cannot be removed without substantial damage called?

Accepted Answer

A)  Connectors 
B)  Relaters 
C)  Entanglements 
D)  Fixtures 
A)  Connectors 
B)  Relaters 
C)  Entanglements 
D)  Fixtures

Question 11

Which of the following was the result in Richardson v.Union Carbide Industrial Gases,Inc.,the case in the text involving the effect of contradictory terms in pre-printed forms?

Accepted Answer

A)  The court applied the rule that the offeror's terms control. 
B)  The court applied the rule that the offeree's terms control. 
C)  The court applied the knockout rule and found that the conflicting terms fell out of the contract. 
D)  The court adopted the assimilation view whereby terms of the offer prevail over the different terms in the acceptance only if the latter are materially different. 
A)  The court applied the rule that the offeror's terms control. 
B)  The court applied the rule that the offeree's terms control. 
C)  The court applied the knockout rule and found that the conflicting terms fell out of the contract. 
D)  The court adopted the assimilation view whereby terms of the offer prevail over the different terms in the acceptance only if the latter are materially different.

Question 12

Ricardo develops a new type of software and asks you how he should go about making money through distribution of it. He has been told that he should sell the software as opposed to issuing licenses for its use. What should you tell him?

Accepted Answer

A)  That by selling, rather than by licensing, a software vendor can avoid the doctrine of first sale, which allows a lawful owner to sell or otherwise dispose of the copy. 
B)  That by licensing, rather than by selling, a software vendor can avoid the doctrine of first sale, which allows a lawful owner to sell or otherwise dispose of the copy. 
C)  That selling is the only reasonable alternative because computer programs are not copyrightable. 
D)  That licensing is the only reasonable alternative because computer programs are not copyrightable. 
A)  That by selling, rather than by licensing, a software vendor can avoid the doctrine of first sale, which allows a lawful owner to sell or otherwise dispose of the copy. 
B)  That by licensing, rather than by selling, a software vendor can avoid the doctrine of first sale, which allows a lawful owner to sell or otherwise dispose of the copy. 
C)  That selling is the only reasonable alternative because computer programs are not copyrightable. 
D)  That licensing is the only reasonable alternative because computer programs are not copyrightable.

Question 13

The UCC requires an obligation of good faith in the performance of every contract or duty covered by the act.

Accepted Answer

A) True 
 B)False

Question 14

If a sales contract requires the seller to ship the goods by carrier and specifies the destination,the risk of loss passes to the buyer

Accepted Answer

A)  when the goods are properly delivered to the carrier. 
B)  when the carrier tenders the goods to the buyer at the specified destination. 
C)  when the contract is finalized. 
D)  when the seller pays for the goods. 
A)  when the goods are properly delivered to the carrier. 
B)  when the carrier tenders the goods to the buyer at the specified destination. 
C)  when the contract is finalized. 
D)  when the seller pays for the goods.

Question 15

Under the UCC,the implied warranty of merchantability guarantees that the goods are reasonably fit for the general purposes for which they are sold,and that they are properly packaged and labeled.

Accepted Answer

A) True 
 B)False

Question 16

Chris sold Valerie a home containing a wood stove which could not be removed from the home without causing substantial damage. Shortly after the sale,Valerie sustained significant smoke damage due to a malfunction of the stove. She told Chris that she was going to sue him under the UCC. Chris told her that was not possible. Which of the following is true?

Accepted Answer

A)  Chris is correct because the stove would likely be a fixture not covered by the UCC. 
B)  Valerie is correct because the stove would likely be a fixture covered by the UCC. 
C)  Valerie is correct because the stove would not be considered a fixture and would, therefore, be covered by the UCC. 
D)  Valerie is correct because the sale of the home would be covered under the UCC along with anything else sold with the home. 
A)  Chris is correct because the stove would likely be a fixture not covered by the UCC. 
B)  Valerie is correct because the stove would likely be a fixture covered by the UCC. 
C)  Valerie is correct because the stove would not be considered a fixture and would, therefore, be covered by the UCC. 
D)  Valerie is correct because the sale of the home would be covered under the UCC along with anything else sold with the home.

Question 17

A product liability action brought in tort generally permits recovery of economic damages suffered by a purchaser of an inferior or defective product whereas a breach of warranty action would not allow such a claim.

Accepted Answer

A) True 
 B)False

Question 18

According to the UCC,if no amount of time is specifically stated,a firm offer provided by a merchant must be kept open for a reasonable period of time,up to _____.

Accepted Answer

A)  one year 
B)  six months 
C)  three months 
D)  sixty days 
A)  one year 
B)  six months 
C)  three months 
D)  sixty days

Question 19

To which of the following does Article 2 of the UCC apply?

Accepted Answer

A)  The sale of goods. 
B)  The rendering of services. 
C)  The sale of land. 
D)  Both the sale of goods and the rendering of services. 
A)  The sale of goods. 
B)  The rendering of services. 
C)  The sale of land. 
D)  Both the sale of goods and the rendering of services.

Question 20

The Uniform Computer Information Transactions Act is a federal law.

Accepted Answer

A) True 
 B)False

Exam 8: sales,licensing,and e-commerce

A license which places the license terms on the outside of a box containing software is referred to as which of the following?

Under the UCC statute of frauds,which of the following terms must be in a writing order to satisfy the statute?

Indicate how a seller may disclaim warranties under the UCC.

If a sales contract requires or authorizes the seller to ship goods by carrier,when does the risk of loss pass to the buyer if the contract does not require delivery at a particular destination?

As defined by the UCC,"good faith" involves the observance of objective reasonable commercial standards of fair dealing but there is no requirement as to honesty in fact.

Between merchants,what is the affect of an acceptance that includes additional terms without expressly making the contract subject to the offeror's agreeing to those terms?

UCC Section 2-319 expressly authorizes the buyer and seller to allocate the risk of ________ between them as they see fit.

A contract is ________ if its terms are unduly harsh or oppressive or unreasonably favorable to one side.

What are items of personal property that are attached to real property and cannot be removed without substantial damage called?

Which of the following was the result in Richardson v.Union Carbide Industrial Gases,Inc.,the case in the text involving the effect of contradictory terms in pre-printed forms?

Ricardo develops a new type of software and asks you how he should go about making money through distribution of it. He has been told that he should sell the software as opposed to issuing licenses for its use. What should you tell him?

The UCC requires an obligation of good faith in the performance of every contract or duty covered by the act.

If a sales contract requires the seller to ship the goods by carrier and specifies the destination,the risk of loss passes to the buyer

Under the UCC,the implied warranty of merchantability guarantees that the goods are reasonably fit for the general purposes for which they are sold,and that they are properly packaged and labeled.

A product liability action brought in tort generally permits recovery of economic damages suffered by a purchaser of an inferior or defective product whereas a breach of warranty action would not allow such a claim.

According to the UCC,if no amount of time is specifically stated,a firm offer provided by a merchant must be kept open for a reasonable period of time,up to _____.

To which of the following does Article 2 of the UCC apply?

The Uniform Computer Information Transactions Act is a federal law.

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