Question 1

For the firm offer rule to apply,who must be a merchant?

Accepted Answer

A)  the offeror 
B)  the offeree 
C)  both the offeror and the offeree 
D)  neither the offeror nor the offeree 
A)  the offeror 
B)  the offeree 
C)  both the offeror and the offeree 
D)  neither the offeror nor the offeree

Question 2

Under the UCC,courts will frequently enforce a contract that does not state a price.

Accepted Answer

A) True 
 B)False

Question 3

An order or other offer to buy goods which requires prompt or current shipment may be accepted by:

Accepted Answer

A)  a prompt shipment of conforming goods 
B)  a prompt shipment of nonconforming goods 
C)  a prompt promise to ship the goods 
D)  A,B,or C 
E)  A or B only 
A)  a prompt shipment of conforming goods 
B)  a prompt shipment of nonconforming goods 
C)  a prompt promise to ship the goods 
D)  A,B,or C 
E)  A or B only

Question 4

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 
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

Question 5

Articles 2 and 2A of the UCC cover which types of transactions:

Accepted Answer

A)  sales of goods and sales of real property 
B)  sales of goods and leases of goods or real property 
C)  sales of goods and contracts for the providing of services 
D)  sales of goods and leases of goods 
A)  sales of goods and sales of real property 
B)  sales of goods and leases of goods or real property 
C)  sales of goods and contracts for the providing of services 
D)  sales of goods and leases of goods

Question 6

An agreement modifying a sales or lease contract needs consideration to be binding.

Accepted Answer

A) True 
 B)False

Question 7

A homeowner orally contracted to buy some custom-made parts that the homeowner will use to build a retaining wall in the homeowner's back yard.The contract price for these materials was $2,000.The buyer refused to take delivery even though the materials were conforming.The seller is unable to sell these parts to anyone else because they were individually designed for the homeowner.In a lawsuit against the homeowner by the seller of the parts,which of the following is true?

Accepted Answer

A)  The UCC would not apply because these goods will become real property when installed by the homeowner. 
B)  This contract is not enforceable because the price is $500 or more. 
C)  This contract is not enforceable,assuming that the homeowner is not a merchant in the materials purchased. 
D)  This contract is fully enforceable even though it is not in writing. 
A)  The UCC would not apply because these goods will become real property when installed by the homeowner. 
B)  This contract is not enforceable because the price is $500 or more. 
C)  This contract is not enforceable,assuming that the homeowner is not a merchant in the materials purchased. 
D)  This contract is fully enforceable even though it is not in writing.

Question 8

Is it reasonable for certain provisions of the UCC to apply to merchants only or to apply differently to merchants than to nonmerchants? 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,which applie

Question 9

The installation of a pacemaker by a hospital is a sale of goods subject to Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 10

Under the UCC,if a purported acceptance to an offer contains additional terms:

Accepted Answer

A)  it is treated as a rejection and counteroffer 
B)  if both parties are merchants,there is a contract and the additional terms may or may not become part of the contract 
C)  if neither party is a merchant,there is no contract 
D)  it is treated as a counteroffer,but it does not reject the original offer 
A)  it is treated as a rejection and counteroffer 
B)  if both parties are merchants,there is a contract and the additional terms may or may not become part of the contract 
C)  if neither party is a merchant,there is no contract 
D)  it is treated as a counteroffer,but it does not reject the original offer

Question 11

A party that is a merchant in one transaction is a merchant for all transactions in which he/she is involved.

Accepted Answer

A) True 
 B)False

Question 12

Is the purpose of the UCC undermined by allowing nearly every one of its provisions to be made nonapplicable to a particular contract if the parties agree? Doesn't this interfere with the goal of the standardization of contract law? Why do you think that the UCC allows this?

Accepted Answer

Although standardization is a goal of th

Question 13

A general purpose of the UCC is to:

Accepted Answer

A)  protect the merchant who deals in goods 
B)  protect the consumer 
C)  standardize commercial law and facilitate commercial transactions 
D)  protect parties from entering into unconscionable contracts 
A)  protect the merchant who deals in goods 
B)  protect the consumer 
C)  standardize commercial law and facilitate commercial transactions 
D)  protect parties from entering into unconscionable contracts

Question 14

Under Article 2 of the UCC,acceptances are effective when dispatched.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true regarding sales contract terms left open under the UCC?

Accepted Answer

A)  Leaving terms open makes the contract unenforceable. 
B)  If not stated,the price is a "reasonable" price at the time of delivery. 
C)  The price may be fixed by a market,a third person,or another standard,if so provided in the contract. 
D)  A and C only are true. 
E)  B and C only are true. 
A)  Leaving terms open makes the contract unenforceable. 
B)  If not stated,the price is a "reasonable" price at the time of delivery. 
C)  The price may be fixed by a market,a third person,or another standard,if so provided in the contract. 
D)  A and C only are true. 
E)  B and C only are true.

Question 16

A small consulting firm entered into a contract with an office machine retailer to purchase a photocopier for $3,000.The contract included a service agreement.The consultants inquired into dropping the service agreement,but because that would lower the price by only $250,they decided to pay the $3,000.After using the copier for several months,it began to need a few service calls.The copier generally worked well,and the problems were minor,but there were problems with the service.Many times it would take a couple of days for a technician to arrive and take care of the problem.More frustrating was the fact that many of the problems required only minor adjustments.Other times parts were not available.The consultants read the provisions of the agreement relating to the servicing and concluded that there had been numerous breaches.In a dispute over the service,what laws would apply and why?

Accepted Answer

Because this contract is predominantly a

Question 17

Under the UCC,a court can find that a contract exists as long as the moment of its making is determined.

Accepted Answer

A) True 
 B)False

Question 18

A party is considered a merchant if that party holds herself out as having special knowledge of the goods involved in the transaction,even if she does not regularly deal in the goods.

Accepted Answer

A) True 
 B)False

Question 19

A sporting goods dealer is a merchant with respect to golf clubs but not if he sells a wheelbarrow to a neighbor.

Accepted Answer

A) True 
 B)False

Question 20

In order for title to pass from a seller to a buyer,the purchase of the good must be by cash.

Accepted Answer

A) True 
 B)False

Exam 18: Formation of Sales and Lease Contracts

For the firm offer rule to apply,who must be a merchant?

Under the UCC,courts will frequently enforce a contract that does not state a price.

An order or other offer to buy goods which requires prompt or current shipment may be accepted by:

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

Articles 2 and 2A of the UCC cover which types of transactions:

An agreement modifying a sales or lease contract needs consideration to be binding.

Is it reasonable for certain provisions of the UCC to apply to merchants only or to apply differently to merchants than to nonmerchants? 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?

The installation of a pacemaker by a hospital is a sale of goods subject to Article 2 of the UCC.

Under the UCC,if a purported acceptance to an offer contains additional terms:

A party that is a merchant in one transaction is a merchant for all transactions in which he/she is involved.

Is the purpose of the UCC undermined by allowing nearly every one of its provisions to be made nonapplicable to a particular contract if the parties agree? Doesn't this interfere with the goal of the standardization of contract law? Why do you think that the UCC allows this?

A general purpose of the UCC is to:

Under Article 2 of the UCC,acceptances are effective when dispatched.

Which of the following statements is true regarding sales contract terms left open under the UCC?

Under the UCC,a court can find that a contract exists as long as the moment of its making is determined.

A party is considered a merchant if that party holds herself out as having special knowledge of the goods involved in the transaction,even if she does not regularly deal in the goods.

A sporting goods dealer is a merchant with respect to golf clubs but not if he sells a wheelbarrow to a neighbor.

In order for title to pass from a seller to a buyer,the purchase of the good must be by cash.

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