Question 1

The UCC applies to a mixed sale:

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 
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

Question 2

In a lease,the lessee does not acquire title to the leased goods.

Accepted Answer

A) True 
 B)False

Question 3

A newly opened retailer contracted with a computer component manufacturer for the purchase of some accessory keyboards.The contract was very detailed,specifying all aspects of the contract except for the quantity.Under these circumstances,a court would most likely:

Accepted Answer

A)  enforce the contract,filling in the gap with a reasonable quantity 
B)  order the parties to reach agreement regarding the number of keyboards to be purchased 
C)  not enforce the contract because it would be impossible to determine the number of keyboards that would be a reasonable quantity 
D)  set the quantity based on the seller's average sale quantity to similar retailers 
A)  enforce the contract,filling in the gap with a reasonable quantity 
B)  order the parties to reach agreement regarding the number of keyboards to be purchased 
C)  not enforce the contract because it would be impossible to determine the number of keyboards that would be a reasonable quantity 
D)  set the quantity based on the seller's average sale quantity to similar retailers

Question 4

Under Article 2 of the UCC,there are detailed rules for the proper methods of acceptance in various situations.

Accepted Answer

A) True 
 B)False

Question 5

Bob is a biology teacher whose hobby is refinishing antique furniture.Bob shops yard sales and estate auctions looking for nice antiques to refinish.The problem is that Bob can never pass up a bargain and purchases items at garage sales that he later realizes he doesn't have room for or doesn't want.Sometimes among these purchases are pieces of furniture that do not need refinishing.Thus,Bob has a problem accumulating too many things and has a garage full of items he plans to refinish and other "bargains" he could not pass up.To solve this problem,Bob has a yard sale at his home two or three times a year.He is careful never to have four sales in 1 year because his city requires a business license for four or more sales in 1 year.At one of his yard sales,he has a nice antique dining room table and chairs for sale for $600.Mike,a garage sale shopper,sees the table and is very interested in it.Mike says,"I'll give you full asking price,but I can't know for sure until my wife sees it and likes it also.Can you hold it until 3 p.m.? I know my wife and I can be back by then." Bob gives Mike a small piece of paper on which he has written,"I will give Mike Smith until 3 p.m.to decide whether to purchase the dining room table and chairs for $600." When Mike returns at 2 p.m.with his wife,he sees the table and chairs in the back of a truck as the truck pulls away.Mike wants to know whether he has a case against Bob.Discuss.

Accepted Answer

Whether Bob's writing is a firm offer un

Question 6

Mary runs a clothing store near a college campus.In the winter,Mary was preparing to order some T-shirts and shorts for the upcoming summer.She prepared an order on her stationery for "1,000 T-shirts of assorted sizes; S,M,L,and XL; 800 in royal blue,the other 200 in assorted colors." For the shorts her order read,"1,000 pairs of shorts,assorted sizes; approximately equal quantities of white,black,khaki,and olive." She sent the order to the clothing maker and about a week later received an order confirmation on their sales order form.She glanced at it and the wording for her order was the exact same as she had sent in.When she received the merchandise a month later,there were only 150 royal blue shirts,and the others were various assorted colors.There were only 50 pairs of white shorts,with the other 950 approximately equal quantities of the other three colors.Mary looked back at the sales order and noticed a provision in the fine print that the clothing maker could substitute different colors for what was ordered.Mary claims that the clothing maker has breached the agreement.The different colors shouldn't affect the sales of the shorts,but she ordered the royal blue shirts because that is the local university's predominant school color.Discuss Mary's situation.

Accepted Answer

This is the classic battle of the forms

Question 7

Company A signs a lease contract with Company B on Monday.The signor leaves the contract on his desk until Tuesday.The contract is brought to the post office on Tuesday afternoon.The post office temporarily misplaces the document,and does not locate it until Thursday.The contract is delivered to Company B on Friday.At what point was the contract accepted?

Accepted Answer

A)  upon the signing of the document by Company A on Monday 
B)  upon delivery of the document to the post office on Tuesday 
C)  upon the relocating of the document by the post office on Thursday 
D)  upon delivery of the document to Company B on Friday 
A)  upon the signing of the document by Company A on Monday 
B)  upon delivery of the document to the post office on Tuesday 
C)  upon the relocating of the document by the post office on Thursday 
D)  upon delivery of the document to Company B on Friday

Question 8

Seller offers to sell to Buyer 1,000 widgets at $5 each.Buyer responds in writing,stating that Buyer accepts the offer,but at a reduced price of $4.95.Seller refuses to deliver at this price.Buyer sues.Both parties are merchants.In this situation,which of the following is true?

Accepted Answer

A)  There is no contract. 
B)  There is a contract; the $4.95 price is an additional term,which becomes part of the contract because it is not material. 
C)  There is a contract; the $4.95 price is an additional term,which does not become part of the contract because it is material. 
D)  This is a firm offer. 
A)  There is no contract. 
B)  There is a contract; the $4.95 price is an additional term,which becomes part of the contract because it is not material. 
C)  There is a contract; the $4.95 price is an additional term,which does not become part of the contract because it is material. 
D)  This is a firm offer.

Question 9

JetRed Airlines wants a new plane that is manufactured by the Boeing Corporation.A local bank agrees to purchase the plane from Boeing,and lease the aircraft to JetRed.The plane is delivered directly to JetRed.Who is the lessor in this arrangement?

Accepted Answer

A)  Boeing Corporation 
B)  the bank 
C)  JetRed Airlines 
D)  none of the above 
A)  Boeing Corporation 
B)  the bank 
C)  JetRed Airlines 
D)  none of the above

Question 10

Under the Uniform Commercial Code,it is possible for a nonmerchant to be liable on a contract for the sale of goods of $500 or more without having signed any writing.

Accepted Answer

A) True 
 B)False

Question 11

Article 2 of the UCC applies to transactions in goods.

Accepted Answer

A) True 
 B)False

Question 12

A buyer agrees to purchase "two cars" from an elevator company.All material terms are contained in a written contract,but "two cars" is not further defined.Which of the following evidence can be admitted if there is a dispute over what "two cars" refers to?

Accepted Answer

A)  Oral evidence that before the signing of the contract the parties intended the contract to be for the purchase of three cars. 
B)  Oral evidence that before the signing of the written agreement the elevator company said it would extend its normal 1-year warranty (which is stated in the written contract) to 2 years. 
C)  Oral evidence that the word "car" refers to an elevator,since that is normal in the elevator industry,and that it does not refer to any of the company's automobiles. 
D)  Written evidence from prior to the signing of the written contract that the parties intended the contract to be for the purchase of three cars. 
A)  Oral evidence that before the signing of the contract the parties intended the contract to be for the purchase of three cars. 
B)  Oral evidence that before the signing of the written agreement the elevator company said it would extend its normal 1-year warranty (which is stated in the written contract) to 2 years. 
C)  Oral evidence that the word "car" refers to an elevator,since that is normal in the elevator industry,and that it does not refer to any of the company's automobiles. 
D)  Written evidence from prior to the signing of the written contract that the parties intended the contract to be for the purchase of three cars.

Question 13

Why did contract law develop for hundreds of years and function well without a Uniform Commercial Code? Why did any need for standardized laws from one jurisdiction to another not get addressed until the beginning of the twentieth century?

Accepted Answer

It was not until the industria

Question 14

The UCC applies to contracts for services as well as to contracts for the sale of goods.

Accepted Answer

A) True 
 B)False

Question 15

Growing crops that are severable from real estate may be classified as goods and subject to Article 2.

Accepted Answer

A) True 
 B)False

Question 16

Sales of stocks and bonds are covered by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 17

The lessee is the party who holds himself or herself out as having knowledge or skill peculiar to the goods involved in the transaction.

Accepted Answer

A) True 
 B)False

Question 18

Under the UCC,the mirror-image rule applies in the same manner as under common law.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not true about Article 2A of the UCC?

Accepted Answer

A)  Many of its provision are similar to corresponding provisions of Article 2. 
B)  The primary motivation in creating a separate Article for leases was to address those areas where the sales provisions didn't exactly fit a lease transaction. 
C)  Article 2A was drafted in the late 1950s,a few years after Article 2 was drafted. 
D)  Consumer leases are defined as having a maximum value of $25,000. 
A)  Many of its provision are similar to corresponding provisions of Article 2. 
B)  The primary motivation in creating a separate Article for leases was to address those areas where the sales provisions didn't exactly fit a lease transaction. 
C)  Article 2A was drafted in the late 1950s,a few years after Article 2 was drafted. 
D)  Consumer leases are defined as having a maximum value of $25,000.

Question 20

Under Article 2 of the UCC,a contract is usually enforceable even if which of the following terms is omitted:

Accepted Answer

A)  price 
B)  quantity 
C)  price or quantity 
D)  neither price nor quantity may be omitted 
A)  price 
B)  quantity 
C)  price or quantity 
D)  neither price nor quantity may be omitted

Exam 18: Formation of Sales and Lease Contracts

The UCC applies to a mixed sale:

In a lease,the lessee does not acquire title to the leased goods.

A newly opened retailer contracted with a computer component manufacturer for the purchase of some accessory keyboards.The contract was very detailed,specifying all aspects of the contract except for the quantity.Under these circumstances,a court would most likely:

Under Article 2 of the UCC,there are detailed rules for the proper methods of acceptance in various situations.

Seller offers to sell to Buyer 1,000 widgets at $5 each.Buyer responds in writing,stating that Buyer accepts the offer,but at a reduced price of $4.95.Seller refuses to deliver at this price.Buyer sues.Both parties are merchants.In this situation,which of the following is true?

JetRed Airlines wants a new plane that is manufactured by the Boeing Corporation.A local bank agrees to purchase the plane from Boeing,and lease the aircraft to JetRed.The plane is delivered directly to JetRed.Who is the lessor in this arrangement?

Under the Uniform Commercial Code,it is possible for a nonmerchant to be liable on a contract for the sale of goods of $500 or more without having signed any writing.

Article 2 of the UCC applies to transactions in goods.

A buyer agrees to purchase "two cars" from an elevator company.All material terms are contained in a written contract,but "two cars" is not further defined.Which of the following evidence can be admitted if there is a dispute over what "two cars" refers to?

Why did contract law develop for hundreds of years and function well without a Uniform Commercial Code? Why did any need for standardized laws from one jurisdiction to another not get addressed until the beginning of the twentieth century?

The UCC applies to contracts for services as well as to contracts for the sale of goods.

Growing crops that are severable from real estate may be classified as goods and subject to Article 2.

Sales of stocks and bonds are covered by Article 2 of the UCC.

The lessee is the party who holds himself or herself out as having knowledge or skill peculiar to the goods involved in the transaction.

Under the UCC,the mirror-image rule applies in the same manner as under common law.

Which of the following is not true about Article 2A of the UCC?

Under Article 2 of the UCC,a contract is usually enforceable even if which of the following terms is omitted:

Legal Heritage and the Information Age

Court Systems and Jurisdiction

Judicial, Alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Strict Liability and Product Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Internet Law and E-Commerce

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Sales and Lease Warranties

Creation of Negotiable Instruments

Transferability and Holder In Due Course

Liability,Defenses and Discharge

Checks, the Banking System, and E-Money

Creditor's and Debtor's Rights

Secured Transactions and Electronic Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment,Worker Protection,and Immigration Laws

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Businesses, Entrepreneurs, and General Partnerships

Limited Partnerships and Limited Liability Limited Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Business

Investor Protection and Online Securities Transactions

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection and Global Warming

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord Tenant Law and Land Use Regulation

Insurance

Accountants' Liability

Wills, Trusts, and Elder Law

Family Law

International and World Trade Law

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