Question 1

Which of the following statements is not true about a finance lease as defined in Article 2A of the UCC?

Accepted Answer

A)  A finance lease is a two-party transaction where the lessor sells the goods to the lessee and provides the financing of the goods. 
B)  A finance lease results in the title being transferred from the seller of the goods to the lessor. 
C)  The UCC covers all finance lease transactions regardless of the dollar amount of the lease. 
D)  Once the lease term begins,the seller generally is no longer involved in the transaction. 
E)  The lessor is usually not involved in manufacturing or supplying the goods to the lessee. 
A)  A finance lease is a two-party transaction where the lessor sells the goods to the lessee and provides the financing of the goods. 
B)  A finance lease results in the title being transferred from the seller of the goods to the lessor. 
C)  The UCC covers all finance lease transactions regardless of the dollar amount of the lease. 
D)  Once the lease term begins,the seller generally is no longer involved in the transaction. 
E)  The lessor is usually not involved in manufacturing or supplying the goods to the lessee.

Question 2

If a homeowner sells a used lawn mower to his neighbor,Article 2 of the UCC does not apply.

Accepted Answer

A) True 
 B)False

Question 3

A buyer who is not a merchant in boats is at a boat store and orally agrees to purchase a sailboat for $2,000.The buyer sends a written confirmation to the boat dealer the next day describing all relevant terms of their agreement.When the buyer goes to the store a week later to pick up the boat,the store refuses to sell the boat for $2,000.Which is true?

Accepted Answer

A)  This contract is not enforceable because it is not in writing. 
B)  This contract is enforceable because the boat dealer did not object to the written confirmation. 
C)  This contract is enforceable if $2,000 is a reasonable price for the boat. 
D)  This contract is enforceable because the boat dealer is a merchant. 
E)  The firm offer rule would require the boat to be sold at the offered price of $2,000. 
A)  This contract is not enforceable because it is not in writing. 
B)  This contract is enforceable because the boat dealer did not object to the written confirmation. 
C)  This contract is enforceable if $2,000 is a reasonable price for the boat. 
D)  This contract is enforceable because the boat dealer is a merchant. 
E)  The firm offer rule would require the boat to be sold at the offered price of $2,000.

Question 4

The common law of contracts governs if either Article 2 or Article 2A is silent on the issue.

Accepted Answer

A) True 
 B)False

Exam 18: Formation of Sales and Lease Contracts

Which of the following statements is not true about a finance lease as defined in Article 2A of the UCC?

If a homeowner sells a used lawn mower to his neighbor,Article 2 of the UCC does not apply.

The common law of contracts governs if either Article 2 or Article 2A is silent on the issue.

Legal Heritage and the Information Age

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Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

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Internet Law and E-Commerce

Title to Goods and Risk of Loss

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Sales and Lease Warranties

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