Exam 12: UCC Sales Contracts, Leases, and Warranties

Sam expressed interest in buying a painting from Jasper,whose asking price was $15,000.Sam was only willing to offer $13,000.Jasper told him that it was a very old painting worth a fortune and that others would gladly pay $20,000 for it.Sam decided to buy the painting for $15,000 on the condition that if he found that the painting was worth less than $15,000,Jasper would have to take the painting back and refund Sam.Which of the following warranties did this sales contract have?

Under which of the following transactions does title to goods pass from the seller to the buyer?

A seller's or lessor's statement of opinion or commendation of the goods does not create an express warranty.

Which of the following constitutes an implied warranty?

If a person buys a computer,the sales contract for it would be subject to Article 2 of the UCC.

Implied warranties of quality cannot be disclaimed.

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 a(n)________.

What is the difference between a full warranty and a limited warranty?

The term ________ refers to a situation in which a thief acquires no title to goods he or she steals.

Larry,a merchant seller,had contracted with Simon to buy welding equipment.The contract stipulated that Larry would pick up the equipment from Simon's warehouse on the 14ᵗʰ day from the date of the contract.Larry could not make the pick-up on the stipulated date and before he could do so on the 15ᵗʰ day,the warehouse and its contents were destroyed by arsonists.In this situation,who bears the risk of loss for the goods that were to be received by Larry?

Article 2 of the UCC applies to sales contracts for the sale of intangible goods.

What is the passage of title to goods?

The ________ requires all contracts for the sale of goods costing $500 or more and lease contracts involving payments of $1,000 or more to be in writing.

Which of the following would constitute the creation of an express warranty for goods?

Article 2A of the UCC deals with lessors and lessees.

A ________ is a seller's or lessor's express or implied assurance to a buyer or lessee that the goods sold or leased meet certain quality standards.

In a destination contract,the ________ bears the risk of loss of the goods during their transportation.

The firm offer rule allows the offeror to revoke an offer at any point of time prior to the acceptance.

Whistle Cabs,a taxi service company,has been ordered by the traffic department to upgrade its taxi meters to digital ones.Whistle Cabs contemplates a sales contract with Running Electricals,a company that manufactures digital taxi meters.Due to short notice from the city and a lack of funding,however,Whistle Cabs instead approaches Goldmint Bank,which purchases the digital taxi meters from Running Electricals and delivers them to Whistle Cabs.The contract between Whistle Cabs and Goldmint Bank allows the taxi service company to use the taxi meters for a set period of time by providing monthly rentals.What is the nature of the contract made between Whistle Cabs and Goldmint Bank?

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