Exam 19: Introduction to Sales and Leases

The CISG governs only the formation of the contract of sales and the rights and obligations of the seller and buyer. It does not cover the validity of the contract or any of its provisions.

Albert has a contract to buy 100 tables from Bartholomew at a price of $50 a table. Five days before Bartholomew is to deliver the tables, he calls Albert to say that he is sorry but $50 won't cover his costs, and he will now need at least $75 a table. Albert agrees, because he needs the tables for his special sale. The modified contract is enforceable even though Albert isn't getting any new consideration, so long as Bartholomew is acting in good faith and the agreement to the new price is put in writing.

The most important element in determining whether a sales contract has been made is the:

A contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations?

Substantive unconscionability involves scrutiny by the court for "bargaining naughtiness."

Which of the following is not true about auctions?

The Code provides that its remedies shall be liberally administered to place the aggrieved party in a position as good as the one she would have occupied had the defaulting party fully performed.

The UCC modifies the common law rule by requiring additional consideration for the modification of a contract.

In the Carter v. Tokai Financial Services, Inc. case, the agreement was found to:

"Goods" for purposes of the Code are essentially defined as tangible, movable, personal property.

Unless an auction is advertised or announced as being without reserve, the sale is with reserve, and the auctioneer may withdraw the goods at any time until he announces completion of the sale.

Under Article 2A:

A finance lease is a special type of lease transaction that generally involves three parties instead of two.

Which of the following is not true about a consumer lease under UCC Article 2A?

In determining whether a contract containing both a sale of goods and a service is a UCC contract or general contract, a majority of states follow the predominant purpose test.

Categorizing a transaction as a lease rather than a security interest:

Which of the following is true regarding unconscionability under the Code?

Under the Code, if the parties have reached no agreement on price, they cannot have a contract.

An example of the "course of dealing" concept that courts will use in interpreting a contract under the UCC would be:

The UCC definition of "unconscionable" is clear and unambiguous.