Question 1

As per the UCC law of sales,contract modifications do not require considerations.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is true of a finance lease?

Accepted Answer

A) It involves leasing out money to a lessee. 
B) The lessor is the supplier of goods. 
C) It consists of a lessor, a lessee, and a supplier. 
D) The lessee acquires the title of the goods. 
A) It involves leasing out money to a lessee. 
B) The lessor is the supplier of goods. 
C) It consists of a lessor, a lessee, and a supplier. 
D) The lessee acquires the title of the goods. C

Question 3

How does the Uniform Commercial Code (UCC)define a merchant?

Accepted Answer

Generally,Article 2 of the UCC applies to all sales contracts,whether they involve merchants or not.However,Article 2 contains several provisions that either apply only to merchants or impose a greater duty on merchants.The UCC defines a merchant as (1)a person who deals in the goods of the kind involved in the transaction or (2)a person who,by his or her occupation,holds himself or herself out as having knowledge or skill peculiar to the goods involved in the transaction.

Question 4

Article 2 of the Uniform Commercial Code (UC
C)is also applied by federal courts to sales contracts governed by federal law.

Accepted Answer

A) True 
 B)False

Question 5

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.

Accepted Answer

A) parol evidence rule 
B) Lord Tenterden's Act 
C) firm offer rule 
D) Statute of Frauds 
A) parol evidence rule 
B) Lord Tenterden's Act 
C) firm offer rule 
D) Statute of Frauds

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The formation of sales and lease contracts requires consideration.

Accepted Answer

A) True 
 B)False

Question 8

Under the UCC,an agreement sufficient to constitute a contract for the sale or lease of goods may be found even though the moment of its making is undetermined.

Accepted Answer

A) True 
 B)False

Question 9

A shipment that is offered to a buyer as a replacement for the original shipment when the original shipment cannot be filled is referred to as a(n)________.

Accepted Answer

A) consideration 
B) accommodation 
C) surrogate 
D) open delivery 
A) consideration 
B) accommodation 
C) surrogate 
D) open delivery

Question 10

The written confirmation rule requires that both parties to an oral agreement send written confirmation of the sale or lease.

Accepted Answer

A) True 
 B)False

Question 11

The battle of the forms occurs when the offeror receives an acceptance drafted from the offeree's own form contract.

Accepted Answer

A) True 
 B)False

Question 12

Under common law,the inclusion of additional terms in the acceptance of an offer is considered a counteroffer rather than an acceptance.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true for goods under the purview of Article 2 of the Uniform Commercial Code?

Accepted Answer

A) Goods can be replaced by money. 
B) Intangible goods must be exchanged for other intangible goods. 
C) Goods in the contract must be movable. 
D) Immovable goods like real estate must have provisions of service attached to their contracts. 
A) Goods can be replaced by money. 
B) Intangible goods must be exchanged for other intangible goods. 
C) Goods in the contract must be movable. 
D) Immovable goods like real estate must have provisions of service attached to their contracts.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an example of an irrevocable offer?

Accepted Answer

A) counteroffer 
B) gift promise 
C) option contract 
D) accommodation 
A) counteroffer 
B) gift promise 
C) option contract 
D) accommodation

Question 16

Which of the following acceptances is allowed for an offer under common law?

Accepted Answer

A) mirror image rule acceptance 
B) open term acceptance 
C) deposited rule acceptance 
D) additional terms acceptance 
A) mirror image rule acceptance 
B) open term acceptance 
C) deposited rule acceptance 
D) additional terms acceptance

Question 17

Modification to a sales or lease contract is binding even if it is made under duress.

Accepted Answer

A) True 
 B)False

Question 18

According to the UCC,a seller or buyer who reserves the right to fix a price must do so in good faith.

Accepted Answer

A) True 
 B)False

Question 19

What is the function of the gap-filling rule used under the UCC?

Accepted Answer

A) It helps open terms be "read into" a contract. 
B) It helps a merchant revoke his offer even after acceptance. 
C) It assures the offeree that goods will be held open for a reasonable time. 
D) It protects the offeror from additional terms that may be added by the offeree. 
A) It helps open terms be "read into" a contract. 
B) It helps a merchant revoke his offer even after acceptance. 
C) It assures the offeree that goods will be held open for a reasonable time. 
D) It protects the offeror from additional terms that may be added by the offeree.

Question 20

Which of the following describes a mixed sale?

Accepted Answer

A) a sale that involves two or more intangible goods 
B) a sale that involves the passing of title of goods from a seller to a buyer for a price 
C) a sale that involves the possession and use of named goods for a set term 
D) a sale that involves the provision of a service and a good in the same transaction 
A) a sale that involves two or more intangible goods 
B) a sale that involves the passing of title of goods from a seller to a buyer for a price 
C) a sale that involves the possession and use of named goods for a set term 
D) a sale that involves the provision of a service and a good in the same transaction

Exam 18: Formation of Sales and Lease Contracts

As per the UCC law of sales,contract modifications do not require considerations.

Which of the following is true of a finance lease?

How does the Uniform Commercial Code (UCC)define a merchant?

Article 2 of the Uniform Commercial Code (UC C)is also applied by federal courts to sales contracts governed by federal law.

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.

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

The formation of sales and lease contracts requires consideration.

Under the UCC,an agreement sufficient to constitute a contract for the sale or lease of goods may be found even though the moment of its making is undetermined.

A shipment that is offered to a buyer as a replacement for the original shipment when the original shipment cannot be filled is referred to as a(n)________.

The written confirmation rule requires that both parties to an oral agreement send written confirmation of the sale or lease.

The battle of the forms occurs when the offeror receives an acceptance drafted from the offeree's own form contract.

Under common law,the inclusion of additional terms in the acceptance of an offer is considered a counteroffer rather than an acceptance.

Which of the following is true for goods under the purview of Article 2 of the Uniform Commercial Code?

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

Which of the following is an example of an irrevocable offer?

Which of the following acceptances is allowed for an offer under common law?

Modification to a sales or lease contract is binding even if it is made under duress.

According to the UCC,a seller or buyer who reserves the right to fix a price must do so in good faith.

What is the function of the gap-filling rule used under the UCC?

Which of the following describes a mixed sale?

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