Question 1

What are the different terms used in electronic contracting?

Accepted Answer

Electronic means relating to technology

Question 2

The common law of contract allows for gap-filling terms that are implied in the contract.

Accepted Answer

A) True 
 B)False

Question 3

Stelwire LLC,a vintage car dealer,advertises the sale of a 1964 Ford Thunderbolt.Ralph responds to the advertisement with an offer of $80,000 for the car.Stelwire signs a written assurance to keep that offer open to Ralph for a fortnight.Five days before the fortnight is up,Stelwire sells the car to another buyer.At the end of the fortnight period,Ralph tenders $80,000 for the car,but the car has already been sold.Ralph then buys the same model car from another dealer for $90,000 and sues Stelwire for breach of contract.The court rules that Stelwire is liable to Ralph for breach of contract and orders Stelwire to pay Ralph the difference of $10,000 he paid extra to the second dealer for the car.Which of the following rules governs the execution of this contract?

Accepted Answer

A) firm offer rule 
B) mirror image rule 
C) battle of the forms rule 
D) gap-filling rule 
A) firm offer rule 
B) mirror image rule 
C) battle of the forms rule 
D) gap-filling rule

Question 4

Article 2 of the UCC defines a merchant as a person who deals in the goods of the kind involved in the transaction.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Option contracts are examples of irrevocable offers.

Accepted Answer

A) True 
 B)False

Question 7

In a finance lease,the lessor manufactures and supplies the goods of the contract.

Accepted Answer

A) True 
 B)False

Question 8

Miranda Airways,a commercial air carrier,has a contract with Wurtherton Inc.,an airplane manufacturer,to purchase a new plane.Due to a sudden shortage of cash,Miranda Airways goes to MetrosBank.MetrosBank issues a document to Wurtherton that if Miranda does not pay for the transaction,MetrosBank would.Wurtherton considers the offer and then sends an acceptance with additional terms.The additional terms stipulate that Miranda Airways could have the new airplane for a period of 10 years and then return it to Wurtherton.Miranda Airways agrees to the acceptance,and Wurtherton hands over the new airplane to them.What Uniform Commercial Code rule was applied when Miranda Airways agreed to the additional terms acceptance provided by Wurtherton?

Accepted Answer

A) firm offer rule 
B) mirror image rule 
C) battle of the forms rule 
D) gap-filling rule 
A) firm offer rule 
B) mirror image rule 
C) battle of the forms rule 
D) gap-filling rule

Question 9

Which of the following articles in the UCC deals with the sale of goods?

Accepted Answer

A) Article 2 
B) Article 4 
C) Article 5 
D) Article 8 
A) Article 2 
B) Article 4 
C) Article 5 
D) Article 8

Question 10

Which of the following does Article 2A of the Uniform Commercial Code govern?

Accepted Answer

A) mixed sales 
B) sale of goods 
C) leases 
D) letters of credit 
A) mixed sales 
B) sale of goods 
C) leases 
D) letters of credit

Question 11

If one or both parties to a sales contract are merchants,any additional terms are considered proposed additions to the contract.

Accepted Answer

A) True 
 B)False

Question 12

The ________ is a model act passed in 1949 that includes comprehensive laws that cover most aspects of commercial transactions.

Accepted Answer

A) Gramm-Leach Bliley Act 
B) Social Security Amendment 
C) Uniform Sales Act 
D) Uniform Commercial Code 
A) Gramm-Leach Bliley Act 
B) Social Security Amendment 
C) Uniform Sales Act 
D) Uniform Commercial Code

Question 13

Explain open delivery term.

Accepted Answer

If the parties to a sales contract do no

Question 14

A person who transfers the right of possession and use of goods under a lease is known as the ________.

Accepted Answer

A) lessor 
B) lessee 
C) seller 
D) consignee 
A) lessor 
B) lessee 
C) seller 
D) consignee

Question 15

In a lease contract,the title of goods is passed from the lessor to the lessee.

Accepted Answer

A) True 
 B)False

Question 16

A ________ is a document that is issued by a bank on behalf of a buyer who purchases goods on credit from a seller that guarantees that if the buyer does not pay for the goods,then the bank will pay the seller.

Accepted Answer

A) remittance advice 
B) certified check 
C) cashier's check 
D) letter of credit 
A) remittance advice 
B) certified check 
C) cashier's check 
D) letter of credit

Question 17

When is the course of performance considered in a written contract?

Accepted Answer

A) when oral modification is required for a written contract 
B) when a sale or lease contract is not evidenced by writing 
C) when the express terms of a written contract are not clear 
D) when there is a prior oral or written agreement statement contradicting the written agreement 
A) when oral modification is required for a written contract 
B) when a sale or lease contract is not evidenced by writing 
C) when the express terms of a written contract are not clear 
D) when there is a prior oral or written agreement statement contradicting the written agreement

Question 18

According to the gap-filling rule,if a sales contract does not contain a specific price,________.

Accepted Answer

A) the contract has to be redrafted to include a price 
B) the contract is considered void due to indefiniteness 
C) the contract can be enforced by either party by fixing an open term price 
D) the contract cannot be enforced upon the buyee 
A) the contract has to be redrafted to include a price 
B) the contract is considered void due to indefiniteness 
C) the contract can be enforced by either party by fixing an open term price 
D) the contract cannot be enforced upon the buyee

Question 19

When do additional terms contained in an acceptance become part of the contract as per the battle of the forms rule?

Accepted Answer

A) if the additional terms materially alter the original contract 
B) if the sale is between two nonmerchants 
C) if the additional terms expressly limit the acceptance to the terms of the offer 
D) if the offeror notifies the offeree that he or she does not object to the additional terms 
A) if the additional terms materially alter the original contract 
B) if the sale is between two nonmerchants 
C) if the additional terms expressly limit the acceptance to the terms of the offer 
D) if the offeror notifies the offeree that he or she does not object to the additional terms

Question 20

Miranda Airways,a commercial air carrier,has a contract with Wurtherton Inc.,an airplane manufacturer,to purchase a new plane.Due to a sudden shortage of cash,Miranda Airways goes to MetrosBank.MetrosBank issues a document to Wurtherton,which says that if Miranda does not pay for the transaction,MetrosBank would.Wurtherton considers the offer and then sends an acceptance with additional terms.The additional terms stipulate that Miranda Airways could have the new airplane for a period of 10 years and then return it to Wurtherton.Miranda Airways agrees to the acceptance,and Wurtherton hands over the new airplane to them.What is the nature of the contract between Miranda Airways and Wurtherton?

Accepted Answer

A) sale of goods 
B) lease 
C) counteroffer 
D) option contract 
A) sale of goods 
B) lease 
C) counteroffer 
D) option contract

Exam 18: Formation of Sales and Lease Contracts

What are the different terms used in electronic contracting?

The common law of contract allows for gap-filling terms that are implied in the contract.

Article 2 of the UCC defines a merchant as a person who deals in the goods of the kind involved in the transaction.

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

Option contracts are examples of irrevocable offers.

In a finance lease,the lessor manufactures and supplies the goods of the contract.

Which of the following articles in the UCC deals with the sale of goods?

Which of the following does Article 2A of the Uniform Commercial Code govern?

If one or both parties to a sales contract are merchants,any additional terms are considered proposed additions to the contract.

The ________ is a model act passed in 1949 that includes comprehensive laws that cover most aspects of commercial transactions.

Explain open delivery term.

A person who transfers the right of possession and use of goods under a lease is known as the ________.

In a lease contract,the title of goods is passed from the lessor to the lessee.

A ________ is a document that is issued by a bank on behalf of a buyer who purchases goods on credit from a seller that guarantees that if the buyer does not pay for the goods,then the bank will pay the seller.

When is the course of performance considered in a written contract?

According to the gap-filling rule,if a sales contract does not contain a specific price,________.

When do additional terms contained in an acceptance become part of the contract as per the battle of the forms rule?

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

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

Digital Law and E-Commerce

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, entrepreneurship, and General Partnerships

Limited Partnerships and Special 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 Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, trusts, and Estates

Family Law

International and World Trade Law

Filters