Question 1

Shipment of the original offer to a buyer is called accommodation.

Accepted Answer

A) True 
 B)False

Question 2

A ________ is a transfer of the right to the possession and use of named goods for a set term in return for certain consideration.

Accepted Answer

A) trade 
B) gift 
C) lease 
D) sale 
A) trade 
B) gift 
C) lease 
D) sale

Question 3

Under common law's mirror image rule,an offeree's acceptance must be on the same terms as the offer.

Accepted Answer

A) True 
 B)False

Question 4

In which of the following can the Statute of Frauds be raised under the common law of contract?

Accepted Answer

A) when a seller of specially manufactured goods has made commitments for the procurement for an oral agreement 
B) when the party against whom enforcement of an oral sales or lease contract is sought admits to such a contract in court 
C) when the writing must be signed by the party against whom enforcement is sought 
D) when there has been no written confirmation of a contract between two merchants 
A) when a seller of specially manufactured goods has made commitments for the procurement for an oral agreement 
B) when the party against whom enforcement of an oral sales or lease contract is sought admits to such a contract in court 
C) when the writing must be signed by the party against whom enforcement is sought 
D) when there has been no written confirmation of a contract between two merchants

Question 5

The battle of the forms takes place between a merchant and a nonmerchant.

Accepted Answer

A) True 
 B)False

Question 6

When is the parol evidence rule used in contracts?

Accepted Answer

A) when a written confirmation has not been sent for an oral contract 
B) when the party against whom the enforcement of an oral contract is sought has not admitted of such a contract in pleadings 
C) when an oral modification is required in a written contract 
D) when there is a written statement that contradicts an agreed-on written contract 
A) when a written confirmation has not been sent for an oral contract 
B) when the party against whom the enforcement of an oral contract is sought has not admitted of such a contract in pleadings 
C) when an oral modification is required in a written contract 
D) when there is a written statement that contradicts an agreed-on written contract

Question 7

Under the Uniform Commercial Code,if the time,place,and manner of delivery of goods are not mentioned in a contract,________.

Accepted Answer

A) the place of delivery is the buyer's place of business 
B) the contract is void for lack of definiteness 
C) the place of delivery is the seller's place of business 
D) the seller is obligated to pay for shipping to the buyer's place of business 
A) the place of delivery is the buyer's place of business 
B) the contract is void for lack of definiteness 
C) the place of delivery is the seller's place of business 
D) the seller is obligated to pay for shipping to the buyer's place of business

Question 8

How are contracts for the provision of services treated under Article 2 of the Uniform Commercial Code?

Accepted Answer

Contracts for the provision of services-

Question 9

What are the methods and manners of acceptance as defined by the Uniform Commercial Code (UCC)?

Accepted Answer

Unless otherwise unambiguously indicated

Question 10

Kimberley,a merchant-seller in Kansas,had an oral contract to sell goods to Jane,a merchant-buyer in Memphis for $100,000.Two days after contracting,Kimberley sends a sufficient written confirmation to Jane of the agreed-upon transaction.Jane,who has reason to know the contents of the written confirmation,fails to object to the contents of the confirmation immediately.Two weeks after receiving the written confirmation,Jane receives a delivery of the goods from Kimberley.Jane immediately sends an objection to the confirmation to Kimberley.Which of the following is true of the contract between Kimberley and Jane?

Accepted Answer

A) The Statute of Frauds can be raised against the contract because a letter of objection was sent to the offeror. 
B) The offer is valid as the offeree knew the contents of the confirmation and did not object within 10 days. 
C) The contract is void as the offeror did not receive a letter of confirmation from the offeree for delivery. 
D) The Statute of Frauds can be raised because the offeree did not sign the contract. 
A) The Statute of Frauds can be raised against the contract because a letter of objection was sent to the offeror. 
B) The offer is valid as the offeree knew the contents of the confirmation and did not object within 10 days. 
C) The contract is void as the offeror did not receive a letter of confirmation from the offeree for delivery. 
D) The Statute of Frauds can be raised because the offeree did not sign the contract.

Question 11

How are additional terms in an acceptance to a contract viewed under the common law?

Accepted Answer

A) They are viewed as proposed additions to the contract. 
B) They are seen as a counteroffer. 
C) They are allowed into the contract by the battle of the forms rule. 
D) They must be accepted under the mirror image rule. 
A) They are viewed as proposed additions to the contract. 
B) They are seen as a counteroffer. 
C) They are allowed into the contract by the battle of the forms rule. 
D) They must be accepted under the mirror image rule.

Question 12

If the parties to a sales contract do not agree to the time,place,and manner of delivery of the goods,the place for delivery is the seller's place of business.

Accepted Answer

A) True 
 B)False

Question 13

A finance lease involves a lessor leasing money to a lessee.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would be considered goods?

Accepted Answer

A) company shares 
B) crops 
C) trade secrets 
D) money 
A) company shares 
B) crops 
C) trade secrets 
D) money

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A ________ is defined as the passing of title of goods from a seller to a buyer for a price.

Accepted Answer

A) lease 
B) sale 
C) loan 
D) gift 
A) lease 
B) sale 
C) loan 
D) gift

Question 17

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.Which of the following documents did MetrosBank issue to Wurtherton to help Miranda Airways secure the airplane?

Accepted Answer

A) a bill of exchange 
B) a proforma invoice 
C) a letter of credit 
D) a remittance advice 
A) a bill of exchange 
B) a proforma invoice 
C) a letter of credit 
D) a remittance advice

Question 18

The open price term requires a contract to mention a specific price.

Accepted Answer

A) True 
 B)False

Question 19

Sales that contain provisions of services and goods in the same transaction are not covered by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 20

Article 5 of the Uniform Commercial Code governs ________.

Accepted Answer

A) sales of intangible goods 
B) finance leases 
C) letters of credit 
D) general provisions 
A) sales of intangible goods 
B) finance leases 
C) letters of credit 
D) general provisions

Exam 18: Formation of Sales and Lease Contracts

Shipment of the original offer to a buyer is called accommodation.

A ________ is a transfer of the right to the possession and use of named goods for a set term in return for certain consideration.

Under common law's mirror image rule,an offeree's acceptance must be on the same terms as the offer.

In which of the following can the Statute of Frauds be raised under the common law of contract?

The battle of the forms takes place between a merchant and a nonmerchant.

When is the parol evidence rule used in contracts?

Under the Uniform Commercial Code,if the time,place,and manner of delivery of goods are not mentioned in a contract,________.

How are contracts for the provision of services treated under Article 2 of the Uniform Commercial Code?

What are the methods and manners of acceptance as defined by the Uniform Commercial Code (UCC)?

How are additional terms in an acceptance to a contract viewed under the common law?

If the parties to a sales contract do not agree to the time,place,and manner of delivery of the goods,the place for delivery is the seller's place of business.

A finance lease involves a lessor leasing money to a lessee.

Which of the following would be considered goods?

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

A ________ is defined as the passing of title of goods from a seller to a buyer for a price.

The open price term requires a contract to mention a specific price.

Sales that contain provisions of services and goods in the same transaction are not covered by Article 2 of the UCC.

Article 5 of the Uniform Commercial Code governs ________.

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

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