Question 1

Which of the following is true of the Code's rules on title to goods?

Accepted Answer

A) Buyers may reject the goods and yet keep title to them. 
B) Sellers are less important titleholders to the goods in a contract. 
C) Parties cannot use a negotiable document of title for professional carriers. 
D) Title passes to a buyer only when the seller performs his duties completely. 
A) Buyers may reject the goods and yet keep title to them. 
B) Sellers are less important titleholders to the goods in a contract. 
C) Parties cannot use a negotiable document of title for professional carriers. 
D) Title passes to a buyer only when the seller performs his duties completely.

Question 2

John offers to sell Stacy a car,and Stacy sends an email accepting John's offer.When he receives the email,John calls Stacy and tells her that she can "pick up the car any time." That night,the car is destroyed when a tree falls on it during a storm.Which of the following statements is true?

Accepted Answer

A) If John is an accountant,Stacy must bear the loss. 
B) If John is a used-car salesman,Stacy bears the loss. 
C) Since the parties did not agree on delivery,a contract did not form. 
D) Stacy bears the loss,regardless of John's profession. 
A) If John is an accountant,Stacy must bear the loss. 
B) If John is a used-car salesman,Stacy bears the loss. 
C) Since the parties did not agree on delivery,a contract did not form. 
D) Stacy bears the loss,regardless of John's profession.

Question 3

Larry agrees to sell Janet his lawnmower for $70.Janet writes Larry a check for the full amount,which bounces when Larry presents it to his bank for deposit.Which of the following statements is true?

Accepted Answer

A) Janet has a voidable title in the lawnmower. 
B) Janet is a good-faith purchaser. 
C) Janet has a void title in the lawnmower. 
D) Janet is a buyer in the ordinary course of business. 
A) Janet has a voidable title in the lawnmower. 
B) Janet is a good-faith purchaser. 
C) Janet has a void title in the lawnmower. 
D) Janet is a buyer in the ordinary course of business.

Question 4

Risk of loss for international transactions is addressed by the UCC and:

Accepted Answer

A) free trade agreements. 
B) the World Trade Organization. 
C) the common law. 
D) the Convention on Contracts for International Sale of Goods. 
A) free trade agreements. 
B) the World Trade Organization. 
C) the common law. 
D) the Convention on Contracts for International Sale of Goods.

Question 5

In Zaretsky v.William Goldberg Diamond Corp. ,the case in the text,the court held that:

Accepted Answer

A) Khan was not a merchant because he did not regularly sell diamonds or other high-end jewelry. 
B) Khan was not a merchant because,although he did often sell jewelry,he never sold diamonds. 
C) Khan was a merchant because of his consignment activity with WGDC. 
D) Khan was a merchant because his own testimony demonstrated he regularly sold jewelry. 
A) Khan was not a merchant because he did not regularly sell diamonds or other high-end jewelry. 
B) Khan was not a merchant because,although he did often sell jewelry,he never sold diamonds. 
C) Khan was a merchant because of his consignment activity with WGDC. 
D) Khan was a merchant because his own testimony demonstrated he regularly sold jewelry.

Question 6

Ryan enters into a contract with Dave,the neighborhood grocer,to supply fresh vegetables daily.After four months,the grocery store expands its business considerably and attracts customers from the neighboring areas as well.As a result,Dave demands that Ryan triple his supply as he cannot keep up with the demand.Which of the following will apply in determining the amount that can be supplied in such circumstances?

Accepted Answer

A) Rule of reasonable price 
B) Rule of requirements 
C) Rule of needs 
D) Rule of good faith 
A) Rule of reasonable price 
B) Rule of requirements 
C) Rule of needs 
D) Rule of good faith

Question 7

If a buyer rejects tender of the goods,title to those goods:

Accepted Answer

A) will automatically be revested in the seller. 
B) will stay with him until he makes the payment. 
C) will remain undecided until the parties reach an agreement. 
D) belongs to neither of the parties. 
A) will automatically be revested in the seller. 
B) will stay with him until he makes the payment. 
C) will remain undecided until the parties reach an agreement. 
D) belongs to neither of the parties.

Question 8

Brizon,a toy company,enters into a five-year agreement with Toys Paradise (TP),a toy shoppe.The agreement states that Brizon is to provide all the toys required by the distinguished shop at a fixed rate.During the first three years of the contract,Brizon uses its excess capacity to meet-up with the anticipated requirements and delivers between 1.25-1.5 million toys to TP.However,in the fourth year of the agreement,TP wants Brizon to deliver approximately twice as many toys,so that the toys can be used at other outlets owned by TP.In such a case:

Accepted Answer

A) Brizon may be sued by TP if it does not comply. 
B) Brizon need not provide the required amount of toys. 
C) Brizon has to provide the required amount of toys by putting extra charges. 
D) Brizon can claim that the contract was always void. 
A) Brizon may be sued by TP if it does not comply. 
B) Brizon need not provide the required amount of toys. 
C) Brizon has to provide the required amount of toys by putting extra charges. 
D) Brizon can claim that the contract was always void.

Question 9

In exclusive dealing contracts under the UCC,sellers have an obligation to use their best efforts to supply the goods to the buyer.

Accepted Answer

A) True 
 B)False

Question 10

Under Article 2 of the UCC,why does it matter whether a party to a contract is a merchant?

Accepted Answer

A) It is the test for applying Article 2 of the UCC. 
B) Merchants are treated differently than other parties. 
C) All contracts in which one or both parties are merchants are handled under Article 2A of the UCC. 
D) Article 2 does not concern itself with cases regarding the transactions of goods. 
A) It is the test for applying Article 2 of the UCC. 
B) Merchants are treated differently than other parties. 
C) All contracts in which one or both parties are merchants are handled under Article 2A of the UCC. 
D) Article 2 does not concern itself with cases regarding the transactions of goods.

Exam 19: Formation and Terms of Sales Contracts

Which of the following is true of the Code's rules on title to goods?

John offers to sell Stacy a car,and Stacy sends an email accepting John's offer.When he receives the email,John calls Stacy and tells her that she can "pick up the car any time." That night,the car is destroyed when a tree falls on it during a storm.Which of the following statements is true?

Larry agrees to sell Janet his lawnmower for $70.Janet writes Larry a check for the full amount,which bounces when Larry presents it to his bank for deposit.Which of the following statements is true?

Risk of loss for international transactions is addressed by the UCC and:

In Zaretsky v.William Goldberg Diamond Corp. ,the case in the text,the court held that:

If a buyer rejects tender of the goods,title to those goods:

In exclusive dealing contracts under the UCC,sellers have an obligation to use their best efforts to supply the goods to the buyer.

Under Article 2 of the UCC,why does it matter whether a party to a contract is a merchant?

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

Filters