Question 1

If a contract in which goods and services are combined is primarily a goods contract, any dispute over it will be decided under the UCC.

Accepted Answer

A) True 
 B)False  True

Question 2

When an offeror does not specify a means of acceptance, acceptance can be made by any means of communication that is reasonable.

Accepted Answer

A) True 
 B)False  True

Question 3

Tune Products, Inc., offers to sell to Unlimited Sales Company one hundred MP3 players at $50 a piece, subject to certain specific delivery dates. Unlimited replies with a signed purchase order that reads, "Accept your offer for 100 I-appliances at $50 each. Must be delivered to our warehouse." Tune does not respond or deliver the goods. Unlimited files a suit for breach of contract, to which Tune answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Tune. Can Unlimited recover Explain.

Accepted Answer

Yes. Additional or different terms in an unconditional ac cep tance, which is otherwise definite and timely, are interpreted as pro pos als for additional terms to a contract, unless the contract is between mer chants. In that situation, the terms become part of the contract un less (1) the offer expressly limits acceptance to its terms, (2) the addi tional terms materially alter the contract, or (3) the offeree objects to the addi tional terms within a reasonable time. Here, the offer did not ex pressly limit the acceptance, the extra terms did not materially change the con tract, and Tune did not object within a reasonable time. If either or both of the par ties is not a merchant, a contract is formed according to the terms of the original offer. Thus, here, the additional term (delivery to Unlimited's warehouse) would have become part of the contract even if one or both parties had not been merchants. Tune's Statute of Frauds claim (that the purchase order was not signed by Tune) also fails. For a con tract for a sale of goods between merchants, when one party sends a writ ten con firmation within a reasonable time after terms have been reached orally, the confirmation is binding unless the recipient objects within ten days of receipt. The merchant receiving the communication must have reason to know its contents, but it needs to be signed only by the party who sends it. Here, Tune received the signed writing, but did not object within the ten days.

Question 4

Over the course of a year, Retail Market, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savers Bank. Article 2 of the UCC governs

Accepted Answer

A)  the checks. 
B)  the payment of the loan. 
C)  the sale of the buildings. 
D)  the sale of the goods. 
A)  the checks. 
B)  the payment of the loan. 
C)  the sale of the buildings. 
D)  the sale of the goods.

Question 5

Pressing Music, Inc., offers to buy from Digital Media Corporation (DMC) one million blank CDs of a certain quality. Without notifying Pressing, DMC timely ships CDs of a different quality. With respect to the offer and a possible contract, this shipment is

Accepted Answer

A)  an acceptance and a breach. 
B)  an acceptance and an accommodation. 
C)  an acceptance and complete performance. 
D)  a rejection and a counteroffer. 
A)  an acceptance and a breach. 
B)  an acceptance and an accommodation. 
C)  an acceptance and complete performance. 
D)  a rejection and a counteroffer.

Question 6

Rally Corporation enters into a contract to sell ski gear to SnoSportz Company, which sells a pair of the skis to Tyra, a consumer, who later sells them to Uli, another consumer. Article 2 of the UCC applies to the sales transactions between

Accepted Answer

A)  all of the buyers and sellers. 
B)  Rally and SnoSportz only. 
C)  SnoSportz and Tyra only. 
D)  Tyra and Uli only. 
A)  all of the buyers and sellers. 
B)  Rally and SnoSportz only. 
C)  SnoSportz and Tyra only. 
D)  Tyra and Uli only.

Question 7

Sunny Glass Company and Collision Repair Center enter into a contract under which Sunny agrees to deliver a certain quantity of auto glass to Collision Repair each month. The contract does not include a price term. In a suit between the parties over the price, a court will

Accepted Answer

A)  determine a reasonable price. 
B)  impose the lowest market price. 
C)  impose the highest market price. 
D)  return the parties to the positions they held before the contract. 
A)  determine a reasonable price. 
B)  impose the lowest market price. 
C)  impose the highest market price. 
D)  return the parties to the positions they held before the contract.

Question 8

Sweet Tooth Pastries, Inc., and other bakers refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. This is an example of

Accepted Answer

A)  course of dealing. 
B)  course of performance. 
C)  square dealing. 
D)  usage of trade. 
A)  course of dealing. 
B)  course of performance. 
C)  square dealing. 
D)  usage of trade.

Question 9

In a dispute over a sale involving a bicycle, Dain argues that as to this deal Emory's Hobby Shop, where Dain bought the bike, is a merchant. A court may determine whether Emory's is a merchant by assessing whether

Accepted Answer

A)  it has sold any bikes within the last year. 
B)  it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction. 
C)  its owner enjoys biking. 
D)  it subscribes to Bike, a biweekly trade magazine. 
A)  it has sold any bikes within the last year. 
B)  it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction. 
C)  its owner enjoys biking. 
D)  it subscribes to Bike, a biweekly trade magazine.

Question 10

Fact Pattern 19-A1
Olisa enters into a contract to buy a stove from Pay-to-Own Appliance store with the price to be paid in monthly installments. After thirty-six months of payments, Olisa has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract.
-Refer to Fact Pattern 19-A1. Under the UCC, the court can evaluate the contract to determine whether it was unreasonably unfair and one sided

Accepted Answer

A)  at the time it was made. 
B)  at the end of its term. 
C)  in the middle of its performance. 
D)  at the time of Gail's suit. 
A)  at the time it was made. 
B)  at the end of its term. 
C)  in the middle of its performance. 
D)  at the time of Gail's suit.

Question 11

Under the UCC, a sales or lease contract will fail for indefiniteness if one or more terms are left open.

Accepted Answer

A) True 
 B)False

Question 12

Five Star Flooring orders carpet from Textile Mills Corporation, but Textile does not deliver. Five Star will probably be unable to enforce the agreement if the parties omitted

Accepted Answer

A)  the duration of the deal. 
B)  a payment term. 
C)  a quantity term. 
D)  shipping arrangements. 
A)  the duration of the deal. 
B)  a payment term. 
C)  a quantity term. 
D)  shipping arrangements.

Question 13

Bild-Rite, Inc., is a Colorado-based firm that does business with clients throughout North America. Bild-Rite oversees construction projects, and buys and sells commercial buildings, undeveloped land, and construction supplies and other goods. Bild-Rite has had to deal with work-site theft and vandalism. With respect to these circumstances, the Uniform Commercial Code (UCC) provides a framework for

Accepted Answer

A)  commercial transactions for the sale of and payment for goods. 
B)  international construction contracts. 
C)  domestic and foreign transactions in real estate. 
D)  prosecuting crimes against business interests. 
A)  commercial transactions for the sale of and payment for goods. 
B)  international construction contracts. 
C)  domestic and foreign transactions in real estate. 
D)  prosecuting crimes against business interests.

Question 14

If the parties to a contract for a sale of goods have not agreed on a price, a court will determine a reasonable price at the time for delivery.

Accepted Answer

A) True 
 B)False

Question 15

To be characterized as a "good" under the UCC, an item of property must be movable.

Accepted Answer

A) True 
 B)False

Question 16

Article 2 of the UCC governs contracts for sales of goods.

Accepted Answer

A) True 
 B)False

Question 17

Goods associated with real estate never fall within the scope of UCC Article 2.

Accepted Answer

A) True 
 B)False

Question 18

The terms of a fully integrated contract can be contradicted only by evidence of any prior agreements.

Accepted Answer

A) True 
 B)False

Question 19

A lessor is a party who acquires a right to the possession and use of goods under a lease.

Accepted Answer

A) True 
 B)False

Question 20

Valley Farms offers to sell Whole Harvest Bakeries, Inc., five hundred bushels of wheat. Whole Harvest responds, "We agree to buy five hundred bushels only if the wheat is Grade A quality." This statement is

Accepted Answer

A)  a breach. 
B)  a counteroffer. 
C)  a confirmation. 
D)  an acceptance. 
A)  a breach. 
B)  a counteroffer. 
C)  a confirmation. 
D)  an acceptance.

Exam 19: The Formation of Sales and Lease Contracts

If a contract in which goods and services are combined is primarily a goods contract, any dispute over it will be decided under the UCC.

When an offeror does not specify a means of acceptance, acceptance can be made by any means of communication that is reasonable.

Over the course of a year, Retail Market, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savers Bank. Article 2 of the UCC governs

Pressing Music, Inc., offers to buy from Digital Media Corporation (DMC) one million blank CDs of a certain quality. Without notifying Pressing, DMC timely ships CDs of a different quality. With respect to the offer and a possible contract, this shipment is

Rally Corporation enters into a contract to sell ski gear to SnoSportz Company, which sells a pair of the skis to Tyra, a consumer, who later sells them to Uli, another consumer. Article 2 of the UCC applies to the sales transactions between

Sunny Glass Company and Collision Repair Center enter into a contract under which Sunny agrees to deliver a certain quantity of auto glass to Collision Repair each month. The contract does not include a price term. In a suit between the parties over the price, a court will

Sweet Tooth Pastries, Inc., and other bakers refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. This is an example of

In a dispute over a sale involving a bicycle, Dain argues that as to this deal Emory's Hobby Shop, where Dain bought the bike, is a merchant. A court may determine whether Emory's is a merchant by assessing whether

Under the UCC, a sales or lease contract will fail for indefiniteness if one or more terms are left open.

Five Star Flooring orders carpet from Textile Mills Corporation, but Textile does not deliver. Five Star will probably be unable to enforce the agreement if the parties omitted

If the parties to a contract for a sale of goods have not agreed on a price, a court will determine a reasonable price at the time for delivery.

To be characterized as a "good" under the UCC, an item of property must be movable.

Article 2 of the UCC governs contracts for sales of goods.

Goods associated with real estate never fall within the scope of UCC Article 2.

The terms of a fully integrated contract can be contradicted only by evidence of any prior agreements.

A lessor is a party who acquires a right to the possession and use of goods under a lease.

Valley Farms offers to sell Whole Harvest Bakeries, Inc., five hundred bushels of wheat. Whole Harvest responds, "We agree to buy five hundred bushels only if the wheat is Grade A quality." This statement is

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Ethics and Business Decision Making

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Statute of Frauds

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, Shareholders

Corporate Merger, Consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

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