Exam 18: Formation of Sales and Lease Contracts

A computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual, is known as ________.

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

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.

Every state except Louisiana has enacted the majority of the Uniform Commercial Code (UCC) as a commercial statute.

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

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?

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.

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

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.

Course of performance between the parties is taken into account when the express terms of their written contract are not clear.

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

In which of the following situations involving oral contracts can the Statute of Frauds be raised?

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

Which of the following is true of consideration for modifying a sales or lease contract under the Uniform Commercial Code?

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) ________.

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?

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

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

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

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