Question 1

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 2

Under common law, the inclusion of additional terms in the acceptance of an offer is considered a counteroffer rather than an acceptance.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is an example of an irrevocable offer?

Accepted Answer

A)  counteroffer 
B)  gift promise 
C)  option contract 
D)  accommodation 
A)  counteroffer 
B)  gift promise 
C)  option contract 
D)  accommodation

Question 4

A contract is created only when the offeror receives the offeree's acceptance.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Which of the following describes a mixed sale?

Accepted Answer

A)  a sale that involves two or more intangible goods 
B)  a sale that involves the passing of title of goods from a seller to a buyer for a price 
C)  a sale that involves the possession and use of named goods for a set term 
D)  a sale that involves the provision of a service and a good in the same transaction 
A)  a sale that involves two or more intangible goods 
B)  a sale that involves the passing of title of goods from a seller to a buyer for a price 
C)  a sale that involves the possession and use of named goods for a set term 
D)  a sale that involves the provision of a service and a good in the same transaction

Question 7

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

Question 8

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 9

A contract is created when ________.

Accepted Answer

A)  the acceptance has been received by the offeror 
B)  an acknowledgement is sent by the offeror to the offeree of receiving an acceptance 
C)  the offeree dispatches the acceptance 
D)  a written acceptance has been passed between the offeror and the offeree 
A)  the acceptance has been received by the offeror 
B)  an acknowledgement is sent by the offeror to the offeree of receiving an acceptance 
C)  the offeree dispatches the acceptance 
D)  a written acceptance has been passed between the offeror and the offeree

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Mirror image rule is more liberal than UCC 2-207(1).

Accepted Answer

A) True 
 B)False

Question 12

Article 2(A) of the Uniform Commercial code requires that all lease contracts requiring payments of $500 or more must be in writing.

Accepted Answer

A) True 
 B)False

Question 13

A sales contract evidenced by writing cannot be contradicted by a prior oral or written agreement.

Accepted Answer

A) True 
 B)False

Question 14

Under the common law, a written contract must be signed by the party against whom enforcement is sought.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Which of the following is true of additional terms being added under the Uniform Commercial Code?

Accepted Answer

A)  They are considered to be counteroffers. 
B)  They can be added when the sale is between two merchants. 
C)  They can be added into the contract without the consent of the offeror. 
D)  They can be added in a sale that involves one or both parties being nonmerchants. 
A)  They are considered to be counteroffers. 
B)  They can be added when the sale is between two merchants. 
C)  They can be added into the contract without the consent of the offeror. 
D)  They can be added in a sale that involves one or both parties being nonmerchants.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true for terms to be expressed in a contract under the common law of contract?

Accepted Answer

A)  Additional terms can be added during acceptance. 
B)  Additional terms can be added without consideration. 
C)  Gap-filling rules are permitted for time, delivery, and prices of goods. 
D)  Contract must contain all the material terms of the parties' agreement. 
A)  Additional terms can be added during acceptance. 
B)  Additional terms can be added without consideration. 
C)  Gap-filling rules are permitted for time, delivery, and prices of goods. 
D)  Contract must contain all the material terms of the parties' agreement.

Question 19

The ________ says that if a written contract is a complete and final statement of the parties' agreement, any prior or contemporaneous oral or written statements that alter, contradict, or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract.

Accepted Answer

A)  parol evidence rule 
B)  firm offer rule 
C)  open terms rule 
D)  gap-filling rule 
A)  parol evidence rule 
B)  firm offer rule 
C)  open terms rule 
D)  gap-filling rule

Question 20

Article 2 of the Uniform Commercial code requires that all contracts for the sale of goods priced at $500 or more must be in writing.

Accepted Answer

A) True 
 B)False

Exam 18: Formation of Sales and Lease Contracts

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

Under common law, the inclusion of additional terms in the acceptance of an offer is considered a counteroffer rather than an acceptance.

Which of the following is an example of an irrevocable offer?

A contract is created only when the offeror receives the offeree's acceptance.

Which of the following describes a mixed sale?

Article 5 of the Uniform Commercial Code governs ________.

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

A contract is created when ________.

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

Mirror image rule is more liberal than UCC 2-207(1).

Article 2(A) of the Uniform Commercial code requires that all lease contracts requiring payments of $500 or more must be in writing.

A sales contract evidenced by writing cannot be contradicted by a prior oral or written agreement.

Under the common law, a written contract must be signed by the party against whom enforcement is sought.

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.

Which of the following is true of additional terms being added under the Uniform Commercial Code?

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

Which of the following is true for terms to be expressed in a contract under the common law of contract?

Article 2 of the Uniform Commercial code requires that all contracts for the sale of goods priced at $500 or more must be in writing.

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