Question 1

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 2

Explain open delivery term.

Accepted Answer

If the parties to a sales contract do no

Question 3

Article 5 of the UCC governs letter of credit.

Accepted Answer

A) True 
 B)False

Question 4

What are the different terms used in electronic contracting?

Accepted Answer

Electronic means relating to technology

Question 5

How does the Uniform Commercial Code (UCC) define a merchant?

Accepted Answer

Generally, Article 2 of the UCC applies

Question 6

If one or both parties to a sales contract are merchants, any additional terms are considered proposed additions to the contract.

Accepted Answer

A) True 
 B)False

Question 7

Electronic agent is 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.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

When is the course of performance considered in a written contract?

Accepted Answer

A)  when oral modification is required for a written contract 
B)  when a sale or lease contract is not evidenced by writing 
C)  when the express terms of a written contract are not clear 
D)  when there is a prior oral or written agreement statement contradicting the written agreement 
A)  when oral modification is required for a written contract 
B)  when a sale or lease contract is not evidenced by writing 
C)  when the express terms of a written contract are not clear 
D)  when there is a prior oral or written agreement statement contradicting the written agreement

Question 10

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

Accepted Answer

Unless otherwise unambiguously indicated

Question 11

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 12

The firm offer rule allows the offeror to revoke an offer at any point of time prior to its acceptance.

Accepted Answer

A) True 
 B)False

Question 13

E-signature is the signature of a person that appears on an electronic record but is not recognized as a lawful signature.

Accepted Answer

A) True 
 B)False

Question 14

Article 2 of the UCC defines a merchant as a person who deals in the goods of the kind involved in the transaction.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true of a finance lease?

Accepted Answer

A)  It involves leasing out money to a lessee. 
B)  The lessor is the supplier of goods. 
C)  It consists of a lessor, a lessee, and a supplier. 
D)  The lessee acquires the title of the goods. 
A)  It involves leasing out money to a lessee. 
B)  The lessor is the supplier of goods. 
C)  It consists of a lessor, a lessee, and a supplier. 
D)  The lessee acquires the title of the goods.

Question 16

Contracts for the provision of services are not covered by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 17

The ________ is a model act passed in 1949 that includes comprehensive laws that cover most aspects of commercial transactions.

Accepted Answer

A)  Gramm-Leach Bliley Act 
B)  Social Security Amendment 
C)  Uniform Sales Act 
D)  Uniform Commercial Code 
A)  Gramm-Leach Bliley Act 
B)  Social Security Amendment 
C)  Uniform Sales Act 
D)  Uniform Commercial Code

Question 18

What is the function of the gap-filling rule used under the UCC?

Accepted Answer

A)  It helps open terms be "read into" a contract. 
B)  It helps a merchant revoke his offer even after acceptance. 
C)  It assures the offeree that goods will be held open for a reasonable time. 
D)  It protects the offeror from additional terms that may be added by the offeree. 
A)  It helps open terms be "read into" a contract. 
B)  It helps a merchant revoke his offer even after acceptance. 
C)  It assures the offeree that goods will be held open for a reasonable time. 
D)  It protects the offeror from additional terms that may be added by the offeree.

Question 19

Only movable goods come under the scope of Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 20

Article 2A of the UCC deals with lessors and lessees.

Accepted Answer

A) True 
 B)False

Exam 18: Formation of Sales and Lease Contracts

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

Explain open delivery term.

Article 5 of the UCC governs letter of credit.

What are the different terms used in electronic contracting?

How does the Uniform Commercial Code (UCC) define a merchant?

If one or both parties to a sales contract are merchants, any additional terms are considered proposed additions to the contract.

Electronic agent is 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.

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

When is the course of performance considered in a written contract?

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

The firm offer rule allows the offeror to revoke an offer at any point of time prior to its acceptance.

E-signature is the signature of a person that appears on an electronic record but is not recognized as a lawful signature.

Article 2 of the UCC defines a merchant as a person who deals in the goods of the kind involved in the transaction.

Which of the following is true of a finance lease?

Contracts for the provision of services are not covered by Article 2 of the UCC.

The ________ is a model act passed in 1949 that includes comprehensive laws that cover most aspects of commercial transactions.

What is the function of the gap-filling rule used under the UCC?

Only movable goods come under the scope of Article 2 of the UCC.

Article 2A of the UCC deals with lessors and lessees.

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