Question 1

Which of the following statements is true about the Uniform Commercial Code (UCC)?

Accepted Answer

A)  The main purpose of the UCC was to enable private parties to enter into commercial transactions regulated by tariffs and government restrictions. 
B)  The most obvious purpose of the UCC was to establish a uniform law to govern commercial transactions that often take place within the state. 
C)  The drafters were successful in achieving complete uniformity. 
D)  The UCC is adopted by all states except Louisiana, which has adopted only part of the code. 
A)  The main purpose of the UCC was to enable private parties to enter into commercial transactions regulated by tariffs and government restrictions. 
B)  The most obvious purpose of the UCC was to establish a uniform law to govern commercial transactions that often take place within the state. 
C)  The drafters were successful in achieving complete uniformity. 
D)  The UCC is adopted by all states except Louisiana, which has adopted only part of the code.

Question 2

In a contract involving elements of both goods and services, a court will determine whether Article 2 of the Uniform Commercial Code (UCC) applies by:

Accepted Answer

A)  asking which element predominates in the contract. 
B)  balancing the need to apply a uniform standard with the interest of justice. 
C)  asking if the contract is barred by public policy. 
D)  using the criteria of reasonableness. 
A)  asking which element predominates in the contract. 
B)  balancing the need to apply a uniform standard with the interest of justice. 
C)  asking if the contract is barred by public policy. 
D)  using the criteria of reasonableness.

Question 3

A promise exchanged for a promise is an example of:

Accepted Answer

A)  a bilateral contract. 
B)  a unilateral contract. 
C)  an implied contract. 
D)  promissory estoppel. 
A)  a bilateral contract. 
B)  a unilateral contract. 
C)  an implied contract. 
D)  promissory estoppel.

Question 4

Yuan writes to Rita saying that he would sell her his car for $1,000. Rita writes back agreeing to buy the car on Yuan's terms. Given this information, the contract between Yuan and Rita is:

Accepted Answer

A)  unilateral and executory. 
B)  bilateral and unenforceable. 
C)  bilateral and executory. 
D)  unilateral and implied. 
A)  unilateral and executory. 
B)  bilateral and unenforceable. 
C)  bilateral and executory. 
D)  unilateral and implied.

Question 5

An unenforceable contract is one that meets the basic legal requirements for a contract but will not be enforced due to some other legal rule.

Accepted Answer

A) True 
 B)False

Question 6

The UCC applies only to commercial sales of goods, whereas the CISG governs both consumer and commercial transactions.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true of Article 2?

Accepted Answer

A)  Article 2 does not apply to contracts for the sale of goods. 
B)  Article 2 applies to bonds, information, and other intangibles. 
C)  Article 2 does not apply to service contracts. 
D)  Article 2 applies to contracts for the sale of real estate or stocks. 
A)  Article 2 does not apply to contracts for the sale of goods. 
B)  Article 2 applies to bonds, information, and other intangibles. 
C)  Article 2 does not apply to service contracts. 
D)  Article 2 applies to contracts for the sale of real estate or stocks.

Question 8

If Frank buys a used car from Honest Bob's Used Cars, and Frank is a minor, the parties have a(n) _____ contract.

Accepted Answer

A)  unconscionable 
B)  unenforceable 
C)  voidable 
D)  valid 
A)  unconscionable 
B)  unenforceable 
C)  voidable 
D)  valid

Question 9

When compared with traditional contract law, the Uniform Commercial Code (UCC):

Accepted Answer

A)  reflects a less flexible attitude. 
B)  is more likely to find that parties have a contract. 
C)  gives more weight to technical requirements such as consideration. 
D)  is less concerned with rewarding people's legitimate expectations. 
A)  reflects a less flexible attitude. 
B)  is more likely to find that parties have a contract. 
C)  gives more weight to technical requirements such as consideration. 
D)  is less concerned with rewarding people's legitimate expectations.

Question 10

A contract is implied when the parties directly state its terms at the time the contract is formed.

Accepted Answer

A) True 
 B)False

Exam 9: The Nature and Origins of Contracts

Which of the following statements is true about the Uniform Commercial Code (UCC)?

In a contract involving elements of both goods and services, a court will determine whether Article 2 of the Uniform Commercial Code (UCC) applies by:

A promise exchanged for a promise is an example of:

Yuan writes to Rita saying that he would sell her his car for $1,000. Rita writes back agreeing to buy the car on Yuan's terms. Given this information, the contract between Yuan and Rita is:

An unenforceable contract is one that meets the basic legal requirements for a contract but will not be enforced due to some other legal rule.

The UCC applies only to commercial sales of goods, whereas the CISG governs both consumer and commercial transactions.

Which of the following statements is true of Article 2?

If Frank buys a used car from Honest Bob's Used Cars, and Frank is a minor, the parties have a(n) _____ contract.

When compared with traditional contract law, the Uniform Commercial Code (UCC):

A contract is implied when the parties directly state its terms at the time the contract is formed.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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