Question 1

The "battle of the forms" refers to the situation where a merchant buyer and merchant seller each use its own standard form contract in the contract formation process,and the law must determine which,if either,controls.

Accepted Answer

A) True 
 B)False

Question 2

If the parties to the contract do not set a specific time of performance for any obligation under the contract,the contract must be performed within which of the following?

Accepted Answer

A)  a reasonable time 
B)  one year 
C)  six months 
D)  30 days 
E)  60 days

Question 3

Which of the following situations creates a sale that falls under UCC sales law rules?

Accepted Answer

A)  Dr. Mackey agrees to teach at yahoo university for 1 year 
B)  Katherine makes a contract to purchase a shed that requires assembly. The contract price is for $8,000.00 which includes $400.00 for labor. 
C)  Katherine contracts to pay Mike $880.00 to have her bedroom painted. $800.00 is for labor and $80.00 is for the paint. 
D)  Abc rentals rents a cement mixer to Katherine. 
E)  All of the above are UCC sales contracts.

Question 4

Under Article 2 of the UCC,if a purported acceptance to an offer contains additional terms:

Accepted Answer

A)  it is treated as a rejection and counteroffer. 
B)  if both parties are merchants, this would be a counteroffer, if at least one part is a nonmerchant, it is considered a proposed addition. 
C)  if neither party is a merchant, there is no contract. 
D)  it is treated as a counteroffer, but it does not reject the original offer. 
E)  it is treated as a rejection but not a counteroffer.

Question 5

All states have adopted all,or a major part of Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 6

Under the UCC,a contract is invalid under all circumstances if it does not state a price.

Accepted Answer

A) True 
 B)False

Question 7

A lessor is the person who transfers the right of possession and use of goods under the lease.

Accepted Answer

A) True 
 B)False

Question 8

Which is the correct priority,from first to last,of the three types of evidence under the UCC that a court will consider as an exception to the parol evidence rule when trying to clear up an ambiguity in a contract?

Accepted Answer

A)  course of dealing, course of performance, usage of trade 
B)  usage of trade, course of performance, course of dealing 
C)  course of performance, course of dealing, usage of trade 
D)  course of dealing, usage of trade, course of performance 
E)  course of performance, usage of trade, course of dealing

Question 9

Revised Articles 2 and 2A now include provisions regarding electronic contracting.

Accepted Answer

A) True 
 B)False

Question 10

Both sales and service contracts are covered by the Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 11

A "firm offer" may be made by a non-merchant seller.

Accepted Answer

A) True 
 B)False

Question 12

James and Matt are retailers in musical instruments.They trade,sell and buy all sorts of musical instruments.James sends an offer to Matt.James offers to sell to Matt a limited edition baby grand piano,for $10,000.Matt sends an e-mail to James saying that he will buy the piano,but that James must tune the piano.James delivers the piano without it being tuned,is James under an obligation to tune the piano?

Accepted Answer

A)  No, tuning the piano was an additional term that became a proposed addition. 
B)  No, because James did not agree to tune the piano. 
C)  Yes, because tuning the piano became part of the contract when Matt sent his acceptance. 
D)  Yes, because James agreed to tune the piano when he delivered the piano to Matt. 
E)  Yes, because the delivery of the piano un-tuned is considered a non-conforming good.

Question 13

Under the UCC,a court can find that a contract exists even though the court cannot determine exactly when the contract came into existence.

Accepted Answer

A) True 
 B)False

Question 14

Article 2 of the UCC contains some provisions that either apply only to merchants or impose a greater duty or merchants.

Accepted Answer

A) True 
 B)False

Question 15

Lewis owns an electronics store.On May 1,Marilyn comes into the store and sees a 60-inch television that she likes for $1,000.Marilyn is unsure about purchasing the television.Lewis offers to sell the television to Marilyn for $800 and that the offer will be good until June 1.Lewis writes out the offer and signs it.On May 15,Ann comes into the electronics store and Lewis sells Ann the 60-inch television for $1,000.On May 20,Marilyn returns to the store and tenders $800 to Lewis for the television.Lewis tells Marilyn he has already sold the television.Marilyn then has to buy the same television at another store for $1,200.Does Marilyn have a cause of action for breach of contract? If so,for how much?

Accepted Answer

A)  No, Marilyn cannot sue Lewis because no contract has been breached. 
B)  Yes Marilyn can sue Lewis for a brand new television. 
C)  Yes, Marilyn can sue Lewis for the difference between $800 and the price she had to pay of $1,200. 
D)  Yes, Marilyn can sue Lewis and receive the $1,200 she had to pay for the other television. 
E)  Yes, Marilyn can sue Lewis and receive $800, the price of the television that Lewis offered.

Question 16

Sara has graduated law school and passed the bar so she is setting up her office.She calls a rug installer and a carpenter to have her office carpeted and to have custom built desk constructed.Her office is oval so the rug will need to be custom cut and fitted and the door is such that normal desks cannot fit through so she needs one made in pieces that would be constructed inside the office.She is also 4' 11" so she wants the desk sized to fit her.Both contracts are for over $500 and are oral.When the workmen arrive with the cut rug and the desk in pieces,she informs them that she has changed her mind,doesn't want what they agreed to provide and won't pay.She has invoked the Statute of Frauds to terminate the contract.If she is sued will she be successful?

Accepted Answer

The answer of Sara has graduated law school and passed...

Question 17

Under the UCC what is the difference between a sale and an ordinary lease?

Accepted Answer

A)  In a sale the buyer gets the right to possess the goods for a period of time, but in a lease the title passes to the lessor. 
B)  In a sale the title passes to the buyer, but in a lease the lessee receives the right to possession and use for a period of time. 
C)  In a sale, the title only passes to the buyer, if the buyer is a merchant; and in a lease the right to possession passes to the lessor even if the lessor is not a merchant. 
D)  In a sale, the title passes to vendor and in a lease the supplier receives the right to possession and use. 
E)  In a sale the buyer has a right to possession and use for a period of time, but in a lease the title passes to the vendor.

Question 18

Under the UCC,electronic agents allow for sale and lease contracting of goods over the Internet.

Accepted Answer

A) True 
 B)False

Question 19

In order for a lease to be covered by Article 2A of the UCC,the lease must be for a period of at least a year.

Accepted Answer

A) True 
 B)False

Question 20

The UCC's Statute of Frauds applies to contracts for the sale of goods costing $500 or more and to lease contracts involving payments of $1,000 or more.

Accepted Answer

A) True 
 B)False

Exam 16: Formation of Sales, Lease, and E-Contracts

The "battle of the forms" refers to the situation where a merchant buyer and merchant seller each use its own standard form contract in the contract formation process,and the law must determine which,if either,controls.

If the parties to the contract do not set a specific time of performance for any obligation under the contract,the contract must be performed within which of the following?

Which of the following situations creates a sale that falls under UCC sales law rules?

Under Article 2 of the UCC,if a purported acceptance to an offer contains additional terms:

All states have adopted all,or a major part of Article 2 of the UCC.

Under the UCC,a contract is invalid under all circumstances if it does not state a price.

A lessor is the person who transfers the right of possession and use of goods under the lease.

Which is the correct priority,from first to last,of the three types of evidence under the UCC that a court will consider as an exception to the parol evidence rule when trying to clear up an ambiguity in a contract?

Revised Articles 2 and 2A now include provisions regarding electronic contracting.

Both sales and service contracts are covered by the Article 2 of the UCC.

A "firm offer" may be made by a non-merchant seller.

Under the UCC,a court can find that a contract exists even though the court cannot determine exactly when the contract came into existence.

Article 2 of the UCC contains some provisions that either apply only to merchants or impose a greater duty or merchants.

Under the UCC what is the difference between a sale and an ordinary lease?

Under the UCC,electronic agents allow for sale and lease contracting of goods over the Internet.

In order for a lease to be covered by Article 2A of the UCC,the lease must be for a period of at least a year.

The UCC's Statute of Frauds applies to contracts for the sale of goods costing $500 or more and to lease contracts involving payments of $1,000 or more.