Question 1

Under the UCC statute of frauds,the writing must:

Accepted Answer

A)   state quantity.
B)   state price.
C)   be signed by both parties.
D)   be notarized. A

Question 2

No section of the Uniform Commercial Code has any legal effect until it is adopted by a state legislature.

Accepted Answer

A) True 
 B)False  True

Question 3

Harriett raises and sells hippos.In order to keep her hippos happy and healthy,she feeds them Hippo Chow,which she buys from the local pet store.Under the UCC,Harriett is:

Accepted Answer

A)   a merchant of both hippos and Hippo Chow.
B)   a merchant of hippos, but not of Hippo Chow.
C)   a merchant of Hippo Chow, but not of hippos.
D)   not a merchant of either hippos or Hippo Chow. B

Question 4

A buyer who properly rejects goods:

Accepted Answer

A)   must pay the cost of returning the rejected goods.
B)   may do so by merely not paying for them.
C)   must notify the seller within a reasonable time.
D)   must offer to cover.

Question 5

Green Mountain Gift Shop ordered ten dozen evergreen wreaths from Carter Crafts to be delivered by November 28,time being of the essence.If Carter fails to deliver the wreaths,Green Mountain would be entitled to incidental damages,but could not obtain consequential damages or the loss of profit it expected to make by reselling the wreaths to retail customers for the Christmas season.

Accepted Answer

A) True 
 B)False

Question 6

The UCC does not apply to contracts for the sale of goods if the value of the goods is less than $500.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following types of property would be classified as "goods" under Article 2 of the UCC?

Accepted Answer

A)   Cash in hand.
B)   A stock certificate.
C)   A computer.
D)   A membership to a health club.

Question 8

A seller's remedies for breach of a sales contract by the buyer include all but which of the following?

Accepted Answer

A)   Refusal to deliver the goods.
B)   Cover.
C)   Resale.
D)   Suit for the contract price.

Question 9

Hennessee sold a log splitter to Byrd "AS IS." Hennessee has disclaimed:

Accepted Answer

A)   strict liability.
B)   liability for negligence.
C)   all implied warranties.
D)   All of the above.

Question 10

UCC Section 2-207 contains many changes to the common law,but one basic requirement that is not changed by this statute is that to create a contract:

Accepted Answer

A)   when one party makes an offer, the offeree must accept those exact terms.
B)   the parties must intend to create a contract.
C)   a merchant offeree who adds an additional term to the offer made by another merchant must, for the term to become part of the contract, obtain an express approval of the term by the other party.
D)   a merchant offeree who adds a different term to an offer made by another merchant will create a contract which includes the new and different term.

Question 11

Oxtren,Inc.is a tools wholesaler.Oxtren sent M&E Tools a purchase order offering to buy 200 Model 308 milling & drilling machines with R-8 spindles.The purchase order stated the credit term to be 2% discount if payment was made in 10 days,with the full amount due in 30 days.It did not include a forum selection clause.M&E responded with an acceptance form accepting the offer.The acceptance form,however,stated that full payment was due on delivery and that disputes under the contract would be settled by arbitration.
(A)Do the parties have an agreement?
(B)What is the payment term?
(C)Is the arbitration clause part of the agreement?

Accepted Answer

The answer of Oxtren,Inc.is a tools wholesaler.Oxtren sent M&E Tools...

Question 12

Meister Bros.shipped 250 radiator belts to fill Braybon's order.Quality control measures had been in place in Meister's factory when the belts were manufactured.When Braybon received the order one day before it was due,it notified Meister that it rejected the belts because of a variation from the contract specifications.Meister,although it believed the original belts met the contract specifications,notified Braybon that it would supply conforming goods within one week.When the conforming goods arrive in one week,Braybon:

Accepted Answer

A)   does not have to accept them because the contract deadline has passed.
B)   does not have to accept them because Meister Bros. only has one chance to fill the order correctly.
C)   should accept them because Meister Bros. has a right to cure even after the contract deadline under these circumstances.
D)   does not have to accept them because Meister Bros. failed to meet its UCC requirement to deal in good faith.

Question 13

UCC Section 2-204 provides three important rules that enable parties to make a contract quickly and informally.These include all but which of the following?

Accepted Answer

A)   The parties may make a contract in any manner sufficient to show that they reached an agreement.
B)   Affixing a seal to a writing evidencing a contract for sale of goods constitutes writing a sealed instrument and causes to law of sealed instruments to apply to such contract.
C)   The UCC will enforce a deal even though it is difficult to say exactly when it was formed.
D)   A court may enforce a bargain even though one or more terms were left open.

Question 14

A sales representative at Oxtren,Inc.orally told the purchasing agent at Wety,Inc.that its industrial saw will cut through metal up to five inches thick.Wety purchased the saw.Which statement is correct concerning the claim that the saw can cut through metal up to five inches thick?

Accepted Answer

A)   The claim is an express warranty.
B)   The claim is an implied warranty of merchantability.
C)   The claim is not a warranty because it is not in writing.
D)   The claim is not a warranty because it is sales puffery.

Question 15

When Angelena was shopping for a new lawn mower,the salesman,Mark,told her the model she was interested in cuts an 18" swath and the only maintenance it needs is an oil change and a new sparkplug at the beginning of each mowing season.He hands her a warranty booklet which describes that model as a mulching mower and says it has a five-year full warranty.The booklet also disclaims "any warranties or statements made by any agent or salesperson or that appear elsewhere in this booklet." The effect of the written disclaimer is:

Accepted Answer

A)   that it is valid to disclaim only the written warranties within the booklet.
B)   that it is valid to disclaim both oral and written warranties.
C)   it does not disclaim either the oral or written warranties.
D)   that it disclaims the oral warranties, but not the written warranties.

Question 16

Which of the following warranties provides that the goods will be fit for the ordinary purposes for which they are used?

Accepted Answer

A)   Infringement.
B)   Fitness for a particular purpose.
C)   Merchantability.
D)   Title.

Question 17

Peter purchased a new car from Monster Motors.As he drove away from the dealership in the new car,the steering mechanism failed.Peter lost control of the car and plunged down an embankment.Peter was seriously injured.If Peter sues the car manufacturer under strict liability,what does he have to prove? Will Peter be successful?

Accepted Answer

The answer of Peter purchased a new car from Monster...

Question 18

Van is using his wrench as a hammer when the wrench breaks and a piece flies off,injuring his neighbor who is helping Van change a tire on Van's car.If Van sues the tool manufacturer,its best defense will be:

Accepted Answer

A)   consent.
B)   warranties have been disclaimed.
C)   product misuse.
D)   that the claim is an economic loss only.

Question 19

To form a valid contract for the sale of goods,if the acceptance contains a price or warranty term different from the term in the offer,the parties have to renegotiate until they reach agreement.

Accepted Answer

A) True 
 B)False

Question 20

Myrtle walks into Hank's Hardware Store and says,"I need metal storage shelves that can hold 500 pounds." Hank directs her to a metal storage shelving system.Myrtle buys the shelving recommended by Hank.When Myrtle puts 475 pounds of weight on the bottom shelf,it breaks.Hank's Hardware breached the warranty of merchantability.

Accepted Answer

A) True 
 B)False

Exam 12: Sales and Product Liability

Under the UCC statute of frauds,the writing must:

No section of the Uniform Commercial Code has any legal effect until it is adopted by a state legislature.

Harriett raises and sells hippos.In order to keep her hippos happy and healthy,she feeds them Hippo Chow,which she buys from the local pet store.Under the UCC,Harriett is:

A buyer who properly rejects goods:

The UCC does not apply to contracts for the sale of goods if the value of the goods is less than $500.

Which of the following types of property would be classified as "goods" under Article 2 of the UCC?

A seller's remedies for breach of a sales contract by the buyer include all but which of the following?

Hennessee sold a log splitter to Byrd "AS IS." Hennessee has disclaimed:

UCC Section 2-207 contains many changes to the common law,but one basic requirement that is not changed by this statute is that to create a contract:

UCC Section 2-204 provides three important rules that enable parties to make a contract quickly and informally.These include all but which of the following?

A sales representative at Oxtren,Inc.orally told the purchasing agent at Wety,Inc.that its industrial saw will cut through metal up to five inches thick.Wety purchased the saw.Which statement is correct concerning the claim that the saw can cut through metal up to five inches thick?

Which of the following warranties provides that the goods will be fit for the ordinary purposes for which they are used?

Van is using his wrench as a hammer when the wrench breaks and a piece flies off,injuring his neighbor who is helping Van change a tire on Van's car.If Van sues the tool manufacturer,its best defense will be:

To form a valid contract for the sale of goods,if the acceptance contains a price or warranty term different from the term in the offer,the parties have to renegotiate until they reach agreement.