Question 1

Which of these is an example of a bank's commitment to pay?

Accepted Answer

A) Bill of lading 
B) Fee arbitration agreement 
C) Letter of credit 
D) A warrant

Question 2

Many states have imposed additional steps for making loans in the subprime lending market.

Accepted Answer

A) True 
 B)False

Question 3

Ann Frazer has just purchased a new Maserati.Ann will be borrowing the money from her bank.Ann signed the contract at 8:00 PM at the dealership and her bank will not be open until 10:00 AM the following day.Ann:

Accepted Answer

A) has a contract regardless of whether her bank approves her loan. 
B) has made a conditional acceptance and has no contract. 
C) will be excused from her contract if the bank does not approve her loan. 
D) none of the above

Question 4

"I'll take it,but you must deliver," is a valid acceptance.

Accepted Answer

A) True 
 B)False

Question 5

Contracts for the sale of real property are governed by the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 6

Point-and-click is a valid means of forming a contract if the parties had adequate knowledge of the terms and conditions of the agreement in advance.

Accepted Answer

A) True 
 B)False

Question 7

Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125.
Day 2: Tina faxes Mike an acceptance.
Day 2: Mike receives Tina's fax.
Day 3: Mike calls Tina to revoke his offer.
Mike and Tina:

Accepted Answer

A) do not have a contract since Tina used the wrong means of acceptance. 
B) do not have a contract because Mike revoked his offer before Tina accepted properly. 
C) have a contract as of the receipt of the fax. 
D) have a contract as of when the fax was sent.

Question 8

Under CARD,credit terms must last for at least two years.

Accepted Answer

A) True 
 B)False

Question 9

E-Sign requires that there be faxes or written verification of electronic contracts.

Accepted Answer

A) True 
 B)False

Question 10

Parol evidence is always admissible for challenging contract terms.

Accepted Answer

A) True 
 B)False

Question 11

Options require consideration to be valid.

Accepted Answer

A) True 
 B)False

Question 12

Which is $\underline{\text{not}}$ a requirement for a merchant's confirmation memorandum?

Accepted Answer

A) evidenced by a record 
B) signed by both parties 
C) underlying oral agreement 
D) none of the above

Question 13

Which of the following contracts would $\underline{\text{not}}$ have to be in writing under the old UCC?

Accepted Answer

A) a contract for the sale of an easement for $450 
B) a contract for consulting services for $10,000 over the next 90 days 
C) a three-year advertising contract 
D) a contract for the sale of furniture for $700 
E) All of the above must be in writing.

Question 14

Janet Kennedy has received a letter in the mail from BISA International,a credit card firm.The letter describes the card as follows:??"This card is yours for only a small annual fee that is billed to your account.There is an annual percentage rate finance charge of 16.5%.There may be other charges for some transactions.There are no late fees,but there will be a charge for going over your credit limit."??Which of the following statements is true?

Accepted Answer

A) The letter includes all the necessary disclosures for credit card solicitation under Regulation Z. 
B) The finance charge is usurious. 
C) The letter is missing several items of disclosure required under Regulation Z for credit card solicitation. 
D) none of the above

Question 15

Which of the following questions on a credit application would be a violation of ECOA?

Accepted Answer

A) asking about felony convictions 
B) asking address and length of residence 
C) asking whether the applicant is pregnant 
D) All of the above are violations.

Question 16

Under both UCC and common law,a counteroffer:

Accepted Answer

A) must be accepted by the original offeror. 
B) is effective upon mailing or dispatch. 
C) is also a rejection. 
D) none of the above

Question 17

Carolina Curtis offered to clean the windows at Rebate Retailer's brick-and-mortar outlet.Carolina said she would get the windows cleaned within 48 hours.Carolina also told Rebate,"We can work on the price later." Which of the following statements is correct?​

Accepted Answer

A) ​Carolina and Rebate have formed a valid contract. 
B) ​Carolina and Rebate will have formed a contract once she cleans the windows. 
C) Carolina and Rebate do not have a contract. 
D) The absence of a price does not affect the validity of an offer.

Question 18

"I'll take the bike for $75,but first I have to sell my fish tank," is an example of a valid acceptance.

Accepted Answer

A) True 
 B)False

Question 19

Discuss whether a contract to solicit names of potential subscribers using pop-up Internet ads for a newspaper is considered goods or services under the UCC.

Accepted Answer

The answer of Discuss whether a contract to solicit names...

Question 20

A credit card applicant can be solicited without disclosure of the card's terms.

Accepted Answer

A) True 
 B)False

Exam 11: Contracts and Sales: Introduction and Formation

Which of these is an example of a bank's commitment to pay?

Many states have imposed additional steps for making loans in the subprime lending market.

Ann Frazer has just purchased a new Maserati.Ann will be borrowing the money from her bank.Ann signed the contract at 8:00 PM at the dealership and her bank will not be open until 10:00 AM the following day.Ann:

"I'll take it,but you must deliver," is a valid acceptance.

Contracts for the sale of real property are governed by the Uniform Commercial Code.

Point-and-click is a valid means of forming a contract if the parties had adequate knowledge of the terms and conditions of the agreement in advance.

Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125. Day 2: Tina faxes Mike an acceptance. Day 2: Mike receives Tina's fax. Day 3: Mike calls Tina to revoke his offer. Mike and Tina:

Under CARD,credit terms must last for at least two years.

E-Sign requires that there be faxes or written verification of electronic contracts.

Parol evidence is always admissible for challenging contract terms.

Options require consideration to be valid.

Which is not‾\underline{\text{not}}not​ a requirement for a merchant's confirmation memorandum?

Which of the following contracts would not‾\underline{\text{not}}not​ have to be in writing under the old UCC?

Which of the following questions on a credit application would be a violation of ECOA?

Under both UCC and common law,a counteroffer:

Carolina Curtis offered to clean the windows at Rebate Retailer's brick-and-mortar outlet.Carolina said she would get the windows cleaned within 48 hours.Carolina also told Rebate,"We can work on the price later." Which of the following statements is correct?​

"I'll take the bike for $75,but first I have to sell my fish tank," is an example of a valid acceptance.

Discuss whether a contract to solicit names of potential subscribers using pop-up Internet ads for a newspaper is considered goods or services under the UCC.

A credit card applicant can be solicited without disclosure of the card's terms.

Which is $\underline{\text{not}}$ a requirement for a merchant's confirmation memorandum?

Which of the following contracts would $\underline{\text{not}}$ have to be in writing under the old UCC?

Carolina Curtis offered to clean the windows at Rebate Retailer's brick-and-mortar outlet.Carolina said she would get the windows cleaned within 48 hours.Carolina also told Rebate,"We can work on the price later." Which of the following statements is correct?