Question 1

Fact Pattern 20-1
Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods.
-Refer to Fact Pattern 20-1. Growers Market contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Growers Market is arguing that the court should take into account

Accepted Answer

A)  ​the course of dealing. 
B)  ​the course of performance. 
C)  ​the usage of trade. 
D)  ​none of the choices.

Question 2

Downtown Contractors LLC and Equipment Rental Corporation are parties to an oral agreement for a one-year lease of a crane with payments totaling more than $10,000. They may satisfy the Statute of Frauds by

Accepted Answer

A)  ​mutually agreeing not to commit fraud. 
B)  ​repeating the terms in a phone call. 
C)  ​setting out the terms in a memo. 
D)  ​shaking hands on the deal.

Question 3

Car n' Truck Body & Paint Company orders custom paint from Diverse Hues Inc., but Diverse does not deliver. Car n' Truck will probably be unable to enforce the agreement if the parties omitted

Accepted Answer

A)  ​a price term. 
B)  ​a delivery date. 
C)  ​a quantity term. 
D)  ​shipping arrangements.

Question 4

Containers, Inc., sends its standard order form to Distribution Corporation to evidence a sale of packing materials. Distribution responds with its own standard purchase order form. Additional terms in the purchase order automatically become part of the contract unless

Accepted Answer

A)  ​the terms materially alter the original contract. 
B)  ​the original offer expressly required acceptance of its terms. 
C)  ​the offeror objects to the new terms within a reasonable time. 
D)  ​any of the choices.

Question 5

To be characterized as a "good" under the UCC, an item of property must be movable.

Accepted Answer

A) True 
 B)False

Question 6

Raul agrees to ship to Ben one hundred ceiling fans for $5,000. Raul initials his notes of the deal, which include the terms, and files the notes in his office. Ben initials his own notes of the deal, which include the terms, and files the notes in his office. Raul fails to ship the fans. Against Raul, as a contract, the deal is​

Accepted Answer

A)  ​enforceable, because under the UCC a contract need not written. 
B)  ​enforceable, because Raul's initialed notes are a sufficient writing. 
C)  ​enforceable, because Ben's initialed notes are a sufficient writing. 
D)  ​not enforceable.

Question 7

Dian, an agent for Expo Motors, Inc., writes a letter to Flynn on November 1 stating that she will sell him a 2017 Subaru Outback for $25,000 between November 1 and December 31. Dian's letter to Flynn is

Accepted Answer

A)  ​a merchant's firm offer. 
B)  ​an acceptance. 
C)  ​an option contract. 
D)  ​none of the choices.

Question 8

Under the UCC, if a contract for a sale of goods does not specify the quantity, a court will objectively determine what is a reasonable quantity.

Accepted Answer

A) True 
 B)False

Question 9

Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of

Accepted Answer

A)  ​the piano only. 
B)  ​the piano and the gold ring. 
C)  ​neither the piano nor the gold ring. 
D)  ​the gold ring only.

Question 10

Manufacturing Corporation orders twelve safety videos from Productions, Inc., which delivers the videos. This is most likely

Accepted Answer

A)  ​a gift. 
B)  ​a lease of goods. 
C)  ​a sale of goods. 
D)  ​a service contract.

Question 11

Under the UCC, the meaning of any agreement must be interpreted in light of commercial practices.

Accepted Answer

A) True 
 B)False

Question 12

If the parties to a contract for a sale of goods have not agreed on a price, a court will determine a reasonable price at the time for delivery.

Accepted Answer

A) True 
 B)False

Question 13

Great Harvest Farms offers to sell Hearty Bakeries, Inc., fifty bushels of wheat. Hearty's representative Ilene responds, "We agree to buy fifty bushels only if the wheat is Grade A quality." Between Great Harvest and Hearty Bakeries

Accepted Answer

A)  ​a contract is formed. 
B)  ​a contract is formed only if Great Harvest can deliver the wheat fast. 
C)  ​Ilene's statement is not an acceptance. 
D)  ​Ilene's statement is an acceptance.

Question 14

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by

Accepted Answer

A)  ​mutually agreeing not to commit fraud. 
B)  ​repeating the terms in a phone call. 
C)  ​setting out the terms in a memo. 
D)  ​shaking hands on the deal.

Question 15

For an item to be characterized as a "good" under the UCC, it must be intangible.

Accepted Answer

A) True 
 B)False

Question 16

The terms of a fully integrated contract can be contradicted by evidence of any prior agreements.

Accepted Answer

A) True 
 B)False

Question 17

The UCC views the entire "commercial transaction for the sale of and payment for goods" as a single legal occurrence.

Accepted Answer

A) True 
 B)False

Question 18

Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel, including the land, building, furnishings, shares of stock in Suite Dreams Company, and a contract with Trudy to create an ad campaign. Reba suspects that Quinn may be misrepresenting the facts. The UCC Statute of Frauds governs

Accepted Answer

A)  ​the sale of any of the property evidenced by a writing. 
B)  ​the entire deal, including the marketer's services. 
C)  ​the sale of the furnishings priced at $500 or more. 
D)  ​the sale of the land and the building.

Question 19

A course of performance is the conduct that occurs under the terms of a particular agreement.

Accepted Answer

A) True 
 B)False

Question 20

Josefina owns a condominium that she leases to Katrina. Josefina gives her daughter Lucia $450 on her sixteenth birthday. Josefina sells her car to her neighbor Maria for $1,500. UCC Article 2 covers

Accepted Answer

A)  ​the lease with Katrina. 
B)  ​the gift to Lucia. 
C)  ​the sale to Maria. 
D)  ​all of the choices.

Exam 20: The Formation of Sales and Lease Contracts

Downtown Contractors LLC and Equipment Rental Corporation are parties to an oral agreement for a one-year lease of a crane with payments totaling more than $10,000. They may satisfy the Statute of Frauds by

Car n' Truck Body & Paint Company orders custom paint from Diverse Hues Inc., but Diverse does not deliver. Car n' Truck will probably be unable to enforce the agreement if the parties omitted

Containers, Inc., sends its standard order form to Distribution Corporation to evidence a sale of packing materials. Distribution responds with its own standard purchase order form. Additional terms in the purchase order automatically become part of the contract unless

To be characterized as a "good" under the UCC, an item of property must be movable.

Dian, an agent for Expo Motors, Inc., writes a letter to Flynn on November 1 stating that she will sell him a 2017 Subaru Outback for $25,000 between November 1 and December 31. Dian's letter to Flynn is

Under the UCC, if a contract for a sale of goods does not specify the quantity, a court will objectively determine what is a reasonable quantity.

Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of

Manufacturing Corporation orders twelve safety videos from Productions, Inc., which delivers the videos. This is most likely

Under the UCC, the meaning of any agreement must be interpreted in light of commercial practices.

If the parties to a contract for a sale of goods have not agreed on a price, a court will determine a reasonable price at the time for delivery.

Great Harvest Farms offers to sell Hearty Bakeries, Inc., fifty bushels of wheat. Hearty's representative Ilene responds, "We agree to buy fifty bushels only if the wheat is Grade A quality." Between Great Harvest and Hearty Bakeries

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by

For an item to be characterized as a "good" under the UCC, it must be intangible.

The terms of a fully integrated contract can be contradicted by evidence of any prior agreements.

The UCC views the entire "commercial transaction for the sale of and payment for goods" as a single legal occurrence.

A course of performance is the conduct that occurs under the terms of a particular agreement.

Josefina owns a condominium that she leases to Katrina. Josefina gives her daughter Lucia $450 on her sixteenth birthday. Josefina sells her car to her neighbor Maria for $1,500. UCC Article 2 covers