Question 1

Nature's Products,Inc.,sends its standard order form to Interbusiness Distribution Corporation (IDC)to evidence a sale of packing materials. IDC 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 2

Under the "partial performance" exception to the UCC,an oral contract for goods worth more than $500 is enforceable if the goods are specially manufactured for a particular buyer.

Accepted Answer

A) True 
 B)False

Question 3

Bert sells his car to Conrad for $5,000 and his bike to Del for $600. Bert sells his vinyl collection to Elena for $1,000 and his stock in Altogether Now,Inc.-a firm that markets an app for organizing digital music files-to Franz for $4,000. UCC Article 2 covers all of these transactions except the sale of

Accepted Answer

A) the car. 
B) the bike. 
C) the vinyl. 
D) the stock.

Question 4

Jamie is redoing his kitchen and decides he needs a floor sander to complete the job. Jamie tells Rachel,his neighbor,that he needs a floor sander. Rachel tells Jamie to call Home Repair Rentals,Inc. Home Repair Rentals leases Jamie a floor sander. In this transaction the lessor is

Accepted Answer

A) Jamie. 
B) Rachel. 
C) Home Repair Rentals. 
D) both Jamie and Rachel.

Question 5

A lessor is a party who transfers the right to the possession and use of goods under a lease.

Accepted Answer

A) True 
 B)False

Question 6

Under the UCC,an oral contract for a sale of goods is enforceable once payment has been made and accepted.

Accepted Answer

A) True 
 B)False

Question 7

Perfect Potato Chip Company makes an offer that Snack Foods Corporation would like to accept. Under the "mirror image rule",an acceptance

Accepted Answer

A) may include additional terms not contained in the offer so long as they do not materially alter the agreement. 
B) may include additional terms not contained in the offer that will be-come part of the agreement if the offeror does not object within a reasonable period of time. 
C) must include only those terms and conditions contained in the offer. 
D) may contain additional terms as long as all parties agree to the additional terms.

Question 8

Under the UCC,parties to sales and lease contracts are free to establish whatever terms they wish.

Accepted Answer

A) True 
 B)False

Question 9

Orange Vest Manufacturing Corporation orders twelve job-training and on-the-job safety videos from Plum Productions,Inc.,which delivers the itemsto Orange Vest. This is most likely

Accepted Answer

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

Question 10

A merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) a contract is formed. 
B) a contract is formed only if GroAgri can deliver the wheat fast. 
C) Milena's statement is not an acceptance. 
D) Milena's statement is an acceptance.

Question 12

Goods associated with real estate never fall within the scope of UCC Article 2.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Clean Machines Company makes washing machines. Over the phone,Clean offers to sell Dealers Appliance Outlet one hundred model EZ2000 washers at a price of $150 per unit. Clean says that it will keep the offer open for ninety days. Dealers responds that within two or three weeks it will decide whether to accept. One week later,Clean faxes,and Dealer receives,notice that the offer is withdrawn. Dealer immediately phones Clean to accept the $150-per-unit offer. When Clean refuses to deliver at that price,Dealer files a suit. Clean asserts,first,that there is no contract and,second,that if there is a contract,it is unenforceable. Discuss Clean's assertions.

Accepted Answer

The answer of Clean Machines Company makes washing machines. Over...

Question 15

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 16

Intangible property has conceptual existence and thus comes under Article 2.

Accepted Answer

A) True 
 B)False

Question 17

Under the UCC,a sale is the passing of title from a seller to a buyer for a price.

Accepted Answer

A) True 
 B)False

Question 18

Marine Expeditions,Inc.,pays Nate's Boats $4,000 to use an oceangoing vessel for a month. For the purposes of the UCC,this is

Accepted Answer

A) a merchant's firm offer. 
B) an option contract. 
C) a lease. 
D) a sale.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Generally,acceptance of an offer to lease goods may be made in any reasonable manner and by any reasonable means.

Accepted Answer

A) True 
 B)False

Exam 20: The Formation of Sales and Lease Contracts

Nature's Products,Inc.,sends its standard order form to Interbusiness Distribution Corporation (IDC) to evidence a sale of packing materials. IDC responds with its own standard purchase order form. Additional terms in the purchase order automatically become part of the contract unless

Under the "partial performance" exception to the UCC,an oral contract for goods worth more than $500 is enforceable if the goods are specially manufactured for a particular buyer.

Jamie is redoing his kitchen and decides he needs a floor sander to complete the job. Jamie tells Rachel,his neighbor,that he needs a floor sander. Rachel tells Jamie to call Home Repair Rentals,Inc. Home Repair Rentals leases Jamie a floor sander. In this transaction the lessor is

A lessor is a party who transfers the right to the possession and use of goods under a lease.

Under the UCC,an oral contract for a sale of goods is enforceable once payment has been made and accepted.

Perfect Potato Chip Company makes an offer that Snack Foods Corporation would like to accept. Under the "mirror image rule",an acceptance

Under the UCC,parties to sales and lease contracts are free to establish whatever terms they wish.

Orange Vest Manufacturing Corporation orders twelve job-training and on-the-job safety videos from Plum Productions,Inc.,which delivers the itemsto Orange Vest. This is most likely

A merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.

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

Goods associated with real estate never fall within the scope of UCC Article 2.

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.

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

Intangible property has conceptual existence and thus comes under Article 2.

Under the UCC,a sale is the passing of title from a seller to a buyer for a price.

Marine Expeditions,Inc.,pays Nate's Boats $4,000 to use an oceangoing vessel for a month. For the purposes of the UCC,this is

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

Generally,acceptance of an offer to lease goods may be made in any reasonable manner and by any reasonable means.