Question 1

Rally Corporation enters into a contract to sell ski gear to SnoSportz Company,which sells a pair of the skis to Tyra,a consumer,who later sells them to Uli,another consumer. Article 2 of the UCC applies to the sales transactions between

Accepted Answer

A) all of the buyers and sellers. 
B) Rally and SnoSportz only. 
C) SnoSportz and Tyra only. 
D) Tyra and Uli only.

Question 2

Olga enters into a contract to buy a refrigerator from a Prairie States Appliance store with the price to be paid in monthly installments. After thirty-six months of payments,Olga has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract.
-Refer to Fact Pattern 20-1. Under the UCC,the court can evaluate the contract to determine whether it was unreasonably unfair and one sided

Accepted Answer

A) at the time it was made. 
B) at the end of its term. 
C) in the middle of its performance. 
D) at the time of Olga's suit.

Question 3

Under the UCC,an offeror must be notified within a reasonable time that the offeree has accepted.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Trend-Rite Clothiers,Inc.,sells t-shirts to Brand Name Stores,Inc.,under an existing con-tract. When textile costs increase,Brand agrees to a price increase,but later wants to cancel the contract. Brand may

Accepted Answer

A) cancel the contract immediately. 
B) cancel the contract only after accepting a final shipment. 
C) cancel the contract only on reasonable notice. 
D) not cancel the contract.

Question 6

In a dispute over a sale involving a bicycle,Dain argues that as to this deal Emil's Hobby Shop,where Dain bought the bike,is a merchant. A court may determine whether Emil's is a merchant by assessing whether

Accepted Answer

A) it has sold any bikes within the last year. 
B) it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction. 
C) its owner enjoys biking. 
D) it subscribes to Bike,a biweekly trade magazine.

Question 7

The UCC imposes some different rules on merchants.

Accepted Answer

A) True 
 B)False

Question 8

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

Accepted Answer

A) True 
 B)False

Question 9

Over the course of a year,Retail Marketers,Inc.,sells goods from its inventory and one of its warehouses. In exchange,Retail receives checks and other items that substitute for cash,which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs

Accepted Answer

A) the checks. 
B) the payment of the loan. 
C) the sale of the buildings. 
D) the sale of the goods.

Question 10

Development Corporation and Equipment Rental,Inc.,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 11

Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car. This contract is subject to

Accepted Answer

A) Article 2 of UCC. 
B) Article 2A of the UCC. 
C) Article 3 of the UCC. 
D) the common law only.

Question 12

Expert Stitching Corporation enters into a contract to sell denim clothing to Fine Fashion Company,which in turn sells a pair of jeans to Grady,a consumer. In contrast to standards that apply to consumers,the UCC imposes on merchants

Accepted Answer

A) less strict legal standards. 
B) special business standards. 
C) stricter ethical standards. 
D) the same overall standards.

Question 13

Bert's Bagels & Nosh,Inc.,and other bakeries refer to a "baker's dozen" as con-sisting of a collection of thirteen baked goods. This is

Accepted Answer

A) acourse of dealing. 
B) acourse of performance. 
C) none of the choices. 
D) ausage of trade.

Question 14

Omni Metals Company and Piecework Fabrication,Inc.,enter into a contract under which Omni agrees to deliver a certain quantity of sheet metal to Piecework each month. The contract does not include a price term. In a suit between the parties over the price,a court will

Accepted Answer

A) determine a reasonable price. 
B) impose the lowest market price. 
C) impose the highest market price. 
D) return the parties to the positions they held before the contract.

Question 15

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) thelease with Katrina. 
B) the gift to Lucia. 
C) thesale to Maria. 
D) all of the choices.

Question 16

Key of G Products,Inc.,offers to sell to Harmony Company one hundred MP3 players at $50 a piece,subject to certain specific delivery dates. Harmony replies with a signed purchase order that reads,"Accept your of-fer for 100 I-appliances at $50 each. Must be delivered to our ware-house." Key of G does not respond or deliver the goods. Harmony files a suit for breach of contract,to which Key of G answers that there is no contract because Harmony's purchase order contained additional terms and is not signed by Key of G. Can Harmony recover? Explain.

Accepted Answer

The answer of Key of G Products,Inc.,offers to sell to...

Question 17

iSharp,Inc.,and Jenene,the owner of a Kitchen Time shop,orally agree to a sale of knives and other utensils for $12,000. Jenene gives iSharp a check for $4,000 as a partial payment. This contract is

Accepted Answer

A) enforceable to the extent of $4,000. 
B) fully enforceable because it is for specially selected goods. 
C) fully enforceable because it is oral. 
D) not enforceable.

Question 18

Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation,which sells some of the items to Physicians Clinic,which later sells them to Oscar,a patient and consumer. Article 2 of the UCC applies to the sales transactions betwee

Accepted Answer

A) all buyers and sellers. 
B) Medico and New Hospital only. 
C) New Hospital and Physicians Clinic only. 
D) Physicians Clinic and Oscar only.

Question 19

TheUCC allows parties to form sales and lease contracts without observing the same degree of formality used n forming other types of contracts.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 20: The Formation of Sales and Lease Contracts

Rally Corporation enters into a contract to sell ski gear to SnoSportz Company,which sells a pair of the skis to Tyra,a consumer,who later sells them to Uli,another consumer. Article 2 of the UCC applies to the sales transactions between

Under the UCC,an offeror must be notified within a reasonable time that the offeree has accepted.

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

Trend-Rite Clothiers,Inc.,sells t-shirts to Brand Name Stores,Inc.,under an existing con-tract. When textile costs increase,Brand agrees to a price increase,but later wants to cancel the contract. Brand may

In a dispute over a sale involving a bicycle,Dain argues that as to this deal Emil's Hobby Shop,where Dain bought the bike,is a merchant. A court may determine whether Emil's is a merchant by assessing whether

The UCC imposes some different rules on merchants.

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

Over the course of a year,Retail Marketers,Inc.,sells goods from its inventory and one of its warehouses. In exchange,Retail receives checks and other items that substitute for cash,which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs

Development Corporation and Equipment Rental,Inc.,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

Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car. This contract is subject to

Expert Stitching Corporation enters into a contract to sell denim clothing to Fine Fashion Company,which in turn sells a pair of jeans to Grady,a consumer. In contrast to standards that apply to consumers,the UCC imposes on merchants

Bert's Bagels & Nosh,Inc.,and other bakeries refer to a "baker's dozen" as con-sisting of a collection of thirteen baked goods. This is

Omni Metals Company and Piecework Fabrication,Inc.,enter into a contract under which Omni agrees to deliver a certain quantity of sheet metal to Piecework each month. The contract does not include a price term. In a suit between the parties over the price,a court will

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

iSharp,Inc.,and Jenene,the owner of a Kitchen Time shop,orally agree to a sale of knives and other utensils for $12,000. Jenene gives iSharp a check for $4,000 as a partial payment. This contract is

Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation,which sells some of the items to Physicians Clinic,which later sells them to Oscar,a patient and consumer. Article 2 of the UCC applies to the sales transactions betwee

TheUCC allows parties to form sales and lease contracts without observing the same degree of formality used n forming other types of contracts.

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