Question 1

Stitches Corporation enters into a contract to sell denim clothing to Trend Fashion Company, which in turn sells the clothing to consumers. 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 2

The UCC imposes special business standards on casual and inexperienced sellers and buyers.

Accepted Answer

A) True 
 B)False

Question 3

A court can refuse to enforce a contract that the court deems to have been unconscionable at the time it was made.

Accepted Answer

A) True 
 B)False

Question 4

Fact Pattern 13-1
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 13-1.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 5

Clean Mouth Clinic offers to buy from Dental Supplies Company a certain quantity of floss and other items for a certain price. Dental can accept the offer by

Accepted Answer

A)  ​a material alteration of the terms within a reasonable time. 
B)  ​a promise to ship or a prompt shipment of the goods. 
C)  ​a prompt shipment of the goods only. 
D)  ​a shipment of nonconforming goods with a notice of accommodation.

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

Toro, S.A., which is based in Mexico, enters into a contract for the purchase of portable livestock fencing from United Fencing Company, which is based in the United States. This contract is governed by

Accepted Answer

A)  ​Mexican law. 
B)  ​the provisions in the laws of both countries that are similar. 
C)  ​the Uniform Commercial Code. 
D)  ​the United Nations Convention on Contracts for the International Sale of Goods.

Question 10

Under the UCC, an oral contract for a sale of goods is enforceable if goods have been received and accepted.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is the uniform international sales law of countries that account for more than two-thirds of all global trade.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Goods associated with real estate often fall within the scope of Article 2.

Accepted Answer

A) True 
 B)False

Question 16

In a dispute over a sale involving a bicycle, Dain argues that as to this deal Ed's Hobby Shop, where Dain bought the bike, is a merchant. A court may determine whether Ed'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 17

Jacob offers to sell Bill a collection of baseball cards. For their transaction to be a sale under the UCC, Bill

Accepted Answer

A)  ​must pay for the cards in cash. 
B)  ​must pay for the cards with services. 
C)  ​may pay for the cards with cash, goods, or services. 
D)  ​must pay the fair market value of the cards.

Question 18

Rally Corporation enters into a contract to sell ski gear to Sno-Sports Inc., which sells a pair of the skis to Tyra, a consumer, who later sells them to Upton, 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 Sno-Sports only. 
C)  ​Sno-Sports and Tyra only. 
D)  ​Tyra and Upton only.

Question 19

Under the UCC, an offeree can accept an offer to buy goods by a prompt shipment of conforming goods.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 13: The Formation of Sales and Lease Contracts

Stitches Corporation enters into a contract to sell denim clothing to Trend Fashion Company, which in turn sells the clothing to consumers. In contrast to standards that apply to consumers, the UCC imposes on merchants

The UCC imposes special business standards on casual and inexperienced sellers and buyers.

A court can refuse to enforce a contract that the court deems to have been unconscionable at the time it was made.

Clean Mouth Clinic offers to buy from Dental Supplies Company a certain quantity of floss and other items for a certain price. Dental can accept the offer by

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.

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

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

Toro, S.A., which is based in Mexico, enters into a contract for the purchase of portable livestock fencing from United Fencing Company, which is based in the United States. This contract is governed by

Under the UCC, an oral contract for a sale of goods is enforceable if goods have been received and accepted.

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

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

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is the uniform international sales law of countries that account for more than two-thirds of all global trade.

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

Goods associated with real estate often fall within the scope of Article 2.

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

Jacob offers to sell Bill a collection of baseball cards. For their transaction to be a sale under the UCC, Bill

Rally Corporation enters into a contract to sell ski gear to Sno-Sports Inc., which sells a pair of the skis to Tyra, a consumer, who later sells them to Upton, another consumer. Article 2 of the UCC applies to the sales transactions between

Under the UCC, an offeree can accept an offer to buy goods by a prompt shipment of conforming goods.