Question 1

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 offer for 100 I-appliances at $50 each. Must be delivered to our warehouse." 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...

Question 2

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 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 One week later, Clean faxes, and Dealer receives, notice that the offer is withdrawn.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 6

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 7

The UCC imposes some different rules on merchants.

Accepted Answer

A) True 
 B)False

Question 8

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.

Question 9

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 10

Global Outfitters Outlet and Holly, a consumer, enter into a contract for a sale of camping gear. If the contract includes a clause that is perceived as grossly unfair to Holly, its enforcement may be challenged under

Accepted Answer

A)  ​the mirror image rule. 
B)  ​the principle of fair trade. 
C)  ​the predominant-factor test. 
D)  ​the doctrine of unconscionability.

Question 11

Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Exam 13: The Formation of Sales and Lease Contracts

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

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

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

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.

The UCC imposes some different rules on merchants.

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

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

Global Outfitters Outlet and Holly, a consumer, enter into a contract for a sale of camping gear. If the contract includes a clause that is perceived as grossly unfair to Holly, its enforcement may be challenged under

Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

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