Question 1

Which of the following is true about the CISG?

Accepted Answer

A)  The full title is The United States Convention on Contracts for the International Sale of Goods. 
B)  It does not apply to contracts in which the primary obligation of the party furnishing the goods consists of supplying labor or services. 
C)  The CISG governs the formation of the contract,the rights and obligations of the seller and buyer arising from such contract,and the validity of the contract provisions. 
D)  All of these. 
A)  The full title is The United States Convention on Contracts for the International Sale of Goods. 
B)  It does not apply to contracts in which the primary obligation of the party furnishing the goods consists of supplying labor or services. 
C)  The CISG governs the formation of the contract,the rights and obligations of the seller and buyer arising from such contract,and the validity of the contract provisions. 
D)  All of these.

Question 2

The UCC treats merchants more leniently than others in transactions involving goods.

Accepted Answer

A) True 
 B)False

Question 3

Gary,a partner in G & R Enterprises,went to a trade show and discussed with a manufacturer's representative of Foods 4 U,Inc.the purchase of three dozen food processors.A week after the trade show Gary received a signed letter from the representative thanking Gary for visiting his booth and saying Gary's order for three dozen Style 418B food processors at $90 each would be shipped to his business address within 30 days.Can Gary be contractually bound to accept and pay for the food processors?

Accepted Answer

A)  If,after he returns from the trade show,Gary decides he only wants to purchase twelve food processors,he would not have to pay for three dozen if they are shipped to him as long as he notifies Foods 4 U of the change in quantity before it ships the goods. 
B)  Gary did not sign an order form,and an order this large would have to be in writing and signed by Gary to be enforceable. 
C)  If Gary does not object in writing within ten days after receiving the letter,he can be bound to accept and pay for the three dozen food processors. 
D)  The letter is not sufficient to bind either Gary or Foods 4 U,Inc.to the purchase and sale of the food processors. 
A)  If,after he returns from the trade show,Gary decides he only wants to purchase twelve food processors,he would not have to pay for three dozen if they are shipped to him as long as he notifies Foods 4 U of the change in quantity before it ships the goods. 
B)  Gary did not sign an order form,and an order this large would have to be in writing and signed by Gary to be enforceable. 
C)  If Gary does not object in writing within ten days after receiving the letter,he can be bound to accept and pay for the three dozen food processors. 
D)  The letter is not sufficient to bind either Gary or Foods 4 U,Inc.to the purchase and sale of the food processors.

Question 4

A finance lease is a special type of lease transaction that generally involves three parties instead of two.

Accepted Answer

A) True 
 B)False

Question 5

In dealing with unconscionability:

Accepted Answer

A)  most cases have involved low-income consumers. 
B)  courts have demonstrated an unwillingness to limit freedom of contract. 
C)  courts have applied the doctrine to the negotiation process,which involves substantive unconscionability. 
D)  courts have not considered inequality in the bargaining positions of the parties. 
A)  most cases have involved low-income consumers. 
B)  courts have demonstrated an unwillingness to limit freedom of contract. 
C)  courts have applied the doctrine to the negotiation process,which involves substantive unconscionability. 
D)  courts have not considered inequality in the bargaining positions of the parties.

Question 6

In determining whether a contract containing both a sale of goods and a service is a UCC or general contract,the majority of states follow the:

Accepted Answer

A)  CISG. 
B)  predominant purpose test. 
C)  parol evidence test. 
D)  procedural or bargaining scrutiny. 
A)  CISG. 
B)  predominant purpose test. 
C)  parol evidence test. 
D)  procedural or bargaining scrutiny.

Question 7

If the original agreement was oral,a subsequent oral modification,which brings the resulting contract within the statute of frauds,is binding on and enforceable by the parties.

Accepted Answer

A) True 
 B)False

Question 8

The UCC provides rules,where the parties do not set forth terms in their contract,to cover:

Accepted Answer

A)  terms of payment. 
B)  place of delivery. 
C)  particulars of performance. 
D)  All of these. 
A)  terms of payment. 
B)  place of delivery. 
C)  particulars of performance. 
D)  All of these.

Question 9

A contract which does not satisfy the writing requirement of the Article 2 statute of frauds,but which is otherwise valid,is enforceable in which of the following situations?

Accepted Answer

A)  Where the goods have been delivered and accepted 
B)  Where payment has been accepted 
C)  Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business 
D)  All of these are situations where the contract would be enforceable. 
A)  Where the goods have been delivered and accepted 
B)  Where payment has been accepted 
C)  Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business 
D)  All of these are situations where the contract would be enforceable.

Question 10

If a contract does not comply with the statute of frauds,it is void.

Accepted Answer

A) True 
 B)False

Question 11

If a seller buries important terms of its sales agreement in fine print,this could constitute procedural unconscionability.

Accepted Answer

A) True 
 B)False

Question 12

Consumer leases are treated no differently than business leases under the UCC.

Accepted Answer

A) True 
 B)False

Question 13

"Acceptance" under the UCC always means taking possession of goods.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true regarding unconscionability under the Code?

Accepted Answer

A)  It is defined in Article 2 as "monstrously extortionately harsh,showing no regard for conscience." 
B)  The Code denies or limits enforcement of an unconscionable contract for the sale of goods. 
C)  Unconscionability may be substantive,but it cannot be procedural. 
D)  The Code allows for the cancellation of an unconscionable contracts,but not for payment of attorney's fees. 
A)  It is defined in Article 2 as "monstrously extortionately harsh,showing no regard for conscience." 
B)  The Code denies or limits enforcement of an unconscionable contract for the sale of goods. 
C)  Unconscionability may be substantive,but it cannot be procedural. 
D)  The Code allows for the cancellation of an unconscionable contracts,but not for payment of attorney's fees.

Question 15

Under Article 2 of the UCC,which of the following would be considered a sale?

Accepted Answer

A)  Bill trades his car for a motorcycle. 
B)  Bill lends his car to his friend. 
C)  Bill puts up his car as security for a $500 loan. 
D)  Bill gives his car to his sister. 
A)  Bill trades his car for a motorcycle. 
B)  Bill lends his car to his friend. 
C)  Bill puts up his car as security for a $500 loan. 
D)  Bill gives his car to his sister.

Question 16

Hannah has agreed to buy Greg's car,but the two have not agreed on the price.When there is no agreement in a sales contract as to price,what effect does it have on the contract?

Accepted Answer

A)  There is a contract,with the price being whatever Greg decides. 
B)  There is a contract,with the price being a reasonable price at the time the agreement was made. 
C)  There is no contract,because the agreement is not definite and certain enough. 
D)  There is a contract,with the price being a reasonable price at the time of delivery. 
A)  There is a contract,with the price being whatever Greg decides. 
B)  There is a contract,with the price being a reasonable price at the time the agreement was made. 
C)  There is no contract,because the agreement is not definite and certain enough. 
D)  There is a contract,with the price being a reasonable price at the time of delivery.

Question 17

A court faced with an unconscionable lease contract may refuse to enforce the entire contract.

Accepted Answer

A) True 
 B)False

Question 18

Who among the following is most likely not considered a merchant according to Article 2 of the UCC?

Accepted Answer

A)  Jim who owns a wholesale auto parts business. 
B)  Tom who,as a hobby,builds and sells birdhouses on the weekends. 
C)  Kay who sells her 3-year-old fishing boat to her neighbor. 
D)  Jan who is not knowledgeable about selling sailboats,but employs an experienced person in the trade. 
A)  Jim who owns a wholesale auto parts business. 
B)  Tom who,as a hobby,builds and sells birdhouses on the weekends. 
C)  Kay who sells her 3-year-old fishing boat to her neighbor. 
D)  Jan who is not knowledgeable about selling sailboats,but employs an experienced person in the trade.

Question 19

Discuss the similarities or possible differences between the parol evidence rule under the common law of contracts and the parol evidence rule found in Article 2.

Accepted Answer

The Code's parol evidence rule is found

Question 20

Most of the Code's provisions are not mandatory but allow the parties to vary or displace them by agreement.

Accepted Answer

A) True 
 B)False

Exam 21: Introduction to Sales and Leases

Which of the following is true about the CISG?

The UCC treats merchants more leniently than others in transactions involving goods.

A finance lease is a special type of lease transaction that generally involves three parties instead of two.

In dealing with unconscionability:

In determining whether a contract containing both a sale of goods and a service is a UCC or general contract,the majority of states follow the:

If the original agreement was oral,a subsequent oral modification,which brings the resulting contract within the statute of frauds,is binding on and enforceable by the parties.

The UCC provides rules,where the parties do not set forth terms in their contract,to cover:

A contract which does not satisfy the writing requirement of the Article 2 statute of frauds,but which is otherwise valid,is enforceable in which of the following situations?

If a contract does not comply with the statute of frauds,it is void.

If a seller buries important terms of its sales agreement in fine print,this could constitute procedural unconscionability.

Consumer leases are treated no differently than business leases under the UCC.

"Acceptance" under the UCC always means taking possession of goods.

Which of the following is true regarding unconscionability under the Code?

Under Article 2 of the UCC,which of the following would be considered a sale?

Hannah has agreed to buy Greg's car,but the two have not agreed on the price.When there is no agreement in a sales contract as to price,what effect does it have on the contract?

A court faced with an unconscionable lease contract may refuse to enforce the entire contract.

Who among the following is most likely not considered a merchant according to Article 2 of the UCC?

Discuss the similarities or possible differences between the parol evidence rule under the common law of contracts and the parol evidence rule found in Article 2.

Most of the Code's provisions are not mandatory but allow the parties to vary or displace them by agreement.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property,property Insurance,bailments,and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management