Exam 12: UCC Sales and Lease Contracts and Warranties

The firm offer rule allows the offeror to revoke an offer at any point of time prior to the acceptance.

The doctrine of ________ governed the law of sales and leases for centuries, before the UCC was adopted.

Article 2 of the Uniform Commercial Code is also applied by federal courts to sales contracts governed by federal law.

Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process. Zeitar was to pay Klint $300,000 as per the contract. Klint decided to redesign their existing microchips and make them suitable for Zeitar. While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency. Klint cancelled the shipment before it was delivered. Klint then resold the chips to another Studio where they had to settle for $150,000, as the chips were now only suitable for specific audio engineering processes. What right to remedy did Klint exercise when they stopped shipment to Zeitar?

Article 2A of the UCC deals with lessors and lessees.

The right to withhold delivery is available to the seller if the buyer or lessee wrongfully rejects or revokes acceptance of the goods.

In which of the following does the title to the goods pass from the seller to the buyer?

A ________ is defined as the passing of title of goods from a seller to a buyer for a price.

The ________ requires all contracts for the sale of goods costing $500 or more and lease contracts involving payments of $1,000 or more to be in writing.

Sam expressed interest in buying a painting from Jasper, who claimed that the painting was a family heirloom. Jasper's asking price was $15,000, but Sam was only willing to offer $13,000. Jasper told him that it was a very old painting worth a fortune and that others would gladly pay $20,000 for it. He also told him that he was only selling it under its market value because he needed the money immediately. He then implied that Sam could sell it for a higher rate if he wanted. Sam decided to buy the painting for $15,000 on the condition that if he found that the painting was worth less than $15,000, Jasper would have to take the painting back and refund Sam. Which of the following warranties did this sales contract have?

Which of the following articles in the UCC deals with the sale of goods?

If the receipt of an electronic communication has a legal effect, it has that effect even if no individual is aware of its receipt.

The ________ is a federal statute that regulates written warranties on consumer products.

If the parties to a sales contract do not agree to the time, place, and manner of delivery of the goods, the place for delivery is ________.

Which of the following describes a mixed sale?

Which of the following would constitute an implied warranty?

A(n)________ is a warranty created when a seller or lessor makes an affirmation that the goods he or she is selling or leasing meet certain standards of quality, description, performance, or condition.

A contract is created when ________.

What type of transaction is covered under the Magnuson-Moss Warranty Act?

Only written express warranties are valid.