Question 1

The provisions of the Article 2A of the UCC are by no means similar to the provisions of Article 2.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true for terms to be expressed in a contract under the common law?

Accepted Answer

A)  Additional terms can be added during acceptance. 
B)  Additional terms can be added without consideration. 
C)  Gap-filling rules are permitted for time, delivery, and prices of goods. 
D)  Contract must contain all the material terms of the parties' agreement. 
A)  Additional terms can be added during acceptance. 
B)  Additional terms can be added without consideration. 
C)  Gap-filling rules are permitted for time, delivery, and prices of goods. 
D)  Contract must contain all the material terms of the parties' agreement.

Question 3

________ is a rule that says that if a written contract is a complete and final statement of the parties' agreement,any prior or contemporaneous oral or written statements that alter,contradict,or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract.

Accepted Answer

A)  Parol evidence rule 
B)  Firm offer rule 
C)  Open terms rule 
D)  Gap-filling rule 
A)  Parol evidence rule 
B)  Firm offer rule 
C)  Open terms rule 
D)  Gap-filling rule

Question 4

Is an oral modification to a contract enforceable? Explain with an example.

Accepted Answer

Oral modification of a contract is not e

Question 5

In which of the following situations involving oral contracts can the Statute of Frauds be raised?

Accepted Answer

A)  if a written confirmation has not been objected by a party in an oral agreement 
B)  if the seller of specially manufactured goods has made a commitment for their procurement 
C)  if the party against whom enforcement of an oral contract is sought has not admitted in pleadings in court of such a contract 
D)  if a contract that requires written confirmation has been agreed orally 
A)  if a written confirmation has not been objected by a party in an oral agreement 
B)  if the seller of specially manufactured goods has made a commitment for their procurement 
C)  if the party against whom enforcement of an oral contract is sought has not admitted in pleadings in court of such a contract 
D)  if a contract that requires written confirmation has been agreed orally

Question 6

If the parties to a contract do not set a specific time of performance for any obligation under the contract,the contract ________.

Accepted Answer

A)  must be performed within a reasonable time 
B)  is considered to be unenforceable under the UCC 
C)  can be satisfied at a time the offeree insists upon 
D)  is not created at that time 
A)  must be performed within a reasonable time 
B)  is considered to be unenforceable under the UCC 
C)  can be satisfied at a time the offeree insists upon 
D)  is not created at that time

Question 7

An electronic signature may be that of a person's electronic agent.

Accepted Answer

A) True 
 B)False

Question 8

Parris Boutique decides to lease a new property of Green Floor Company.To finance the acquisition,Parris goes to a local bank.The bank purchases the property from Green Floor and leases it to Parris Boutiques.Which of the following is true about this scenario?

Accepted Answer

A)  The lessee is liable to make payments to the lessor. 
B)  The supplier receives the physical delivery of the property. 
C)  The lessor is liable for the construction of the property. 
D)  The supplier delivers the property directly to the lessor. 
A)  The lessee is liable to make payments to the lessor. 
B)  The supplier receives the physical delivery of the property. 
C)  The lessor is liable for the construction of the property. 
D)  The supplier delivers the property directly to the lessor.

Question 9

The customs and rules of the Law Merchant were absorbed into the common law.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true for goods under the purview of Article 2 of the UCC?

Accepted Answer

A)  Goods can be replaced by money. 
B)  Intangible goods must be exchanged with other intangible goods. 
C)  Goods in the contract must be movable. 
D)  Immovable goods like real estate must have provisions of service attached to their contracts. 
A)  Goods can be replaced by money. 
B)  Intangible goods must be exchanged with other intangible goods. 
C)  Goods in the contract must be movable. 
D)  Immovable goods like real estate must have provisions of service attached to their contracts.

Question 11

Which of the following is true of consideration for modifying a sales or lease contract under the UCC?

Accepted Answer

A)  An agreement modifying a contract needs no consideration to be binding. 
B)  Modifying a contract requires consideration from the offeree's side. 
C)  An offeror who modifies a contract must do so by providing reasonable consideration. 
D)  The party providing the consideration must complete it within three months of acceptance. 
A)  An agreement modifying a contract needs no consideration to be binding. 
B)  Modifying a contract requires consideration from the offeree's side. 
C)  An offeror who modifies a contract must do so by providing reasonable consideration. 
D)  The party providing the consideration must complete it within three months of acceptance.

Question 12

Article 2 of UCC applies to a mixed sale of goods and services if the ________.

Accepted Answer

A)  goods sold are of lesser value than the services 
B)  sale provides equal provisions for goods and services 
C)  goods are the predominant part of the transaction 
D)  sale involves services and goods in different transactions 
A)  goods sold are of lesser value than the services 
B)  sale provides equal provisions for goods and services 
C)  goods are the predominant part of the transaction 
D)  sale involves services and goods in different transactions

Question 13

How can the Statute of Frauds writing requirements be satisfied under the written confirmation rule if both the parties to a contract are merchants?

Accepted Answer

Under the written confirmation rule,if b

Question 14

The UCC provides that a buyer must accept accommodation sent by the seller if the goods under the contract are not available.

Accepted Answer

A) True 
 B)False

Question 15

The Statute of Frauds provides that all contracts irrespective of their costs must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 16

A lessor orally contracts to lease 15 motorbikes to a lessee.The lessee accepts the first 10 bikes and refuses to accept the delivery for the rest.The lessor sues the lessee for a breach of contract.The lessee asserts the Statute of Frauds and proclaims the contract unenforceable,but the court deems the contract enforceable.Discuss arguments for or against the court's verdict.Is the lessee liable to purchase all the bikes under the contract.

Accepted Answer

An oral sales or lease contract that sho

Question 17

Stelwire LLC,a vintage car dealer,advertises the sale of a 1964 Ford Thunderbolt.Ralph responds to the advertisement with an offer of $80,000 for the car.Stelwire signs a written assurance to keep that offer open to Ralph for a fortnight.Five days before the fortnight is up,Stelwire sells the car to another buyer.At the end of the fortnight period,Ralph tenders $80,000 for the car,but the car has already been sold.Ralph then buys the same model car from another dealer for $90,000 and sues Stelwire for breach of contract.The court rules that Stelwire is liable to Ralph for breach of contract,and orders Stelwire to pay Ralph the difference of $10,000 he paid extra to the second dealer for the car.Which of the following rules governs the execution of this contract?

Accepted Answer

A)  firm offer rule 
B)  mirror image rule 
C)  battle of the forms rule 
D)  gap-filling rule 
A)  firm offer rule 
B)  mirror image rule 
C)  battle of the forms rule 
D)  gap-filling rule

Question 18

Which of the following sales would be covered by Article 2 of the UCC?

Accepted Answer

A)  the sale of intangible goods 
B)  the sale of tangible goods 
C)  the sale of real estate 
D)  the sale of stocks 
A)  the sale of intangible goods 
B)  the sale of tangible goods 
C)  the sale of real estate 
D)  the sale of stocks

Question 19

Under the Uniform Commercial Code,businesses are subject to the laws of each state in which they operate.

Accepted Answer

A) True 
 B)False

Question 20

According to the gap-filling rule,if a sales contract does not contain a specific price,________.

Accepted Answer

A)  the contract has to be redrafted to include a price 
B)  the contract is considered void due to indefiniteness 
C)  the contract can be enforced by either party by fixing an open term price 
D)  the contract cannot be enforced upon the buyee 
A)  the contract has to be redrafted to include a price 
B)  the contract is considered void due to indefiniteness 
C)  the contract can be enforced by either party by fixing an open term price 
D)  the contract cannot be enforced upon the buyee

Exam 16: Formation of Sales and Lease Contracts

The provisions of the Article 2A of the UCC are by no means similar to the provisions of Article 2.

Which of the following is true for terms to be expressed in a contract under the common law?

Is an oral modification to a contract enforceable? Explain with an example.

In which of the following situations involving oral contracts can the Statute of Frauds be raised?

If the parties to a contract do not set a specific time of performance for any obligation under the contract,the contract ________.

An electronic signature may be that of a person's electronic agent.

Parris Boutique decides to lease a new property of Green Floor Company.To finance the acquisition,Parris goes to a local bank.The bank purchases the property from Green Floor and leases it to Parris Boutiques.Which of the following is true about this scenario?

The customs and rules of the Law Merchant were absorbed into the common law.

Which of the following is true for goods under the purview of Article 2 of the UCC?

Which of the following is true of consideration for modifying a sales or lease contract under the UCC?

Article 2 of UCC applies to a mixed sale of goods and services if the ________.

How can the Statute of Frauds writing requirements be satisfied under the written confirmation rule if both the parties to a contract are merchants?

The UCC provides that a buyer must accept accommodation sent by the seller if the goods under the contract are not available.

The Statute of Frauds provides that all contracts irrespective of their costs must be in writing to be enforceable.

Which of the following sales would be covered by Article 2 of the UCC?

Under the Uniform Commercial Code,businesses are subject to the laws of each state in which they operate.

According to the gap-filling rule,if a sales contract does not contain a specific price,________.

Legal Heritage and the Digital Age

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Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

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Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

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Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

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