Question 1

Article 2A of the UCC directly addresses personal property leases.

Accepted Answer

A) True 
 B)False  True

Question 2

Under the UCC,if an offer is received by mail,the acceptance:

Accepted Answer

A)  must also be made by mail 
B)  can be made by other means,but only if the offer so states 
C)  is effective only once it is received by the offeror 
D)  can be canceled by the offeree at any time during the period of a firm offer 
E)  can be made in any commercially reasonable manner 
A)  must also be made by mail 
B)  can be made by other means,but only if the offer so states 
C)  is effective only once it is received by the offeror 
D)  can be canceled by the offeree at any time during the period of a firm offer 
E)  can be made in any commercially reasonable manner E

Question 3

The "battle of the forms" is a reference to the insistence by many merchant sellers that customers sign the seller's standard form contract without modification.

Accepted Answer

A) True 
 B)False  False

Question 4

Under UCC 2-206(1)(b),an accommodation:

Accepted Answer

A)  neither applies to merchants nor nonmerchants 
B)  applies to nonmerchants only 
C)  is a shipment that is offered to the buyer as a replacement for the original shipment when the original shipment cannot be filled 
D)  is a bonus shipment when items are temporarily out of stock 
A)  neither applies to merchants nor nonmerchants 
B)  applies to nonmerchants only 
C)  is a shipment that is offered to the buyer as a replacement for the original shipment when the original shipment cannot be filled 
D)  is a bonus shipment when items are temporarily out of stock

Question 5

A transaction that includes both a goods and a services component will be covered by the UCC so long as the goods are the predominant part of the transaction.

Accepted Answer

A) True 
 B)False

Question 6

If both parties to an oral sale or lease contract are merchants,the Statute of Frauds requirement can be satisfied if one of the parties sends a written confirmation and the other merchant does not object within 10 days of receiving the confirmation.

Accepted Answer

A) True 
 B)False

Question 7

A grocery store mails an offer to purchase 50,000 pounds of bananas to a produce importer.The importer immediately ships the 50,000 pounds of bananas by truck to the buyer but does not send notification to the buyer that it is making the shipment.Which of the following is true?

Accepted Answer

A)  There has been an effective acceptance merely by shipping the bananas. 
B)  There would be an acceptance only if the seller sends a written acceptance by mail because the offer was received by mail. 
C)  The seller must send an acceptance to the buyer by any commercially reasonable method. 
D)  When the bananas arrive at the grocery store,their arrival will be treated as an offer. 
A)  There has been an effective acceptance merely by shipping the bananas. 
B)  There would be an acceptance only if the seller sends a written acceptance by mail because the offer was received by mail. 
C)  The seller must send an acceptance to the buyer by any commercially reasonable method. 
D)  When the bananas arrive at the grocery store,their arrival will be treated as an offer.

Question 8

If a buyer and seller agree to a contract for the sale of goods amounting to $400,which modifications must be in writing in order to be enforceable?

Accepted Answer

A)  all modifications 
B)  any modification increasing the price by $500 or more 
C)  any modification increasing the price by $100 or more 
D)  No modification to such a contract needs to be in writing because the original contract did not need to be in writing. 
A)  all modifications 
B)  any modification increasing the price by $500 or more 
C)  any modification increasing the price by $100 or more 
D)  No modification to such a contract needs to be in writing because the original contract did not need to be in writing.

Question 9

A "firm offer" can be held open as long as 3 months.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true relating to a "firm offer" under the UCC?

Accepted Answer

A)  It can be made only by a merchant. 
B)  It must be in writing and signed by the merchant. 
C)  It may provide that the offer remain open for any period of time up to 4 months. 
D)  A,B,and C are true. 
E)  A and B only are true. 
A)  It can be made only by a merchant. 
B)  It must be in writing and signed by the merchant. 
C)  It may provide that the offer remain open for any period of time up to 4 months. 
D)  A,B,and C are true. 
E)  A and B only are true.

Question 11

A seller or buyer who reserves the right to fix a price must do so in good faith.

Accepted Answer

A) True 
 B)False

Question 12

Regarding differences under the UCC in the treatment of merchants and nonmerchants,which is true?

Accepted Answer

A)  The UCC applies to merchants,but not to nonmerchants. 
B)  The UCC requires merchants' contracts to be in writing,but not those of nonmerchants. 
C)  The requirements for a merchant to form a contract are less stringent than those for nonmerchants,and merchants receive fewer protections than nonmerchants. 
D)  The consideration requirement has been eliminated for contracts between merchants,but is still present in contracts involving at least one nonmerchant. 
A)  The UCC applies to merchants,but not to nonmerchants. 
B)  The UCC requires merchants' contracts to be in writing,but not those of nonmerchants. 
C)  The requirements for a merchant to form a contract are less stringent than those for nonmerchants,and merchants receive fewer protections than nonmerchants. 
D)  The consideration requirement has been eliminated for contracts between merchants,but is still present in contracts involving at least one nonmerchant.

Question 13

If the time,place,and manner of delivery of goods is not mentioned in a contract:

Accepted Answer

A)  the place of delivery is the buyer's place of business 
B)  the contract is void for lack of definiteness 
C)  the place of delivery is the seller's place of business 
D)  the seller is obligated to pay for shipping to the buyer's place of business 
A)  the place of delivery is the buyer's place of business 
B)  the contract is void for lack of definiteness 
C)  the place of delivery is the seller's place of business 
D)  the seller is obligated to pay for shipping to the buyer's place of business

Question 14

For the written confirmation rule to apply,who must be a merchant?

Accepted Answer

A)  the offeror 
B)  the offeree 
C)  both the offeror and the offeree 
D)  neither the offeror nor the offeree 
A)  the offeror 
B)  the offeree 
C)  both the offeror and the offeree 
D)  neither the offeror nor the offeree

Question 15

Which terms will be implied in a contract under the UCC if they are omitted in the express contract? Why does the UCC so freely imply these omitted terms? What are the risks of such a liberal policy of implying omitted terms?

Accepted Answer

One of the general policies behind the U

Question 16

Under the UCC Article 2,unless otherwise agreed,an acceptance of an offer is effective:

Accepted Answer

A)  when dispatched 
B)  when dispatched,but only if the acceptance reaches its destination within a reasonable time 
C)  when the acceptance is received 
D)  when the goods are received 
E)  when the offeree acknowledges receipt of the acceptance 
A)  when dispatched 
B)  when dispatched,but only if the acceptance reaches its destination within a reasonable time 
C)  when the acceptance is received 
D)  when the goods are received 
E)  when the offeree acknowledges receipt of the acceptance

Question 17

A buyer and seller enter into a written contract for the sale of some specialty steel to be used by the buyer in the manufacture of some appliances.The contract specified all the terms of the contract except the price.Which of the following is true?

Accepted Answer

A)  There is no contract because there is no meeting of the minds as to a material term. 
B)  There would be a contract except that the price cannot be implied in this contract because it is not a contract for the sale of a commodity with an easily determined market price. 
C)  A price will be implied only if the contract called for the price to be determined at a later date. 
D)  A reasonable price will be implied. 
A)  There is no contract because there is no meeting of the minds as to a material term. 
B)  There would be a contract except that the price cannot be implied in this contract because it is not a contract for the sale of a commodity with an easily determined market price. 
C)  A price will be implied only if the contract called for the price to be determined at a later date. 
D)  A reasonable price will be implied.

Question 18

A seller and a buyer orally agree to the following two transactions: The buyer wants to purchase 500 plain white tablecloths at $10 each.In addition,the buyer wants to purchase 500 tablecloths with it's very distinctive logo imprinted on them at $20 each.The seller delivers 250 of the plain white tablecloths,which the buyer accepts.Later,according to the contract,the seller attempts to deliver all the rest of the tablecloths; but the buyer refuses to accept or pay for any of them,claiming that the Statute of Frauds prohibits the enforcing of these contracts.Discuss in detail whether these contracts are enforceable and how much,if any,the seller can collect.

Accepted Answer

The seller can colle

Question 19

Article 2 of the UCC applies to real estate,because real estate generally has severable things that are goods according to Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 20

A sale involving both goods and services is known as a mixed sale.

Accepted Answer

A) True 
 B)False

Exam 18: Formation of Sales and Lease Contracts

Article 2A of the UCC directly addresses personal property leases.

Under the UCC,if an offer is received by mail,the acceptance:

The "battle of the forms" is a reference to the insistence by many merchant sellers that customers sign the seller's standard form contract without modification.

Under UCC 2-206(1)(b),an accommodation:

A transaction that includes both a goods and a services component will be covered by the UCC so long as the goods are the predominant part of the transaction.

If both parties to an oral sale or lease contract are merchants,the Statute of Frauds requirement can be satisfied if one of the parties sends a written confirmation and the other merchant does not object within 10 days of receiving the confirmation.

A grocery store mails an offer to purchase 50,000 pounds of bananas to a produce importer.The importer immediately ships the 50,000 pounds of bananas by truck to the buyer but does not send notification to the buyer that it is making the shipment.Which of the following is true?

If a buyer and seller agree to a contract for the sale of goods amounting to $400,which modifications must be in writing in order to be enforceable?

A "firm offer" can be held open as long as 3 months.

Which of the following is true relating to a "firm offer" under the UCC?

A seller or buyer who reserves the right to fix a price must do so in good faith.

Regarding differences under the UCC in the treatment of merchants and nonmerchants,which is true?

If the time,place,and manner of delivery of goods is not mentioned in a contract:

For the written confirmation rule to apply,who must be a merchant?

Which terms will be implied in a contract under the UCC if they are omitted in the express contract? Why does the UCC so freely imply these omitted terms? What are the risks of such a liberal policy of implying omitted terms?

Under the UCC Article 2,unless otherwise agreed,an acceptance of an offer is effective:

A buyer and seller enter into a written contract for the sale of some specialty steel to be used by the buyer in the manufacture of some appliances.The contract specified all the terms of the contract except the price.Which of the following is true?

Article 2 of the UCC applies to real estate,because real estate generally has severable things that are goods according to Article 2 of the UCC.

A sale involving both goods and services is known as a mixed sale.

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