Question 1

Under Article 2 of the UCC, a firm offer will be created only if the

Accepted Answer

A)  offer states the time period during which it will remain open. 
B)  offer is made by a merchant in a signed writing. 
C)  offeree gives some form of consideration. 
D)  offeree is a merchant. 
A)  offer states the time period during which it will remain open. 
B)  offer is made by a merchant in a signed writing. 
C)  offeree gives some form of consideration. 
D)  offeree is a merchant. B

Question 2

____________________ is a group of laws governing business transactions.

Accepted Answer

The UCC

Question 3

Arnold who worked for the Clean Corporation sold vacuum cleaners house to house. He called on Anna, a single mother on welfare with five children. Convinced by Arnold's sales presentation Anna signed a sales contract to purchase a vacuum cleaner. While the contract stated the price of $600 payable in weekly installments, there were hidden charges (fine print) covering insurance and a service contract for one year bringing the total to $900. After paying in $300, a neighbor pointed out the hidden charges to Anna who then stopped payments at the suggestion of Legal Aid under the theory of

Accepted Answer

A)  fraud. 
B)  duress. 
C)  misrepresentation. 
D)  unconscionability. 
A)  fraud. 
B)  duress. 
C)  misrepresentation. 
D)  unconscionability. D

Question 4

With the advent of contracts being formed online, why has the need for the mailbox rule which a majority of the courts uphold under the common law of contracts become obsolete?

Accepted Answer

Online acceptances w

Question 5

What is the significance of the seller sending conforming goods to the buyer?

Accepted Answer

Conforming goods are goods that meet the

Question 6

Gerber, a Georgia merchant who sells toys, placed a telephone order for fifteen dozen toy computers from NCE, a wholesaler of toys in Cleveland, Ohio. NCE sent Gerber a signed invoice for the toy order (written confirmation), giving details of their oral agreement. The oral (telephone) contract will be enforceable

Accepted Answer

A)  if it would be unreasonable not to enforce it. 
B)  if Gerber does not send NCE a written objection to the contents of the invoice within ten days of receipt of the invoice. 
C)  under no circumstances. 
D)  if the courts say that this case is governed by common law. 
A)  if it would be unreasonable not to enforce it. 
B)  if Gerber does not send NCE a written objection to the contents of the invoice within ten days of receipt of the invoice. 
C)  under no circumstances. 
D)  if the courts say that this case is governed by common law.

Question 7

Money bought and sold as a commodity is included in the definition of goods.

Accepted Answer

A) True 
 B)False

Question 8

____________________ evidence can be presented in court to give meaning or add clarity to unclear language in a contract.

Accepted Answer

The answer of ____________________ evidence can be presented in court...

Question 9

A(n) ____________________ is a contract in which ownership and title to goods passes from seller to buyer for a price.

Accepted Answer

The answer of A(n) ____________________ is a contract in which...

Question 10

Freedom of contract is a basic principle of the UCC. Consequently, its provisions are not mandatory.

Accepted Answer

A) True 
 B)False

Question 11

The UCC defines goods as tangible ____________________ property.

Accepted Answer

The answer of The UCC defines goods as tangible ____________________...

Question 12

Under Article 2 of the UCC when is a party to a sales contract considered a merchant?

Accepted Answer

A merchant is a person who eit

Question 13

An oral sales contract for goods costing $500 will be enforced

Accepted Answer

A)  if the buyer pays for the goods in full. 
B)  if the goods were specially manufactured for the buyer. 
C)  if the buyer receives and accepts all of the goods. 
D)  in all of these situations. 
A)  if the buyer pays for the goods in full. 
B)  if the goods were specially manufactured for the buyer. 
C)  if the buyer receives and accepts all of the goods. 
D)  in all of these situations.

Question 14

Darien, Inc. orally contracted to manufacture 1,500 square yards of carpet specially designed for American Health's offices. The agreed price was $40 per square yard. When the carpeting was completed, American Health refused to accept it, claiming that it was not bound by the oral contract. Is American Health correct?

Accepted Answer

No. Since the carpet was speci

Question 15

An oral contract can be enforced only for the quantity of goods actually received and accepted by the buyer.

Accepted Answer

A) True 
 B)False

Question 16

Under the UCC, a merchant is a person who is

Accepted Answer

A)  a regular dealer in the sale of goods involved in the sales contract. 
B)  especially knowledgeable about goods involved in the sales contract. 
C)  a commercial expert. 
D)  all of these. 
A)  a regular dealer in the sale of goods involved in the sales contract. 
B)  especially knowledgeable about goods involved in the sales contract. 
C)  a commercial expert. 
D)  all of these.

Question 17

Jacobson Wholesale Company and Kutner, the owner of a retail men's store, signed a written contract under which Jacobson was to sell 300 boxes of hosiery to Kutner at $5 per box. Jacobson sent the hosiery, and Kutner paid the $1,500. Jacobson sued Kutner for an additional $900 and at the trial offered evidence that shortly before signing the contract, Kutner had orally agreed to pay an additional $3 per box. The court held the evidence inadmissible. The principle that best justifies the legal decision in this case is that

Accepted Answer

A)  all contracts must be in writing to be enforceable. 
B)  written contracts may not be modified at the will of the parties. 
C)  generally, evidence of a prior oral agreement contradicting a written contract is inadmissible. 
D)  a contract of guaranty must be in writing to be enforceable. 
A)  all contracts must be in writing to be enforceable. 
B)  written contracts may not be modified at the will of the parties. 
C)  generally, evidence of a prior oral agreement contradicting a written contract is inadmissible. 
D)  a contract of guaranty must be in writing to be enforceable.

Question 18

Under the UCC, between merchants, any additional terms added to the acceptance of an offer

Accepted Answer

A)  have no effect on the original offer. 
B)  are a counteroffer that terminates the original offer. 
C)  will automatically become part of the contract if the offeree's response indicates a definite acceptance of the offer. 
D)  are a rejection of the original offer. 
A)  have no effect on the original offer. 
B)  are a counteroffer that terminates the original offer. 
C)  will automatically become part of the contract if the offeree's response indicates a definite acceptance of the offer. 
D)  are a rejection of the original offer.

Question 19

The UCC makes a distinction between a professional and an occasional seller.

Accepted Answer

A) True 
 B)False

Question 20

Blacklaw in a signed letter to Ekis made the following request (offer): "Ship promptly 100 dozen of the new light saver type light bulbs." This offer

Accepted Answer

A)  may be accepted only by a prompt shipment. 
B)  may be accepted only by a prompt promise to ship. 
C)  may be accepted by either a prompt promise to ship or a prompt shipment. 
D)  is invalid because no price was mentioned. 
A)  may be accepted only by a prompt shipment. 
B)  may be accepted only by a prompt promise to ship. 
C)  may be accepted by either a prompt promise to ship or a prompt shipment. 
D)  is invalid because no price was mentioned.

Exam 15: Formation of Sales and Lease Contracts

Under Article 2 of the UCC, a firm offer will be created only if the

____________________ is a group of laws governing business transactions.

With the advent of contracts being formed online, why has the need for the mailbox rule which a majority of the courts uphold under the common law of contracts become obsolete?

What is the significance of the seller sending conforming goods to the buyer?

Money bought and sold as a commodity is included in the definition of goods.

____________________ evidence can be presented in court to give meaning or add clarity to unclear language in a contract.

A(n) ____________________ is a contract in which ownership and title to goods passes from seller to buyer for a price.

Freedom of contract is a basic principle of the UCC. Consequently, its provisions are not mandatory.

The UCC defines goods as tangible ____________________ property.

Under Article 2 of the UCC when is a party to a sales contract considered a merchant?

An oral sales contract for goods costing $500 will be enforced

An oral contract can be enforced only for the quantity of goods actually received and accepted by the buyer.

Under the UCC, a merchant is a person who is

Under the UCC, between merchants, any additional terms added to the acceptance of an offer

The UCC makes a distinction between a professional and an occasional seller.

Blacklaw in a signed letter to Ekis made the following request (offer): "Ship promptly 100 dozen of the new light saver type light bulbs." This offer

Foundations of Law and the Role of Ethics in Business

The Legal System in the United States and Its Constitutional Foundation

Personal, Business, and Cyber Crimes and the American Criminal Justice System

Tort Law: Traditional Torts and Cyber Torts

Litigation and Alternatives for Settling Civil Disputes

Contract Law: a Beginning

Agreement: Offer and Acceptance

Consideration

Capacity

Legality

Memorialize Contracts in Writingstatute of Frauds

Transfer of Contract Rights and Duties

The Termination of Contracts: Discharge

The Termination of Contracts: Breach of Contract

The Sales Contract: Transfer of Title and Risk of Loss

The Sales Contract: Performance, Breach, and Remedies for Breach

Product Liability Law

Nature and Types of Negotiable Instruments

Issue, Transfer, Indorsement, and Discharge of Negotiable Instruments

Rights and Duties of Parties

Checks and the Banking System in the Twenty-First Century

Employer-Employee Relationship

Principal-Agent Relationship

Principal-Agent, Employer-Employee, and Third-Party Relationships

Sole Proprietorships, Partnerships, and Limited Liability Organizations

Corporations and Franchising

Government Regulation of Business

Basic Legal Concepts of Property

Renting Real Property

Buying and Selling Real Property

Nature and Types of Bailments

Wills, Intestacy, and Estate Planning

Protecting the Consumer and the Taxpayer

Protecting the Borrower

Protecting the Creditor

Property, Casualty and Automobile Insurance

Personal Insurance

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