Question 1

A "sale," as defined by the UCC, takes place when:

Accepted Answer

A)  the price is paid. 
B)  there is a manifestation of mutual assent. 
C)  the parties shake hands or affirmatively agree. 
D)  the title is transferred to the buyer. 
A)  the price is paid. 
B)  there is a manifestation of mutual assent. 
C)  the parties shake hands or affirmatively agree. 
D)  the title is transferred to the buyer. D

Question 2

Karen has agreed to buy May'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 the seller 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 the seller 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. D

Question 3

The doctrine of unconscionability deals only with whether the actual terms of the contract are grossly unfair or oppressive.

Accepted Answer

A) True 
 B)False  False

Question 4

The general law of contracts is displaced by the Code in all aspects of the sale of goods.

Accepted Answer

A) True 
 B)False

Question 5

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 6

The Code addresses the battle of the forms problem by focusing on the intent of the parties.

Accepted Answer

A) True 
 B)False

Question 7

Article 2A of the UCC, approved by drafters of the Code in 1987 and amended in 1990, deals with leases of personal property, which exceed $100 billion annually.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is correct with respect to finance leases?

Accepted Answer

A)  A finance lease generally involves three parties instead of two. 
B)  A finance lessor supplies the goods. 
C)  The finance lessor typically has special expertise as to the goods. 
D)  All of these are correct. 
A)  A finance lease generally involves three parties instead of two. 
B)  A finance lessor supplies the goods. 
C)  The finance lessor typically has special expertise as to the goods. 
D)  All of these are correct.

Question 9

The most important element in determining whether a sales contract has been made is the:

Accepted Answer

A)  language of the contract. 
B)  fact that the terms of the offer and acceptance are exactly alike. 
C)  number of open terms. 
D)  intention of the parties to make a contract. 
A)  language of the contract. 
B)  fact that the terms of the offer and acceptance are exactly alike. 
C)  number of open terms. 
D)  intention of the parties to make a contract.

Question 10

To accommodate electronic commerce, which of the following was enacted or promulgated?

Accepted Answer

A)  The UCC 
B)  The CISG 
C)  The UETA 
D)  GATT 
A)  The UCC 
B)  The CISG 
C)  The UETA 
D)  GATT

Question 11

Under the Code, "good faith" for merchants is defined as "honesty in fact in the conduct or transaction concerned."

Accepted Answer

A) True 
 B)False

Question 12

Under the Code, a contract to sell or lease personal property is recognized whenever the parties manifest such an intent, even if they cannot identify a precise moment the contract was formed.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Until the early 1900s, sales transactions were completely governed by general contract law, but now sales of tangible personal property are predominantly governed by statute.

Accepted Answer

A) True 
 B)False

Question 15

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 16

The Article 2 battle of the forms provision is found in

Accepted Answer

The answer of The Article 2 battle of the forms...

Question 17

"Goods" for purposes of the Code are essentially tangible, movable personal property.

Accepted Answer

A) True 
 B)False

Question 18

The Code defines as "honesty in fact in the conduct or transaction concerned."

Accepted Answer

A)  good faith 
B)  unconscionability 
C)  merchantability 
D)  entrusting 
A)  good faith 
B)  unconscionability 
C)  merchantability 
D)  entrusting

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

If a merchant makes a written offer to buy or sell goods, this will be irrevocable only if accompanied by consideration.

Accepted Answer

A) True 
 B)False

Exam 21: Introduction to Sales and Leases

A "sale," as defined by the UCC, takes place when:

Karen has agreed to buy May'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?

The doctrine of unconscionability deals only with whether the actual terms of the contract are grossly unfair or oppressive.

The general law of contracts is displaced by the Code in all aspects of the sale of goods.

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?

The Code addresses the battle of the forms problem by focusing on the intent of the parties.

Article 2A of the UCC, approved by drafters of the Code in 1987 and amended in 1990, deals with leases of personal property, which exceed $100 billion annually.

Which of the following is correct with respect to finance leases?

The most important element in determining whether a sales contract has been made is the:

To accommodate electronic commerce, which of the following was enacted or promulgated?

Under the Code, "good faith" for merchants is defined as "honesty in fact in the conduct or transaction concerned."

Under the Code, a contract to sell or lease personal property is recognized whenever the parties manifest such an intent, even if they cannot identify a precise moment the contract was formed.

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.

Until the early 1900s, sales transactions were completely governed by general contract law, but now sales of tangible personal property are predominantly governed by statute.

The Article 2 battle of the forms provision is found in

"Goods" for purposes of the Code are essentially tangible, movable personal property.

The Code defines as "honesty in fact in the conduct or transaction concerned."

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

If a merchant makes a written offer to buy or sell goods, this will be irrevocable only if accompanied by consideration.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

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

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

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property

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