Question 1

The Uniform Electronic Transactions Act, in effect in all of the states, covers contracts not governed by Articles 2 and 2A.

Accepted Answer

A) True 
 B)False

Question 2

In dealing with unconscionability:

Accepted Answer

A)  most cases have involved low-income consumers. 
B)  courts have demonstrated an unwillingness to limit freedom of contract. 
C)  courts have applied the doctrine to the negotiation process, which involves substantive unconscionability. 
D)  courts have not considered inequality in the bargaining positions of the parties. 
A)  most cases have involved low-income consumers. 
B)  courts have demonstrated an unwillingness to limit freedom of contract. 
C)  courts have applied the doctrine to the negotiation process, which involves substantive unconscionability. 
D)  courts have not considered inequality in the bargaining positions of the parties.

Question 3

Most of the Code's provisions are not mandatory but allow the parties to vary or displace them by agreement.

Accepted Answer

A) True 
 B)False

Question 4

Discuss the similarities or possible differences between the parol evidence rule under the common law of contracts and the parol evidence rule found in Article 2.

Accepted Answer

The Code's parol evidence rule is found

Question 5

A finance lease is a special type of lease transaction that generally involves three parties instead of two.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a requirement of the statute of frauds provision of Article 2 of the UCC?

Accepted Answer

A)  Some writing or record that indicates a contract has been made 
B)  Signature of the party against whom enforcement is sought 
C)  A term specifying quantity 
D)  A term specifying price 
A)  Some writing or record that indicates a contract has been made 
B)  Signature of the party against whom enforcement is sought 
C)  A term specifying quantity 
D)  A term specifying price

Question 7

The CISG does not apply to sales of goods for personal, family, or household use.

Accepted Answer

A) True 
 B)False

Question 8

Sales contracts containing unconscionable clauses are void and unenforceable.

Accepted Answer

A) True 
 B)False

Question 9

Consumer leases are treated no differently than business leases under the UCC.

Accepted Answer

A) True 
 B)False

Question 10

"Acceptance" under the UCC always means taking possession of goods.

Accepted Answer

A) True 
 B)False

Question 11

In a contract to sell goods, the sale does not take place until the seller transfers the title to the goods to the buyer.

Accepted Answer

A) True 
 B)False

Question 12

Leslie, the owner of a shoe store, purchased 500 Model XT-50 running shoes from her supplier, but price was not stated in the contract. The contract is voidable at Leslie's option until the parties agree on a price.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true regarding unconscionability under the Code?

Accepted Answer

A)  It is defined in Article 2 as "monstrously extortionately harsh, showing no regard for conscience." 
B)  The Code denies or limits enforcement of an unconscionable contract for the sale of goods. 
C)  Unconscionability may be substantive, but it cannot be procedural. 
D)  All of the above. 
A)  It is defined in Article 2 as "monstrously extortionately harsh, showing no regard for conscience." 
B)  The Code denies or limits enforcement of an unconscionable contract for the sale of goods. 
C)  Unconscionability may be substantive, but it cannot be procedural. 
D)  All of the above.

Question 14

If a seller buries important terms of its sales agreement in fine print, this could constitute procedural unconscionability, which could result in a court's refusal to enforce the entire sales contract or at least the part the court finds unconscionable.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following transactions is governed by Article 2 of the UCC?

Accepted Answer

A)  The sale of an apartment complex 
B)  The sale of oranges to be picked from a 10-acre grove 
C)  The sale of common stock of a soft drink company 
D)  A contract to receive medical services in a hospital 
A)  The sale of an apartment complex 
B)  The sale of oranges to be picked from a 10-acre grove 
C)  The sale of common stock of a soft drink company 
D)  A contract to receive medical services in a hospital

Question 16

Who among the following is most likely not considered a merchant according to Article 2 of the UCC?
a. Jim who owns a wholesale auto parts business.
b. Tom who, as a hobby, builds and sells birdhouses on the weekends.
c. Kay who sells her 3-year-old fishing boat to her neighbor.
d. Jan who is not knowledgeable about selling sailboats, but employs an experienced person in the trade.

Accepted Answer

The answer of Who among the following is most likely...

Question 17

What is a "merchant"? Identify four provisions in Article 2 which apply a different standard of conduct to merchants
and nonmerchants.

Accepted Answer

a. property, which includes the unborn y

Question 18

If a UCC contract does not contain all the terms necessary to carry it out, there will be no contract.

Accepted Answer

A) True 
 B)False

Question 19

A sequence of previous conduct between a buyer and a seller, which may be regarded as establishing an understanding for interpreting an agreement between the two parties, is known as:

Accepted Answer

A)  good faith. 
B)  a course of dealing. 
C)  a course of performance. 
D)  usage of trade. 
A)  good faith. 
B)  a course of dealing. 
C)  a course of performance. 
D)  usage of trade.

Question 20

The common law "mirror image" rule has been modified by the Code.

Accepted Answer

A) True 
 B)False

Exam 21: Introduction to Sales and Leases

The Uniform Electronic Transactions Act, in effect in all of the states, covers contracts not governed by Articles 2 and 2A.

In dealing with unconscionability:

Most of the Code's provisions are not mandatory but allow the parties to vary or displace them by agreement.

Discuss the similarities or possible differences between the parol evidence rule under the common law of contracts and the parol evidence rule found in Article 2.

A finance lease is a special type of lease transaction that generally involves three parties instead of two.

Which of the following is not a requirement of the statute of frauds provision of Article 2 of the UCC?

The CISG does not apply to sales of goods for personal, family, or household use.

Sales contracts containing unconscionable clauses are void and unenforceable.

Consumer leases are treated no differently than business leases under the UCC.

"Acceptance" under the UCC always means taking possession of goods.

In a contract to sell goods, the sale does not take place until the seller transfers the title to the goods to the buyer.

Leslie, the owner of a shoe store, purchased 500 Model XT-50 running shoes from her supplier, but price was not stated in the contract. The contract is voidable at Leslie's option until the parties agree on a price.

Which of the following is true regarding unconscionability under the Code?

If a seller buries important terms of its sales agreement in fine print, this could constitute procedural unconscionability, which could result in a court's refusal to enforce the entire sales contract or at least the part the court finds unconscionable.

Which of the following transactions is governed by Article 2 of the UCC?

What is a "merchant"? Identify four provisions in Article 2 which apply a different standard of conduct to merchants and nonmerchants.

If a UCC contract does not contain all the terms necessary to carry it out, there will be no contract.

A sequence of previous conduct between a buyer and a seller, which may be regarded as establishing an understanding for interpreting an agreement between the two parties, is known as:

The common law "mirror image" rule has been modified by the Code.

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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