Question 1

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 2

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 3

Ari makes a written offer to Linville, who replies with a conditional acceptance.Ari ships the goods, which Linville accepts.A contract:

Accepted Answer

A) was formed when Linville conditionally accepted. 
B) consists of the written terms to which Ari and Linville agreed, along with supplementary provisions of the UCC. 
C) consists only of the written terms to which Ari and Linville agreed. 
D) was never formed. 
A) was formed when Linville conditionally accepted. 
B) consists of the written terms to which Ari and Linville agreed, along with supplementary provisions of the UCC. 
C) consists only of the written terms to which Ari and Linville agreed. 
D) was never formed.

Question 4

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

Question 5

Edie telephoned the office supply store and agreed to buy a dozen boxes of CDs at $23 each.She then realized what a good buy this was and called the store with a request to modify the contract to read two dozen boxes.What is the consequence?

Accepted Answer

A) The modified contract is unenforceable. 
B) The modified contract is void. 
C) The modified contract is valid and enforceable. 
D) There is no consideration, so the contract is void. 
A) The modified contract is unenforceable. 
B) The modified contract is void. 
C) The modified contract is valid and enforceable. 
D) There is no consideration, so the contract is void.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Under Article 2 of the UCC, which of the following would be considered a sale?

Accepted Answer

A) Bill trades his car for a motorcycle. 
B) Bill lends his car to his friend. 
C) Bill puts up his car as security for a $500 loan. 
D) Bill gives his car to his sister. 
A) Bill trades his car for a motorcycle. 
B) Bill lends his car to his friend. 
C) Bill puts up his car as security for a $500 loan. 
D) Bill gives his car to his sister.

Question 8

The Article 2 battle of the forms provision is found in

Accepted Answer

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

Question 9

Unless an auction is advertised or announced as being without reserve, the sale is with reserve, and the auctioneer may withdraw the goods at any time until he announces completion of the sale.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The firm offer provision in Articles 2 and 2A of the UCC covers only merchant sellers.

Accepted Answer

A) True 
 B)False

Question 12

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 13

With regard to uncertainty in a contract that falls within the scope of Article 2, which of the following is true?

Accepted Answer

A) Uncertainty will usually make the contract unenforceable. 
B) Missing terms cannot be supplied at a later date. 
C) Uncertainty as to incidental matters will seldom be fatal as long as the parties intend to form a contract. 
D) Missing terms will cause the contract to be voidable, but the parties will have a chance to fill them in later. 
A) Uncertainty will usually make the contract unenforceable. 
B) Missing terms cannot be supplied at a later date. 
C) Uncertainty as to incidental matters will seldom be fatal as long as the parties intend to form a contract. 
D) Missing terms will cause the contract to be voidable, but the parties will have a chance to fill them in later.

Question 14

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 15

The Code provides that its remedies shall be liberally administered to place the aggrieved party in a position as good as the one she would have occupied had the defaulting party fully performed.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

A court faced with an unconscionable lease contract may refuse to enforce the entire contract.

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

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

Exam 21: Introduction to Sales and Leases

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

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

Ari makes a written offer to Linville, who replies with a conditional acceptance.Ari ships the goods, which Linville accepts.A contract:

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

Edie telephoned the office supply store and agreed to buy a dozen boxes of CDs at $23 each.She then realized what a good buy this was and called the store with a request to modify the contract to read two dozen boxes.What is the consequence?

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

Under Article 2 of the UCC, which of the following would be considered a sale?

The Article 2 battle of the forms provision is found in

Unless an auction is advertised or announced as being without reserve, the sale is with reserve, and the auctioneer may withdraw the goods at any time until he announces completion of the sale.

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

The firm offer provision in Articles 2 and 2A of the UCC covers only merchant sellers.

In dealing with unconscionability:

With regard to uncertainty in a contract that falls within the scope of Article 2, which of the following is true?

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

The Code provides that its remedies shall be liberally administered to place the aggrieved party in a position as good as the one she would have occupied had the defaulting party fully performed.

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

A court faced with an unconscionable lease contract may refuse to enforce the entire contract.

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

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

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.