Question 1

UCC Section 2-204 provides three important rules that enable parties to make a contract quickly and informally.Which of the following is NOT one of these rules?

Accepted Answer

A) The parties may make a contract in any manner sufficient to show that they reached an agreement. 
B) A writing sufficient under the statute of frauds may be a simple memo, a letter, or informal note, but need not itself be a contract. 
C) The UCC will enforce a deal even though it is difficult to say exactly when it was formed. 
D) A court may enforce a bargain even though one or more terms were left open. 
A) The parties may make a contract in any manner sufficient to show that they reached an agreement. 
B) A writing sufficient under the statute of frauds may be a simple memo, a letter, or informal note, but need not itself be a contract. 
C) The UCC will enforce a deal even though it is difficult to say exactly when it was formed. 
D) A court may enforce a bargain even though one or more terms were left open.

Question 2

Betty's BBQ orally contracts with Denny's Design House for 10,000 matchbooks at the price of 10 cents per matchbook.The matchbooks are to be embossed with a logo to be designed by Denny's Design promoting Betty's BBQ.Price,payment terms,delivery terms are agreed upon between the parties.Denny's Design creates the logo,gets Betty's BBQ's approval of the design and begins applying the logo on the matchbook covers.Denny's Design has almost finished the order when Betty's BBQ calls to say it has decided to make the eatery a smoke-free restaurant and cancels the order.Denny's Design sues,but Betty's BBQ states that the agreement is unenforceable under the statute of frauds.Who wins?

Accepted Answer

A) Denny's Design House wins.This situation falls under an exception to the statute of frauds. 
B) Denny's Design House wins. This is a service contract for design of a logo. Therefore, the UCC, including the statute of frauds provisions of Article 2, does not apply. 
C) Betty's BBQ wins. This is a contract for $1000. The statute of frauds requires all sales contracts in excess of $500 be in writing. 
D) Betty's BBQ wins. The statute of frauds only applies to merchants. Betty's BBQ is not a merchant in this instance because it intended to give the matchbooks away and not sell them. 
A) Denny's Design House wins.This situation falls under an exception to the statute of frauds. 
B) Denny's Design House wins. This is a service contract for design of a logo. Therefore, the UCC, including the statute of frauds provisions of Article 2, does not apply. 
C) Betty's BBQ wins. This is a contract for $1000. The statute of frauds requires all sales contracts in excess of $500 be in writing. 
D) Betty's BBQ wins. The statute of frauds only applies to merchants. Betty's BBQ is not a merchant in this instance because it intended to give the matchbooks away and not sell them.

Question 3

To simplify,clarify,and modernize the law governing commercial transactions,the UCC permits the use of "open terms" in sales contracts.In the use of "open terms," which of the following is TRUE?

Accepted Answer

A) The court will use market value and other comparable sales to determine what a reasonable price would have been at the time of delivery if the parties have not settled the price in the contract. 
B) If time of payment is not mentioned in the contract, payment within a commercially reasonable time is presumed. 
C) If the contract permits the buyer or seller to determine the price during contract performance, the UCC requires the party to do so in good faith. 
D) All of the above are true. 
A) The court will use market value and other comparable sales to determine what a reasonable price would have been at the time of delivery if the parties have not settled the price in the contract. 
B) If time of payment is not mentioned in the contract, payment within a commercially reasonable time is presumed. 
C) If the contract permits the buyer or seller to determine the price during contract performance, the UCC requires the party to do so in good faith. 
D) All of the above are true.

Question 4

Stanziano Construction needs a backhoe to complete a project.If it pays Hofmann Rentals for temporary use of the equipment,the transaction will be governed by

Accepted Answer

A) Article 2 of UCC. 
B) Article 2A of the UCC. 
C) Article 3 of the UCC. 
D) bulk transfer law. 
A) Article 2 of UCC. 
B) Article 2A of the UCC. 
C) Article 3 of the UCC. 
D) bulk transfer law.

Question 5

Office Plus,an office supply store,ordered 600 blank CDs from Curtis Co.,a manufacturer of computer products.Office Plus placed the order using a preprinted purchase order form;Curtis acknowledged the order by sending a preprinted acceptance form back to Office Plus.Unlike Office Plus' form,which says nothing about packaging,Curtis's form specifies that the CDs will be packaged in cases of 10 CDs per box,10 boxes per case.Which statement is correct?

Accepted Answer

A) The UCC will classify this as a specialty goods exception and will reform the contract. 
B) Curtis's packaging term is a different term which materially changes the offer. There is no contract. 
C) Curtis's packaging term is an additional term and therefore a part of the contract unless Office Plus promptly objects to the term. 
D) The UCC does not cover the contract because both parties are merchants. 
A) The UCC will classify this as a specialty goods exception and will reform the contract. 
B) Curtis's packaging term is a different term which materially changes the offer. There is no contract. 
C) Curtis's packaging term is an additional term and therefore a part of the contract unless Office Plus promptly objects to the term. 
D) The UCC does not cover the contract because both parties are merchants.

Exam 21: Introduction to Sales

UCC Section 2-204 provides three important rules that enable parties to make a contract quickly and informally.Which of the following is NOT one of these rules?

To simplify,clarify,and modernize the law governing commercial transactions,the UCC permits the use of "open terms" in sales contracts.In the use of "open terms," which of the following is TRUE?

Stanziano Construction needs a backhoe to complete a project.If it pays Hofmann Rentals for temporary use of the equipment,the transaction will be governed by

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