Question 1

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

Accepted Answer

A)  A contract for sale of a commercial building 
B)  A contract for sale of office supplies 
C)  An employment contract 
D)  A life insurance contract 
A)  A contract for sale of a commercial building 
B)  A contract for sale of office supplies 
C)  An employment contract 
D)  A life insurance contract B

Question 2

A contract is __________ when one party is induced to enter a contract without having any meaningful choice.

Accepted Answer

A)  substantively unconscionable 
B)  procedurally unconscionable 
C)  procedurally impracticable 
D)  substantively impracticable 
A)  substantively unconscionable 
B)  procedurally unconscionable 
C)  procedurally impracticable 
D)  substantively impracticable B

Question 3

If a sales contract requires the seller to ship the goods by carrier and specifies the destination,the risk of loss passes to the buyer when the:

Accepted Answer

A)  goods are properly delivered to the carrier. 
B)  carrier tenders the goods to the buyer at the specified destination. 
C)  contract is finalized. 
D)  seller pays for the goods. 
A)  goods are properly delivered to the carrier. 
B)  carrier tenders the goods to the buyer at the specified destination. 
C)  contract is finalized. 
D)  seller pays for the goods. B

Question 4

In a state that had adopted the Uniform Electronic Transactions Act,Kiera and Ben entered into a contract whereby Ben would clean Kiera's house once a week for eighteen months for $75 per week.The transaction was done electronically,and both Kiera and Ben signed through the use of an electronic signature.Unfortunately,problems resulted when Ben failed to show up as scheduled.Ben told Kiera that the contract was not good because his signature was made electronically.Kiera told him that he was wrong and that he needs to get up to date with the modern age.Which of the following is correct regarding the dispute?

Accepted Answer

A)  Ben is correct because electronic signatures are not recognized as valid under any circumstances. 
B)  Ben is correct only if Kiera's name was typed as opposed to being shown in handwriting-style (cursive) form. 
C)  Kiera is correct that the signature is sufficient only if she can show that she and Ben had previously engaged in electronic transactions. 
D)  Kiera is correct that her electronic signature is sufficient. 
A)  Ben is correct because electronic signatures are not recognized as valid under any circumstances. 
B)  Ben is correct only if Kiera's name was typed as opposed to being shown in handwriting-style (cursive) form. 
C)  Kiera is correct that the signature is sufficient only if she can show that she and Ben had previously engaged in electronic transactions. 
D)  Kiera is correct that her electronic signature is sufficient.

Question 5

Many states have applied Article 2 of the UCC to software licenses either directly or by analogy.

Accepted Answer

A) True 
 B)False

Question 6

The UCC treats fixtures as goods.

Accepted Answer

A) True 
 B)False

Question 7

The implied warranty of fitness for a particular purpose may apply to merchants and nonmerchants alike.

Accepted Answer

A) True 
 B)False

Question 8

Indicate how a seller may disclaim warranties under the UCC.

Accepted Answer

The seller need not make any express war

Question 9

Under the UCC,the implied warranty of merchantability guarantees that the goods are reasonably fit for the general purposes for which they are sold,and that they are properly packaged and labeled.

Accepted Answer

A) True 
 B)False

Question 10

A proposal by a sales representative that is subject to approval by the home office is not an offer.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT a type of warranty under the UCC?

Accepted Answer

A)  Express 
B)  Fitness for a particular purpose 
C)  Merchantability 
D)  Specific performance 
A)  Express 
B)  Fitness for a particular purpose 
C)  Merchantability 
D)  Specific performance

Question 12

Under the UCC doctrine of commercial impracticability as applied by the UCC,a failure to perform is a breach even if performance is made impractical by an event unforeseen by the contract.

Accepted Answer

A) True 
 B)False

Question 13

The courts that have considered click-wrap licenses have generally found that the licenses are:

Accepted Answer

A)  enforceable. 
B)  enforceable only for software costing $100 or less. 
C)  enforceable only for software costing $100 or less and that is designed for business, not consumer use. 
D)  unenforceable. 
A)  enforceable. 
B)  enforceable only for software costing $100 or less. 
C)  enforceable only for software costing $100 or less and that is designed for business, not consumer use. 
D)  unenforceable.

Question 14

__________ do not relieve a contracting party from their responsibilities under the UCC doctrine of commercial impracticability.

Accepted Answer

A)  Wars 
B)  Market fluctuations 
C)  Embargoes 
D)  Market fluctuations and embargoes 
A)  Wars 
B)  Market fluctuations 
C)  Embargoes 
D)  Market fluctuations and embargoes

Question 15

Explain the different types of warranties that exist under the UCC.

Accepted Answer

Express warranties,warranties of merchan

Question 16

Most states have adopted the Uniform Electronic Transactions Act.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true regarding the UCC's Statute of Frauds?

Accepted Answer

A)  The writing involved must be typed, not handwritten. 
B)  The writing must be signed by the party to be charged, not necessarily by all parties 
C)  Any warranties must be included in the writing in order to be enforceable 
D)  The UCC's requirements regarding a writing are strict and place significant burdens on the parties in regard to adequately including all terms of the agreement in the writing. 
A)  The writing involved must be typed, not handwritten. 
B)  The writing must be signed by the party to be charged, not necessarily by all parties 
C)  Any warranties must be included in the writing in order to be enforceable 
D)  The UCC's requirements regarding a writing are strict and place significant burdens on the parties in regard to adequately including all terms of the agreement in the writing.

Question 18

Which of the following is an example a statement made by a salesperson that would be considered "puffing"?

Accepted Answer

A)  This car will get 35 miles per gallon. 
B)  This is a genuine diamond ring. 
C)  This is an original work of art. 
D)  This copier is the best in the business. 
A)  This car will get 35 miles per gallon. 
B)  This is a genuine diamond ring. 
C)  This is an original work of art. 
D)  This copier is the best in the business.

Question 19

The UCC requires an obligation of good faith in the performance of every contract or duty covered by the act.

Accepted Answer

A) True 
 B)False

Question 20

The main issue in CASE 8.1 Option Wireless,Ltd.v.OpenPeak,Inc.(2012)involved the so-called "knockout rule."

Accepted Answer

A) True 
 B)False

Exam 8: Sales, Licensing, and E-Commerce.

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

A contract is __________ when one party is induced to enter a contract without having any meaningful choice.

If a sales contract requires the seller to ship the goods by carrier and specifies the destination,the risk of loss passes to the buyer when the:

Many states have applied Article 2 of the UCC to software licenses either directly or by analogy.

The UCC treats fixtures as goods.

The implied warranty of fitness for a particular purpose may apply to merchants and nonmerchants alike.

Indicate how a seller may disclaim warranties under the UCC.

Under the UCC,the implied warranty of merchantability guarantees that the goods are reasonably fit for the general purposes for which they are sold,and that they are properly packaged and labeled.

A proposal by a sales representative that is subject to approval by the home office is not an offer.

Which of the following is NOT a type of warranty under the UCC?

Under the UCC doctrine of commercial impracticability as applied by the UCC,a failure to perform is a breach even if performance is made impractical by an event unforeseen by the contract.

The courts that have considered click-wrap licenses have generally found that the licenses are:

__________ do not relieve a contracting party from their responsibilities under the UCC doctrine of commercial impracticability.

Explain the different types of warranties that exist under the UCC.

Most states have adopted the Uniform Electronic Transactions Act.

Which of the following is true regarding the UCC's Statute of Frauds?

Which of the following is an example a statement made by a salesperson that would be considered "puffing"?

The UCC requires an obligation of good faith in the performance of every contract or duty covered by the act.

The main issue in CASE 8.1 Option Wireless,Ltd.v.OpenPeak,Inc.(2012)involved the so-called "knockout rule."

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