Question 1

The ________ is aimed at protecting sales or lease contracts that the parties involved intend to be the final expression of their agreement.

Accepted Answer

A)  statute of frauds 
B)  final evidence regulation 
C)  parol evidence rule 
D)  end evidence rule 
E)  blindspot rule 
A)  statute of frauds 
B)  final evidence regulation 
C)  parol evidence rule 
D)  end evidence rule 
E)  blindspot rule

Question 2

Under Article 2(A) of the UCC, a(n) ________ is defined as a transfer of the right to possession and use of goods for a term in return for consideration.

Accepted Answer

A)  sale of goods 
B)  consignment 
C)  assignment 
D)  rental 
E)  lease 
A)  sale of goods 
B)  consignment 
C)  assignment 
D)  rental 
E)  lease

Question 3

When does the UCC assume a three-month irrevocability period?

Accepted Answer

A)  Always. 
B)  Never. 
C)  If a firm offer is silent as to time. 
D)  Only if one of the parties is a nonmerchant. 
E)  Only if one of the parties lives in Louisiana who does not follow the common law. 
A)  Always. 
B)  Never. 
C)  If a firm offer is silent as to time. 
D)  Only if one of the parties is a nonmerchant. 
E)  Only if one of the parties lives in Louisiana who does not follow the common law.

Question 4

Which statement is false regarding the United Nations Convention on Contracts for the International Sale of Goods ("CISG")?

Accepted Answer

A)  Israel is a signatory of the CISG. 
B)  The United States applies the UCC but not the CISG. 
C)  The United Kingdom is not a signatory of the CISG and instead applies English common law. 
D)  The CISG is a treaty. 
E)  Mexico has signed the CISG. 
A)  Israel is a signatory of the CISG. 
B)  The United States applies the UCC but not the CISG. 
C)  The United Kingdom is not a signatory of the CISG and instead applies English common law. 
D)  The CISG is a treaty. 
E)  Mexico has signed the CISG.

Question 5

Which of the following statements is true about the Uniform Commercial Information Transactions Act (UCITA)?

Accepted Answer

A)  Unlike the UCC, states can decide whether or not to adopt UCITA. 
B)  UCITA applies to physical goods, like the UCC. 
C)  UCITA was adopted by the UCC. 
D)  In 2001, Virginia became the first state to enact UCITA, probably because major Internet-related companies are headquartered in Northern Virginia. 
E)  All states have adopted UCITA. 
A)  Unlike the UCC, states can decide whether or not to adopt UCITA. 
B)  UCITA applies to physical goods, like the UCC. 
C)  UCITA was adopted by the UCC. 
D)  In 2001, Virginia became the first state to enact UCITA, probably because major Internet-related companies are headquartered in Northern Virginia. 
E)  All states have adopted UCITA.

Question 6

According to Exhibit 21-5 in the text, which terms can be interpreted by the UCC if left open in a contract?

Accepted Answer

A)  All terms except price. 
B)  Payment, delivery, time, but not price or duration. 
C)  Price, payment, delivery, time, and duration. 
D)  Delivery, time, and duration, but not price or payment. 
E)  Time and duration, but not price, payment, or delivery. 
A)  All terms except price. 
B)  Payment, delivery, time, but not price or duration. 
C)  Price, payment, delivery, time, and duration. 
D)  Delivery, time, and duration, but not price or payment. 
E)  Time and duration, but not price, payment, or delivery.

Question 7

A lease that (1) has a value of $25,000 or less and (2) exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal, family, or household purpose, is called a ________ lease.

Accepted Answer

A)  Finance 
B)  Consumer 
C)  Regulated 
D)  Commercial 
E)  Retail 
A)  Finance 
B)  Consumer 
C)  Regulated 
D)  Commercial 
E)  Retail

Question 8

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

Accepted Answer

A)  There is no contract if these terms are omitted. 
B)  If payment terms are omitted, payment is due at the time and place at which the buyer is to receive the goods, and the place for delivery is the seller's place of business. 
C)  If payment terms are omitted, payment is due at the time and place at which the buyer is to receive the goods, and the place for delivery is the buyer's place of business. 
D)  If payment terms are omitted, payment is due at least 10 days prior to the date set for delivery, and the place for delivery is the seller's place of business. 
E)  If payment terms are omitted, payment is due at least 10 days prior to the date set for delivery, and the place for delivery is the buyer's place of business. 
A)  There is no contract if these terms are omitted. 
B)  If payment terms are omitted, payment is due at the time and place at which the buyer is to receive the goods, and the place for delivery is the seller's place of business. 
C)  If payment terms are omitted, payment is due at the time and place at which the buyer is to receive the goods, and the place for delivery is the buyer's place of business. 
D)  If payment terms are omitted, payment is due at least 10 days prior to the date set for delivery, and the place for delivery is the seller's place of business. 
E)  If payment terms are omitted, payment is due at least 10 days prior to the date set for delivery, and the place for delivery is the buyer's place of business.

Question 9

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter, which law applies?

Accepted Answer

A)  The common law rules 
B)  The civil law rules 
C)  Federal common law 
D)  Federal statutory law 
E)  The Uniform Sales Act 
A)  The common law rules 
B)  The civil law rules 
C)  Federal common law 
D)  Federal statutory law 
E)  The Uniform Sales Act

Question 10

The UCC was created in 1952 and has been adopted by all 50 states and ________.

Accepted Answer

A)  Puerto Rico 
B)  Great Britain 
C)  the District of Columbia and the Virgin Islands 
D)  Guam 
E)  Canada and Mexico 
A)  Puerto Rico 
B)  Great Britain 
C)  the District of Columbia and the Virgin Islands 
D)  Guam 
E)  Canada and Mexico

Question 11

The UCC requires that consideration be provided for the modification of sales and lease contracts.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following items would not be considered a "good" under the UCC?

Accepted Answer

A)  Light bulbs to be placed in a skyscraper. 
B)  Trees cut from a parcel of land to be turned into paper. 
C)  A book that has been copyrighted and sold to a bookstore. 
D)  The copyright of a best-selling novel. 
E)  A box of hammers, with a value of $499. 
A)  Light bulbs to be placed in a skyscraper. 
B)  Trees cut from a parcel of land to be turned into paper. 
C)  A book that has been copyrighted and sold to a bookstore. 
D)  The copyright of a best-selling novel. 
E)  A box of hammers, with a value of $499.

Question 13

[Dress Shop Problems] Lara, who has a ladies' dress shop, reached an oral agreement with Kim, a wholesaler, to purchase 100 dresses for $80 each, with the dresses to be delivered within 30 days. Kim later orally agreed to a modification whereby she would add ten belts to go along with certain dresses at no extra charge. Kim did so because she wanted to maintain Lara's good will. Lara sent Kim a memo confirming their oral agreement, including the modification, but heard nothing. When the dresses did not arrive within 30 days, Lara checked with Kim. Kim told her that their agreement was no good because Kim never signed anything and that the UCC does not apply in the retail arena.
-Which of the following is true regarding whether the agreement between Lara and Kim for the sale of dresses satisfied the writing requirement of the UCC?

Accepted Answer

A)  The agreement is likely binding because under the UCC, if two merchants have an oral agreement, a written memo from either party to the other is deemed to satisfy the statute of frauds, even if it is not acknowledged by the receiving party. If it is not objected to within 10 days of receipt, the oral agreement, memorialized by the memo, is binding. 
B)  The agreement is likely binding because under the UCC, if two merchants have an oral agreement, there is no requirement of a writing so long as another witness is willing to confirm that within 10 days of the agreement, one of the parties memorialized the agreement by a memorandum to the file, even if it was not sent to the other party. 
C)  The agreement is binding because the UCC has no requirement of a writing under any circumstances. 
D)  The agreement is not binding because Kim never signed anything by which she agreed to the terms of the oral agreement. 
E)  The agreement is not binding because Lara did not send Kim a registered letter memorializing the oral conversation as is required by the UCC. 
A)  The agreement is likely binding because under the UCC, if two merchants have an oral agreement, a written memo from either party to the other is deemed to satisfy the statute of frauds, even if it is not acknowledged by the receiving party. If it is not objected to within 10 days of receipt, the oral agreement, memorialized by the memo, is binding. 
B)  The agreement is likely binding because under the UCC, if two merchants have an oral agreement, there is no requirement of a writing so long as another witness is willing to confirm that within 10 days of the agreement, one of the parties memorialized the agreement by a memorandum to the file, even if it was not sent to the other party. 
C)  The agreement is binding because the UCC has no requirement of a writing under any circumstances. 
D)  The agreement is not binding because Kim never signed anything by which she agreed to the terms of the oral agreement. 
E)  The agreement is not binding because Lara did not send Kim a registered letter memorializing the oral conversation as is required by the UCC.

Question 14

The UCC distinguishes merchants from ________.

Accepted Answer

A)  employers 
B)  government run businesses 
C)  regular buyers and sellers 
D)  state contractors 
E)  merchant agents 
A)  employers 
B)  government run businesses 
C)  regular buyers and sellers 
D)  state contractors 
E)  merchant agents

Question 15

When may a party be considered a "merchant" under the UCC?

Accepted Answer

The UCC defines merchant as a person who

Question 16

Under what circumstances does the parol evidence rule not apply and parties are allowed to explain or supplement a written contract?

Accepted Answer

Courts allow the parties to explain or s

Question 17

Which of the following is true regarding the holding of the court in The Travelers Property Casualty Company of America and Hellmuth Obata & Kassabaum, Inc. v. Saint-Gobain Technical Fabrics Canada Limited, the case in the text involving whether the statute of frauds barred enforcement of a contract and also whether the United Nations Convention on Contracts for the International Sale of Goods (CISG) applied to a contract in view of the fact that a particular state's law was referenced in the contract?

Accepted Answer

A)  That the CISG did not apply because the contract referred to provisions of the UCC and that the statute of frauds contained within the UCC barred enforcement of the contract. 
B)  That the CISG did not apply because the construction of an arena, which would result in a type of realty, was concerned and that the statute of frauds contained within the UCC barred enforcement of the contract. 
C)  That the CISG did not apply because significant provisions in the contract were left unwritten but that the statute of frauds was inapplicable. 
D)  That the CISG applied and that oral discussions could have formed a contract. 
E)  That the CISG applied and that no contract could have resulted because of the lack of a writing. 
A)  That the CISG did not apply because the contract referred to provisions of the UCC and that the statute of frauds contained within the UCC barred enforcement of the contract. 
B)  That the CISG did not apply because the construction of an arena, which would result in a type of realty, was concerned and that the statute of frauds contained within the UCC barred enforcement of the contract. 
C)  That the CISG did not apply because significant provisions in the contract were left unwritten but that the statute of frauds was inapplicable. 
D)  That the CISG applied and that oral discussions could have formed a contract. 
E)  That the CISG applied and that no contract could have resulted because of the lack of a writing.

Question 18

Which of the following is true regarding the creation of the Uniform Commercial Code?

Accepted Answer

A)  The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws, the American Law Institute, and the U.S. Commercial Consortium. 
B)  The Uniform Commercial Code was created by the U.S. Commercial Consortium and the National Conference of Commissioners on Uniform State Laws, but not the American Law Institute. 
C)  The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws and the American Law Institute, but not the U.S. Commercial Consortium. 
D)  The Uniform Commercial Code was created by a federal congressional committee. 
E)  The Uniform Commercial Code was created by state legislative representatives from all 50 states. 
A)  The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws, the American Law Institute, and the U.S. Commercial Consortium. 
B)  The Uniform Commercial Code was created by the U.S. Commercial Consortium and the National Conference of Commissioners on Uniform State Laws, but not the American Law Institute. 
C)  The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws and the American Law Institute, but not the U.S. Commercial Consortium. 
D)  The Uniform Commercial Code was created by a federal congressional committee. 
E)  The Uniform Commercial Code was created by state legislative representatives from all 50 states.

Question 19

A contract that combines a good with a service is known as a mixed motive contract.

Accepted Answer

A) True 
 B)False

Question 20

Which statement is true regarding materials that are considered goods under the UCC?

Accepted Answer

A)  Minerals taken from real estate and sold by the owner, soil taken from real estate and sold by the owner, and the right to remove soil from real estate are all considered goods under the UCC. 
B)  Soil taken from real estate and sold by the owner is considered a good under the UCC, but neither minerals taken from real estate and sold by the owner nor the right to remove soil from real estate are considered goods under the UCC. 
C)  The right to remove soil from real estate is considered a good under the UCC, but neither minerals taken from real estate and sold by the owner nor soil taken from real estate and sold by the owner are considered goods under the UCC. 
D)  Minerals taken from real estate and sold by the owner and soil taken from real estate and sold by the owner are considered goods under the UCC, but the right to remove soil from real estate is not considered a good under the UCC. 
E)  Minerals taken from real estate and sold by the owner and the right to remove soil from real estate are considered goods under the UCC, but soil taken from real estate and sold by the owner is not considered a good under the UCC. 
A)  Minerals taken from real estate and sold by the owner, soil taken from real estate and sold by the owner, and the right to remove soil from real estate are all considered goods under the UCC. 
B)  Soil taken from real estate and sold by the owner is considered a good under the UCC, but neither minerals taken from real estate and sold by the owner nor the right to remove soil from real estate are considered goods under the UCC. 
C)  The right to remove soil from real estate is considered a good under the UCC, but neither minerals taken from real estate and sold by the owner nor soil taken from real estate and sold by the owner are considered goods under the UCC. 
D)  Minerals taken from real estate and sold by the owner and soil taken from real estate and sold by the owner are considered goods under the UCC, but the right to remove soil from real estate is not considered a good under the UCC. 
E)  Minerals taken from real estate and sold by the owner and the right to remove soil from real estate are considered goods under the UCC, but soil taken from real estate and sold by the owner is not considered a good under the UCC.

Exam 21: Introduction to Sales and Lease Contracts

The ________ is aimed at protecting sales or lease contracts that the parties involved intend to be the final expression of their agreement.

Under Article 2(A) of the UCC, a(n) ________ is defined as a transfer of the right to possession and use of goods for a term in return for consideration.

When does the UCC assume a three-month irrevocability period?

Which statement is false regarding the United Nations Convention on Contracts for the International Sale of Goods ("CISG")?

Which of the following statements is true about the Uniform Commercial Information Transactions Act (UCITA)?

According to Exhibit 21-5 in the text, which terms can be interpreted by the UCC if left open in a contract?

A lease that (1) has a value of $25,000 or less and (2) exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal, family, or household purpose, is called a ________ lease.

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter, which law applies?

The UCC was created in 1952 and has been adopted by all 50 states and ________.

The UCC requires that consideration be provided for the modification of sales and lease contracts.

Which of the following items would not be considered a "good" under the UCC?

The UCC distinguishes merchants from ________.

When may a party be considered a "merchant" under the UCC?

Under what circumstances does the parol evidence rule not apply and parties are allowed to explain or supplement a written contract?

Which of the following is true regarding the creation of the Uniform Commercial Code?

A contract that combines a good with a service is known as a mixed motive contract.

Which statement is true regarding materials that are considered goods under the UCC?

An Introduction to Dynamic Business Law

Business Ethics

The Us Legal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Title, Risk of Loss, and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability, Defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, Terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

Filters