Question 1

In the case of Pittsley v. Houser, the court:

Accepted Answer

A)  held that the contract should be severed into different parts, applying the UCC to the part of the contract involving goods and the common law to the services part of the contract. 
B)  held that the "predominant factor" test contravened the UCC's declared purpose. 
C)  found the "predominant factor" test was the better, more prudent rule. 
D)  found the CISG governed the contract in question. 
A)  held that the contract should be severed into different parts, applying the UCC to the part of the contract involving goods and the common law to the services part of the contract. 
B)  held that the "predominant factor" test contravened the UCC's declared purpose. 
C)  found the "predominant factor" test was the better, more prudent rule. 
D)  found the CISG governed the contract in question. C

Question 2

Under the CISG, which of the following would not always be considered a material alteration to an offer?

Accepted Answer

A)  A change in payment. 
B)  A change in time of delivery. 
C)  A change in color of goods ordered. 
D)  The addition of an arbitration clause for settlement of disputes. 
A)  A change in payment. 
B)  A change in time of delivery. 
C)  A change in color of goods ordered. 
D)  The addition of an arbitration clause for settlement of disputes. C

Question 3

Contracts containing unconscionable clauses are void and unenforceable.

Accepted Answer

A) True 
 B)False  False

Question 4

Leases of personal property exceed $100 billion annually and are governed by Article 2A of the UCC.

Accepted Answer

A) True 
 B)False

Question 5

List four areas of contract law where the common law of contracts and the law of sales differ. Give both the common law rule and the rule under Article 2.

Accepted Answer

There are at least nine possible answers

Question 6

The case of DJ Coleman, Inc. v. Nufarm Americas, Inc . illustrates:

Accepted Answer

A)  course of dealing. 
B)  unconscionability. 
C)  usage of trade. 
D)  a transaction outside the Code. 
A)  course of dealing. 
B)  unconscionability. 
C)  usage of trade. 
D)  a transaction outside the Code.

Question 7

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 basic statement of the Code parol ev

Question 8

Mike inherited some antiques. Pat agrees to buy them. In the contract, Mike and Pat agree to value the antiques at whatever the Sotheby's representative says. If the valuation is much higher than either of them anticipated, Pat:

Accepted Answer

A)  has to buy at the price set by the Sotheby representative. 
B)  has to buy, but at what Pat and Mike believe was a reasonable price. 
C)  has no obligation to buy the antiques. 
D)  can treat the contract as canceled. 
A)  has to buy at the price set by the Sotheby representative. 
B)  has to buy, but at what Pat and Mike believe was a reasonable price. 
C)  has no obligation to buy the antiques. 
D)  can treat the contract as canceled.

Question 9

A contract to purchase stocks and bonds is governed by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 10

Explain when a writing is required under the UCC for a contract for the sale of goods and what is needed in that writing. Identify three exceptions to the requirement of a writing or record for the sale of goods.

Accepted Answer

The UCC statute of frauds provides that

Question 11

The Code addresses the "battle of the forms" problem by comparing the fine print on each form and eliminating all conflicting terms.

Accepted Answer

A) True 
 B)False

Question 12

A(n) __________ is a special type of lease transaction generally involving three parties instead of two.

Accepted Answer

A)  consumer lease 
B)  sale 
C)  finance lease 
D)  option 
A)  consumer lease 
B)  sale 
C)  finance lease 
D)  option

Question 13

The Code defines __________ as " honesty in fact and the observance of reasonable commercial standards of fair dealing ."

Accepted Answer

A)  good faith 
B)  unconscionability 
C)  merchantability 
D)  entrusting 
A)  good faith 
B)  unconscionability 
C)  merchantability 
D)  entrusting

Question 14

A "merchant" is defined as a person who:

Accepted Answer

A)  is a dealer in a particular type of goods. 
B)  by his occupation holds himself out as having knowledge or skills peculiar to certain goods or practices. 
C)  employs an agent or broker whom he holds out as having such knowledge or skill. 
D)  All of these define a merchant. 
A)  is a dealer in a particular type of goods. 
B)  by his occupation holds himself out as having knowledge or skills peculiar to certain goods or practices. 
C)  employs an agent or broker whom he holds out as having such knowledge or skill. 
D)  All of these define a merchant.

Question 15

What is a "merchant?" Identify four provisions in Article 2 that apply to merchants, but not to others.

Accepted Answer

A merchant is a dealer in goods or a per

Question 16

Article 2A of the UCC affords special treatment for consumer leases.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

If a contract does not comply with the statute of frauds, it is void.

Accepted Answer

A) True 
 B)False

Question 19

A lessee under a consumer lease and a buyer under a sale of goods are provided with the same protections against unconscionability under the UCC.

Accepted Answer

A) True 
 B)False

Question 20

The definition of "goods" in the UCC may include timber, minerals, growing crops, or a building.

Accepted Answer

A) True 
 B)False

Exam 19: Introduction to Sales and Leases

In the case of Pittsley v. Houser, the court:

Under the CISG, which of the following would not always be considered a material alteration to an offer?

Contracts containing unconscionable clauses are void and unenforceable.

Leases of personal property exceed $100 billion annually and are governed by Article 2A of the UCC.

List four areas of contract law where the common law of contracts and the law of sales differ. Give both the common law rule and the rule under Article 2.

The case of DJ Coleman, Inc. v. Nufarm Americas, Inc . illustrates:

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.

Mike inherited some antiques. Pat agrees to buy them. In the contract, Mike and Pat agree to value the antiques at whatever the Sotheby's representative says. If the valuation is much higher than either of them anticipated, Pat:

A contract to purchase stocks and bonds is governed by Article 2 of the UCC.

Explain when a writing is required under the UCC for a contract for the sale of goods and what is needed in that writing. Identify three exceptions to the requirement of a writing or record for the sale of goods.

The Code addresses the "battle of the forms" problem by comparing the fine print on each form and eliminating all conflicting terms.

A(n) __________ is a special type of lease transaction generally involving three parties instead of two.

The Code defines __________ as " honesty in fact and the observance of reasonable commercial standards of fair dealing ."

A "merchant" is defined as a person who:

What is a "merchant?" Identify four provisions in Article 2 that apply to merchants, but not to others.

Article 2A of the UCC affords special treatment for consumer leases.

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

If a contract does not comply with the statute of frauds, it is void.

A lessee under a consumer lease and a buyer under a sale of goods are provided with the same protections against unconscionability under the UCC.

The definition of "goods" in the UCC may include timber, minerals, growing crops, or a building.

Introduction to Law

Business Ethics

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

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

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 Wills

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