Question 1

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.

Question 2

What does Article 2 say with regard to the following? 
a. Good faith. 
b. Unconscionability. 
c. Expansion of commercial practices.

Accepted Answer

a. All parties who enter into a contract

Question 3

Who among the following is most likely not considered a merchant according to Article 2 of the UCC?

Accepted Answer

A)  Jim who owns a wholesale auto parts business. 
B)  Tom who, as a hobby, builds and sells birdhouses on the weekends. 
C)  Kay who sells her 3-year-old fishing boat to her neighbor. 
D)  Jan, who is not knowledgeable about selling sailboats, but who employs an experienced expert in the trade. 
A)  Jim who owns a wholesale auto parts business. 
B)  Tom who, as a hobby, builds and sells birdhouses on the weekends. 
C)  Kay who sells her 3-year-old fishing boat to her neighbor. 
D)  Jan, who is not knowledgeable about selling sailboats, but who employs an experienced expert in the trade.

Question 4

Article 2A is an attempt to codify in one statute all the rules governing the leasing of personal property.

Accepted Answer

A) True 
 B)False

Question 5

Edie telephoned the office supply store and agreed to buy a dozen ink cartridges at $26 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. 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

A lease is the transfer of title to goods from seller to buyer for a price.

Accepted Answer

A) True 
 B)False

Question 7

The doctrine of unconscionability has evolved through its application by the courts to include:

Accepted Answer

A)  contract negotiating procedures and good faith. 
B)  substantive contract terms and duress. 
C)  good faith and freedom of contract. 
D)  contract negotiating procedures  and substantive contract terms . 
A)  contract negotiating procedures and good faith. 
B)  substantive contract terms and duress. 
C)  good faith and freedom of contract. 
D)  contract negotiating procedures  and substantive contract terms .

Question 8

The CISG specifically excludes sales of:

Accepted Answer

A)  goods bought for business use. 
B)  cargo vehicles. 
C)  electricity. 
D)  food. 
A)  goods bought for business use. 
B)  cargo vehicles. 
C)  electricity. 
D)  food.

Question 9

Davis Co. and Ruby Creations enter an oral contract providing that Ruby will deliver three dozen dresses to Davis at $20 per dress. The next day, Davis sent Ruby a letter signed by Davis's purchasing agent confirming the quantity and item, but not mentioning the price. Which of the following is true?

Accepted Answer

A)  Davis Co. is not bound by the terms of the letter unless Ruby responds in writing to verify the agreement. 
B)  Ruby Creations and Davis Co. were bound in an enforceable contract at the time they entered the oral agreement. 
C)  Davis is bound by the contract when its authorized agent sends the letter, but Ruby Creations is bound by the oral contract ten days after receiving the letter, unless it objects in writing within that time. 
D)  The parties cannot be bound by the contract because the price term was missing from the written confirmation. 
A)  Davis Co. is not bound by the terms of the letter unless Ruby responds in writing to verify the agreement. 
B)  Ruby Creations and Davis Co. were bound in an enforceable contract at the time they entered the oral agreement. 
C)  Davis is bound by the contract when its authorized agent sends the letter, but Ruby Creations is bound by the oral contract ten days after receiving the letter, unless it objects in writing within that time. 
D)  The parties cannot be bound by the contract because the price term was missing from the written confirmation.

Question 10

The Code has made certain offers irrevocable without the offeree's giving any consideration for the promise to keep the offer open. These offers are known as:

Accepted Answer

A)  options. 
B)  firm offers. 
C)  variant acceptances. 
D)  auctions. 
A)  options. 
B)  firm offers. 
C)  variant acceptances. 
D)  auctions.

Question 11

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 12

The common law "mirror image" rule has been modified by the Code.

Accepted Answer

A) True 
 B)False

Question 13

The definition of "usage of trade" includes:

Accepted Answer

A)  a sequence of previous conduct between the parties that may fairly be regarded as establishing a common basis of understanding for interpreting their expressions and agreement. 
B)  a practice regularly observed and followed in a place, vocation, or trade. 
C)  separation rules that apply to transactions between merchants. 
D)  jargon or language that is particular to the trade of the parties to the contract. 
A)  a sequence of previous conduct between the parties that may fairly be regarded as establishing a common basis of understanding for interpreting their expressions and agreement. 
B)  a practice regularly observed and followed in a place, vocation, or trade. 
C)  separation rules that apply to transactions between merchants. 
D)  jargon or language that is particular to the trade of the parties to the contract.

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

Mary and Remaldi Co. have dealt with each other for many years. Mary's Boutique orders 100 assorted lipsticks at $2.00 each from Remaldi Co. Remaldi sends back a confirmation letter with an additional, nonmaterial term. There is:

Accepted Answer

A)  no contract, but a counteroffer. 
B)  a contract with the additional term unless Mary objects. 
C)  a contract with the additional term only if Mary agrees. 
D)  a contract without the additional term. 
A)  no contract, but a counteroffer. 
B)  a contract with the additional term unless Mary objects. 
C)  a contract with the additional term only if Mary agrees. 
D)  a contract without the additional term.

Question 16

Under the Code, a contract to sell or lease personal property is recognized whenever the parties manifest such an intent, even if they cannot identify a precise moment the contract was formed.

Accepted Answer

A) True 
 B)False

Question 17

Rudolph, the owner of a shoe store, purchased 500 Fleet X24 running shoes from his supplier, but a price was not stated in the contract. The contract is voidable at Rudolph's option until the parties agree on a price.

Accepted Answer

A) True 
 B)False

Question 18

Haven orally agrees to buy 50 digital cash registers from Thomas for $15,000. Thomas delivers 30  cash registers  to Haven , who receives and accepts them. Which of the following is correct with regard to this transaction?

Accepted Answer

A)  Haven can enforce the contract for the additional 20  cash registers  . 
B)  The contract is enforceable to the extent of the 30  cash registers  that have been received and accepted. 
C)  The entire contract is in violation of the statute of frauds and cannot be enforced. 
D)  This is a bad deal, and is therefore commercially unconscionable from the beginning and is unenforceable. 
A)  Haven can enforce the contract for the additional 20  cash registers  . 
B)  The contract is enforceable to the extent of the 30  cash registers  that have been received and accepted. 
C)  The entire contract is in violation of the statute of frauds and cannot be enforced. 
D)  This is a bad deal, and is therefore commercially unconscionable from the beginning and is unenforceable.

Question 19

Discuss the concept of freedom of contract under Articles 2 and 2A of the UCC.

Accepted Answer

Most of the Code's provisions are not ma

Question 20

Amendments to UCC Articles 2 and 2A were promulgated in 2003 to accommodate electronic commerce and to reflect developments in business and law and, as of 2011, these amendments had been adopted in all of the states.

Accepted Answer

A) True 
 B)False

Exam 19: Introduction to Sales and Leases

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

What does Article 2 say with regard to the following? a. Good faith. b. Unconscionability. c. Expansion of commercial practices.

Who among the following is most likely not considered a merchant according to Article 2 of the UCC?

Article 2A is an attempt to codify in one statute all the rules governing the leasing of personal property.

Edie telephoned the office supply store and agreed to buy a dozen ink cartridges at $26 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. What is the consequence?

A lease is the transfer of title to goods from seller to buyer for a price.

The doctrine of unconscionability has evolved through its application by the courts to include:

The CISG specifically excludes sales of:

The Code has made certain offers irrevocable without the offeree's giving any consideration for the promise to keep the offer open. These offers are known as:

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

The common law "mirror image" rule has been modified by the Code.

The definition of "usage of trade" includes:

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

Mary and Remaldi Co. have dealt with each other for many years. Mary's Boutique orders 100 assorted lipsticks at $2.00 each from Remaldi Co. Remaldi sends back a confirmation letter with an additional, nonmaterial term. There is:

Under the Code, a contract to sell or lease personal property is recognized whenever the parties manifest such an intent, even if they cannot identify a precise moment the contract was formed.

Rudolph, the owner of a shoe store, purchased 500 Fleet X24 running shoes from his supplier, but a price was not stated in the contract. The contract is voidable at Rudolph's option until the parties agree on a price.

Haven orally agrees to buy 50 digital cash registers from Thomas for $15,000. Thomas delivers 30 cash registers to Haven , who receives and accepts them. Which of the following is correct with regard to this transaction?

Discuss the concept of freedom of contract under Articles 2 and 2A of the UCC.

Amendments to UCC Articles 2 and 2A were promulgated in 2003 to accommodate electronic commerce and to reflect developments in business and law and, as of 2011, these amendments had been adopted in all of the states.

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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