Question 1

Which of the following does NOT result in an open price term contract?

Accepted Answer

A)  It says nothing as to price. 
B)  It provides that the parties shall agree later as to the price and they fail to so agree. 
C)  It fixes the price in terms of some agreed market or other standard, as set by a third person or agency, and the price is not so set. 
D)  It specifies the price in a foreign currency with a fluctuating exchange rate. 
A)  It says nothing as to price. 
B)  It provides that the parties shall agree later as to the price and they fail to so agree. 
C)  It fixes the price in terms of some agreed market or other standard, as set by a third person or agency, and the price is not so set. 
D)  It specifies the price in a foreign currency with a fluctuating exchange rate.

Question 2

A "sale" of goods happens when:

Accepted Answer

A)  the parties agree. 
B)  the parties sign the contract. 
C)  title to the goods is passed. 
D)  a promise to transfer title is made. 
A)  the parties agree. 
B)  the parties sign the contract. 
C)  title to the goods is passed. 
D)  a promise to transfer title is made.

Question 3

Karen has agreed to buy Sara's car, but the two have not agreed on the price. When there is no agreement as to price in a contract for a sale of goods, what effect does it have on the contract?

Accepted Answer

A)  The price is whatever the seller decides. 
B)  The price is a reasonable price at the time of making the contract. 
C)  The price is a reasonable price at the time of delivery. 
D)  There is no contract, because the agreement is not definite and certain enough. 
A)  The price is whatever the seller decides. 
B)  The price is a reasonable price at the time of making the contract. 
C)  The price is a reasonable price at the time of delivery. 
D)  There is no contract, because the agreement is not definite and certain enough.

Question 4

If the original agreement was oral, a subsequent oral modification, which brings the resulting contract within the statute of frauds, is binding on and enforceable by the parties.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is correct with respect to "finance leases"?

Accepted Answer

A)  A finance lease generally involves four parties. 
B)  Finance leases are governed by the Truth in Lending Act rather than the UCC. 
C)  The finance lessor functions as a source of credit. 
D)  The lessor's primary function in a finance lease is to provide the goods. 
A)  A finance lease generally involves four parties. 
B)  Finance leases are governed by the Truth in Lending Act rather than the UCC. 
C)  The finance lessor functions as a source of credit. 
D)  The lessor's primary function in a finance lease is to provide the goods.

Question 6

Under the CISG, contracts for the sale of goods do not have to be evidenced by a writing to be enforceable, unless one of the parties has its place of business in a country that provides otherwise.

Accepted Answer

A) True 
 B)False

Question 7

The purpose of Article 2 of the UCC is to differentiate between sales and leases.

Accepted Answer

A) True 
 B)False

Exam 19: Introduction to Sales and Leases

Which of the following does NOT result in an open price term contract?

A "sale" of goods happens when:

Karen has agreed to buy Sara's car, but the two have not agreed on the price. When there is no agreement as to price in a contract for a sale of goods, what effect does it have on the contract?

If the original agreement was oral, a subsequent oral modification, which brings the resulting contract within the statute of frauds, is binding on and enforceable by the parties.

Which of the following is correct with respect to "finance leases"?

Under the CISG, contracts for the sale of goods do not have to be evidenced by a writing to be enforceable, unless one of the parties has its place of business in a country that provides otherwise.

The purpose of Article 2 of the UCC is to differentiate between sales and leases.

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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