Question 1

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

Accepted Answer

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

Question 2

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)  Ruby Creations and Davis Co. were bound in an enforceable contract at the time they entered the oral agreement. 
B)  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. 
C)  Davis Co. is not bound by the terms of the letter unless Ruby responds in writing to verify the agreement. 
D)  The parties cannot be bound by the contract because the price term was missing from the written confirmation. 
A)  Ruby Creations and Davis Co. were bound in an enforceable contract at the time they entered the oral agreement. 
B)  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. 
C)  Davis Co. is not bound by the terms of the letter unless Ruby responds in writing to verify the agreement. 
D)  The parties cannot be bound by the contract because the price term was missing from the written confirmation.

Question 3

The most important element in determining whether a sales contract has been made is the:

Accepted Answer

A)  intent of the parties to make a contract. 
B)  fact that the terms of the offer and acceptance are exactly alike. 
C)  language of the contract. 
D)  number of open terms. 
A)  intent of the parties to make a contract. 
B)  fact that the terms of the offer and acceptance are exactly alike. 
C)  language of the contract. 
D)  number of open terms.

Question 4

The CISG governs only the formation of the contract of sales and the rights and obligations of the seller and buyer.It does not cover the validity of the contract or any of its provisions.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

"Goods" for purposes of the Code are essentially defined as tangible, movable, personal property.

Accepted Answer

A) True 
 B)False

Question 8

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 9

A finance lease is a special type of lease transaction that generally involves three parties instead of two.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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

Accepted Answer

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

Question 12

A contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations?

Accepted Answer

A)  Where the goods have been delivered and accepted. 
B)  Where payment has been accepted. 
C)  Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business. 
D)  All of these are situations where the contract would be enforceable. 
A)  Where the goods have been delivered and accepted. 
B)  Where payment has been accepted. 
C)  Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business. 
D)  All of these are situations where the contract would be enforceable.

Question 13

The purpose of Article 2 of the UCC is to modernize, clarify, simplify, and make uniform the law of sales.

Accepted Answer

A) True 
 B)False

Question 14

A contract has an open price term if the agreement:

Accepted Answer

A)  says nothing as to price. 
B)  provides that the parties shall agree later as to the price and they fail to so agree. 
C)  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)  All of these. 
E)  None of these. 
A)  says nothing as to price. 
B)  provides that the parties shall agree later as to the price and they fail to so agree. 
C)  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)  All of these. 
E)  None of these.

Question 15

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 16

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

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 19: Introduction to Sales and Leases

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

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?

The most important element in determining whether a sales contract has been made is the:

The CISG governs only the formation of the contract of sales and the rights and obligations of the seller and buyer.It does not cover the validity of the contract or any of its provisions.

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

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.

"Goods" for purposes of the Code are essentially defined as tangible, movable, personal property.

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.

A finance lease is a special type of lease transaction that generally involves three parties instead of two.

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

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

A contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations?

The purpose of Article 2 of the UCC is to modernize, clarify, simplify, and make uniform the law of sales.

A contract has an open price term if the agreement:

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.

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:

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

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

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

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.

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

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 Remediespart Iv: Sales

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

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 Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

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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