Exam 19: Introduction to Sales and Leases

Albert has a contract to buy 100 tables from Bartholomew at a price of $50 a table. Five days before Bartholomew is to deliver the tables, he calls Albert to say that he is sorry but $50 won't cover his costs, and he will now need at least $75 a table. Albert agrees, because he needs the tables for his special sale. The modified contract is enforceable even though Albert isn't getting any new consideration, so long as Bartholomew is acting in good faith and the agreement to the new price is put in writing.

In determining whether a contract containing both a sale of goods and a service is a UCC contract or general contract, a majority of states follow the predominant purpose test.

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

Which of the following is not true about auctions?

Under Article 2A:

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

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:

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

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.

Contracts containing unconscionable clauses are void and unenforceable.

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

Shannon orally agrees to buy 500 telephone answering machines from Thomas for $25,000. Thomas delivers 300 answering machines to Shannon, who receives and accepts them. Which of the following is correct with regard to this transaction?

Substantive unconscionability involves scrutiny by the court for "bargaining naughtiness."

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

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

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?

The Code addresses the "battle of the forms" problem by focusing on intent of the parties.

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.

Categorizing a transaction as a lease rather than a security interest:

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