Question 1

Under the UCC,a merchant is frequently held to a higher standard of conduct than a non-merchant.

Accepted Answer

A) True 
 B)False  True

Question 2

The UCC imposes a duty of good faith in the performance of all contracts.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following types of property would be classified as "goods" under Article 2 of the UCC?

Accepted Answer

A)  Cash in hand. 
B)  A stock certificate. 
C)  A computer. 
D)  A membership to a health club. 
A)  Cash in hand. 
B)  A stock certificate. 
C)  A computer. 
D)  A membership to a health club. C

Question 4

Which of the following is true regarding an open price term?

Accepted Answer

A)  It makes the contract unenforceable. 
B)  The price may be fixed by the seller. 
C)  The price is the "reasonable" price at the time of delivery. 
D)  The price is set by the buyer. 
A)  It makes the contract unenforceable. 
B)  The price may be fixed by the seller. 
C)  The price is the "reasonable" price at the time of delivery. 
D)  The price is set by the buyer.

Question 5

Office Plus,an office supply store,ordered 600 blank CDs from Curtis Co.,a manufacturer of computer products.Office Plus placed the order using a preprinted purchase order form; Curtis acknowledged the order by sending a preprinted acceptance form back to Office Plus.Unlike Office Plus' form which says nothing about packaging,Curtis's form specifies that the CDs will be packaged in cases of 10 CDs per box,10 boxes per case.Which statement is correct?

Accepted Answer

A)  The UCC does not cover computer CDs. 
B)  Curtis's packaging term is a different term which materially changes the offer. There is no contract. 
C)  Curtis's packaging term is an additional term and therefore a part of the contract unless Office Plus promptly objects to the term. 
D)  The UCC does not cover the contract because both parties are merchants. 
A)  The UCC does not cover computer CDs. 
B)  Curtis's packaging term is a different term which materially changes the offer. There is no contract. 
C)  Curtis's packaging term is an additional term and therefore a part of the contract unless Office Plus promptly objects to the term. 
D)  The UCC does not cover the contract because both parties are merchants.

Question 6

Patsy is shopping for a used car.She finds a car she likes at Morley Motors.Discuss the standard of conduct the UCC imposes on the parties in performing the sales transaction.

Accepted Answer

The UCC imposes a duty of good faith in

Question 7

Sean of Sean's Shrimp House was enjoying a cup of cappuccino while visiting with Ollie at Ollie's Ocean Front Bar & Grill.During the course of their conversation,Sean agreed to supply 100 pounds of shrimp per month for the next year to Ollie's restaurant at the price of $2.50 per pound.When Sean got back to his office,he sent a written confirmation of the agreement to Ollie.Six weeks after receiving the confirmation Ollie wrote back,stating that he had not agreed to the price of $2.50 per pound.Is Ollie bound to the confirmation?

Accepted Answer

Probably.Shrimp is a "good," and therefo

Question 8

Stanziano Construction needs a backhoe to complete a project.If it pays Hofmann Rentals for temporary use of the equipment,the transaction will be governed by:

Accepted Answer

A)  Article 2 of UCC. 
B)  Article 2A of the UCC. 
C)  Article 3 of the UCC. 
D)  bulk transfer law. 
A)  Article 2 of UCC. 
B)  Article 2A of the UCC. 
C)  Article 3 of the UCC. 
D)  bulk transfer law.

Question 9

Wayne agrees over the phone to sell L.J.Cartwright 1,000 yards of 1-inch diameter rope.Wayne honestly believes that L.J.Cartwright offered to pay $1.00 per yard whereas L.J.Cartwright actually offered to pay 75 cents per yard.If the parties subsequently take their dispute to court,the fact that L.J.Cartwright admits on the stand that he offered to pay Wayne 75 cents per yard will:

Accepted Answer

A)  prevent L.J.Cartwright from using the statute of frauds to nullify the contract. 
B)  create an unconscionable contract. 
C)  make it possible for Wayne to enforce the contract to sell 1,000 yards of rope at a price of 75 cents per yard. 
D)  Both a and c are correct. 
A)  prevent L.J.Cartwright from using the statute of frauds to nullify the contract. 
B)  create an unconscionable contract. 
C)  make it possible for Wayne to enforce the contract to sell 1,000 yards of rope at a price of 75 cents per yard. 
D)  Both a and c are correct.

Question 10

Leasing goods is an insignificant part of business,and it is governed by extensions of the UCC Article related to sales rather than having a separate article of the Code to cover leases.

Accepted Answer

A) True 
 B)False

Question 11

Newt,a gun dealer,offers to sell a rare civil war musket to Rush,another dealer,for "$15,000,insurance and shipping paid by buyer." Rush responds,"I accept.Insurance and shipping costs divided equally between seller and buyer." The parties:

Accepted Answer

A)  do not have a contract since the acceptance violated the mirror image rule. 
B)  do not have a contract since Rush's response was a counteroffer. 
C)  have a contact and, in the majority of states, the terms of the offeree control. 
D)  have a contract and, in the majority of states, the different terms will cancel each other out. 
A)  do not have a contract since the acceptance violated the mirror image rule. 
B)  do not have a contract since Rush's response was a counteroffer. 
C)  have a contact and, in the majority of states, the terms of the offeree control. 
D)  have a contract and, in the majority of states, the different terms will cancel each other out.

Question 12

Which of the following contracts is most likely to be declared unconscionable?

Accepted Answer

A)  A consumer sales contract which charges 300 times the fair market value of the goods. 
B)  A consumer sales contract which limits the consumer's remedies to repair or replacement. 
C)  A contract between wholesaler and retailer which adds delivery charges at 15% of the costs of the goods. 
D)  A sales contract between wholesaler and retailer which limits remedies such as consequential damages. 
A)  A consumer sales contract which charges 300 times the fair market value of the goods. 
B)  A consumer sales contract which limits the consumer's remedies to repair or replacement. 
C)  A contract between wholesaler and retailer which adds delivery charges at 15% of the costs of the goods. 
D)  A sales contract between wholesaler and retailer which limits remedies such as consequential damages.

Question 13

Oxtren,Inc.is a tools wholesaler.Oxtren sent M&E Tools a purchase order offering to buy 200 Model 308 milling & drilling machines with R-8 spindles.The purchase order stated the credit term to be 2% discount if payment was made in 10 days,with the full amount due in 30 days.It did not include a forum selection clause.M&E responded with an acceptance form accepting the offer.The acceptance form,however,stated that full payment was due on delivery and that disputes under the contract would be settled by arbitration.
(A)Do the parties have an agreement?
(B)What is the payment term?
(C)Is the arbitration clause part of the agreement?

Accepted Answer

(A)Under the UCC,the parties will have a

Question 14

The UCC has abolished the common law requirement of consideration in all contracts involving the sale of goods.

Accepted Answer

A) True 
 B)False

Question 15

Under the UCC statute of frauds,the writing for a sale of goods must:

Accepted Answer

A)  state quantity. 
B)  state price. 
C)  be signed by both parties. 
D)  be notarized. 
A)  state quantity. 
B)  state price. 
C)  be signed by both parties. 
D)  be notarized.

Question 16

Jones contracts to buy a computer from Martin for $1500.The contract calls for Martin to service the computer quarterly for the first year and to tutor Jones on how to use the software.Is this contract covered by the UCC or common law?

Accepted Answer

Article 2 governs contracts for the sale

Question 17

If the seller has made a substantial beginning in manufacturing customized goods,then an oral contract may be enforceable regardless of the amount of money involved in the contract.

Accepted Answer

A) True 
 B)False

Question 18

Trey,a full-time college student,sold his car to Don,another student.In the performance of this contract,Trey:

Accepted Answer

A)  has a duty of good faith which means honesty in fact and the exercise of good judgment. 
B)  has a duty of good faith which means honesty in fact. 
C)  has a duty of good faith which means honesty in fact and the exercise of reasonable commercial standards of fair dealing. 
D)  does not have a duty of good faith. 
A)  has a duty of good faith which means honesty in fact and the exercise of good judgment. 
B)  has a duty of good faith which means honesty in fact. 
C)  has a duty of good faith which means honesty in fact and the exercise of reasonable commercial standards of fair dealing. 
D)  does not have a duty of good faith.

Question 19

By definition,a sale under Article 2 of the UCC requires:

Accepted Answer

A)  that the parties involved be merchants. 
B)  that the product involved be goods, services, or a mixture; that the sale be between or among merchants; and that the sale take place in the normal course of business for that industry. 
C)  that title to the goods pass between the seller and the buyer and that a price be paid for the goods. 
D)  that the service being sold cannot be a gift or a bailment. 
A)  that the parties involved be merchants. 
B)  that the product involved be goods, services, or a mixture; that the sale be between or among merchants; and that the sale take place in the normal course of business for that industry. 
C)  that title to the goods pass between the seller and the buyer and that a price be paid for the goods. 
D)  that the service being sold cannot be a gift or a bailment.

Question 20

During the development of commercial law centuries ago,businessmen throughout England and Europe:

Accepted Answer

A)  settled disputes in trade organizations rather than in civil courts. 
B)  relied on a body of rules which became known as the lex mercatoria. 
C)  began to treat their own customs as law. 
D)  All of the above. 
A)  settled disputes in trade organizations rather than in civil courts. 
B)  relied on a body of rules which became known as the lex mercatoria. 
C)  began to treat their own customs as law. 
D)  All of the above.

Exam 20: Introduction To Sales

Under the UCC,a merchant is frequently held to a higher standard of conduct than a non-merchant.

The UCC imposes a duty of good faith in the performance of all contracts.

Which of the following types of property would be classified as "goods" under Article 2 of the UCC?

Which of the following is true regarding an open price term?

Patsy is shopping for a used car.She finds a car she likes at Morley Motors.Discuss the standard of conduct the UCC imposes on the parties in performing the sales transaction.

Stanziano Construction needs a backhoe to complete a project.If it pays Hofmann Rentals for temporary use of the equipment,the transaction will be governed by:

Leasing goods is an insignificant part of business,and it is governed by extensions of the UCC Article related to sales rather than having a separate article of the Code to cover leases.

Newt,a gun dealer,offers to sell a rare civil war musket to Rush,another dealer,for "$15,000,insurance and shipping paid by buyer." Rush responds,"I accept.Insurance and shipping costs divided equally between seller and buyer." The parties:

Which of the following contracts is most likely to be declared unconscionable?

The UCC has abolished the common law requirement of consideration in all contracts involving the sale of goods.

Under the UCC statute of frauds,the writing for a sale of goods must:

Jones contracts to buy a computer from Martin for $1500.The contract calls for Martin to service the computer quarterly for the first year and to tutor Jones on how to use the software.Is this contract covered by the UCC or common law?

If the seller has made a substantial beginning in manufacturing customized goods,then an oral contract may be enforceable regardless of the amount of money involved in the contract.

Trey,a full-time college student,sold his car to Don,another student.In the performance of this contract,Trey:

By definition,a sale under Article 2 of the UCC requires:

During the development of commercial law centuries ago,businessmen throughout England and Europe:

Introduction To Law

Business Ethics And Social Responsibility

Dispute Resolution

Common Law,Statutory Law,And Administrative Law

Constitutional Law

Intentional Torts And Business Torts

Negligence And Strict Liability

Crime

International Law

Introduction To Contracts

Agreement

Consideration

Legality

Capacity And Consent

Written Contracts

Third Parties

Performance And Discharge

Remedies

Practical Contracts

Ownership And Risk

Warranties And Product Liability

Performance And Remedies

Secured Transactions

Creating A Negotiable Instrument

Liability For Negotiable Instruments

Accountants' Liability

Agency Law

Employment Law

Labor Law

Starting A Business

Partnerships

Life And Death Of A Corporation

Corporate Management

Shareholders

Securities Regulation

Bankruptcy

Antitrust

Consumer Law

Environmental Law

Cyberlaw

Intellectual Property

Real Property And Tenant-landlord Law

Personal Property And Bailment

Planning For The Future: Wills,Trusts,And Insurance

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