Exam 14: The Formation of Sales and Lease Contracts

Orange Manufacturing Corporation (OMC) orders twelve job-training and on-the-job safety DVDs from Plum Productions,Inc.,which delivers the disks to OMC's plant.This is most likely

The UCC requires that the mirror image rule be followed for all acceptances.

Mountaineer Sales,Inc.,is the offeror and Camping Goods Corporation is the offeree under a unilateral sales contract in which Forest Recreation Products Company is also interested.Mountaineer is not notified of Camping's performance within a rea-son-able time.Mountaineer

When a document of title is required,title passes to a buyer when and where the document is delivered.

Elizabeth buys a car from Silas,who is sixteen years old.Elizabeth then wants to sell the car to her neighbor,John.Elizabeth's title to the car is

Real estate transactions are always governed by Article 2 of the UCC.

Thorpe buys an HD TV from Viewpoint Electronics store,which agrees to keep the TV for Thorpe until he picks it up.Before Thorpe gets the TV,a fire destroys the store and the set.The loss is suffered by

If a sale involves crops that are to be harvested within twelve months,iden-tification takes place when the seeds for the crops are purchased.

Before a seller can have an insurable interest in goods,the goods must be identified to a contract.

All oral contracts are enforceable under the UCC.

The right to cure is the right of a party who tenders nonconforming performance to correct his or her performance within the contract period.

Under the UCC,prompt shipment of goods is considered an acceptance of an offer to buy the goods.

A court can refuse to enforce a contract that the court deems to have been unconscionable at the time it was made.

The contract term "delivery ex-ship" means that the risk of loss does not pass to the buyer until the goods are properly unloaded from the ship or other carrier.

Good Food Corporation buys from Home Farms,Inc.,a rice crop that Home Farms plans to plant and harvest during the next growing season.Good Food plans to sell the rice to Interstate Grocery Stores.After the rice is planted,but before it is harvested,an insurable interest in the rice ex-ists in

Future goods are goods that are not both existing and identified to the contract.

Bill orders 1,000 nails from Super Hardware,Inc.Super Hardware keeps its nails in packages of 100,000.Bill and the agent for Super Hardware both sign the contract for the sale of the nails on Monday.The agent separates 1,000 nails on Wednesday.The agent delivers the nails to Bill on Thursday morning,and Bill pays for the nails on Friday.Identification of the nails took place on

Big Red Drinks,Inc.contracts to buy two tons of cranberries from Super Fruits,Inc.The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight.The contract is

Sweetwater Café orders five gallons of transfat-free cooking oil from Restaurant Supply,Inc.The seller mistakenly ships the wrong oil,which the buyer keeps,despite the nonconform-ity.The oil is destroyed in a kitchen fire.The loss is suffered by

The UCC imposes some different rules on merchants.