Question 1

The case of Construction Associates, Inc.v.Fargo Water Equipment Co.illustrates the doctrine of:

Accepted Answer

A) course of dealing. 
B) unconscionability. 
C) usage of trade. 
D) a transaction outside the Code. 
A) course of dealing. 
B) unconscionability. 
C) usage of trade. 
D) a transaction outside the Code. B

Question 2

Which of the following nonsales transactions would likely be covered by an extension of Article 2 principles?

Accepted Answer

A) Bailments involving goods. 
B) Leases involving goods. 
C) Sales involving real estate. 
D) Two of the above, (a) and (b). 
A) Bailments involving goods. 
B) Leases involving goods. 
C) Sales involving real estate. 
D) Two of the above, (a) and (b). D

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

Identify what law would govern: (a) a sale of a computer between a U.S.company and a U.S.consumer; (b) an insurance policy sale between a U.S.company and a U.S.consumer; and (c) a sale of manufactured goods between a U.S.manufacturer and a buyer in another country.

Accepted Answer

The law which governs transactions may d

Question 8

What does the UCC say with regard to the following?
a.Good faith.
b.Unconscionability.
c.Expansion of commercial practices.

Accepted Answer

a.All parties who enter into a contract

Question 9

Which of the following is considered "goods" within the meaning of Article 2?

Accepted Answer

A) An unborn calf. 
B) A field of corn still in the field. 
C) Timber which has been removed by the seller. 
D) All of the above are goods under Article 2. 
A) An unborn calf. 
B) A field of corn still in the field. 
C) Timber which has been removed by the seller. 
D) All of the above are goods under Article 2.

Question 10

Marvin offers to sell his lawnmower to Cheryl for $75 if she pays cash and picks the mower up at his house the following week.Cheryl replies that she would like to buy the mower and thinks $75 is a fair price, but she has no way to transport the mower, so she will buy it for cash if Marvin will have it delivered to her house.In this situation:

Accepted Answer

A) Cheryl has provided an additional term, which will be construed as a proposal which Marvin can accept or reject. 
B) Marvin and Cheryl are considered merchants in relation to the mower, so the delivery of the mower is an additional term which will become part of the contract unless Marvin objects within a reasonable time. 
C) the delivery of the mower is a different term from that in the offer, and it generally will not become part of the contract unless Marvin specifically agrees to it. 
D) courts would all agree that the different delivery terms cancel each other out and the Code would provide the missing term. 
A) Cheryl has provided an additional term, which will be construed as a proposal which Marvin can accept or reject. 
B) Marvin and Cheryl are considered merchants in relation to the mower, so the delivery of the mower is an additional term which will become part of the contract unless Marvin objects within a reasonable time. 
C) the delivery of the mower is a different term from that in the offer, and it generally will not become part of the contract unless Marvin specifically agrees to it. 
D) courts would all agree that the different delivery terms cancel each other out and the Code would provide the missing term.

Question 11

Edie telephoned the office supply store and agreed to buy a dozen ink cartridges at $26 each.She then realized what a good buy this was and called the store with a request to modify the contract to read two dozen.What is the consequence?

Accepted Answer

A) The modified contract is unenforceable. 
B) The modified contract is void. 
C) The modified contract is valid and enforceable. 
D) There is no consideration, so the contract is void. 
A) The modified contract is unenforceable. 
B) The modified contract is void. 
C) The modified contract is valid and enforceable. 
D) There is no consideration, so the contract is void.

Question 12

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

Question 13

UCC Articles 2 and 2A have been amended to accommodate electronic commerce.

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 the above. 
E) None of the above. 
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 the above. 
E) None of the above.

Question 15

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 merely as a source of credit. 
D) All of the above are correct. 
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 merely as a source of credit. 
D) All of the above are correct.

Question 16

A lessee under a consumer lease and a buyer under a sale of goods are provided with the same protections against unconscionability under the UCC.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A merchant is a dealer in goods or a per

Question 18

Mike inherited some antiques.Pat agrees to buy them.In the contract, Mike and Pat agree to value the antiques at whatever the Sotheby's representative says.If they are valued much higher than either Mike or Pat anticipated, Pat:

Accepted Answer

A) has to buy at the price set by the Sotheby representative. 
B) has to buy, but at what Pat and Mike believe was a reasonable price. 
C) has no obligation to buy the antiques. 
D) can treat the contract as canceled. 
A) has to buy at the price set by the Sotheby representative. 
B) has to buy, but at what Pat and Mike believe was a reasonable price. 
C) has no obligation to buy the antiques. 
D) can treat the contract as canceled.

Question 19

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.

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

The case of Construction Associates, Inc.v.Fargo Water Equipment Co.illustrates the doctrine of:

Which of the following nonsales transactions would likely be covered by an extension of Article 2 principles?

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

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.

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

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?

Identify what law would govern: (a) a sale of a computer between a U.S.company and a U.S.consumer; (b) an insurance policy sale between a U.S.company and a U.S.consumer; and (c) a sale of manufactured goods between a U.S.manufacturer and a buyer in another country.

What does the UCC say with regard to the following? a.Good faith. b.Unconscionability. c.Expansion of commercial practices.

Which of the following is considered "goods" within the meaning of Article 2?

Edie telephoned the office supply store and agreed to buy a dozen ink cartridges at $26 each.She then realized what a good buy this was and called the store with a request to modify the contract to read two dozen.What is the consequence?

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:

UCC Articles 2 and 2A have been amended to accommodate electronic commerce.

A contract has an open price term if the agreement:

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

A lessee under a consumer lease and a buyer under a sale of goods are provided with the same protections against unconscionability under the UCC.

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

Mike inherited some antiques.Pat agrees to buy them.In the contract, Mike and Pat agree to value the antiques at whatever the Sotheby's representative says.If they are valued much higher than either Mike or Pat anticipated, Pat:

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.

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 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

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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