Question 1

Under the Code, a contract for the lease of goods for $500 or more is unenforceable without a writing sufficient to evidence a contract.

Accepted Answer

A) True 
 B)False

Question 2

The UCC modifies the common law rule by requiring additional consideration for the modification of a contract.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

In the Carter v.Tokai Financial Services, Inc.case, the agreement was found to:

Accepted Answer

A) fit within the definition of a secured transaction. 
B) be governed by UCC Article 9. 
C) be for an initial term of five years, which ARC had an option to renew for nominal consideration. 
D) be a true finance lease. 
A) fit within the definition of a secured transaction. 
B) be governed by UCC Article 9. 
C) be for an initial term of five years, which ARC had an option to renew for nominal consideration. 
D) be a true finance lease.

Question 5

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 6

List four areas of contract law where the common law of contracts and the law of sales differ.Give both the common law rule and the rule under Article 2.

Accepted Answer

There are at least nine possible answers

Question 7

The definition of "goods" in the UCC may include timber, minerals, growing crops, or a building.

Accepted Answer

A) True 
 B)False

Question 8

The doctrine of unconscionability has evolved through its application by the courts to include:

Accepted Answer

A) contract negotiating procedures. 
B) substantive contract terms. 
C) good faith. 
D) Both (a) and (b) are correct. 
A) contract negotiating procedures. 
B) substantive contract terms. 
C) good faith. 
D) Both (a) and (b) are correct.

Question 9

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

Accepted Answer

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

Question 10

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; he will 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, as long as Bartholomew is acting in good faith and the agreement to the new price is put in writing.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true regarding unconscionability under the Code?

Accepted Answer

A) It is defined in Article 2 as "monstrously extortionately harsh, showing no regard for conscience." 
B) The Code denies or limits enforcement of an unconscionable contract for the sale of goods. 
C) Unconscionability may be substantive, but it cannot be procedural. 
D) All of the above. 
A) It is defined in Article 2 as "monstrously extortionately harsh, showing no regard for conscience." 
B) The Code denies or limits enforcement of an unconscionable contract for the sale of goods. 
C) Unconscionability may be substantive, but it cannot be procedural. 
D) All of the above.

Question 13

If a contract does not comply with the statute of frauds, it is void.

Accepted Answer

A) True 
 B)False

Question 14

The common law "mirror image" rule has been modified by the Code.

Accepted Answer

A) True 
 B)False

Question 15

Contracts containing unconscionable clauses are void and unenforceable.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

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

Question 17

An example of the "course of dealing" concept that courts will use in interpreting a contract under the UCC would be:

Accepted Answer

A) Steven and Michelle have been involved in contracts together for over 5 years.Steven maintains the sign for Michelle's restaurant.Each time Steven sees the sign needs repair, he fixes it without need of express consent from Michelle.Michelle has always paid the bill promptly. 
B) Temaco, Superior Oil, and AllBig, are the largest national oil companies in the country.In each refinery, orders are placed at the beginning of each quarter for priority delivery to distributors. 
C) Bob sees an ad in the local paper for heritage poppy seeds sold by Mel.He calls Mel and is so excited by his find that he orders a quantity of the seeds to be shipped as soon as possible but does not inquire as to price.Mel sends him the seeds and the invoice. 
D) None of the above. 
A) Steven and Michelle have been involved in contracts together for over 5 years.Steven maintains the sign for Michelle's restaurant.Each time Steven sees the sign needs repair, he fixes it without need of express consent from Michelle.Michelle has always paid the bill promptly. 
B) Temaco, Superior Oil, and AllBig, are the largest national oil companies in the country.In each refinery, orders are placed at the beginning of each quarter for priority delivery to distributors. 
C) Bob sees an ad in the local paper for heritage poppy seeds sold by Mel.He calls Mel and is so excited by his find that he orders a quantity of the seeds to be shipped as soon as possible but does not inquire as to price.Mel sends him the seeds and the invoice. 
D) None of the above.

Question 18

A "sale" of goods happens when:

Accepted Answer

A) the parties agree. 
B) the parties sign the contract. 
C) title to the goods is passed. 
D) a promise to transfer title is made. 
A) the parties agree. 
B) the parties sign the contract. 
C) title to the goods is passed. 
D) a promise to transfer title is made.

Question 19

A __________ is a special type of lease transaction generally involving three parties instead of two.

Accepted Answer

A) consumer lease 
B) sale 
C) finance lease 
D) None of the above. 
A) consumer lease 
B) sale 
C) finance lease 
D) None of the above.

Question 20

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

Exam 19: Introduction to Sales and Leases

Under the Code, a contract for the lease of goods for $500 or more is unenforceable without a writing sufficient to evidence a contract.

The UCC modifies the common law rule by requiring additional consideration for the modification of a contract.

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

In the Carter v.Tokai Financial Services, Inc.case, the agreement was found to:

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.

List four areas of contract law where the common law of contracts and the law of sales differ.Give both the common law rule and the rule under Article 2.

The definition of "goods" in the UCC may include timber, minerals, growing crops, or a building.

The doctrine of unconscionability has evolved through its application by the courts to include:

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

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

Which of the following is true regarding unconscionability under the Code?

If a contract does not comply with the statute of frauds, it is void.

The common law "mirror image" rule has been modified by the Code.

Contracts containing unconscionable clauses are void and unenforceable.

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

An example of the "course of dealing" concept that courts will use in interpreting a contract under the UCC would be:

A "sale" of goods happens when:

A __________ is a special type of lease transaction generally involving three parties instead of two.

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

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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