Question 1

In the case of Pittsley v.Houser, the court:

Accepted Answer

A) held that the contract should be severed into different parts, applying the UCC to the part of the contract involving goods and the common law to the nongoods part of the contract. 
B) held that the "predominant factor" test contravened the UCC's declared purpose. 
C) applied the "predominant factor" test. 
D) found the CISG governed the contract in question. 
A) held that the contract should be severed into different parts, applying the UCC to the part of the contract involving goods and the common law to the nongoods part of the contract. 
B) held that the "predominant factor" test contravened the UCC's declared purpose. 
C) applied the "predominant factor" test. 
D) found the CISG governed the contract in question.

Question 2

Which of the following is correct with regard to Article 2(a) of the Code?

Accepted Answer

A) Article 2(a) affords special treatment for consumer leases. 
B) Article 2(a) covers minerals prior to their extraction. 
C) All states have now adopted Article 2(a). 
D) All of the above are correct. 
A) Article 2(a) affords special treatment for consumer leases. 
B) Article 2(a) covers minerals prior to their extraction. 
C) All states have now adopted Article 2(a). 
D) All of the above are correct.

Question 3

Under the CISG, which of the following would not always be considered a material alteration to an offer?

Accepted Answer

A) A change in payment. 
B) A change in time of delivery. 
C) A change in color of goods ordered. 
D) The addition of an arbitration clause for settlement of disputes. 
A) A change in payment. 
B) A change in time of delivery. 
C) A change in color of goods ordered. 
D) The addition of an arbitration clause for settlement of disputes.

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

The UCC definition of "unconscionable" is clear and unambiguous.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A finance lease is a special type of lease transaction that generally involves three parties instead of two.

Accepted Answer

A) True 
 B)False

Question 8

A contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations?

Accepted Answer

A) Where the goods have been delivered and accepted. 
B) Where payment has been accepted. 
C) Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business. 
D) All of the above are situations where the contract would be enforceable. 
A) Where the goods have been delivered and accepted. 
B) Where payment has been accepted. 
C) Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business. 
D) All of the above are situations where the contract would be enforceable.

Question 9

The Code defines __________ as "honesty in fact in the conduct or transaction concerned."

Accepted Answer

A) good faith 
B) unconscionability 
C) merchantability 
D) entrusting 
A) good faith 
B) unconscionability 
C) merchantability 
D) entrusting

Question 10

Which of the following transactions is governed by Article 2 of the UCC?

Accepted Answer

A) The sale of an apartment complex. 
B) The sale of oranges to be picked from a 10-acre grove. 
C) The sale of common stock of a soft drink company. 
D) A contract to receive medical services in a hospital. 
A) The sale of an apartment complex. 
B) The sale of oranges to be picked from a 10-acre grove. 
C) The sale of common stock of a soft drink company. 
D) A contract to receive medical services in a hospital.

Question 11

A "merchant" is defined as a person who:

Accepted Answer

A) is a dealer in a particular type of goods. 
B) by his occupation holds himself out as having knowledge or skills peculiar to certain goods or practices. 
C) employs an agent or broker whom he holds out as having such knowledge or skill. 
D) All of the above. 
A) is a dealer in a particular type of goods. 
B) by his occupation holds himself out as having knowledge or skills peculiar to certain goods or practices. 
C) employs an agent or broker whom he holds out as having such knowledge or skill. 
D) All of the above.

Question 12

The definition of "usage of trade" includes:

Accepted Answer

A) a sequence of previous conduct between the parties that may fairly be regarded as establishing a common basis of understanding for interpreting their expressions and agreement. 
B) a practice regularly observed and followed in a place, vocation, or trade. 
C) separate rules that apply to transactions between merchants. 
D) All of the above. 
A) a sequence of previous conduct between the parties that may fairly be regarded as establishing a common basis of understanding for interpreting their expressions and agreement. 
B) a practice regularly observed and followed in a place, vocation, or trade. 
C) separate rules that apply to transactions between merchants. 
D) All of the above.

Question 13

Leases of personal property exceed $100 billion annually and are governed by Article 2A of the UCC.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not true about auctions?

Accepted Answer

A) The UCC provides that if an auction sale is advertised or announced in explicit terms to be with reserve, the auctioneer may not withdraw the article put up for sale unless no bid is made within a reasonable time. 
B) Unless an auction is advertised as being without reserve, the sale is with reserve. 
C) Whether an auction is with or without reserve, a bidder may retract his bid at any time prior to acceptance by the auctioneer. 
D) If the auctioneer knowingly receives a bid on behalf of the seller and notice has not been given that the seller reserves the right to bid at the sale, the bidder to whom the goods are sold can avoid the sale. 
A) The UCC provides that if an auction sale is advertised or announced in explicit terms to be with reserve, the auctioneer may not withdraw the article put up for sale unless no bid is made within a reasonable time. 
B) Unless an auction is advertised as being without reserve, the sale is with reserve. 
C) Whether an auction is with or without reserve, a bidder may retract his bid at any time prior to acceptance by the auctioneer. 
D) If the auctioneer knowingly receives a bid on behalf of the seller and notice has not been given that the seller reserves the right to bid at the sale, the bidder to whom the goods are sold can avoid the sale.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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?

Accepted Answer

A) The price is whatever the seller decides. 
B) The price is a reasonable price at the time of making the contract. 
C) The price is a reasonable price at the time of delivery. 
D) There is no contract, because the agreement is not definite and certain enough. 
A) The price is whatever the seller decides. 
B) The price is a reasonable price at the time of making the contract. 
C) The price is a reasonable price at the time of delivery. 
D) There is no contract, because the agreement is not definite and certain enough.

Question 17

Leslie, the owner of a shoe store, purchased 500 Model XT-50 running shoes from her supplier, but a price was not stated in the contract.The contract is voidable at Leslie's option until the parties agree on a price.

Accepted Answer

A) True 
 B)False

Question 18

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?

Accepted Answer

A) Shannon can enforce the contract for the additional 200 machines. 
B) The contract is enforceable to the extent of the 300 machines that have been received and accepted. 
C) The entire contract is in violation of the statute of frauds and cannot be enforced. 
D) This is a bad deal, and is therefore commercially unconscionable from the beginning and unenforceable. 
A) Shannon can enforce the contract for the additional 200 machines. 
B) The contract is enforceable to the extent of the 300 machines that have been received and accepted. 
C) The entire contract is in violation of the statute of frauds and cannot be enforced. 
D) This is a bad deal, and is therefore commercially unconscionable from the beginning and unenforceable.

Question 19

Discuss the concept of freedom of contract under Articles 2 and 2A of the UCC.

Accepted Answer

Most of the Code's provisions are not ma

Question 20

The CISG governs only the formation of the contract of sales and the rights and obligations of the seller and buyer.It does not cover the validity of the contract or any of its provisions.

Accepted Answer

A) True 
 B)False

Exam 19: Introduction to Sales and Leases

In the case of Pittsley v.Houser, the court:

Which of the following is correct with regard to Article 2(a) of the Code?

Under the CISG, which of the following would not always be considered a material alteration to an offer?

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.

The UCC definition of "unconscionable" is clear and unambiguous.

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

A finance lease is a special type of lease transaction that generally involves three parties instead of two.

A contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations?

The Code defines __________ as "honesty in fact in the conduct or transaction concerned."

Which of the following transactions is governed by Article 2 of the UCC?

A "merchant" is defined as a person who:

The definition of "usage of trade" includes:

Leases of personal property exceed $100 billion annually and are governed by Article 2A of the UCC.

Which of the following is not true about auctions?

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

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?

Leslie, the owner of a shoe store, purchased 500 Model XT-50 running shoes from her supplier, but a price was not stated in the contract.The contract is voidable at Leslie's option until the parties agree on a price.

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?

Discuss the concept of freedom of contract under Articles 2 and 2A of the UCC.

The CISG governs only the formation of the contract of sales and the rights and obligations of the seller and buyer.It does not cover the validity of the contract or any of its provisions.

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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