Exam 23: Nature and Form of Sales

Explore all topics

Janet Durham orally agreed to purchase certain computer hardware priced at $10,000 from Ted Stallings.The sale of the hardware also included a one-time setup service visit priced at $100.The total contract price amounted to $10,100.The computer hardware was delivered and set up,and Durham paid $10,100.Afterwards,Durham discovered that she could obtain the same goods and services from another seller for a total contract price of $9,100.She now seeks rescission of the contract,based on the fact that more than $500 in goods were involved in the sales transaction,that the contract between her and Stallings was subject to the statute of frauds as a result,and that the oral agreement between them was therefore unenforceable.Durham wants to return the computer hardware to Stallings,and receive reimbursement of $10,000 (She is willing to waive her claim to reimbursement for the $100 setup service visit. )Evaluate Durham's legal position in this matter.

Free

(Essay)

4.9/5

(35)

Question 1

Correct Answer:

Verified

A contract for services is not governed by the UCC,but when services are not the predominant part of a sale of goods contract,the contract will be classified as within the control of the UCC.Because the predominant component of this contract involved the sale of hardware (goods),the UCC applies.
As a general rule,whenever the sales price of goods is $5,000 or more,the sales contract must be in writing to be enforceable.An exception to the statute of frauds writing requirement exists,however,when the goods have been delivered by the seller and received and accepted by the buyer.The sales contract between Durham and Stallings is within this exception to the statute of frauds.Another exception to the statute of frauds writing requirement is if the buyer has made full payment.Since Janet has already tendered full payment,she cannot successfully argue for rescission of the contract based on a violation of the statute of frauds writing requirement.Perhaps Janet has made a bad bargain in this case,but bad bargains are enforceable nonetheless.

The UCC permits a court to refuse to enforce a sales contract that it finds to be unconscionable.

Free

(True/False)

4.9/5

(40)

Question 2

Correct Answer:

Verified

True

Which term is not required in a writing in order to satisfy the statute of frauds?

Free

(Multiple Choice)

4.8/5

(40)

Question 3

Correct Answer:

Verified

A sales agreement that does not satisfy the statute of frauds is:

(Multiple Choice)

4.8/5

(33)

Question 4

Newlog,which had developed a new process for making artificial logs,entered into an oral contract with Specialty Manufacturing.The contract provided that Specialty would manufacture a special part that Newlog needed to make its artificial log machinery.The contract provided that Specialty would make the part to Newlog's specifications.Newlog orally agreed to pay $5,000 for the part.Specialty made the part to Newlog's specifications,but Newlog refused to pay,claiming that the oral contract was unenforceable because of the statute of frauds.Is Newlog correct?

(Essay)

4.8/5

(49)

Question 5

Any modification of a sales contract must be supported by some form of consideration.

(True/False)

4.9/5

(41)

Question 6

When an oral contract is made to sell a 75-inch LED LCD TV for $6,800,payment and acceptance of part of the purchase price avoids the bar of the statute of frauds.

(True/False)

4.8/5

(41)

Question 7

Under Article 2 of the UCC,in a situation where it is clear that the parties intended a contract,but a term in the acceptance conflicts with a term in the offer:

(Multiple Choice)

4.9/5

(44)

Question 8

Which of the following can satisfy the statute of frauds writing requirement?

(Multiple Choice)

4.8/5

(42)

Question 9

Which of the following situations create(s)an exception to the statute of frauds writing requirement?

(Multiple Choice)

4.7/5

(36)

Question 10

A contract of indefinite duration may be terminated by notice from either party to the other party.

(True/False)

4.8/5

(34)

Question 11

An output or requirement contract is not enforceable unless the parties include an estimate of prospective amounts.

(True/False)

4.8/5

(37)

Question 12

A writing that is offered to satisfy the statute of frauds must have been written for that purpose.

(True/False)

4.9/5

(23)

Question 13

As a general rule,courts will __________ in recovering money or property transferred under an illegal agreement.

(Multiple Choice)

4.8/5

(42)

Question 14

A merchant cannot revoke a firm offer to buy or sell goods if the merchant has:

(Multiple Choice)

4.9/5

(28)

Question 15

The term "course of dealing" refers to the language and customs of an industry.

(True/False)

4.9/5

(40)

Question 16

All goods other than those existing and owned by a seller at the time of a transaction are called:

(Multiple Choice)

4.7/5

(30)

Question 17

UCC Article 2 applies not only to contracts for the sale of familiar items of personal property,such as automobiles or chairs,but also to the transfer of commodities,such as oil,gasoline,milk,and grain.

(True/False)

4.8/5

(43)

Question 18

A sale of goods is defined under UCC Article 2 as transfer of title to intangible property for a price.

(True/False)

4.8/5

(34)

Question 19

A merchant is about to transfer his entire inventory as part of an annual clearance action.This transfer is called a bulk transfer.

(True/False)

4.8/5

(39)

Question 20

Showing 1 - 20 of 53

Exam 23: Nature and Form of Sales

The UCC permits a court to refuse to enforce a sales contract that it finds to be unconscionable.

Which term is not required in a writing in order to satisfy the statute of frauds?

A sales agreement that does not satisfy the statute of frauds is:

Any modification of a sales contract must be supported by some form of consideration.

When an oral contract is made to sell a 75-inch LED LCD TV for $6,800,payment and acceptance of part of the purchase price avoids the bar of the statute of frauds.

Under Article 2 of the UCC,in a situation where it is clear that the parties intended a contract,but a term in the acceptance conflicts with a term in the offer:

Which of the following can satisfy the statute of frauds writing requirement?

Which of the following situations create(s)an exception to the statute of frauds writing requirement?

A contract of indefinite duration may be terminated by notice from either party to the other party.

An output or requirement contract is not enforceable unless the parties include an estimate of prospective amounts.

A writing that is offered to satisfy the statute of frauds must have been written for that purpose.

As a general rule,courts will __________ in recovering money or property transferred under an illegal agreement.

A merchant cannot revoke a firm offer to buy or sell goods if the merchant has:

The term "course of dealing" refers to the language and customs of an industry.

All goods other than those existing and owned by a seller at the time of a transaction are called:

UCC Article 2 applies not only to contracts for the sale of familiar items of personal property,such as automobiles or chairs,but also to the transfer of commodities,such as oil,gasoline,milk,and grain.

A sale of goods is defined under UCC Article 2 as transfer of title to intangible property for a price.

A merchant is about to transfer his entire inventory as part of an annual clearance action.This transfer is called a bulk transfer.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters