Question 1

In a "mixed contract," one involving a sale of both goods and services,the court will

Accepted Answer

A) apply the UCC to the provisions of the contract involving the sale of goods and the common law to the provisions involving the sale of services. 
B) apply the lex mercatoria to the contract. 
C) first determine the dominant purpose of the contract.If the sale of goods dominates the contract,then the court will apply the law of the UCC,Article 2.If the sale of services dominates the contract,the court will apply the common law. 
D) apply UCC Article 2A. 
A) apply the UCC to the provisions of the contract involving the sale of goods and the common law to the provisions involving the sale of services. 
B) apply the lex mercatoria to the contract. 
C) first determine the dominant purpose of the contract.If the sale of goods dominates the contract,then the court will apply the law of the UCC,Article 2.If the sale of services dominates the contract,the court will apply the common law. 
D) apply UCC Article 2A. C

Question 2

Which of the following would be considered a merchant under the UCC?

Accepted Answer

A) A woman sells her pistol to someone responding to a classified ad. 
B) A man who owns a jewelry store sells his used car to a neighbor. 
C) A gun dealer sells a rifle to someone who enters his shop. 
D) All of these are correct. 
A) A woman sells her pistol to someone responding to a classified ad. 
B) A man who owns a jewelry store sells his used car to a neighbor. 
C) A gun dealer sells a rifle to someone who enters his shop. 
D) All of these are correct. C

Question 3

Jones contracts to buy a computer from Martin for $1,500.The contract calls for Martin to service the computer quarterly for the first year and to tutor Jones on how to use the software.Is this contract covered by the UCC or common law?

Accepted Answer

Article 2 governs contracts for the sale of goods.When there is a "mixed" contract,one involving both goods and services,such as the one between Jones and Martin,the courts will look to what is the predominant purpose of the contract.Here,although Jones may have agreed to purchase Martin's computer because of the services Martin was willing to provide,the overriding purpose of the contract was to obtain a computer.In other words,the services without the computer are meaningless.Therefore,the UCC rather than the common law governs.

Question 4

During the development of commercial law centuries ago,businessmen throughout England and Europe

Accepted Answer

A) began to rely on the same set of laws used to govern land transactions. 
B) began to rely on a body of rules called lex mercatoria. 
C) had little need for laws to resolve commercial disputes. 
D) had a vast body of rules governing contracts. 
A) began to rely on the same set of laws used to govern land transactions. 
B) began to rely on a body of rules called lex mercatoria. 
C) had little need for laws to resolve commercial disputes. 
D) had a vast body of rules governing contracts.

Question 5

In which of the following cases is the predominant purpose the sale of goods?

Accepted Answer

A) Juanita goes to her dentist to have a cavity filled;while there,she buys a tube of whitening toothpaste the dentist sells at the front desk. 
B) Anderson makes an appointment with his stockbroker to purchase 100 shares of Microsoft stock. 
C) Millicent purchases ten bags of gravel from a landscaping company;an employee carries them to her truck and loads them for her. 
D) Thomas purchases a membership to a health club;his membership entitles him to a free bottle of water with every visit. 
A) Juanita goes to her dentist to have a cavity filled;while there,she buys a tube of whitening toothpaste the dentist sells at the front desk. 
B) Anderson makes an appointment with his stockbroker to purchase 100 shares of Microsoft stock. 
C) Millicent purchases ten bags of gravel from a landscaping company;an employee carries them to her truck and loads them for her. 
D) Thomas purchases a membership to a health club;his membership entitles him to a free bottle of water with every visit.

Question 6

If Edmund and Kaylin have a writing mistakenly showing a sale and purchase of goods for $10,000 when the price should have been $1,000,a court will most likely

Accepted Answer

A) enforce the agreement,relying on oral testimony to determine the correct price. 
B) only enforce the agreement as written. 
C) not hear the case unless both parties are merchants. 
D) not enforce the agreement since the writing did not reflect a meeting of the minds of the parties. 
A) enforce the agreement,relying on oral testimony to determine the correct price. 
B) only enforce the agreement as written. 
C) not hear the case unless both parties are merchants. 
D) not enforce the agreement since the writing did not reflect a meeting of the minds of the parties.

Question 7

Uncle Brandon promises to give his motorcycle to you for free at the end of the month.This transaction is governed by UCC,Article 2,because a motorcycle is within the definition of "goods."

Accepted Answer

A) True 
 B)False

Question 8

Dean Builders agrees to purchase all of its sump pump requirements for the new houses it builds from Satisfactory Sump Pump,Inc.These two business have had similar agreements the last three years,and Dean's requirements have averaged 100 sump pumps per year.This year there was an unusually wet spring and Dean's requirements doubled to 200 sump pumps.Because of the high demand for sump pumps,the market price of the pumps triples.Satisfactory Sump Pump,Inc.delivers 100 pumps at $75,the contract price.Satisfactory has exhausted its inventory and cannot deliver any more,so Dean buys the other 100 pumps from other suppliers at $225 each.Dean sues Satisfactory Sump Pump,Inc.for the additional expense.What is the most likely result?

Accepted Answer

A) Satisfactory Sump Pump,Inc.wins;output and requirements contracts are not enforceable since no quantity is stated. 
B) Dean wins;Satisfactory Sump Pump,Inc.agreed to meet the needs of Dean and did not do so,which is a breach. 
C) Satisfactory Sump Pump,Inc.wins;requirements contracts are governed by a good faith standard,and it was unreasonable for Dean to demand so many additional pumps. 
D) Dean wins;the requirement of good faith applies only between merchants,and Dean is not a merchant. 
A) Satisfactory Sump Pump,Inc.wins;output and requirements contracts are not enforceable since no quantity is stated. 
B) Dean wins;Satisfactory Sump Pump,Inc.agreed to meet the needs of Dean and did not do so,which is a breach. 
C) Satisfactory Sump Pump,Inc.wins;requirements contracts are governed by a good faith standard,and it was unreasonable for Dean to demand so many additional pumps. 
D) Dean wins;the requirement of good faith applies only between merchants,and Dean is not a merchant.

Question 9

Megan agrees to sell Nancy her Rolex watch,but she does not specify a price.In such a case,the court would not enforce the agreement because all of the essential terms are not present.

Accepted Answer

A) True 
 B)False

Question 10

Betty's BBQ orally contracts with Denny's Design House for 10,000 matchbooks at the price of 10 cents per matchbook.The matchbooks are to be embossed with a logo to be designed by Denny's Design promoting Betty's BBQ.Price,payment terms,and delivery terms are agreed upon between the parties.Denny's Design creates the logo,gets Betty's BBQ's approval of the design,and begins applying the logo on the matchbook covers.Denny's Design has almost finished the order when Betty's BBQ calls to say it has decided to make the eatery a smoke-free restaurant and cancels the order.Denny's Design sues,but Betty's BBQ states that the agreement is unenforceable under the Statute of Frauds.Who wins?

Accepted Answer

A) Denny's Design House wins.This situation falls under an exception to the Statute of Frauds. 
B) Denny's Design House wins.This is a service contract for design of a logo.Therefore,the UCC,including the Statute of Frauds provisions of Article 2,does not apply. 
C) Betty's BBQ wins.This is a contract for $1,000.The Statute of Frauds requires all sales contracts in excess of $500 be in writing. 
D) Betty's BBQ wins.The Statute of Frauds only applies to merchants.Betty's BBQ is not a merchant in this instance because it intended to give the matchbooks away and not sell them. 
A) Denny's Design House wins.This situation falls under an exception to the Statute of Frauds. 
B) Denny's Design House wins.This is a service contract for design of a logo.Therefore,the UCC,including the Statute of Frauds provisions of Article 2,does not apply. 
C) Betty's BBQ wins.This is a contract for $1,000.The Statute of Frauds requires all sales contracts in excess of $500 be in writing. 
D) Betty's BBQ wins.The Statute of Frauds only applies to merchants.Betty's BBQ is not a merchant in this instance because it intended to give the matchbooks away and not sell them.

Question 11

Lorene,an artist,orally agrees to sell Sabrina a painting for $600.While Lorene is busy talking on the phone,Sabrina writes her a note on the back of an envelope she finds in her purse.The signed note states that she will stop by the studio to pick up the painting within the week.Sabrina changes her mind about the painting,and when Lorene sues to enforce the contract,Sabrina defends on the basis of the Statute of Frauds.Sabrina will succeed with this defense.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is TRUE regarding an open price term?

Accepted Answer

A) It makes the contract unenforceable. 
B) The price may be fixed by the seller. 
C) The price is the "reasonable" price at the time of delivery. 
D) The price is set by the buyer. 
A) It makes the contract unenforceable. 
B) The price may be fixed by the seller. 
C) The price is the "reasonable" price at the time of delivery. 
D) The price is set by the buyer.

Question 13

ABC Siding,Inc.manufactures aluminum siding.ABC enters into a contract to deliver siding to Slippery Siding,Ltd. ,a retailer of aluminum siding.The written agreement insists that all modifications to the agreement be in writing and signed by both parties.This prohibition against oral modifications is

Accepted Answer

A) valid regardless of whether the clause is signed separately. 
B) invalid unless the clause is signed separately by Slippery Siding,Ltd. 
C) invalid unless the clause is signed separately by ABC Siding,Inc. 
D) invalid unless new consideration is supplied by the parties when the modification agreement is made. 
A) valid regardless of whether the clause is signed separately. 
B) invalid unless the clause is signed separately by Slippery Siding,Ltd. 
C) invalid unless the clause is signed separately by ABC Siding,Inc. 
D) invalid unless new consideration is supplied by the parties when the modification agreement is made.

Question 14

The UCC imposes a duty of good faith in the performance of all contracts.

Accepted Answer

A) True 
 B)False

Question 15

All of the following parties had a hand in creating the UCC except

Accepted Answer

A) the U.S.Senate. 
B) the American Law Institute. 
C) the National Conference of Commissioners on Uniform State Laws. 
D) None of these are correct. 
A) the U.S.Senate. 
B) the American Law Institute. 
C) the National Conference of Commissioners on Uniform State Laws. 
D) None of these are correct.

Question 16

By definition,a sale under Article 2 of the UCC requires

Accepted Answer

A) that the parties involved be merchants. 
B) that the product involved be goods,services,or a mixture;that the sale be between or among merchants;and that the sale take place in the normal course of business for that industry. 
C) that title to the goods pass between the seller and the buyer and that a price be paid for the goods. 
D) that the product involved be an item that can be sold or leased. 
A) that the parties involved be merchants. 
B) that the product involved be goods,services,or a mixture;that the sale be between or among merchants;and that the sale take place in the normal course of business for that industry. 
C) that title to the goods pass between the seller and the buyer and that a price be paid for the goods. 
D) that the product involved be an item that can be sold or leased.

Question 17

Which of the following contracts requires a writing under the UCC,Article 2?

Accepted Answer

A) Jeremy,a full-time student,sold his snow blower to a friend for $450. 
B) Kayla,a full-time student,purchased a used computer from Office Plus for $300. 
C) A toy manufacturer contracted to sell dolls valued at $10,000 to a department store. 
D) Tobias Department Store contracted to sell Jenny a $400 doll. 
A) Jeremy,a full-time student,sold his snow blower to a friend for $450. 
B) Kayla,a full-time student,purchased a used computer from Office Plus for $300. 
C) A toy manufacturer contracted to sell dolls valued at $10,000 to a department store. 
D) Tobias Department Store contracted to sell Jenny a $400 doll.

Question 18

Under the UCC,a merchant is frequently held to a higher standard of conduct than a non-merchant.

Accepted Answer

A) True 
 B)False

Question 19

Patsy is shopping for a used car.She finds a car she likes at Morley Motors.Discuss how the UCC views each party and the standard of conduct it imposes on the parties in performing the sales transaction.

Accepted Answer

The UCC imposes a duty of good faith in

Question 20

Jasmine agrees to purchase 1,500 tons of recycled glass from Louie,the price to be determined at the time of delivery.Is such an agreement enforceable? Compare the common law with Article 2 of the UCC.

Accepted Answer

Yes,the agreement is enforceable under A

Exam 21: Introduction to Sales

In a "mixed contract," one involving a sale of both goods and services,the court will

Which of the following would be considered a merchant under the UCC?

Jones contracts to buy a computer from Martin for $1,500.The contract calls for Martin to service the computer quarterly for the first year and to tutor Jones on how to use the software.Is this contract covered by the UCC or common law?

During the development of commercial law centuries ago,businessmen throughout England and Europe

In which of the following cases is the predominant purpose the sale of goods?

If Edmund and Kaylin have a writing mistakenly showing a sale and purchase of goods for $10,000 when the price should have been $1,000,a court will most likely

Uncle Brandon promises to give his motorcycle to you for free at the end of the month.This transaction is governed by UCC,Article 2,because a motorcycle is within the definition of "goods."

Megan agrees to sell Nancy her Rolex watch,but she does not specify a price.In such a case,the court would not enforce the agreement because all of the essential terms are not present.

Which of the following is TRUE regarding an open price term?

The UCC imposes a duty of good faith in the performance of all contracts.

All of the following parties had a hand in creating the UCC except

By definition,a sale under Article 2 of the UCC requires

Which of the following contracts requires a writing under the UCC,Article 2?

Under the UCC,a merchant is frequently held to a higher standard of conduct than a non-merchant.

Patsy is shopping for a used car.She finds a car she likes at Morley Motors.Discuss how the UCC views each party and the standard of conduct it imposes on the parties in performing the sales transaction.

Jasmine agrees to purchase 1,500 tons of recycled glass from Louie,the price to be determined at the time of delivery.Is such an agreement enforceable? Compare the common law with Article 2 of the UCC.

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

Consideration

Legality

Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

Remedies

Practical Contracts

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant Law

Personal Property and Bailment

Planning for the Future: Wills, Trusts and Insurance

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