Question 1

In which of the following situations is the seller a merchant under Article 2 of the UCC?

Accepted Answer

A) Paul,a full-time college student,sold his textbooks to State Bookstore. 
B) Randall,a part-time college student and full-time father,sold his textbooks to a friend. 
C) Zompa Inc. ,a toy manufacturer,contracted to sell dolls to TonTon Department Store. 
D) Mabel,a stay-at-home mom,sold her car to her friend Gloria. 
A) Paul,a full-time college student,sold his textbooks to State Bookstore. 
B) Randall,a part-time college student and full-time father,sold his textbooks to a friend. 
C) Zompa Inc. ,a toy manufacturer,contracted to sell dolls to TonTon Department Store. 
D) Mabel,a stay-at-home mom,sold her car to her friend Gloria.

Question 2

Harriett raises and sells hippos.In order to keep her hippos happy and healthy,she feeds them Hippo Chow,which she buys from the local pet store.Under the UCC,Harriett is

Accepted Answer

A) a merchant of both hippos and Hippo Chow. 
B) a merchant of hippos,but not of Hippo Chow. 
C) a merchant of Hippo Chow,but not of hippos. 
D) not a merchant of either hippos or Hippo Chow. 
A) a merchant of both hippos and Hippo Chow. 
B) a merchant of hippos,but not of Hippo Chow. 
C) a merchant of Hippo Chow,but not of hippos. 
D) not a merchant of either hippos or Hippo Chow.

Question 3

Stanziano Construction needs a backhoe to complete a project.If it pays Hofmann Rentals for temporary use of the equipment,the transaction will be governed by

Accepted Answer

A) Article 2 of UCC. 
B) Article 2A of the UCC. 
C) Article 3 of the UCC. 
D) bulk transfer law. 
A) Article 2 of UCC. 
B) Article 2A of the UCC. 
C) Article 3 of the UCC. 
D) bulk transfer law.

Question 4

Sean of Sean's Shrimp House was enjoying a cup of cappuccino while visiting with Ollie at Ollie's Ocean Front Bar & Grill.During the course of their conversation,Sean agreed to supply 100 pounds of shrimp per month for the next year to Ollie's restaurant at the price of $2.50 per pound.When Sean got back to his office,he sent a written confirmation of the agreement to Ollie.Six weeks after receiving the confirmation Ollie wrote back,stating that he had not agreed to the price of $2.50 per pound.Is Ollie bound to the confirmation?

Accepted Answer

Probably.Shrimp is a "good," and therefo

Question 5

Pizazz,Inc.sold a condo on the 34th floor in a building in downtown Chicago.This contract is governed by Article 2A of the UCC.

Accepted Answer

A) True 
 B)False

Question 6

The UCC does not apply to a contract for the sale of goods if the value of the goods is less than $500.

Accepted Answer

A) True 
 B)False

Question 7

UCC Section 2-204 provides three important rules that enable parties to make a contract quickly and informally.Which of the following is NOT one of these rules?

Accepted Answer

A) The parties may make a contract in any manner sufficient to show that they reached an agreement. 
B) A writing sufficient under the Statute of Frauds may be a simple memo,a letter,or informal note,but need not itself be a contract. 
C) The UCC will enforce a deal even though it is difficult to say exactly when it was formed. 
D) A court may enforce a bargain even though one or more terms were left open. 
A) The parties may make a contract in any manner sufficient to show that they reached an agreement. 
B) A writing sufficient under the Statute of Frauds may be a simple memo,a letter,or informal note,but need not itself be a contract. 
C) The UCC will enforce a deal even though it is difficult to say exactly when it was formed. 
D) A court may enforce a bargain even though one or more terms were left open.

Question 8

Newt,a gun dealer,offers to sell a rare civil war musket to Rush,another dealer,for "$15,000,insurance and shipping paid by buyer." Rush responds,"I accept.Insurance and shipping costs divided equally between seller and buyer." The parties

Accepted Answer

A) do not have a contract since the acceptance violated the mirror image rule. 
B) do not have a contract since Rush's response was a counteroffer. 
C) have a contract,and in the majority of states,the terms of the offeree control. 
D) have a contract,and in the majority of states,the different terms will cancel each other out. 
A) do not have a contract since the acceptance violated the mirror image rule. 
B) do not have a contract since Rush's response was a counteroffer. 
C) have a contract,and in the majority of states,the terms of the offeree control. 
D) have a contract,and in the majority of states,the different terms will cancel each other out.

Question 9

In medieval England,the law merchant doctrine focused on all of the following except

Accepted Answer

A) promises. 
B) the sale and exchange of goods. 
C) payment. 
D) the sale and exchange of real estate. 
A) promises. 
B) the sale and exchange of goods. 
C) payment. 
D) the sale and exchange of real estate.

Question 10

Under the UCC,a modification to a contract for the sale of goods needs no consideration to be binding.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the importance of the UCC to the law of sales.Include who created the UCC,how it became law,and the stated purposes of the statute.

Accepted Answer

The UCC is the major statute regulating

Question 12

Lian contracted for financial services from E-wise.This contract is governed by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following contracts is most likely to be declared unconscionable?

Accepted Answer

A) a consumer sales contract that charges 300 times the fair market value of the goods 
B) a consumer sales contract that limits the consumer's remedies to repair or replacement 
C) a contract between wholesaler and retailer that adds delivery charges at 15% of the costs of the goods 
D) a sales contract between wholesaler and retailer that limits remedies such as consequential damages 
A) a consumer sales contract that charges 300 times the fair market value of the goods 
B) a consumer sales contract that limits the consumer's remedies to repair or replacement 
C) a contract between wholesaler and retailer that adds delivery charges at 15% of the costs of the goods 
D) a sales contract between wholesaler and retailer that limits remedies such as consequential damages

Question 14

A requirements contract is a contract

Accepted Answer

A) in restraint of trade. 
B) in which the seller provides all of the goods that the buyer needs. 
C) in which the buyer purchases all of the goods that the seller produces. 
D) in which a party must buy a product it does not want in order to be allowed to buy a product it requires. 
A) in restraint of trade. 
B) in which the seller provides all of the goods that the buyer needs. 
C) in which the buyer purchases all of the goods that the seller produces. 
D) in which a party must buy a product it does not want in order to be allowed to buy a product it requires.

Question 15

Which article of the UCC covers the sale of goods?

Accepted Answer

A) Article 1 
B) Article 2 
C) Article 3 
D) Article 4 
A) Article 1 
B) Article 2 
C) Article 3 
D) Article 4

Question 16

Trey,a full-time college student,sold his car to Don,another student.In the performance of this contract,Trey

Accepted Answer

A) has a duty of good faith,which means honesty in fact and the exercise of good judgment. 
B) has a duty of good faith,which means honesty in fact. 
C) has a duty of good faith,which means honesty in fact and the exercise of reasonable commercial standards of fair dealing. 
D) does not have a duty of good faith. 
A) has a duty of good faith,which means honesty in fact and the exercise of good judgment. 
B) has a duty of good faith,which means honesty in fact. 
C) has a duty of good faith,which means honesty in fact and the exercise of reasonable commercial standards of fair dealing. 
D) does not have a duty of good faith.

Question 17

A court is much more likely to find a contract unconscionable when one party is a consumer than if the two parties are businesses.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a stated purpose of Article 2 of the UCC?

Accepted Answer

A) to simplify the law governing real estate transactions 
B) to free up the courts from having to decide on contract issues 
C) to make the laws governing sales uniform among the various jurisdictions 
D) to come up with a boilerplate form to be used in all sales transactions 
A) to simplify the law governing real estate transactions 
B) to free up the courts from having to decide on contract issues 
C) to make the laws governing sales uniform among the various jurisdictions 
D) to come up with a boilerplate form to be used in all sales transactions

Question 19

Elizabeth worked as a salesperson in a carpet store.She was in the midst of divorce proceedings and needed some money.Elizabeth sold her wedding ring.Elizabeth is considered a merchant with regard to the sale of the ring.

Accepted Answer

A) True 
 B)False

Question 20

Oxtren,Inc.is a tools wholesaler.Oxtren sent M&E Tools a purchase order offering to buy 200 Model 308 milling and drilling machines with R-8 spindles.The purchase order stated the credit term to be 2% discount if payment was made in 10 days,with the full amount due in 30 days.M&E responded with an acceptance form accepting the offer.The acceptance form,however,stated that full payment was due on delivery and that disputes under the contract would be settled by arbitration.
(A)
Do the parties have an agreement?
(B)
What is the payment term?
(C)
Is the arbitration clause part of the agreement?

Accepted Answer

(A)Under the UCC,the parties will have a

Exam 21: Introduction to Sales

In which of the following situations is the seller a merchant under Article 2 of the UCC?

Harriett raises and sells hippos.In order to keep her hippos happy and healthy,she feeds them Hippo Chow,which she buys from the local pet store.Under the UCC,Harriett is

Stanziano Construction needs a backhoe to complete a project.If it pays Hofmann Rentals for temporary use of the equipment,the transaction will be governed by

Pizazz,Inc.sold a condo on the 34th floor in a building in downtown Chicago.This contract is governed by Article 2A of the UCC.

The UCC does not apply to a contract for the sale of goods if the value of the goods is less than $500.

UCC Section 2-204 provides three important rules that enable parties to make a contract quickly and informally.Which of the following is NOT one of these rules?

Newt,a gun dealer,offers to sell a rare civil war musket to Rush,another dealer,for "$15,000,insurance and shipping paid by buyer." Rush responds,"I accept.Insurance and shipping costs divided equally between seller and buyer." The parties

In medieval England,the law merchant doctrine focused on all of the following except

Under the UCC,a modification to a contract for the sale of goods needs no consideration to be binding.

Discuss the importance of the UCC to the law of sales.Include who created the UCC,how it became law,and the stated purposes of the statute.

Lian contracted for financial services from E-wise.This contract is governed by Article 2 of the UCC.

Which of the following contracts is most likely to be declared unconscionable?

A requirements contract is a contract

Which article of the UCC covers the sale of goods?

Trey,a full-time college student,sold his car to Don,another student.In the performance of this contract,Trey

A court is much more likely to find a contract unconscionable when one party is a consumer than if the two parties are businesses.

Which of the following is a stated purpose of Article 2 of the UCC?

Elizabeth worked as a salesperson in a carpet store.She was in the midst of divorce proceedings and needed some money.Elizabeth sold her wedding ring.Elizabeth is considered a merchant with regard to the sale of the ring.

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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