Question 1

The case of Construction Associates,Inc.v.Fargo Water Equipment Co.illustrates the doctrine of:

Accepted Answer

A) course of dealing. 
B) unconscionability. 
C) usage of trade. 
D) a transaction outside the Code. 
A) course of dealing. 
B) unconscionability. 
C) usage of trade. 
D) a transaction outside the Code.

Question 2

Explain when a writing is required under the UCC for a contract for the sale of goods and what is needed in that writing.Identify three exceptions to the requirement of a writing or record for the sale of goods.

Accepted Answer

The UCC statute of frauds provides that

Question 3

What is a "merchant?" Identify four provisions in Article 2 that apply to merchants,but not to others.

Accepted Answer

A merchant is a dealer in goods or a per

Question 4

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 5

Mike inherited some antiques.Pat agrees to buy them.In the contract,Mike and Pat agree to value the antiques at whatever the Sotheby's representative says.If the valuation is much higher than either of them anticipated,Pat:

Accepted Answer

A) has to buy at the price set by the Sotheby representative. 
B) has to buy, but at what Pat and Mike believe was a reasonable price. 
C) has no obligation to buy the antiques. 
D) can treat the contract as canceled. 
A) has to buy at the price set by the Sotheby representative. 
B) has to buy, but at what Pat and Mike believe was a reasonable price. 
C) has no obligation to buy the antiques. 
D) can treat the contract as canceled.

Question 6

What does Article 2 say with regard to the following?
a.Good faith.
b.Unconscionability.
c.Expansion of commercial practices.

Accepted Answer

a.All parties who enter into a contract

Question 7

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

Accepted Answer

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

Question 8

Under the CISG,contracts for the sale of goods do not have to be evidenced by a writing to be enforceable,unless one of the parties has its place of business in a country that provides otherwise.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The Code has made certain offers irrevocable without the offeree's giving any consideration for the promise to keep the offer open.These offers are known as:

Accepted Answer

A) options. 
B) firm offers. 
C) variant acceptances. 
D) auctions. 
A) options. 
B) firm offers. 
C) variant acceptances. 
D) auctions.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

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,and he will now 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,so 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 15

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 16

Mary and Remaldi Co.have dealt with each other for many years.Mary's Boutique orders 100 assorted lipsticks at $2.00 each from Remaldi Co.Remaldi sends back a confirmation letter with an additional,nonmaterial term.There is:

Accepted Answer

A) no contract, but a counteroffer. 
B) a contract with the additional term unless Mary objects. 
C) a contract with the additional term only if Mary agrees. 
D) a contract without the additional term. 
A) no contract, but a counteroffer. 
B) a contract with the additional term unless Mary objects. 
C) a contract with the additional term only if Mary agrees. 
D) a contract without the additional term.

Question 17

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) separation 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) separation rules that apply to transactions between merchants. 
D) All of the above.

Question 18

Which of the following is not true about a consumer lease under UCC Article 2A?

Accepted Answer

A) The lessor must be regularly engaged in the business of leasing or selling goods. 
B) The lessee cannot be an organization. 
C) There is no dollar limit on the amount of a consumer lease under Article 2A. 
D) Consumer protection provisions are contained in Article 2A, and these may not be varied by the parties' agreement. 
A) The lessor must be regularly engaged in the business of leasing or selling goods. 
B) The lessee cannot be an organization. 
C) There is no dollar limit on the amount of a consumer lease under Article 2A. 
D) Consumer protection provisions are contained in Article 2A, and these may not be varied by the parties' agreement.

Question 19

Under Article 2A:

Accepted Answer

A) a court faced with an unconscionable contract or clause must refuse to enforce the entire contract. 
B) consumers in an unconscionable consumer lease contract receive an additional remedy over consumers in unconscionable sales contracts. Reasonable attorneys' fees may be awarded. 
C) there is no provision for relief for unconscionable conduct in the collection of a claim arising from a consumer lease contract. 
D) lessees under all types of leases of personal property have the same protections against unconscionable contracts. 
A) a court faced with an unconscionable contract or clause must refuse to enforce the entire contract. 
B) consumers in an unconscionable consumer lease contract receive an additional remedy over consumers in unconscionable sales contracts. Reasonable attorneys' fees may be awarded. 
C) there is no provision for relief for unconscionable conduct in the collection of a claim arising from a consumer lease contract. 
D) lessees under all types of leases of personal property have the same protections against unconscionable contracts.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 19: Introduction to Sales and Leases

The case of Construction Associates,Inc.v.Fargo Water Equipment Co.illustrates the doctrine of:

Explain when a writing is required under the UCC for a contract for the sale of goods and what is needed in that writing.Identify three exceptions to the requirement of a writing or record for the sale of goods.

What is a "merchant?" Identify four provisions in Article 2 that apply to merchants,but not to others.

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

Mike inherited some antiques.Pat agrees to buy them.In the contract,Mike and Pat agree to value the antiques at whatever the Sotheby's representative says.If the valuation is much higher than either of them anticipated,Pat:

What does Article 2 say with regard to the following? a.Good faith. b.Unconscionability. c.Expansion of commercial practices.

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

Under the CISG,contracts for the sale of goods do not have to be evidenced by a writing to be enforceable,unless one of the parties has its place of business in a country that provides otherwise.

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

The Code has made certain offers irrevocable without the offeree's giving any consideration for the promise to keep the offer open.These offers are known as:

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

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.

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?

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

Mary and Remaldi Co.have dealt with each other for many years.Mary's Boutique orders 100 assorted lipsticks at $2.00 each from Remaldi Co.Remaldi sends back a confirmation letter with an additional,nonmaterial term.There is:

The definition of "usage of trade" includes:

Which of the following is not true about a consumer lease under UCC Article 2A?

Under Article 2A:

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

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 and 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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