Question 1

Which of the following is true of oral contracts for the sale of goods of $500 or more?

Accepted Answer

A)  All oral contracts are unenforceable unless they are for the sale of goods of $500 or more. 
B)  An oral contract is not enforceable, unless a written confirmation is received and signed by one party, and sent to the other for approval. 
C)  An oral contract by a merchant is enforceable if a written confirmation is received by another merchant who does not object to within 10 days. 
D)  An admission in court about the terms of the contract does not negate the general rule. 
A)  All oral contracts are unenforceable unless they are for the sale of goods of $500 or more. 
B)  An oral contract is not enforceable, unless a written confirmation is received and signed by one party, and sent to the other for approval. 
C)  An oral contract by a merchant is enforceable if a written confirmation is received by another merchant who does not object to within 10 days. 
D)  An admission in court about the terms of the contract does not negate the general rule.

Question 2

If a sale of goods contract offer is silent concerning the method of acceptance, it may be accepted in any reasonable manner, including shipment of goods.

Accepted Answer

A) True 
 B)False

Question 3

Merchant A orally enters into a $1,000 contract with Merchant
B. Merchant A will be legally bound if Merchant B sends a written confirmation, even if Merchant A has not signed it.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of a firm offer?

Accepted Answer

A)  It occurs when parties intend to be bound by a contract, but fail to mention the price. 
B)  It occurs when a seller agrees to sell all it can produce to a particular buyer. 
C)  It occurs when a merchant promises to hold an offer open without any consideration. 
D)  It occurs when a buyer agrees to buy all its requirements from a particular seller. 
A)  It occurs when parties intend to be bound by a contract, but fail to mention the price. 
B)  It occurs when a seller agrees to sell all it can produce to a particular buyer. 
C)  It occurs when a merchant promises to hold an offer open without any consideration. 
D)  It occurs when a buyer agrees to buy all its requirements from a particular seller.

Question 5

A document of title allows the person who possesses it to:

Accepted Answer

A)  receive the goods named in the document. 
B)  conclusively prove ownership of the goods named in the document. 
C)  receive the goods named in the document free of any creditor claims. 
D)  conclusively prove that the goods are free of defects. 
A)  receive the goods named in the document. 
B)  conclusively prove ownership of the goods named in the document. 
C)  receive the goods named in the document free of any creditor claims. 
D)  conclusively prove that the goods are free of defects.

Question 6

A(n) ____________ can make a(n) ____________ because it deals in ____________ in the ordinary course of business or has knowledge or skills peculiar to those goods.

Accepted Answer

A)  obligor; gift; specially manufactured goods 
B)  merchant; firm offer; goods of the kinds sold 
C)  merchant; open price contract; goods of the kinds sold 
D)  seller; firm offer; goods of the kind sold 
A)  obligor; gift; specially manufactured goods 
B)  merchant; firm offer; goods of the kinds sold 
C)  merchant; open price contract; goods of the kinds sold 
D)  seller; firm offer; goods of the kind sold

Question 7

The seller is said to have a security interest in shipped goods if the agreement between the buyer and seller allows the seller to retain title after the goods are shipped.

Accepted Answer

A) True 
 B)False

Question 8

Sellers always retain an insurable interest in the goods, even if they do not have title to them.

Accepted Answer

A) True 
 B)False

Question 9

Seth was the highest bidder for an antique chest at an auction sale. There was nothing to indicate whether the auction was with or without reserve. The auctioneer withdrew the chest from the auction without accepting Seth's bid because the bid was too low. Is the auctioneer legally entitled to withdraw the chest from the sale? Explain.

Accepted Answer

Yes. An auction is with reserve unless t

Question 10

____________ is a method of commercial dealing that is commonly used in a particular field or industry.

Accepted Answer

A)  Usage of trade 
B)  Contract for sale 
C)  Good faith 
D)  Firm offer 
A)  Usage of trade 
B)  Contract for sale 
C)  Good faith 
D)  Firm offer

Question 11

A(n) ____________ includes any symbol, made with the intent to authenticate a writing.

Accepted Answer

A)  seal 
B)  informal note 
C)  mark 
D)  signature 
A)  seal 
B)  informal note 
C)  mark 
D)  signature

Question 12

Big Choppers orally contracts with Jane to make a custom motorcycle for Jane for $30,000. When completed, Jane refuses to accept the motorcycle or pay for it. Discuss the validity of the oral contract.

Accepted Answer

A contract for the sale of goods where t

Exam 13: Sales Contracts: Formation, Title, and Risk of Loss

Which of the following is true of oral contracts for the sale of goods of $500 or more?

If a sale of goods contract offer is silent concerning the method of acceptance, it may be accepted in any reasonable manner, including shipment of goods.

Merchant A orally enters into a $1,000 contract with Merchant B. Merchant A will be legally bound if Merchant B sends a written confirmation, even if Merchant A has not signed it.

Which of the following is true of a firm offer?

A document of title allows the person who possesses it to:

A(n) ____________ can make a(n) ____________ because it deals in ____________ in the ordinary course of business or has knowledge or skills peculiar to those goods.

The seller is said to have a security interest in shipped goods if the agreement between the buyer and seller allows the seller to retain title after the goods are shipped.

Sellers always retain an insurable interest in the goods, even if they do not have title to them.

____________ is a method of commercial dealing that is commonly used in a particular field or industry.

A(n) ____________ includes any symbol, made with the intent to authenticate a writing.

Big Choppers orally contracts with Jane to make a custom motorcycle for Jane for $30,000. When completed, Jane refuses to accept the motorcycle or pay for it. Discuss the validity of the oral contract.

Ethics, Social Responsibility, and the Law

Sources of the Law

The Judicial Process and Cyber-Procedure

Alternate Dispute Resolution

Criminal Law and Cybercrimes

Tort Law and Cybertorts

The Essentials of Contract Law

Offer, Acceptance, and Mutual Assent

Consideration and Cyber-Payments

Capacity and Legality: The Final Elements

Written Contracts and Cyber-Commerce

Third Parties, Discharge, and Remedies

Sales Contracts Rights, Duties, Breach, and Warranties

Product Liability and Consumer Protection

The Nature of Negotiable Instruments

Holders in Due Course Defenses and Liabilities

Bank-Depositor Relationships and Cyber-Banking

Insurance

Mortgages and Security Interests

Bankruptcy and Debt Adjustment

Agency Law

Employment Law

Labor Law

Sole Proprietorships and Partnerships

The Corporate Entity

Corporate Governance

Government Regulation of Corporate Business

Personal Property and Bailments

Real Property and Landlord and Tenant Law

Wills, Trusts, and Advanced Directives

Professional Liability

The Intersection of Law and Science

International Law

Filters

A(n) can make a(n) because it deals in in the ordinary course of business or has knowledge or skills peculiar to those goods.