Question 1

When an offer does not specify a means of acceptance,it can be accepted by any means reasonable under the circumstances.

Accepted Answer

A) True 
 B)False  True

Question 2

Centrex Computer Company offers to sell Deluxe Vehicle Sales Corporation 1,000 computers for a $500,000,states that the offer will be open for six days,and asks for a response by fax.On the fourth day,Deluxe sends an acceptance to Centrex via the mail,which is received on the sixth day.In this deal

Accepted Answer

A) a contract is formed. 
B) no contract is formed,because Centrex asked for a response by fax. 
C) no contract is formed,because Centrex received the acceptance late. 
D) no contract is formed,because Deluxe sent the acceptance late. 
A) a contract is formed. 
B) no contract is formed,because Centrex asked for a response by fax. 
C) no contract is formed,because Centrex received the acceptance late. 
D) no contract is formed,because Deluxe sent the acceptance late. A

Question 3

Retail Music,Inc.,offers to buy from Super Products Corporation (SPC)1,000 blank CDs of a certain brand.Without notifying Retail,SPC timely ships CDs of a different brand.This shipment is

Accepted Answer

A) an acceptance of the offer and a breach of the parties' contract. 
B) an acceptance of the offer and a fulfillment of the parties' contract. 
C) a refusal of the offer and a breach of the parties' contract. 
D) a refusal of the offer and a fulfillment of the parties' contract. 
A) an acceptance of the offer and a breach of the parties' contract. 
B) an acceptance of the offer and a fulfillment of the parties' contract. 
C) a refusal of the offer and a breach of the parties' contract. 
D) a refusal of the offer and a fulfillment of the parties' contract. A

Question 4

Stocks are an example of property that does not come under UCC Article 2.

Accepted Answer

A) True 
 B)False

Question 5

Thermal Appliances Corporation,a U.S.firm,orally agrees to sell six freezers to Pisa Pizza,Ltd.,in Italy.Thermal fails to deliver.Under the United Nations Convention on Contracts for the International Sale of Goods (CISG),Pisa Pizza can

Accepted Answer

A) enforce the agreement. 
B) not enforce the agreement because it is not in writing. 
C) not enforce the agreement because the CISG does not apply. 
D) not enforce the agreement because Thermal is a U.S.firm. 
A) enforce the agreement. 
B) not enforce the agreement because it is not in writing. 
C) not enforce the agreement because the CISG does not apply. 
D) not enforce the agreement because Thermal is a U.S.firm.

Question 6

A lessee is a party who transfers a right to the possession and use of goods under a lease.

Accepted Answer

A) True 
 B)False

Question 7

If a contract for a sale of goods does not include the delivery date,there is no basis for enforcing it.

Accepted Answer

A) True 
 B)False

Question 8

A contract between parties residing in different countries is subject to United Nations Convention on Contracts for the International Sale of Goods.

Accepted Answer

A) True 
 B)False

Question 9

The UCC imposes a good faith limitation on output contracts.

Accepted Answer

A) True 
 B)False

Question 10

Tune Products,Inc.,offers to sell to Unlimited Sales Company one hundred MP3 players at $50 a piece,subject to certain specific delivery dates.Unlimited replies with a signed purchase order that reads,"Accept your offer for 100 I-appliances at $50 each.Must be delivered to our warehouse." Tune does not respond or deliver the goods.Unlimited files a suit for breach of contract,to which Tune answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Tune.Can Unlimited recover Explain.

Accepted Answer

Yes.Additional or different terms in an

Question 11

Regional Products,Inc.,agrees to sell to Quantity Dealers Corporation a certain amount of goods but no mention is made of where the goods are to be delivered.In general,the UCC requires that the delivery take place at

Accepted Answer

A) a neutral place of business halfway between the parties' locations.. 
B) a UCC-designated warehouse. 
C) Regional's place of business. 
D) Quantity's place of business. 
A) a neutral place of business halfway between the parties' locations.. 
B) a UCC-designated warehouse. 
C) Regional's place of business. 
D) Quantity's place of business.

Question 12

Fiesta Coffee Company agrees to buy an unspecified quantity of coffee beans from Global AgriCorp.Global breaches the contract.Fiesta can most likely

Accepted Answer

A) enforce the agreement to the extent of a reasonable quantity. 
B) enforce the agreement to the extent of Fiesta's requirements. 
C) enforce the agreement to the extent of Global's output of coffee beans. 
D) not enforce the agreement. 
A) enforce the agreement to the extent of a reasonable quantity. 
B) enforce the agreement to the extent of Fiesta's requirements. 
C) enforce the agreement to the extent of Global's output of coffee beans. 
D) not enforce the agreement.

Question 13

Tasty Pastries,Inc.,and other bakers refer to a "baker's dozen" as consisting of a collection of thirteen baked goods.This is an example of

Accepted Answer

A) course of dealing. 
B) course of performance. 
C) square dealing. 
D) usage of trade. 
A) course of dealing. 
B) course of performance. 
C) square dealing. 
D) usage of trade.

Question 14

Under the UCC,an oral contract for a sale of goods is enforceable if the goods are marked down $500 or more from their suggested retail price.

Accepted Answer

A) True 
 B)False

Question 15

Under the UCC,a sale of goods will be considered valid only if the goods are paid for with money.

Accepted Answer

A) True 
 B)False

Question 16

Under the UCC,a sale occurs when title passes from a seller to a buyer for a price.

Accepted Answer

A) True 
 B)False

Question 17

Grade-A Construction Corporation offers to buy from Harden Cement Company a certain quantity of cement for a certain price.Harden can accept the offer by

Accepted Answer

A) doing nothing. 
B) promising to ship or promptly shipping the cement. 
C) promising to ship the cement only. 
D) promptly shipping the cement only. 
A) doing nothing. 
B) promising to ship or promptly shipping the cement. 
C) promising to ship the cement only. 
D) promptly shipping the cement only.

Question 18

If a sales contract is unilateral,the offeror need not be notified of the offeree's performance.

Accepted Answer

A) True 
 B)False

Question 19

The UCC imposes the same rules of conduct on all parties in all circumstances.

Accepted Answer

A) True 
 B)False

Question 20

An unconscionable contract is a contract so one-sided and unfair at the time it is made that enforcing it would be unreasonable.

Accepted Answer

A) True 
 B)False

Exam 18: The Formation of Sales and Lease Contracts

When an offer does not specify a means of acceptance,it can be accepted by any means reasonable under the circumstances.

Centrex Computer Company offers to sell Deluxe Vehicle Sales Corporation 1,000 computers for a $500,000,states that the offer will be open for six days,and asks for a response by fax.On the fourth day,Deluxe sends an acceptance to Centrex via the mail,which is received on the sixth day.In this deal

Retail Music,Inc.,offers to buy from Super Products Corporation (SPC)1,000 blank CDs of a certain brand.Without notifying Retail,SPC timely ships CDs of a different brand.This shipment is

Stocks are an example of property that does not come under UCC Article 2.

Thermal Appliances Corporation,a U.S.firm,orally agrees to sell six freezers to Pisa Pizza,Ltd.,in Italy.Thermal fails to deliver.Under the United Nations Convention on Contracts for the International Sale of Goods (CISG),Pisa Pizza can

A lessee is a party who transfers a right to the possession and use of goods under a lease.

If a contract for a sale of goods does not include the delivery date,there is no basis for enforcing it.

A contract between parties residing in different countries is subject to United Nations Convention on Contracts for the International Sale of Goods.

The UCC imposes a good faith limitation on output contracts.

Regional Products,Inc.,agrees to sell to Quantity Dealers Corporation a certain amount of goods but no mention is made of where the goods are to be delivered.In general,the UCC requires that the delivery take place at

Fiesta Coffee Company agrees to buy an unspecified quantity of coffee beans from Global AgriCorp.Global breaches the contract.Fiesta can most likely

Tasty Pastries,Inc.,and other bakers refer to a "baker's dozen" as consisting of a collection of thirteen baked goods.This is an example of

Under the UCC,an oral contract for a sale of goods is enforceable if the goods are marked down $500 or more from their suggested retail price.

Under the UCC,a sale of goods will be considered valid only if the goods are paid for with money.

Under the UCC,a sale occurs when title passes from a seller to a buyer for a price.

Grade-A Construction Corporation offers to buy from Harden Cement Company a certain quantity of cement for a certain price.Harden can accept the offer by

If a sales contract is unilateral,the offeror need not be notified of the offeree's performance.

The UCC imposes the same rules of conduct on all parties in all circumstances.

An unconscionable contract is a contract so one-sided and unfair at the time it is made that enforcing it would be unreasonable.

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