Question 1

Which of the following is true regarding the creation of the Uniform Commercial Code?

Accepted Answer

A) The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws,the American Law Institute,and the U.S.Commercial Consortium. 
B) The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws and the American Law Institute,but not the U.S.Commercial Consortium. 
C) The Uniform Commercial Code was created by state legislative representatives from all 50 states. 
D) The Uniform Commercial Code was created by a federal congressional committee. 
E) The Uniform Commercial Code was created by the U.S.Commercial Consortium and the National Conference of Commissioners on Uniform State Laws,but not the American Law Institute. 
A) The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws,the American Law Institute,and the U.S.Commercial Consortium. 
B) The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws and the American Law Institute,but not the U.S.Commercial Consortium. 
C) The Uniform Commercial Code was created by state legislative representatives from all 50 states. 
D) The Uniform Commercial Code was created by a federal congressional committee. 
E) The Uniform Commercial Code was created by the U.S.Commercial Consortium and the National Conference of Commissioners on Uniform State Laws,but not the American Law Institute.

Question 2

Which statement is true regarding materials that are considered goods under the UCC?

Accepted Answer

A) Minerals taken from real estate and sold by the owner,soil taken from real estate and sold by the owner,and the right to remove soil from real estate are all considered goods under the UCC. 
B) The right to remove soil from real estate is considered a good under the UCC,but neither minerals taken from real estate and sold by the owner nor soil taken from real estate and sold by the owner are considered goods under the UCC. 
C) Soil taken from real estate and sold by the owner is considered a good under the UCC,but neither minerals taken from real estate and sold by the owner nor the right to remove soil from real estate are considered goods under the UCC. 
D) Minerals taken from real estate and sold by the owner and the right to remove soil from real estate are considered goods under the UCC,but soil taken from real estate and sold by the owner is not considered a good under the UCC. 
E) Minerals taken from real estate and sold by the owner and soil taken from real estate and sold by the owner are considered goods under the UCC,but the right to remove soil from real estate is not considered a good under the UCC. 
A) Minerals taken from real estate and sold by the owner,soil taken from real estate and sold by the owner,and the right to remove soil from real estate are all considered goods under the UCC. 
B) The right to remove soil from real estate is considered a good under the UCC,but neither minerals taken from real estate and sold by the owner nor soil taken from real estate and sold by the owner are considered goods under the UCC. 
C) Soil taken from real estate and sold by the owner is considered a good under the UCC,but neither minerals taken from real estate and sold by the owner nor the right to remove soil from real estate are considered goods under the UCC. 
D) Minerals taken from real estate and sold by the owner and the right to remove soil from real estate are considered goods under the UCC,but soil taken from real estate and sold by the owner is not considered a good under the UCC. 
E) Minerals taken from real estate and sold by the owner and soil taken from real estate and sold by the owner are considered goods under the UCC,but the right to remove soil from real estate is not considered a good under the UCC.

Question 3

The UCC has different rules for transactions involving merchants and transactions involving non-merchants.

Accepted Answer

A) True 
 B)False

Question 4

The most important focus of the UCC in determining contract formation is the intent of the parties to be bound by the contract.

Accepted Answer

A) True 
 B)False

Question 5

Is Morton's contract for Winslow to purchase his wheat crop covered by the UCC?

Accepted Answer

A) Yes,because crops that are sold while still growing in the field are considered goods. 
B) Yes,but only if Morton cuts them down and then sells them to Winslow. 
C) No,because the wheat is still growing and affixed to the land,and land sales are covered by common law. 
D) No,because crops are not considered goods. 
E) Yes,but only if Morton sells Winslow the right to come onto his property and remove the wheat. 
A) Yes,because crops that are sold while still growing in the field are considered goods. 
B) Yes,but only if Morton cuts them down and then sells them to Winslow. 
C) No,because the wheat is still growing and affixed to the land,and land sales are covered by common law. 
D) No,because crops are not considered goods. 
E) Yes,but only if Morton sells Winslow the right to come onto his property and remove the wheat.

Question 6

[Dress Shop Problems] Lara,who has a ladies' dress shop,reached an oral agreement with Kim,a wholesaler,to purchase 100 dresses for $80 each,with the dresses to be delivered within 30 days.Kim later orally agreed to a modification whereby she would add ten belts to go along with certain dresses at no extra charge.Kim did so because she wanted to maintain Lara's good will.Lara sent Kim a memo confirming their oral agreement,including the modification,but heard nothing.When the dresses did not arrive within 30 days,Lara checked with Kim.Kim told her that their agreement was no good because Kim never signed anything and that the UCC does not apply in the retail arena.
-Which of the following is true regarding Kim's statement that the UCC does not apply in the retail arena?

Accepted Answer

A) Kim is partially correct.The UCC does not apply in the retail arena if the parties have had significant past dealings under common law. 
B) Kim is partially correct.The UCC does not apply in the retail arena if the parties are located in the same state. 
C) Kim is incorrect. 
D) Kim is partially correct.The UCC does not apply in the retail arena if the contract at issue is for an amount under $10,000. 
E) Kim is correct in that the UCC does not apply in the retail arena. 
A) Kim is partially correct.The UCC does not apply in the retail arena if the parties have had significant past dealings under common law. 
B) Kim is partially correct.The UCC does not apply in the retail arena if the parties are located in the same state. 
C) Kim is incorrect. 
D) Kim is partially correct.The UCC does not apply in the retail arena if the contract at issue is for an amount under $10,000. 
E) Kim is correct in that the UCC does not apply in the retail arena.

Question 7

[Lucky Morton] Morton,who owns 500 acres of land in east Texas,has just discovered oil under his property.He calls OilEx,who wants to buy all of the oil from Morton's property.Morton is thrilled about the money he will make from selling the oil and he signs a contract allowing OilEx to set up a drilling station on his property.Thinking he can get more money off his land,Morton cuts down all of his trees with a chainsaw and then sells them to PaperCo to be made into paper.Meanwhile,Morton's neighbor offers to buy Morton's wheat crop after it is harvested in the Fall,and Morton agrees.
-Is Morton's contract with OilEx likely covered by the UCC?

Accepted Answer

A) No,because Morton has sold OilEx the right to come onto his property and remove the oil,which is not covered by the UCC. 
B) Yes,because oil is considered a good. 
C) Yes,but only if it is over $500 in value and in writing. 
D) No,because oil is considered part of the land and land sales are not covered by the UCC. 
E) Yes,because the oil is a fixture,which is being removed from the ground and sold. 
A) No,because Morton has sold OilEx the right to come onto his property and remove the oil,which is not covered by the UCC. 
B) Yes,because oil is considered a good. 
C) Yes,but only if it is over $500 in value and in writing. 
D) No,because oil is considered part of the land and land sales are not covered by the UCC. 
E) Yes,because the oil is a fixture,which is being removed from the ground and sold.

Question 8

Which of the following statements is true about the Uniform Commercial Information Transactions Act (UCITA)?

Accepted Answer

A) UCITA was adopted by the UCC. 
B) All states have adopted UCITA. 
C) In 2001,Virginia became the first state to enact UCITA,probably because major Internet-related companies are headquartered in Northern Virginia. 
D) UCITA applies to physical goods,like the UCC. 
E) Unlike the UCC,states can decide whether or not to adopt UCITA. 
A) UCITA was adopted by the UCC. 
B) All states have adopted UCITA. 
C) In 2001,Virginia became the first state to enact UCITA,probably because major Internet-related companies are headquartered in Northern Virginia. 
D) UCITA applies to physical goods,like the UCC. 
E) Unlike the UCC,states can decide whether or not to adopt UCITA.

Question 9

A lease that 1)has a value of $25,000 or less and 2)exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal,family,or household purpose. ,is called a lease.

Accepted Answer

A) Commercial 
B) Retail 
C) Consumer 
D) Finance 
E) Regulated 
A) Commercial 
B) Retail 
C) Consumer 
D) Finance 
E) Regulated

Question 10

Which of the following is true regarding the holding of the court in The Travelers Property Casualty Company of America and Hellmuth Obata & Kassabaum,Inc. ,v.Saint-Gobain Technical Fabrics Canada Limited,the case in the text involving whether the statute of frauds barred enforcement of a contract and also whether the United Nations Convention on Contracts of the International Sale of Goods CISG)applied to a contract in view of the fact that a particular state's law was referenced in the contract?

Accepted Answer

A) That the CISG did not apply because a construction of an arena,which would result in a type of realty,was concerned and that the statute of frauds contained within the UCC barred enforcement of the contract. 
B) That the CISG applied and that oral discussions could have formed a contract. 
C) That the CISG applied and that no contract could have resulted because of the lack of a writing. 
D) That the CISG did not apply because the contract referred to provisions of the UCC and that the statute of frauds contained within the UCC barred enforcement of the contract. 
E) That the CISG did not apply because significant provisions in the contract were left unwritten but that the statute of frauds was inapplicable. 
A) That the CISG did not apply because a construction of an arena,which would result in a type of realty,was concerned and that the statute of frauds contained within the UCC barred enforcement of the contract. 
B) That the CISG applied and that oral discussions could have formed a contract. 
C) That the CISG applied and that no contract could have resulted because of the lack of a writing. 
D) That the CISG did not apply because the contract referred to provisions of the UCC and that the statute of frauds contained within the UCC barred enforcement of the contract. 
E) That the CISG did not apply because significant provisions in the contract were left unwritten but that the statute of frauds was inapplicable.

Question 11

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter,which law applies?

Accepted Answer

A) The civil law rules 
B) Federal common law 
C) Federal statutory law 
D) The common law rules 
E) The Uniform Sales Act 
A) The civil law rules 
B) Federal common law 
C) Federal statutory law 
D) The common law rules 
E) The Uniform Sales Act

Question 12

Describe a finance lease and explain how it is different from a regular lease contract.

Accepted Answer

A finance lease is complicated by the ad

Question 13

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

Accepted Answer

A) If payment terms are omitted,payment is due at the time and place at which the buyer is to receive the goods,and the place for delivery is the seller's place of business. 
B) If payment terms are omitted,payment is due at the time and place at which the buyer is to receive the goods,and the place for delivery is the buyer's place of business. 
C) If payment terms are omitted,payment is due at least 10 days prior to the date set for delivery,and the place for delivery is the buyer's place of business. 
D) If payment terms are omitted,payment is due at least 10 days prior to the date set for delivery,and the place for delivery is the seller's place of business. 
E) There is no contract if these terms are omitted. 
A) If payment terms are omitted,payment is due at the time and place at which the buyer is to receive the goods,and the place for delivery is the seller's place of business. 
B) If payment terms are omitted,payment is due at the time and place at which the buyer is to receive the goods,and the place for delivery is the buyer's place of business. 
C) If payment terms are omitted,payment is due at least 10 days prior to the date set for delivery,and the place for delivery is the buyer's place of business. 
D) If payment terms are omitted,payment is due at least 10 days prior to the date set for delivery,and the place for delivery is the seller's place of business. 
E) There is no contract if these terms are omitted.

Question 14

Which of the following is true regarding Chinese law?

Accepted Answer

A) China currently has legislation that covers the sale of goods and the provision of services,but no legislation that covers leases. 
B) China currently has legislation that covers the sale of goods but not the provision of services or leases. 
C) China currently has legislation that covers the sale of goods,the provision of services,and leases. 
D) China has legislation that covers leases and the sale of goods,but not the provision of services. 
E) China currently has legislation that covers leases but not the provision of services or the sale of goods. 
A) China currently has legislation that covers the sale of goods and the provision of services,but no legislation that covers leases. 
B) China currently has legislation that covers the sale of goods but not the provision of services or leases. 
C) China currently has legislation that covers the sale of goods,the provision of services,and leases. 
D) China has legislation that covers leases and the sale of goods,but not the provision of services. 
E) China currently has legislation that covers leases but not the provision of services or the sale of goods.

Question 15

Which of the following is true in most states regarding whether the UCC applies to the contract Joaquin had with XYZ Carpet?

Accepted Answer

A) Common law will be applied,not the UCC,because the contract was mixed. 
B) The court will apply the service-warranty test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply. 
C) The court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply. 
D) The court will apply the service-warranty test to determine whether the predominant purpose of the contract was the provision of a service in which case the UCC would apply. 
E) The UCC will be applied,not common law,because the contract was mixed. 
A) Common law will be applied,not the UCC,because the contract was mixed. 
B) The court will apply the service-warranty test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply. 
C) The court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply. 
D) The court will apply the service-warranty test to determine whether the predominant purpose of the contract was the provision of a service in which case the UCC would apply. 
E) The UCC will be applied,not common law,because the contract was mixed.

Question 16

Are there any steps Emilia should take in small claims court,or before she goes,regarding the customer who ordered the plain T-shirts?

Accepted Answer

A) Yes,she should attempt to get the customer to admit that he ordered the T-shirts. 
B) No,because once the parties are in court,positions of the parties are frozen. 
C) Yes,she should dismiss the case before she is charged with the other party's attorney fees. 
D) Yes,she should dismiss the case before she is charged with sanctions. 
E) No,because once the parties are in court,only the judge can add evidence. 
A) Yes,she should attempt to get the customer to admit that he ordered the T-shirts. 
B) No,because once the parties are in court,positions of the parties are frozen. 
C) Yes,she should dismiss the case before she is charged with the other party's attorney fees. 
D) Yes,she should dismiss the case before she is charged with sanctions. 
E) No,because once the parties are in court,only the judge can add evidence.

Question 17

Which of the following is true regarding the enforceability of the offer made by the manager at ABC Carpet?

Accepted Answer

A) ABC Carpet is bound by the offer,but only for a period of seven days. 
B) ABC Carpet is bound by the offer,but only for a period of ten days. 
C) ABC Carpet is bound by the offer,but only if Joaquin can establish reliance. 
D) ABC Carpet was bound by the offer. 
E) ABC Carpet is not bound by the offer because Joaquin did not provide any consideration. 
A) ABC Carpet is bound by the offer,but only for a period of seven days. 
B) ABC Carpet is bound by the offer,but only for a period of ten days. 
C) ABC Carpet is bound by the offer,but only if Joaquin can establish reliance. 
D) ABC Carpet was bound by the offer. 
E) ABC Carpet is not bound by the offer because Joaquin did not provide any consideration.

Question 18

Which statement is true regarding the sources of laws that interpret sales contracts?

Accepted Answer

A) Two sources of laws that interpret sales contracts exist: state common law and the Uniform Commercial Code. 
B) Two sources of laws that interpret sales contracts exist: the Uniform Commercial Code and state statutory law. 
C) Two sources of laws that interpret sales contracts exist: state common law and state statutory law. 
D) Three sources of laws that interpret sales contracts exist: state common law,the Uniform Commercial Code,and state statutory law. 
E) The Uniform Commercial code is the only source of law interpreting sales contracts. 
A) Two sources of laws that interpret sales contracts exist: state common law and the Uniform Commercial Code. 
B) Two sources of laws that interpret sales contracts exist: the Uniform Commercial Code and state statutory law. 
C) Two sources of laws that interpret sales contracts exist: state common law and state statutory law. 
D) Three sources of laws that interpret sales contracts exist: state common law,the Uniform Commercial Code,and state statutory law. 
E) The Uniform Commercial code is the only source of law interpreting sales contracts.

Question 19

Unconscionability is a concept recognized by the UCC.

Accepted Answer

A) True 
 B)False

Question 20

When may a party be considered a "merchant" under the UCC?

Accepted Answer

The UCC defines merchant as a person who

Exam 21: Introduction to Sales and Lease Contracts

Which of the following is true regarding the creation of the Uniform Commercial Code?

Which statement is true regarding materials that are considered goods under the UCC?

The UCC has different rules for transactions involving merchants and transactions involving non-merchants.

The most important focus of the UCC in determining contract formation is the intent of the parties to be bound by the contract.

Is Morton's contract for Winslow to purchase his wheat crop covered by the UCC?

Which of the following statements is true about the Uniform Commercial Information Transactions Act (UCITA)?

A lease that 1)has a value of $25,000 or less and 2)exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal,family,or household purpose. ,is called a lease.

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter,which law applies?

Describe a finance lease and explain how it is different from a regular lease contract.

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

Which of the following is true regarding Chinese law?

Which of the following is true in most states regarding whether the UCC applies to the contract Joaquin had with XYZ Carpet?

Are there any steps Emilia should take in small claims court,or before she goes,regarding the customer who ordered the plain T-shirts?

Which of the following is true regarding the enforceability of the offer made by the manager at ABC Carpet?

Which statement is true regarding the sources of laws that interpret sales contracts?

Unconscionability is a concept recognized by the UCC.

When may a party be considered a "merchant" under the UCC?

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Title,risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, holder in Due Course, and Defenses

Liability, defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, officers, and Shareholders

Corporations: Mergers, consolidations, terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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