Question 1

The Truth-in-Lending Act applies to all credit transactions.

Accepted Answer

A) True 
 B)False

Question 2

UETA has not yet been adopted in all of the states.

Accepted Answer

A) True 
 B)False

Question 3

"Drive my car to Albuquerque, and I'll pay you $500," is not a valid offer.

Accepted Answer

A) True 
 B)False

Question 4

A contract for the sale of potatoes is not governed by the UCC.

Accepted Answer

A) True 
 B)False

Question 5

An acceptance by a merchant in response to an offer by a merchant cannot contain any additional terms or it will be treated as a counteroffer under the UCC.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds?

Accepted Answer

A)  a contract for the sale of an easement for $75 
B)  a contract for the sale of a computer monitor for $220 
C)  a contract for consulting for 6 months @ $10,000 per month plus expenses 
D)  All of the above must be in writing. 
A)  a contract for the sale of an easement for $75 
B)  a contract for the sale of a computer monitor for $220 
C)  a contract for consulting for 6 months @ $10,000 per month plus expenses 
D)  All of the above must be in writing.

Question 7

Melanie: "I'll buy that armoire for $775." Judith: "It's not for sale." Melanie: "How about $875?"
Judith: "I don't know. It's been in my family for 130 years." Melanie: "How about $1000?"
Judith: "I'll think about it."

Accepted Answer

A)  There is an option contract. 
B)  There is no contract. 
C)  There is a reliance case. 
D)  There is a quasi contract. 
A)  There is an option contract. 
B)  There is no contract. 
C)  There is a reliance case. 
D)  There is a quasi contract.

Question 8

The parol evidence rule does not apply in UCC contracts.

Accepted Answer

A) True 
 B)False

Question 9

B has made a valid acceptance.

Accepted Answer

A) True 
 B)False

Question 10

Predatory lending involves high interest rates and title loans.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not required for a valid UCC offer?

Accepted Answer

A)  quantity 
B)  payment terms 
C)  subject matter 
D)  both b and c 
E)  a, b, and c 
A)  quantity 
B)  payment terms 
C)  subject matter 
D)  both b and c 
E)  a, b, and c

Question 12

"I'll take it, but you must deliver," is a valid acceptance.

Accepted Answer

A) True 
 B)False

Question 13

The maximum liability for a credit card holder whose card is lost or stolen is:

Accepted Answer

A)  $50. 
B)  $50 if the cardholder notifies the creditor. 
C)  $0. 
D)  none of the above 
A)  $50. 
B)  $50 if the cardholder notifies the creditor. 
C)  $0. 
D)  none of the above

Question 14

Stamps.com offers at-home postage and mailing for a monthly fee. Customers are able to carry a balance on their accounts that allows them to mail packages and letters as long as there is a balance in their account. Stamps.com has a button on its program that carries this logo, "To purchase postage, click here." Following that click, another window pops up that reads, "You are about to purchase postage. Once you click 'Okay' below, you cannot change this transaction." Why does Stamps.com have the second pop-up button?

Accepted Answer

A)  The pop-up button is simply a courtesy for its customers. 
B)  The pop-up button is necessary to show acceptance of the terms. 
C)  The pop-up button is required under the UCC. 
D)  The pop-up button is required under common law. 
A)  The pop-up button is simply a courtesy for its customers. 
B)  The pop-up button is necessary to show acceptance of the terms. 
C)  The pop-up button is required under the UCC. 
D)  The pop-up button is required under common law.

Question 15

"Would you be interested in selling your Prius for $21,000?", is not an offer.

Accepted Answer

A) True 
 B)False

Question 16

With respect to the facts in number 80, the newspaper ad:

Accepted Answer

A)  is an offer. 
B)  is not an offer. 
C)  is a merchant's firm offer. 
D)  cannot be revoked. 
E)  none of the above 
A)  is an offer. 
B)  is not an offer. 
C)  is a merchant's firm offer. 
D)  cannot be revoked. 
E)  none of the above

Question 17

Under the UCC and between nonmerchants, additional terms in acceptance:

Accepted Answer

A)  constitute a counteroffer. 
B)  are part of the contract. 
C)  result in rejection or the original offer. 
D)  none of the above 
A)  constitute a counteroffer. 
B)  are part of the contract. 
C)  result in rejection or the original offer. 
D)  none of the above

Question 18

Under the UCC and between merchants, additional terms in acceptance:

Accepted Answer

A)  are part of the contract unless they are material. 
B)  are part of the contract unless the offer was limited. 
C)  result in rejection of the original offer. 
D)  none of the above 
A)  are part of the contract unless they are material. 
B)  are part of the contract unless the offer was limited. 
C)  result in rejection of the original offer. 
D)  none of the above

Question 19

"Point and click" refers to:

Accepted Answer

A)  the right of the FBI to search web sites. 
B)  the formation of contracts via the Internet. 
C)  the registration of domain names under ICANN. 
D)  pornographic web sites. 
E)  none of the above 
A)  the right of the FBI to search web sites. 
B)  the formation of contracts via the Internet. 
C)  the registration of domain names under ICANN. 
D)  pornographic web sites. 
E)  none of the above

Question 20

Parol evidence is always admissible for challenging contract terms.

Accepted Answer

A) True 
 B)False

The Truth-in-Lending Act applies to all credit transactions.

UETA has not yet been adopted in all of the states.

"Drive my car to Albuquerque, and I'll pay you $500," is not a valid offer.

A contract for the sale of potatoes is not governed by the UCC.

An acceptance by a merchant in response to an offer by a merchant cannot contain any additional terms or it will be treated as a counteroffer under the UCC.

Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds?

Melanie: "I'll buy that armoire for $775." Judith: "It's not for sale." Melanie: "How about $875?" Judith: "I don't know. It's been in my family for 130 years." Melanie: "How about $1000?" Judith: "I'll think about it."

The parol evidence rule does not apply in UCC contracts.

B has made a valid acceptance.

Predatory lending involves high interest rates and title loans.

Which of the following is not required for a valid UCC offer?

"I'll take it, but you must deliver," is a valid acceptance.

The maximum liability for a credit card holder whose card is lost or stolen is:

"Would you be interested in selling your Prius for $21,000?", is not an offer.

With respect to the facts in number 80, the newspaper ad:

Under the UCC and between nonmerchants, additional terms in acceptance:

Under the UCC and between merchants, additional terms in acceptance:

"Point and click" refers to:

Parol evidence is always admissible for challenging contract terms.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Cyberlaw, Social Media, and Privacy

Environmental Regulation and Sustainability

Contracts: Performance, Remedies, and Rights

Sales: Product Advertising and Liability

Products: Business Intellectual Property

Business Competition: Antitrust

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management: Employee Welfare

Management: Employment Discrimination

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Exam 12: Contracts and Sales: Introduction and Formation

The Truth-in-Lending Act applies to all credit transactions.

UETA has not yet been adopted in all of the states.

"Drive my car to Albuquerque, and I'll pay you $500," is not a valid offer.

A contract for the sale of potatoes is not governed by the UCC.

An acceptance by a merchant in response to an offer by a merchant cannot contain any additional terms or it will be treated as a counteroffer under the UCC.

Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds?

Melanie: "I'll buy that armoire for $775." Judith: "It's not for sale." Melanie: "How about $875?" Judith: "I don't know. It's been in my family for 130 years." Melanie: "How about $1000?" Judith: "I'll think about it."

The parol evidence rule does not apply in UCC contracts.

B has made a valid acceptance.

Predatory lending involves high interest rates and title loans.

Which of the following is not required for a valid UCC offer?

"I'll take it, but you must deliver," is a valid acceptance.

The maximum liability for a credit card holder whose card is lost or stolen is:

"Would you be interested in selling your Prius for $21,000?", is not an offer.

With respect to the facts in number 80, the newspaper ad:

Under the UCC and between nonmerchants, additional terms in acceptance:

Under the UCC and between merchants, additional terms in acceptance:

"Point and click" refers to:

Parol evidence is always admissible for challenging contract terms.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Cyberlaw, Social Media, and Privacy

Environmental Regulation and Sustainability

Contracts: Performance, Remedies, and Rights

Sales: Product Advertising and Liability

Products: Business Intellectual Property

Business Competition: Antitrust

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management: Employee Welfare

Management: Employment Discrimination

Filters