Exam 17: Introduction to Sales and Leases

Which of the following subjects is covered under the Uniform Commercial Code?

A consumer lease is used when a lessor leases goods to an individual, primarily for personal, family, or household purposes, where total lease payments are less than $25,000.

The common-law "mirror image" rule is inapplicable under the Code.

Janice took possession of a sailboat from SeaShore Boat Rentals. She paid a security deposit before using the boat and is to pay the balance when she returns it. This is an example of a _____.

Under the Uniform Commercial Code, a contractual obligation will never arise when the agreement has open terms.

Colleen telephoned an off-campus computer store and ordered five flash drives at $10 apiece. Later that day she observed that they were a very good buy; she called the store the next day to order 60 of them (for resale to her dorm-mates at a slight profit). Which is true?

A "contract" for a gift of goods is enforceable under the Uniform Commercial Code.

Under the Code, as at common law, consideration is necessary to modify the terms of a contract.

The Code displaces all common-law rules with its own rules.

Which of the following is true for common law and the Uniform Commercial Code (UCC)?

A merchant can only be defined in terms of an individual person.

Under the Uniform Commercial Code of offer and acceptance as a contract issue, _____.

Julia, planning to move, sells many of her household items at a garage sale. Article 2 does not apply here.

When a consumer purchases a car on credit, it is an example of a _____.

Able and Baker, two California residents, could not choose to have the CISG govern their contract for the sale of goods between them within California.

A clause in a finance lease requiring the lessee to continue to make payments to the lessor even though the equipment leased is unsuitable, defective, or destroyed is c__________ clause.

When a salesperson says, "Don't worry about all that little type on the back of this form," it is an example of substantive unconscionability.

Although the UCC comprehensively covers commercial transactions, it does not deal with every aspect of commercial law.

The Uniform Commercial Code defines a lease as _____.

Louisiana is the only state to not have enacted Article 2 of the Uniform Commercial Code in its entirety.