Exam 17: Introduction to Sales and Leases

If an agreement for the sale of goods does not satisfy the Code's statute of frauds, the agreement is void.

a(n. _____ lease is used when a lessor buys or obtains goods from a supplier for the purpose of leasing them to a commercial lessee.

Under common law, _____.

The Code specifically defines what is an "unconscionable contract."

Under the Code, "open terms"-such as no quantity of goods, or no price for the goods-can be "plugged" to create an enforceable agreement.

The Uniform Commercial Code will not govern if the contract calls for the seller to sever crops, timber, or minerals from mining..

Newman borrows his neighbor's lawn mower for the season. This is an example of a _____.

A _____ is the transfer of possession but not title or use.

At common law, where the "mirror image rule" reigns, if the acceptance differs from the offer, no contract results, but under the Code an acceptance varying from the offer may be good.

Under the Uniform Commercial Code, a contract that fails to specify price or a means of accurately ascertaining price will almost always fail.

Jill went to Harry's Hair Salon to get a permanent wave; the lotion Harry applied to Jill's hair burned her scalp. The test to determine whether the common law or Article 2 applies here__________ test.

Robert rented a floor sander from a hardware store to refinish his living room floor. This is a "finance lease" under the Code.

The common law has a Statute of Frauds, and so does the UCC.

A gift is _____.

In a _____, the owner-debtor gives a security interest in collateral to a creditor that allows the creditor to repossess the collateral if the owner defaults.

Define a sale. Are gifts and bailment the same as making a sale? Explain.

A "firm offer" under Article 2 or 2A can be made by any seller of goods.

Mr. Russell buys a watch for his granddaughter and gives it to her on the day she graduates. He does not expect anything in return. This is an example of a _____.

There is a significant difference between the common law and the Uniform Commercial Code on issues of duress, misrepresentation, undue influence, or mistake.

Pauline's Print Mart (PPM) discussed with Martin Mason printing up elegant brochures advertising Mason's business, at a price of $700. Mason took possession of about 500 brochures; then, pressed by a big national competitor, he quit that business. He then refused to pay for the 1000 brochures still stored in boxes at PPM, denying he had ordered any more than the 500 he'd taken. As to the remaining 1000 brochures . . .