Question 1

Under the UCC, how may an acceptance be made?

Accepted Answer

A)  Only by a writing. 
B)  Only orally or by a writing. 
C)  Only by electronic communication or by a writing. 
D)  Only by facsimile or by mail. 
E)  By any reasonable means of communication. 
A)  Only by a writing. 
B)  Only orally or by a writing. 
C)  Only by electronic communication or by a writing. 
D)  Only by facsimile or by mail. 
E)  By any reasonable means of communication.

Question 2

Which of the following is a special type of lease?

Accepted Answer

A)  Consumer and finance but not terminal 
B)  Finance but not consumer or terminal 
C)  Terminal and finance but not consumer 
D)  Terminal but not finance or consumer 
E)  Consumer but not finance or terminal 
A)  Consumer and finance but not terminal 
B)  Finance but not consumer or terminal 
C)  Terminal and finance but not consumer 
D)  Terminal but not finance or consumer 
E)  Consumer but not finance or terminal

Question 3

Which of the following articles of the UCC governs lease contracts?

Accepted Answer

A)  2 
B)  2(
A)  
C)  4 
D)  4(
A)  
E)  6 
A)  2 
B)  2(
A)  
C)  4 
D)  4(
A)  
E)  6

Question 4

"Carpet Woes." Beau went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Carpet wrote down the proposed purchase price for him along with a statement that the price would be good for three months. Two months later Beau went back to ABC Carpet to purchase the carpet. Unfortunately, the price had gone up. Beau showed the manager his writing and guaranteed price, but the manager said that the offer was no longer good. Although he had to pay more than the ABC manager had initially promised, Beau proceeded to purchase his carpet from XYZ carpet, and he also contracted with XYZ to do the installation. Unfortunately, Beau almost immediately started to have problems with the carpet. Beau told the sales manager for XYZ Carpet that he was planning on bring suit for breach of warranty. The sales manager, however, told him that breach of warranty provisions only applied to sales of goods and that the carpet purchase was for installation, a service.
-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 not bound by the offer because Beau did not provide any consideration. 
B)  ABC Carpet is bound by the offer, but only for a period of seven days. 
C)  ABC Carpet is bound by the offer, but only for a period of ten days. 
D)  ABC Carpet is bound by the offer only if Beau can establish reliance. 
E)  ABC Carpet was bound by the offer. 
A)  ABC Carpet is not bound by the offer because Beau did not provide any consideration. 
B)  ABC Carpet is bound by the offer, but only for a period of seven days. 
C)  ABC Carpet is bound by the offer, but only for a period of ten days. 
D)  ABC Carpet is bound by the offer only if Beau can establish reliance. 
E)  ABC Carpet was bound by the offer.

Question 5

A ______ lease is 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.

Accepted Answer

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

Question 6

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 7

"Carpet Woes." Beau went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Carpet wrote down the proposed purchase price for him along with a statement that the price would be good for three months. Two months later Beau went back to ABC Carpet to purchase the carpet. Unfortunately, the price had gone up. Beau showed the manager his writing and guaranteed price, but the manager said that the offer was no longer good. Although he had to pay more than the ABC manager had initially promised, Beau proceeded to purchase his carpet from XYZ carpet, and he also contracted with XYZ to do the installation. Unfortunately, Beau almost immediately started to have problems with the carpet. Beau told the sales manager for XYZ Carpet that he was planning on bring suit for breach of warranty. The sales manager, however, told him that breach of warranty provisions only applied to sales of goods and that the carpet purchase was for installation, a service.
-What kind of offer did the manager at ABC Carpet make to Beau?

Accepted Answer

A)  An unenforceable offer 
B)  A firm offer 
C)  A consideration offer 
D)  An illusory offer 
E)  A mirror offer 
A)  An unenforceable offer 
B)  A firm offer 
C)  A consideration offer 
D)  An illusory offer 
E)  A mirror offer

Question 8

"Dress Shop Problems." Susie, 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 Susie's good will. Susie sent Kim a memo confirming their oral agreement, including the modification, but heard nothing. When the dresses did not arrive within 30 days, Susie 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 the modification to the agreement involving the belts added to the order at no extra charge?

Accepted Answer

A)  The modification is not enforceable because the initial contract involving the sale of the dresses is not enforceable. 
B)  The modification is not enforceable because no additional consideration was given. 
C)  The modification is not enforceable unless it can be shown that the dresses were designed to have a belt. 
D)  The modification is enforceable because although the UCC requires consideration for modifications, the desire to maintain good will satisfies the requirement of consideration. 
E)  The modification is enforceable because the UCC requires only that modifications be made in good faith. 
A)  The modification is not enforceable because the initial contract involving the sale of the dresses is not enforceable. 
B)  The modification is not enforceable because no additional consideration was given. 
C)  The modification is not enforceable unless it can be shown that the dresses were designed to have a belt. 
D)  The modification is enforceable because although the UCC requires consideration for modifications, the desire to maintain good will satisfies the requirement of consideration. 
E)  The modification is enforceable because the UCC requires only that modifications be made in good faith.

Question 9

List what is required in order for an offer to be considered a firm offer under the UCC. Also discuss the effect if a firm offer is silent as to time and compare that with the result of silence as to time under the common law.

Accepted Answer

Under the UCC offers made by merchants a

Question 10

The UCC requires that consideration be provided for the modification of sales and lease contracts.

Accepted Answer

A) True 
 B)False

Question 11

The National Conference of Commissioners on Uniform State Laws adopted the Uniform Internet Act to answer questions involving issues involving Internet sales.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true regarding what meets the UCC definition of a good?

Accepted Answer

A)  Real estate, corporate stocks, copyrights, and trade fixtures all meet the definition of a good under the UCC. 
B)  Corporate stocks, real estate, and copyrights meet the definition of a good under the UCC, but trade fixtures do not. 
C)  Trade fixtures meet the definition of a good under the UCC, but real estate, corporate stocks, and copyrights do not. 
D)  Copyrights meet the definition of a good under the UCC, but real estate, corporate stocks, and trade fixtures do not. 
E)  Real estate, trade fixtures, and corporate stocks meet the definition of a good under the UCC, but copyrights do not. 
A)  Real estate, corporate stocks, copyrights, and trade fixtures all meet the definition of a good under the UCC. 
B)  Corporate stocks, real estate, and copyrights meet the definition of a good under the UCC, but trade fixtures do not. 
C)  Trade fixtures meet the definition of a good under the UCC, but real estate, corporate stocks, and copyrights do not. 
D)  Copyrights meet the definition of a good under the UCC, but real estate, corporate stocks, and trade fixtures do not. 
E)  Real estate, trade fixtures, and corporate stocks meet the definition of a good under the UCC, but copyrights do not.

Question 13

A contract or contract provision is said to be ______ if it is so unfair that a court would be unreasonable if it enforced the contract.

Accepted Answer

A)  Unconscionable 
B)  Unreasonable 
C)  Voidable 
D)  Viable 
E)  Ancillary 
A)  Unconscionable 
B)  Unreasonable 
C)  Voidable 
D)  Viable 
E)  Ancillary

Question 14

Which of the following was the result in Eureka Water Company v. Nestle Waters North America Inc., the case in the text involving whether a trade name is considered a good or nongood?

Accepted Answer

A)  The court ruled that a trade name is a good. 
B)  The court ruled that a trade name is not a good. 
C)  The court ruled that a trade name is a good if other items that are clearly goods are involved in a contractual dispute; otherwise, it is a nongood. 
D)  The court ruled that a trade name is a good if it was considered a good in other previously settled disputes between the same parties; otherwise, it is a nongood. 
E)  The court ruled that a trade name is a good if it is the only matter involved in a dispute between parties; otherwise, it is a nongood. 
A)  The court ruled that a trade name is a good. 
B)  The court ruled that a trade name is not a good. 
C)  The court ruled that a trade name is a good if other items that are clearly goods are involved in a contractual dispute; otherwise, it is a nongood. 
D)  The court ruled that a trade name is a good if it was considered a good in other previously settled disputes between the same parties; otherwise, it is a nongood. 
E)  The court ruled that a trade name is a good if it is the only matter involved in a dispute between parties; otherwise, it is a nongood.

Question 15

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, _____.

Accepted Answer

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

Question 16

A consumer lease is the same thing as a finance lease.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true regarding material 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)  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. 
C)  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. 
D)  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. 
E)  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. 
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)  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. 
C)  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. 
D)  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. 
E)  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.

Question 18

"Dress Shop Problems." Susie, 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 Susie's good will. Susie sent Kim a memo confirming their oral agreement, including the modification, but heard nothing. When the dresses did not arrive within 30 days, Susie 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 whether the agreement between Susie and Kim for the sale of dresses satisfied the writing requirement of the UCC?

Accepted Answer

A)  The agreement is likely binding because under the UCC, if two merchants have an oral agreement, a written memo from either party to the other is deemed to satisfy the statute of frauds, even if it is not acknowledged by the receiving party. If it is not objected to within 10 days of receipt, the oral agreement, memorialized by the memo, is binding. 
B)  The agreement is likely binding because under the UCC, if two merchants have an oral agreement, there is no requirement of a writing so long as another witness is willing to confirm that within 10 days of the agreement, one of the parties memorialized the agreement by a memorandum to the file, even if it was not sent to the other party. 
C)  The agreement is binding because the UCC has no requirement of a writing under any circumstances. 
D)  The agreement is not binding because Kim never signed anything by which she agreed to the terms of the oral agreement. 
E)  The agreement is not binding because Susie did not send Kim a registered letter memorializing the oral conversation as is required by the UCC. 
A)  The agreement is likely binding because under the UCC, if two merchants have an oral agreement, a written memo from either party to the other is deemed to satisfy the statute of frauds, even if it is not acknowledged by the receiving party. If it is not objected to within 10 days of receipt, the oral agreement, memorialized by the memo, is binding. 
B)  The agreement is likely binding because under the UCC, if two merchants have an oral agreement, there is no requirement of a writing so long as another witness is willing to confirm that within 10 days of the agreement, one of the parties memorialized the agreement by a memorandum to the file, even if it was not sent to the other party. 
C)  The agreement is binding because the UCC has no requirement of a writing under any circumstances. 
D)  The agreement is not binding because Kim never signed anything by which she agreed to the terms of the oral agreement. 
E)  The agreement is not binding because Susie did not send Kim a registered letter memorializing the oral conversation as is required by the UCC.

Question 19

Under the UCC, courts allow parties to explain or supplement a written contract with which of the following?

Accepted Answer

A)  Additional terms that are consistent with the terms in the agreement, evidence that helps the court interpret the agreement, and any evidence as to price. 
B)  Evidence that helps the court interpret the agreement, but not additional terms that are consistent with the terms in the agreement or any evidence as to price. 
C)  Any evidence as to price, but not additional terms that are consistent with the terms in the agreement or evidence that helps the court interpret the agreement. 
D)  Additional terms that are consistent with the terms in the agreement, but not evidence that helps the court interpret the agreement or any evidence as to price. 
E)  Additional terms that are consistent with the terms in the agreement and evidence that helps the court interpret the agreement, but not any evidence as to price. 
A)  Additional terms that are consistent with the terms in the agreement, evidence that helps the court interpret the agreement, and any evidence as to price. 
B)  Evidence that helps the court interpret the agreement, but not additional terms that are consistent with the terms in the agreement or any evidence as to price. 
C)  Any evidence as to price, but not additional terms that are consistent with the terms in the agreement or evidence that helps the court interpret the agreement. 
D)  Additional terms that are consistent with the terms in the agreement, but not evidence that helps the court interpret the agreement or any evidence as to price. 
E)  Additional terms that are consistent with the terms in the agreement and evidence that helps the court interpret the agreement, but not any evidence as to price.

Question 20

Under Article 2(A) of the UCC, a[n] ______ is a person who transfers the right to possession and use of goods under a lease.

Accepted Answer

A)  Buyer 
B)  Seller 
C)  Lessee 
D)  Lessor 
E)  Acquiror 
A)  Buyer 
B)  Seller 
C)  Lessee 
D)  Lessor 
E)  Acquiror

Exam 21: Introduction to Sales and Lease Contracts

Under the UCC, how may an acceptance be made?

Which of the following is a special type of lease?

Which of the following articles of the UCC governs lease contracts?

A ______ lease is 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.

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

List what is required in order for an offer to be considered a firm offer under the UCC. Also discuss the effect if a firm offer is silent as to time and compare that with the result of silence as to time under the common law.

The UCC requires that consideration be provided for the modification of sales and lease contracts.

The National Conference of Commissioners on Uniform State Laws adopted the Uniform Internet Act to answer questions involving issues involving Internet sales.

Which of the following is true regarding what meets the UCC definition of a good?

A contract or contract provision is said to be ______ if it is so unfair that a court would be unreasonable if it enforced the contract.

Which of the following was the result in Eureka Water Company v. Nestle Waters North America Inc., the case in the text involving whether a trade name is considered a good or nongood?

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, _____.

A consumer lease is the same thing as a finance lease.

Which of the following is true regarding material considered goods under the UCC?

Under the UCC, courts allow parties to explain or supplement a written contract with which of the following?

Under Article 2(A) of the UCC, a[n] ______ is a person who transfers the right to possession and use of goods under a lease.

An Introduction to Dynamic Business Law

Business Ethics

The US Legal 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

Filters