Question 1

Under the Convention on Contracts for the International Sale of Goods (CISG),an offer becomes effective when

Accepted Answer

A)  the offeror sends it. 
B)  it reaches the offeree. 
C)  the offeree reads it. 
D)  the offeree replies. 
A)  the offeror sends it. 
B)  it reaches the offeree. 
C)  the offeree reads it. 
D)  the offeree replies. B

Question 2

Most courts require that a plaintiff prove reliance on an express warranty in order to recover damages.

Accepted Answer

A) True 
 B)False  True

Question 3

If the contracted goods are unique and fail to be delivered,the buyer can ask a court under 2-716 of the UCC to order:

Accepted Answer

A)  allocation of risk of loss. 
B)  consequential damages. 
C)  cover. 
D)  specific performance. 
A)  allocation of risk of loss. 
B)  consequential damages. 
C)  cover. 
D)  specific performance. D

Question 4

Under Section 2-207(2),if only one party is a merchant,an acceptance containing additional terms

Accepted Answer

A)  automatically becomes part of the contract unless the offeror objects within ten days. 
B)  is considered a proposal for additions to the contract. 
C)  is a counteroffer. 
D)  has no effect and the contract is accepted without the new terms. 
A)  automatically becomes part of the contract unless the offeror objects within ten days. 
B)  is considered a proposal for additions to the contract. 
C)  is a counteroffer. 
D)  has no effect and the contract is accepted without the new terms.

Question 5

The UCC permits a contract to be enforced if the parties intended a binding contract,even though important terms may have been left open for later agreement.

Accepted Answer

A) True 
 B)False

Question 6

_____ are items of personal property attached to real property that cannot be removed without substantial damage.

Accepted Answer

A)  Connectors 
B)  Relaters 
C)  Entanglements 
D)  Fixtures 
A)  Connectors 
B)  Relaters 
C)  Entanglements 
D)  Fixtures

Question 7

As defined by the UCC,"good faith" involves the observance of objective reasonable commercial standards of fair dealing but there is no requirement as to honesty in fact.

Accepted Answer

A) True 
 B)False

Question 8

In a state that had adopted the Uniform Electronic Transactions Act,Kiera and Ben entered into a contract whereby Ben would clean Kiera's house once a week for eighteen months for $75 per week.The transaction was done electronically,and both Kiera and Ben signed through the use of an electronic signature.Unfortunately,problems resulted when Ben failed to show up as scheduled.Ben told Kiera that the contract was not good because his signature was made electronically.Kiera told him that he was wrong and that he needs to get up to date with the modern age.Which of the following is correct regarding the dispute?

Accepted Answer

A)  Ben is correct because electronic signatures are not recognized as valid under any circumstances. 
B)  Ben is correct only if Kiera's name was typed as opposed to being shown in handwriting-style (cursive)form. 
C)  Kiera is correct that the signature is sufficient only if she can show that she and Ben had previously engaged in electronic transactions. 
D)  Kiera is correct that her electronic signature is sufficient. 
A)  Ben is correct because electronic signatures are not recognized as valid under any circumstances. 
B)  Ben is correct only if Kiera's name was typed as opposed to being shown in handwriting-style (cursive)form. 
C)  Kiera is correct that the signature is sufficient only if she can show that she and Ben had previously engaged in electronic transactions. 
D)  Kiera is correct that her electronic signature is sufficient.

Question 9

To which of the following does Article 2 of the UCC apply?

Accepted Answer

A)  The sale of goods 
B)  The rendering of services 
C)  The sale of land 
D)  Both the sale of goods and the rendering of services 
A)  The sale of goods 
B)  The rendering of services 
C)  The sale of land 
D)  Both the sale of goods and the rendering of services

Question 10

Under the UCC,a firm offer only applies to

Accepted Answer

A)  merchants. 
B)  merchants and nonmerchants. 
C)  nonmerchants. 
D)  option contracts. 
A)  merchants. 
B)  merchants and nonmerchants. 
C)  nonmerchants. 
D)  option contracts.

Question 11

Under 2-711 of the UCC,a buyer has a remedy called "cover." What is cover and when can it be used?

Accepted Answer

A)  Cover applies when conforming goods are rejected by the buyer,giving the buyer the right to cancel the contract and buy better goods elsewhere with reimbursement for any extra costs. 
B)  Cover applies when nonconforming goods are delivered to the buyer,giving the buyer the right to cancel the contract and buy the goods elsewhere with reimbursement for any extra costs. 
C)  Cover is a seller's right and does not apply to the buyer. 
D)  Cover allows a buyer to cancel the contract for shipments delayed more than 30 days and recover direct damages from the seller. 
A)  Cover applies when conforming goods are rejected by the buyer,giving the buyer the right to cancel the contract and buy better goods elsewhere with reimbursement for any extra costs. 
B)  Cover applies when nonconforming goods are delivered to the buyer,giving the buyer the right to cancel the contract and buy the goods elsewhere with reimbursement for any extra costs. 
C)  Cover is a seller's right and does not apply to the buyer. 
D)  Cover allows a buyer to cancel the contract for shipments delayed more than 30 days and recover direct damages from the seller.

Question 12

The UCC treats fixtures as goods.

Accepted Answer

A) True 
 B)False

Question 13

Under the UCC doctrine of commercial impracticability as applied by the UCC,a failure to perform is a breach except when performance is made impractical by an event unforeseen by the contract.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT a type of warranty under the UCC?

Accepted Answer

A)  Express 
B)  Fitness for a particular purpose 
C)  Merchantability 
D)  Specific performance 
A)  Express 
B)  Fitness for a particular purpose 
C)  Merchantability 
D)  Specific performance

Question 15

"Good faith" is defined in section 1-201(b)(20)as "a definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time [and] operates as an acceptance even though it states terms additional to or different from those offered or agreed upon."

Accepted Answer

A) True 
 B)False

Question 16

What must be established in order for goods to be considered merchantable under the UCC?

Accepted Answer

To be merchantable under the UCC,goods m

Question 17

A contract is __________ if its terms are unduly harsh or oppressive or unreasonably favorable to one side.

Accepted Answer

A)  substantively unconscionable 
B)  procedurally unconscionable 
C)  procedurally impracticable 
D)  substantively impracticable 
A)  substantively unconscionable 
B)  procedurally unconscionable 
C)  procedurally impracticable 
D)  substantively impracticable

Question 18

In highly concentrated industries with few competitors,all the sellers may offer the same unfair contracts on a "take-it-or-leave-it" basis,known as an adhesion contract and an example of:

Accepted Answer

A)  procedural unconscionability. 
B)  substantive unconscionability. 
C)  failure of underlying conditions. 
D)  express warranty. 
A)  procedural unconscionability. 
B)  substantive unconscionability. 
C)  failure of underlying conditions. 
D)  express warranty.

Question 19

UCC Section 2-319 expressly authorizes the buyer and seller to allocate the __________ between them as they see fit.

Accepted Answer

A)  damages 
B)  specific performance 
C)  modification 
D)  risk of loss 
A)  damages 
B)  specific performance 
C)  modification 
D)  risk of loss

Question 20

The courts that have considered click-wrap licenses have generally found that the licenses are

Accepted Answer

A)  enforceable. 
B)  enforceable only for software costing $100 or less. 
C)  enforceable only for software costing $100 or less and that is designed for business,not consumer use. 
D)  unenforceable. 
A)  enforceable. 
B)  enforceable only for software costing $100 or less. 
C)  enforceable only for software costing $100 or less and that is designed for business,not consumer use. 
D)  unenforceable.

Exam 8: Sales Licensing and-E Commerce

Under the Convention on Contracts for the International Sale of Goods (CISG),an offer becomes effective when

Most courts require that a plaintiff prove reliance on an express warranty in order to recover damages.

If the contracted goods are unique and fail to be delivered,the buyer can ask a court under 2-716 of the UCC to order:

Under Section 2-207(2),if only one party is a merchant,an acceptance containing additional terms

The UCC permits a contract to be enforced if the parties intended a binding contract,even though important terms may have been left open for later agreement.

_____ are items of personal property attached to real property that cannot be removed without substantial damage.

As defined by the UCC,"good faith" involves the observance of objective reasonable commercial standards of fair dealing but there is no requirement as to honesty in fact.

To which of the following does Article 2 of the UCC apply?

Under the UCC,a firm offer only applies to

Under 2-711 of the UCC,a buyer has a remedy called "cover." What is cover and when can it be used?

The UCC treats fixtures as goods.

Under the UCC doctrine of commercial impracticability as applied by the UCC,a failure to perform is a breach except when performance is made impractical by an event unforeseen by the contract.

Which of the following is NOT a type of warranty under the UCC?

"Good faith" is defined in section 1-201(b)(20)as "a definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time [and] operates as an acceptance even though it states terms additional to or different from those offered or agreed upon."

What must be established in order for goods to be considered merchantable under the UCC?

A contract is __________ if its terms are unduly harsh or oppressive or unreasonably favorable to one side.

In highly concentrated industries with few competitors,all the sellers may offer the same unfair contracts on a "take-it-or-leave-it" basis,known as an adhesion contract and an example of:

UCC Section 2-319 expressly authorizes the buyer and seller to allocate the __________ between them as they see fit.

The courts that have considered click-wrap licenses have generally found that the licenses are

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