Question 1

Indicate how a seller may disclaim warranties under the UCC.

Accepted Answer

The seller need not make any express war

Question 2

Rene owns a small restaurant that sells hamburgers as one of its main attractions and puts up a sign that says "Best Burgers in the County." Marion does an exhaustive investigation of all restaurants in the county and asks friends to do the same.They all determine that actually a restaurant run by their friend Sam has the best burgers in the county.Marion tells Rene that unless the sign is removed,Rene could be sued for breach of warranty and false advertising.Rene tells Marion no one has cause of action.Who is correct?

Accepted Answer

A)  Marion is correct as long as jurors in a lawsuit can be convinced that Sam has the best burgers. 
B)  Marion is correct only by establishing that Rene was aware that Sam's burgers actually taste better before the sign was put up. 
C)  Marion is incorrect because Rene was engaged in "spoofing." 
D)  Marion is incorrect because Rene was engaged in "puffing." 
A)  Marion is correct as long as jurors in a lawsuit can be convinced that Sam has the best burgers. 
B)  Marion is correct only by establishing that Rene was aware that Sam's burgers actually taste better before the sign was put up. 
C)  Marion is incorrect because Rene was engaged in "spoofing." 
D)  Marion is incorrect because Rene was engaged in "puffing."

Question 3

For which of the following would an electronic signature be invalid under both UETA and E-Sign?

Accepted Answer

A)  Contracts relating to matters of family law 
B)  Notices of recall 
C)  Contracts for foreign commerce 
D)  Documents accompanying the transport of hazardous materials 
A)  Contracts relating to matters of family law 
B)  Notices of recall 
C)  Contracts for foreign commerce 
D)  Documents accompanying the transport of hazardous materials

Question 4

Under the UCC,goods that are reasonably fit for the general purposes for which they are sold and that are properly packaged and labeled are considered to meet the implied warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 5

Explain the different types of warranties that exist under the UCC.

Accepted Answer

Express warranties,warranties of merchan

Question 6

A contract for the sale of land is governed by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 7

The main issue in CASE 8.1,Option Wireless,Ltd.v.OpenPeak,Inc.(2012),involved the so-called "knockout rule."

Accepted Answer

A) True 
 B)False

Question 8

Why do vendors today typically prefer to license software rather than sell it outright?

Accepted Answer

Licenses offer certain advantages to the

Question 9

Under the UCC,the buyer may reject any or all of the goods if the goods fail to conform to the contract.

Accepted Answer

A) True 
 B)False

Question 10

To which of the following does the term "battle of the forms" refer?

Accepted Answer

A)  The situation in which one of the parties wishes to use a preprinted form,but the other party wishes to engage in direct negotiation 
B)  The situation in which the parties entered into a formal contract,but the contract has been misplaced by both parties,resulting in uncertainty regarding the exact terms of the original contract 
C)  The situation in which parties have neglected to bargain over items and then exchange standard printed forms,resulting in confusion regarding the terms of the contract 
D)  The situation in which a party wishes to claim unconscionability based upon another party's use of a preprinted form 
A)  The situation in which one of the parties wishes to use a preprinted form,but the other party wishes to engage in direct negotiation 
B)  The situation in which the parties entered into a formal contract,but the contract has been misplaced by both parties,resulting in uncertainty regarding the exact terms of the original contract 
C)  The situation in which parties have neglected to bargain over items and then exchange standard printed forms,resulting in confusion regarding the terms of the contract 
D)  The situation in which a party wishes to claim unconscionability based upon another party's use of a preprinted form

Question 11

Browse-wrap agreement appears on a website and:

Accepted Answer

A)  does not need to be conspicuous to be enforceable. 
B)  does not require the user to take any action to express consent to the agreement. 
C)  prevents use of any software until the license agreement is clicked. 
D)  acts as an application for licensed use of the software. 
A)  does not need to be conspicuous to be enforceable. 
B)  does not require the user to take any action to express consent to the agreement. 
C)  prevents use of any software until the license agreement is clicked. 
D)  acts as an application for licensed use of the software.

Question 12

The UCC has adopted the "mirror image" rule.

Accepted Answer

A) True 
 B)False

Question 13

The Uniform Computer Information Transactions Act is a federal law.

Accepted Answer

A) True 
 B)False

Question 14

With a shrink-wrap license,the user will:

Accepted Answer

A)  not find the licensing terms in a conspicuous place. 
B)  agree to the terms of the license by clicking on an icon. 
C)  find the license terms on the outside of a box containing software. 
D)  not need to take any action to express consent to the agreement. 
A)  not find the licensing terms in a conspicuous place. 
B)  agree to the terms of the license by clicking on an icon. 
C)  find the license terms on the outside of a box containing software. 
D)  not need to take any action to express consent to the agreement.

Question 15

A product liability action brought in tort generally permits recovery of economic damages suffered by a purchaser of an inferior or defective product,whereas a breach of warranty action would not allow such a claim.

Accepted Answer

A) True 
 B)False

Question 16

Under the UCC,the _____ term(s)must be in a writing order to satisfy the statute of frauds.

Accepted Answer

A)  price 
B)  quantity 
C)  identity of the parties 
D)  time and place for delivery 
A)  price 
B)  quantity 
C)  identity of the parties 
D)  time and place for delivery

Question 17

The UCC specifically defines an acceptance as "a written confirmation assenting to offered or agreed upon terms."

Accepted Answer

A) True 
 B)False

Question 18

Unless specified otherwise,UCC section 2-509 places the risk of loss on the party controlling the goods at the time loss occurs,because that party is better able to take precautions to protect the goods and to insure against loss.As a result,a party:

Accepted Answer

A)  may bear the risk of loss even if it does not hold title to the goods at the time of loss. 
B)  is protected from risk of loss if it does not hold title to the goods. 
C)  may not be at risk of loss until in physical possession of the goods. 
D)  cannot avoid risk of loss from the moment an offer is made. 
A)  may bear the risk of loss even if it does not hold title to the goods at the time of loss. 
B)  is protected from risk of loss if it does not hold title to the goods. 
C)  may not be at risk of loss until in physical possession of the goods. 
D)  cannot avoid risk of loss from the moment an offer is made.

Question 19

Chris sold Whitney a home containing a wood stove which could not be removed from the home without causing substantial damage.Shortly after the sale,Whitney sustained significant smoke damage due to a malfunction of the stove.Whitney told Chris of the intention to sue under the UCC.Chris told Whitney that was not possible.Which of the following is true?

Accepted Answer

A)  Chris is correct because the stove would likely be a fixture not covered by the UCC. 
B)  Whitney is correct because the stove would likely be a fixture covered by the UCC. 
C)  Whitney is correct because the stove would not be considered a fixture and would,therefore,be covered by the UCC. 
D)  Whitney is correct because the sale of the home would be covered under the UCC along with anything else sold with the home. 
A)  Chris is correct because the stove would likely be a fixture not covered by the UCC. 
B)  Whitney is correct because the stove would likely be a fixture covered by the UCC. 
C)  Whitney is correct because the stove would not be considered a fixture and would,therefore,be covered by the UCC. 
D)  Whitney is correct because the sale of the home would be covered under the UCC along with anything else sold with the home.

Question 20

Which of the following is an example of a statement made by a salesperson that would be considered "puffing"?

Accepted Answer

A)  This car will get 35 miles per gallon. 
B)  This is a genuine diamond ring. 
C)  This is an original work of art. 
D)  This copier is the best in the business. 
A)  This car will get 35 miles per gallon. 
B)  This is a genuine diamond ring. 
C)  This is an original work of art. 
D)  This copier is the best in the business.

Exam 8: Sales Licensing and-E Commerce

Indicate how a seller may disclaim warranties under the UCC.

For which of the following would an electronic signature be invalid under both UETA and E-Sign?

Under the UCC,goods that are reasonably fit for the general purposes for which they are sold and that are properly packaged and labeled are considered to meet the implied warranty of merchantability.

Explain the different types of warranties that exist under the UCC.

A contract for the sale of land is governed by Article 2 of the UCC.

The main issue in CASE 8.1,Option Wireless,Ltd.v.OpenPeak,Inc.(2012),involved the so-called "knockout rule."

Why do vendors today typically prefer to license software rather than sell it outright?

Under the UCC,the buyer may reject any or all of the goods if the goods fail to conform to the contract.

To which of the following does the term "battle of the forms" refer?

Browse-wrap agreement appears on a website and:

The UCC has adopted the "mirror image" rule.

The Uniform Computer Information Transactions Act is a federal law.

With a shrink-wrap license,the user will:

A product liability action brought in tort generally permits recovery of economic damages suffered by a purchaser of an inferior or defective product,whereas a breach of warranty action would not allow such a claim.

Under the UCC,the _____ term(s)must be in a writing order to satisfy the statute of frauds.

The UCC specifically defines an acceptance as "a written confirmation assenting to offered or agreed upon terms."

Unless specified otherwise,UCC section 2-509 places the risk of loss on the party controlling the goods at the time loss occurs,because that party is better able to take precautions to protect the goods and to insure against loss.As a result,a party:

Which of the following is an example of a statement made by a salesperson that would be considered "puffing"?

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