Deck 8: sales, licensing, and e-commerce

Question 1

Most international sales of goods are governed by the Convention on Contracts for the International Sale of Goods.

Answer 1

True

Question 2

The Agreement for Import and Export governs most international sales.

Answer 2

False

Question 3

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.

Answer 3

True

Question 4

Sales at Internet auctions compromise only a small amount of Internet fraud.

Question 5

The UCC has adopted the "mirror image" rule.

Question 6

Procedural unconscionability is easier to prove in a commercial setting than when an individual consumer is involved.

Question 7

Under the UCC,the acceptance of an offer that contains different terms prevents the formation of the contract.

Question 8

The UCC treats fixtures as goods.

Question 9

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

Question 10

The Uniform Computer Information Transactions Act is a federal law.

Question 11

The UCC does not specifically define an offer or an acceptance.

Question 12

The implied warranty of fitness for a particular purpose may apply to merchants and nonmerchants alike.

Question 13

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

Question 14

The UCC applies identical rules concerning the sales of goods to merchants and nonmerchants.

Question 15

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

Question 16

The U.S.Supreme Court has ruled that a business selling goods through catalogs is required to collect sales taxes only on purchases made by consumers within the states where the business has a physical presence.

Question 17

Sellers can rely on the UCC doctrine of commercial impracticability to get them out of a bad bargain

Question 18

The UCC requires an obligation of good faith in the performance of every contract or duty covered by the Act.

Question 19

Under the UCC version of commercial impracticability,a failure to perform is a breach even if performance is made impractical by an event unforeseen by the contract.

Question 20

An express warranty is an explicit guarantee by the seller that the goods will never be defective.

Question 21

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

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

Question 22

Under the UCC statute of frauds,which of the following terms must be in a writing order to satisfy the statute?

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

Question 23

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

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 24

Which of the following is governed by Article 2 of the UCC?

A)A contract for sale of a commercial building.
B)A contract for sale of office supplies.
C)An employment contract.
D)A life insurance contract.

Question 25

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

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

Question 26

Under the UCC,which statement is not true regarding a buyer's right to reject nonconforming goods?

A)The buyer may reject any or all of the goods.
B)The right to reject the goods can be waived inadvertently.
C)The buyer may treat the goods as if it owned them.
D)A buyer who has taken possession of goods must hold the goods for a time sufficient to permit the seller to remove them.

Question 27

If all parties are merchants,additional provisions in an acceptance automatically become part of the contract unless

A)the offer expressly limits acceptance to the terms of the offer.
B)the new terms materially alter the original offer.
C)the party making the original offer notifies the other party within a reasonable time that it objects to the new terms.
D)all the responses are correct.

Question 28

Which of the following statements best describes an offer under the UCC?

A)An offer is not defined by the UCC.
B)An offer is an invitation to buy or sell between merchants.
C)An offer is any writing sufficient to describe the goods.
D)An offer is contained in the standard business forms.

Question 29

Which of the following is true regarding the UCC?

A)The UCC does not regulate sales of goods by nonmerchants.
B)The UCC regulates sales of goods by both merchants and nonmerchants,and the same set of rules always apply regardless of whether a merchant or nonmerchant is involved.
C)The UCC regulates sales of goods by both merchants and nonmerchants,but different rules may apply to them.
D)The UCC regulates sales of goods by nonmerchants only if more than $1,000 in sales is at issue, and the same set of rules apply to nonmerchants as well as merchants.

Question 30

What are items of personal property that are attached to real property an cannot be removed without substantial damage called?

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

Question 31

If a sales contract requires the seller to ship the goods by carrier and specifies the destination,the risk of loss passes to the buyer

A)when the goods are properly delivered to the carrier.
B)when the carrier tenders the goods to the buyer at the specified destination.
C)when the contract is finalized.
D)when the seller pays for the goods.

Question 32

Under the UCC,a failure to perform is excused under the doctrine of

A)impossibility
B)commercial impossibility
C)commercial impracticability
D)consumer impracticability

Question 33

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

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.

Question 34

Under the UCC,a firm offer only applies to

A)merchants
B)merchants and non-merchants
C)non-merchants
D)option contracts

Question 35

Which of the following will not allow a consumer to recover under a breach of warranty?

A)The buyer made inappropriate use of the goods.
B)The goods were defective at the time of the sale.
C)The loss or injury was caused by the defect.
D)The seller has no affirmative defenses.

Question 36

Under the UCC,if only one party is a merchant,an acceptance containing additional 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 37

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

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

Question 38

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

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

Question 39

A contract is ________ when one party is induced to enter a contract without having any meaningful choice.

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

Question 40

When the seller provides the buyer with a document enabling it to pick up goods held at an independent warehouse,the risk of loss passes to the buyer

A)when the goods are picked up by the buyer.
B)when the contract of sale is signed.
C)when the buyer receives the document entitling it to pick up the goods.
D)when the buyer pays for the goods.

Question 41

________ do not relieve a contracting party from their responsibilities under the UCC doctrine of commercial impracticability.

A)Wars
B)Market fluctuations
C)Embargoes
D)Natural disasters

Question 42

Which of the following is false regarding The Convention on Contracts for the International Sale of Goods?

A)The Convention does not apply to sales by auction.
B)The Convention applies to oral as well as written contracts of sale.
C)The Convention has a statute of frauds that applies to all countries that have ratified the Convention.
D)Legal scholars are split on whether the Convention applies to e-commerce transactions.

Question 43

What is the rule regarding the enforceability of a contract for the sale of goods that comes within the statute of frauds if no quantity is specified?

Question 44

Ricardo develops a new type of software and asks you how he should go about making money through distribution of it.He has been told that he should sell the software as opposed to issuing licenses for its use.What should you tell him?

A)That by selling,rather than by licensing,a software vendor can avoid the doctrine of first sale, which allows a lawful owner to sell or otherwise dispose of the copy.
B)That by licensing,rather than by selling,a software vendor can avoid the doctrine of first sale, which allows a lawful owner to sell or otherwise dispose of the copy.
C)That selling is the only reasonable alternative because computer programs are not copyrightable.
D)That licensing is the only reasonable alternative because computer programs are not copyrightable.

Question 45

Which of the following will not create an express warranty under the UCC?

A)Making a statement or promise relating to the goods.
B)Expressing an opinion about the quality of the goods.
C)Providing a description of the goods.
D)Stating any fact regarding the quality of the goods.

Question 46

Buyer contacted Seller and ordered 5,000 computers in a single lot from Seller's catalogue.The computers were to have 128 megabytes of RAM each and an 800-megahertz processor.When the shipment arrived,only 2,500 units were shipped.Buyer called Seller and was furious,explaining that he had ordered the equipment for an exclusive trade show and expected to sell the entire lot.The next day Buyer received an additional 2,500 units,but they had only 64 megabytes of RAM each and a 600-megahertz processor.What are Buyer's rights regarding the entire 5,000 units under the UCC? Discuss fully.

Question 47

Discuss how the UCC addresses the terms offer,acceptance,and consideration.Address in your answer the effect of "firm offers" as well as modifications to a contract under the UCC.

Question 48

Renee owns a small restaurant that sells hamburgers as one of its main attractions.She puts up a sign that says "Best Burgers in the County".Peter does an exhaustive investigation of all restaurants in the county and asks his friends to do the same.They all determine that actually a restaurant run by their friend Sam has the best burgers.Peter tells Renee that unless she take down her sign,he is going to sue her for breach of warranty and false advertising.Renee tells him that he had no cause of action.Who is correct?

A)Peter is correct so long as he and his friends can convince the jurors in a lawsuit that Sam has the best burgers.
B)Peter is correct only if he can establish that Renee was aware that Sam's burgers actually taste better before she put up the sign.
C)Peter is incorrect because Renee was engaged in "spoofing".
D)Peter is incorrect because Renee was engaged in "puffing".

Question 49

If a buyer wrongfully cancels a contract under the UCC,the seller may not recover

A)the difference between the market price and the unpaid contract price.
B)damages that are adequate to put the seller in as good a position as performance would have.
C)damages and expenses saved because of the buyer's breach.
D)the profit that it would have made from full performance.

Question 50

What does Section 201 of the UCC provide regarding a statute of frauds?

Question 51

Under the UCC,which of the following is not true regarding "the battle of the forms"?

A)The presence of additional or different terms is not a bar to contract formation.
B)It is not necessary for an offer and acceptance to match exactly.
C)Adding to or modifying terms in the offer makes the acceptance a counteroffer.
D)It is not necessary to determine which document constitutes the offer and which the acceptance.

Question 52

Indicate how a seller may disclaim or limit warranties under the UCC.

Question 53

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

Question 54

A(n)________ contract occurs when one party is induced to enter a contract on a "take it or leave it" basis.

A)adhesion
B)merchants
C)output
D)requirement

Question 55

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

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

Question 56

Polly sold Jason a used car for $1,000.Their contract provided that the engine in the car was in good shape,a true statement as far as Polly knew.Unfortunately,the day after Jason purchased the car,it broke down and was discovered to have significant engine problems.Jason told Polly that he wanted a refund.Polly told him that he was not entitled to a refund because she did not lie and that as far as she knew,there was nothing wrong with the car.Which of the following is true?

A)Jason is entitled to a refund because of the breach of an express warranty.
B)Jason is entitled to a refund because of a breach of the implied warranty of fitness for a particular purpose.
C)Jason is entitled to a refund only if he can obtain evidence that Polly lied.
D)Jason is not entitled to a refund under any circumstances because the vehicle was used.

Question 57

Kiera and Ben entered into a contract whereby Ben would clean Kiera's house once a week for eighteen months for $75 per week in a state that has adopted the Uniform Electronic Transactions Act.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 done 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?

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 58

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

Question 59

Which of the following is not true under Magnuson-Moss Warranty Act?

A)The Act requires a supplier of consumer products to give a written warranty.
B)The Act applies only when a seller chooses to give a written warranty.
C)The seller must state whether the warranty is a full or a limited warranty.
D)The Act is federal law.