Deck 22: Nature and Form of Sales

Question 1

A contract for the sale of goods is enforceable even if the price is "open."

Answer 1

True

Question 2

A sale of goods is defined under UCC Article 2 as transfer of title to intangible property for a price.

Answer 2

False

Question 3

The parol evidence rule does not apply to the sale of goods.

Answer 3

False

Question 4

A contract that has elements of both goods and services is always classified as a contract for the sale of goods.

Question 5

If a contract calls for both rendering services and supplying materials to be used in performing the services,the contract is classified according to its dominant element.

Question 6

Defenses raised in a suit based on a sales contract differ greatly from defenses used in regard to any other type of contract.

Question 7

A bailment is a special form of a sale of goods in which possession is transferred to a bailee.

Question 8

Suppose a merchant is about to transfer his entire inventory as part of an annual clearance action.This transfer is called a bulk transfer.

Question 9

The UCC has adopted the common law 'mirror image' rule.

Question 10

The term "course of dealing" refers to the language and customs of an industry.

Question 11

UCC Article 2 applies not only to contracts for the sale of familiar items of personal property,such as automobiles or chairs,but also to the transfer of commodities,such as oil,gasoline,milk,and grain.

Question 12

An offer to buy or sell goods may be accepted in any manner that is reasonable under the circumstances.

Question 13

A contract of indefinite duration may be terminated by notice from either party to the other party.

Question 14

A gift is a free transfer of the title to property.

Question 15

Sales law includes special rules that apply to merchants.

Question 16

A firm offer is effective for three months,but only if the merchant receives consideration.

Question 17

An output or requirement contract is not enforceable unless the parties include an estimate of prospective amounts.

Question 18

The UCC permits a court to refuse to enforce a sales contract that it finds to be unconscionable.

Question 19

Goods physically existing and owned by a seller at the time of a transaction are called existing goods.

Question 20

Any modification of a sales contract between merchants must be supported by some form of consideration.

Question 21

If a contract for the sale of goods omits the price to be paid,the: ______.

A) contract is void because it is too indefinite to be enforced.
B) buyer is required to pay a reasonable price for the goods.
C) buyer can pay whatever price the buyer in good faith believes is a proper price.
D) seller can rightfully charge whatever price the seller in good faith believes is a proper price.

Question 22

With regard to transactions between merchants,failure to repudiate a confirming letter within ten (10)days after receipt binds the non-signing merchant,just as if he had signed the letter or a contract.

Question 23

The provisions of Article 6 concerning bulk transfers are designed to protect creditors.

Question 24

An oral contract to sell specially manufactured goods is enforceable if the goods cannot be sold to other buyers,and the manufacturer has made a substantial progress in manufacturing the goods.

Question 25

To satisfy the statute of frauds,the writing must be signed and must include the price of the goods.

Question 26

All of the following are covered by Article 2 of the UCC except: ______.

A) big screen TVs
B) commodities
C) custom-made furniture
D) gifts

Question 27

Harvested crops would be an example of ______.

A) existing goods.
B) tangible goods.
C) future goods.
D) intangible goods.

Question 28

A writing that is offered to satisfy the statute of frauds must have been written for that purpose.

Question 29

Carol,who is planning to move out of town,offers to sell her sofa to her friend Betty for $750.Betty says,"I'll take it,and I would like you to throw in the coffee table along with it." Under Article 2 of the UCC,Carol and Betty have:

A) no contract, because of the mirror image rule.
B) no contract because Carol did not accept Betty's counteroffer.
C) a contract for both the sofa and coffee table.
D) a contract for the sofa only.

Question 30

______ is a transfer of possession - but not title - to personal property.

A) A bailment.
B) An option to purchase.
C) A gift
D) A consignment

Question 31

As a general rule,courts will __________ in recovering money or property transferred under an illegal agreement.

A) assist a commercial buyer
B) assist a non-commercial buyer
C) assist an institutional buyer
D) not aid either party

Question 32

The CISG governs all contracts between parties in the countries that have ratified it.

Question 33

The sale of goods is governed which article of the Uniform Commercial Code?

A) Article 6
B) Article 8
C) Article 2
D) Article 4

Question 34

A bill of sale can be used as proof of an otherwise oral agreement.

Question 35

A contract involving both services and goods is classified as a contract for the sale of goods if:

A) the services are to be performed upon the goods.
B) the services cannot be performed unless the goods are supplied.
C) no charge is made for the services.
D) the sale of goods is the dominant aspect of the transaction.

Question 36

When the price of the goods is $500 or more,a writing signed by the defendant is required in all cases.

Question 37

When an oral contract is made to sell a 75-inch LED LCD TV for $6,800,payment and acceptance of part of the purchase price avoids the bar of the statute of frauds.

Question 38

Under Article 2,when two parties intend to form a contract but the acceptance includes conflicting terms: ______.

A) there is no contract.
B) the acceptance is viewed entirely as a counteroffer.
C) there is a contract based on the terms of the offer and acceptance that are consistent, but the conflicting terms in the acceptance cancel out.
D) there is a contract, and the conflicting term in the offer is part of the contract.

Question 39

Consumer protection statutes may require a writing that is more detailed than the writing required by the statute of frauds provision of the Uniform Commercial Code.

Question 40

A merchant cannot revoke a firm offer to buy or sell goods if the merchant has:

A) promised to keep the offer open.
B) declared in the presence of two or more reputable witnesses that the offer will be kept open.
C) received consideration to keep the offer open.
D) stated in a signed letter that the offer would not be revoked for a specified period of time.

Question 41

Which of the following situations create(s)an exception to the statute of frauds writing requirement?

A) non-resellable goods
B) receipt and acceptance
C) payment
D) specially manufactured goods

Question 42

Gonzalez Manufacturing negotiated by telephone to purchase approximately $7,000 worth of digital video recorders from Video Imports.The final details were worked out by telephone calls on April 2nd.On April 4th,Video sent Gonzalez a confirmation of their telephone agreement,which included pertinent details.Meanwhile,on April 3rd,Gonzalez was offered a better deal than Video's and accepted it.Upon arrival of the confirmation on April 6th,Gonzalez ignored it and did nothing further until May 1st,the date before Video was to deliver.On May 1st,Gonzalez informed Video that their contract was an unenforceable oral contract and that delivery would not be accepted.?When attempts to amicably settle the matter failed,Video sued Gonzalez for breach of contract.Decide.

Question 43

A sales agreement that does not satisfy the statute of frauds is:

A) a quasi contract.
B) criminal.
C) unenforceable.
D) unlawful.

Question 44

All of the following satisfy the Statute of Frauds' except: ______.

A) merchant's confirmation memo
B) signed, faxed letters
C) authenticated emails
D) a record that omits quantity

Question 45

__________ represents a pattern of performance between the parties to a contract.

A) Course of dealing
B) Usage of trade
C) Course of trade
D) Usage of dealing

Question 46

A sales contract must be evidenced by a writing if the sales price of goods is equal to or more than:

A) $100.
B) $1,000.
C) $500.
D) $5,000.

Question 47

Consumer leases:

A) must always be evidenced by a writing.
B) are always three- party transactions.
C) require the lessor to make all usual warranties made by a seller in a sale of goods..
D) all of these.

Question 48

Janet Durham orally agreed to purchase certain computer hardware priced at $10,000 from Ted Stallings.The sale of the hardware also included a one-time setup service visit priced at $100.The total contract price amounted to $10,100.The computer hardware was delivered and set up,and Durham paid $10,100.Afterwards,Durham discovered that she could obtain the same goods and services from another seller for a total contract price of $9,100.She now seeks rescission of the contract,based on the fact that more than $500 in goods were involved in the sales transaction,that the contract between her and Stallings was subject to the statute of frauds as a result,and that the oral agreement between them was therefore unenforceable.Durham wants to return the computer hardware to Stallings,and receive reimbursement of $10,000 (She is willing to waive her claim to reimbursement for the $100 setup service visit.)Evaluate Durham's legal position in this matter.

Question 49

Which term is not required in a writing in order to satisfy the statute of frauds?

A) language indicating that a sale or contract to sell has been made
B) the price of the goods
C) the quantity of goods involved in the transaction
D) the signature of the defendant

Question 50

An agreement to periodically deliver home-heating oil to a residential customer that does not indicate the duration of the contract

A) is enforceable for a reasonable period of time.
B) lasts for one delivery only.
C) is not a legally-enforceable contract.
D) constitutes a bulk transfer.

Question 51

An agreement to modify a contract for the sale of goods that is not supported by consideration: ______.

A) is only binding if supported by consideration.
B) is binding as long as it's voluntary.
C) is only binding if the original contract is invalid.
D) is binding only if enforced by a court.

Question 52

Newlog,which had developed a new process for making artificial logs,entered into an oral contract with Specialty Manufacturing.The contract provided that Specialty would manufacture a special part that Newlog needed to make its artificial log machinery.The contract provided that Specialty would make the part to Newlog's specifications.Newlog orally agreed to pay $5,000 for the part.Specialty made the part to Newlog's specifications,but Newlog refused to pay,claiming that the oral contract was unenforceable because of the statute of frauds.Is Newlog correct?

Question 53

The CISG:

A) governs all contracts between parties in countries that have ratified it.
B) applies only to goods bought for personal, family or household uses.
C) applies to contracts in which the predominant part of the obligation is the supply of labor or other services.
D) None of these.