Deck 10: Contracts and Sales: Introduction and Formation

Question 1

The new UCC's sale of goods provisions are called Article 2A.

Answer 1

False

Question 2

An acceptance of a stipulated means offer by a different means is effective upon receipt.

Answer 2

False

Question 3

Revocation can be valid any time prior to acceptance.

Answer 3

True

Question 4

"I'll take it, but you must deliver," is a valid acceptance.

Question 5

The UCC Battle of the Forms provision allows additional terms in an acceptance without invalidating the acceptance.

Question 6

A contract for the sale of a car for $700, under the old UCC, must be in writing to be enforceable.

Question 7

Quasi contracts are implied-in-law contracts.

Question 8

Under common law, a counteroffer is also a rejection.

Question 9

A merchant's firm offer requires consideration to be valid.

Question 10

An acceptance by a merchant in response to an offer by a merchant cannot contain any additional terms or it will be treated as a counteroffer under the UCC.

Question 11

Parol evidence is always admissible for challenging contract terms.

Question 12

An offer is effectively communicated upon mailing or dispatch.

Question 13

Common law does not dictate amounts required for consideration.

Question 14

"I'm thinking of selling my CD player," is an example of offer language.

Question 15

The Restatement of Contracts is another name for the UCC.

Question 16

A UCC offer is valid with the subject matter stated even though no price is given.

Question 17

Contracts for the sale of land must be in writing to be enforceable.

Question 18

Options require consideration to be valid.

Question 19

The parties' previous course of dealing will have little impact as courts interpret their contract.

Question 20

Contracts for the sale of real property are governed by the Uniform Commercial Code.

Question 21

A contract for the sale of a $12.2 million Lear jet would be governed by common law because a document of title is involved.

Question 22

E-Sign requires that there be faxes or written verification of electronic contracts.

Question 23

UETA does not apply when there is an applicable statute of frauds.

Question 24

Under the UCC, an acceptance followed by additional terms is a counteroffer and a rejection.

Question 25

An executory contract is one that is fully performed.

Question 26

E-Sign is a federal law that requires written signatures for electronic contracts to be valid.

Question 27

Under the CISG, acceptance is effective only upon receipt.

Question 28

The new UCC accepts website communications as sufficient for a writing.

Question 29

"This offer is limited to these terms," means that between merchants only immaterial terms added in the acceptance will be part of the contract.

Question 30

The CISG follows the mirror image rule in formation.

Question 31

The UCC has no timing rules for acceptance.

Question 32

"Voidable" and "unenforceable" mean essentially the same thing.

Question 33

A record, such as an e-mail or fax, now satisfies the writing requirement under both the UCC and common law.

Question 34

The new UCC accepts e-mail communications as sufficient for a writing.

Question 35

A contract must be in a formal writing to satisfy the statute of frauds.

Question 36

The new UCC rule for additional terms in acceptance is "terms later".

Question 37

A three-year warranty on an oven need be evidenced by a record to be enforceable.

Question 38

The parol evidence rule does not apply in UCC contracts.

Question 39

A contract for rebinding 500 books at a cost of $1.50/book is governed by the UCC.

Question 40

Under the revised and new UCC, a contract for the sale of a car for $700 need not have a record of the contract to be enforceable.

Question 41

To be valid, a UCC merchant's firm offer:

A)must be supported by consideration.
B)must be evidenced by a record.
C)must be signed by both parties.
D)All of the above

Question 42

Which of the following contract subject matters would not be covered under the UCC?

A)A contract for the sale of a mobile home from the manufacturer
B)A contract for the sale of a mobile home from a previous owner
C)A contract for the sale of a mobile home plus its lot
D)All of the above are under the UCC.

Question 43

Marc offers to sell his car to LaTonya for $15,000. LaTonya is the offeree.

Question 44

Force majeure clauses deal with quasi-contracts under the old and new UCC.

Question 45

A bilateral contract requires two parties to act simultaneously in order for the contract to be valid.

Question 46

The language "I offer to sell you my 1974 White Ford Torino" is:

A)a valid offer.
B)not a valid offer because it lacks a definite price.
C)not a valid offer because there are no terms for payment.
D)not a valid offer because it is oral.

Question 47

Jerry Montray is negotiating with Pamela Barnes for the purchase of her mountain bike. The following conversation has taken place: Jerry: "I will buy your mountain bike for $375.00."
Pamela: "I will sell it to you."
Jerry: "Good. The tire pump is included."
Which of the following statements is true?

A)Jerry and Pamela have a contract for the bike at $375.00.
B)Jerry and Pamela do not have a contract for the bike at $375.00.
C)Jerry and Pamela have a contract for the bike at $375.00 with the tire pump.
D)None of the above

Question 48

Under both UCC and common law, a counteroffer:

A)must be accepted by the original offeror.
B)is effective upon mailing or dispatch.
C)is also a rejection.
D)None of the above

Question 49

The actions of an "officious meddler" usually result in the formation of a quasi-contract.

Question 50

Which is not a requirement for a merchant's confirmation memorandum?

A)Evidenced by a record
B)Signed by both parties
C)Underlying oral agreement
D)None of the above

Question 51

The mailbox rule applies to:

A)all acceptances.
B)acceptances communicated through the offer's stipulated means.
C)acceptances under UCC only.
D)revocations and acceptances.
E)None of the above

Question 52

Which of the following is not required for a valid UCC offer?

A)Quantity
B)Payment terms
C)Subject matter
D)Both b and c
E)a, b, and c

Question 53

A force majeure clause would apply to which of these items?

A)Political acts
B)War
C)Shipping line interuption
D)All of these

Question 54

Ann Frazer has just purchased a new Maserati. Ann will be borrowing the money from her bank. Ann signed the contract at 8:00 PM at the dealership and her bank will not be open until 10:00 AM the following day. Ann:

A)has a contract regardless of whether her bank approves her loan.
B)has made a conditional acceptance and has no contract.
C)will be excused from her contract if the bank does not approve her loan.
D)None of the above

Question 55

Under the UCC and between merchants, additional terms in acceptance:

A)are part of the contract unless they are material.
B)are part of the contract unless the offer was limited.
C)result in rejection of the original offer.
D)None of the above

Question 56

John Freeden is negotiating with Bill Murray to buy Bill's mountain bicycle. The following conversation has taken place: John: "I will buy your mountain bike for $325.00."
Bill: "I couldn't sell it for less than $375.00."
John: "I'll take it for $375.00."
Which of the following statements is true?

A)Bill and John have a contract for the sale of the bike at $375.00.
B)Bill and John have a contract for the sale of the bike at $325.00.
C)Bill and John do not have a contract.
D)None of the above

Question 57

Article 2A does not deal with:

A)leases.
B)sales of used goods.
C)warranties in leases.
D)statute of frauds issues.

Question 58

When an issue of the parties' intent is in question, courts will use an objective standard as the test.

Question 59

A unilateral contract requires a promise from only one party; the other party simply performs in order to form the contract.

Question 60

The following series of events occurred between Bull's Meat Market and The Butcher: May 1 - The Butcher faxes Bull's and offers to buy 200 lbs. of T-bone steak at $3.29 per lb.
May 2 - Bull's faxes back: "Price is okay. Payment prior to delivery."
Bull's and The Butcher:

A)have a contract on May 2 with the payment term.
B)have a contract on May 2 without the payment term.
C)do not have a contract.
D)None of the above

Question 61

E-Sign:

A)applies only to interstate transactions.
B)must still be adopted by the states to be effective.
C)does not apply to contracts for the sale of goods.
D)applies in all 50 states.
E)None of the above

Question 62

Abe and Gabriel entered into a contract for Abe to furnish landscaping services for Gabriel's office complex. The contract provides the fee will be $75 per month. At the time Gabriel signs the agreement, the two discuss the fact that the services required in the winter will be less and the fee will be reduced to $50 per month. Abe adds as Gabriel is signing, "I just forgot to put that sliding scale in this contract. Don't worry - I'll take care of it because we understand each other." Gabriel:

A)will be permitted to introduce evidence about the winter fee reduction.
B)will only need to pay $50 during the winter months.
C)will pay $75 per month every month because of parol evidence.
D)None of the above

Question 63

Wade and Jessi have an oral contract to buy and sell Wade's car for $15,000. After Jessi has paid the money and received possession and title to the car, she is having second thoughts about buying the car.

A)The statute of frauds will give Jessi a defense.
B)The statute of frauds will not give Jessi a defense.
C)The UCC's statute of frauds will give Jessi a defense.
D)There is sufficient writing here; the statute of frauds does not apply.

Question 64

Which of the following best describes acceptance with additional terms under the new UCC?

A)Between merchants, the additional terms are part of the contract.
B)Between merchants, the additional terms are not part of the contract.
C)Between merchants, the terms are determined later.
D)None of the above

Question 65

Parol evidence:

A)is not recognized in the UCC.
B)is never allowed.
C)is limited to protect the integrity of written contracts.
D)prevents the showing of fraud in a contract formation.

Question 66

Which of the following eliminates the effect of the mailbox rule?

A)The UCC eliminates the mailbox rule.
B)Common law eliminates the mailbox rule.
C)An offer that includes, "Acceptance is effective upon receipt only."
D)Any attempt to eliminate the mailbox rule is void.
E)None of the above

Question 67

Alpha Enterprises sent an offer to Omega Enterprises. The offer read as follows: AVAILABLE FOR IMMEDIATE SHIPMENT: 600 WIRELESS NOKIA PHONES - MODEL HCG5321 (THE PHONE FROM "CHARLIE'S ANGELS"). PRICE IS $10 EACH. 30 DAYS, SAME AS CASH. ALL WARRANTIES IN EFFECT. THIS OFFER EXPIRES ON TUESDAY, MARCH 15, 2016. Omega sent the following letter in response on March 14, 2016, via overnight delivery: HAPPY TO ACCEPT YOUR OFFER ON THE NOKIA PHONES. SHIP IMMEDIATELY. There was a major snowstorm that hit the east coast on March 14, 2016, and Omega's letter did not arrive at Alpha's headquarters until March 18, 2016. Alpha had sold the phones to another company. Omega demanded the 600 phones for $10 each claiming that it had accepted the offer in time.

A)Omega is correct; it had valid and timely acceptance and had a contract.
B)Omega is incorrect; the acceptance must arrive for it to be effective.
C)Omega is incorrect; the offeree assumes the risk of the delivery means chosen.
D)Omega is correct, but any damages must be recovered from the overnight shipping company.
E)None of the above

Question 68

Which of the following contracts would not be governed by the UCC?

A)A contract for dentures
B)A contract for the purchase of an Arabian horse
C)A contract for the purchase of an oil painting for $550
D)A contract for the purchase of an ATR jet
E)All of the above are governed by the UCC.

Question 69

Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125. Day 2: Tina faxes Mike an acceptance.
Day 2: Mike receives Tina's fax.
Day 3: Mike calls Tina to revoke his offer.
Mike and Tina:

A)do not have a contract since Tina used the wrong means of acceptance.
B)do not have a contract because Mike revoked his offer before Tina accepted properly.
C)have a contract as of the receipt of the fax.
D)have a contract as of when the fax was sent.

Question 70

The statute of frauds:

A)began in a Congressional act in the early 1900s.
B)began in the UCC over 100 years ago and only exists in the UCC.
C)began over 325 years ago in England.
D)began over 100 years ago in the New England states.

Question 71

Melanie: "I'll buy that armoire for $775." Judith: "It's not for sale."
Melanie: "How about $875?"
Judith: "I don't know. It's been in my family for 130 years."
Melanie: "How about $1000?"
Judith: "I'll think about it."

A)There is an option contract.
B)There is no contract.
C)There is a reliance case.
D)There is a quasi contract.

Question 72

Walt's Pool World's fax to Pat's Pumps: "I'll take 10 4 hp pool pumps @ $175 each." Pat's Pumps' return fax: "Ok. Will deliver tomorrow AM."
Pat and Walt:

A)do not have a contract because the faxes will not satisfy the statute of frauds.
B)do not have a contract because of the mirror image rule.
C)had a contract when Pat's fax was sent.
D)had a contract when Pat's fax was received.

Question 73

Which of the following contract subject matters must be evidenced by a writing to be enforceable under the statute of frauds?

A)a contract for the sale of an easement for $75
B)a contract for the sale of a computer monitor for $220
C)a contract for consulting for 6 months @ $10,000 per month plus expenses
D)All of the above must be in writing.

Question 74

Jane: "I'll pay you $50 if you will clean my windows." Al: "I'll do it for $75."
Jane: "$65 and it's a deal."
Al: "No way."
Jane: "Too late. We have a contract."
Which of the following statements is true?

A)Jane is correct, there is a contract.
B)There is no contract.
C)There is a contract to clean the windows for $65.
D)There is a contract to clean the windows for $75.

Question 75

Day 1 - School teacher sends superintendent letter of resignation. Day 4 - Superintendent mails letter accepting resignation.
Day 5 - School teacher hand delivers letter withdrawing resignation.
Day 6 - Teacher receives superintendent's letter.

A)The above negotiations are governed by the UCC.
B)The resignation was accepted and the withdrawal is too late.
C)Both a and b
D)The resignation offer was revoked.

Question 76

The CISG:

A)does not follow the mirror image rule.
B)does not require a price term for a valid offer.
C)follows the UCC's merchant's firm offer rules.
D)does none of these.

Question 77

Which of the following contracts must be in writing to be enforceable?

A)A contract for the sale of an easement for $250.
B)A contract for the sale of a bike for $175.
C)A six-month marketing consulting contract.
D)All of the above must be in writing to be enforceable.

Question 78

The Uniform Electronic Transaction Act (UETA):

A)has been adopted in all 50 states.
B)has been declared unconstitutional.
C)is the same as E-sign.
D)None of the above

Question 79

Which of the following is/are governed by the UCC?

A)A contract for the sale of water
B)A contract for the sale of extracted oil
C)A contract for the sale of barges
D)All of the above are governed by the UCC.

Question 80

Andy: "This is to confirm our telephone conversation of earlier today. 200 lbs. of T-bone at $2.89 per pound." Barb: "Yes, but that's 100 pounds at $2.99."
Andy: "Too late, we already reached agreement by phone."
Barb: "Too bad, it wasn't in writing."
Which of the following statements is true?

A)Barb is incorrect. The phone conversation was a contract.
B)Barb is correct. The agreement must be in writing to be enforceable.
C)Andy can enforce the agreement with the parol evidence rule.
D)None of the above