Deck 21: Introduction to Sales and Lease Contracts

Question 1

The primary method by which sales contracts are interpreted is federal law

Answer 1

False

Question 2

The Uniform Internet Act was adopted by the National Conference of Commissioners on Uniform State Laws in order to answer questions involving Internet sales issues.

Answer 2

False

Question 3

Land and service contracts are governed by common law,not the UCC.

Answer 3

True

Question 4

The UCC has adopted the mirror image rule.

Question 5

Under the UCC,almost any kind of documentation is usually sufficient to satisfy the writing requirement of the statute of frauds.

Question 6

Contracts for the sale or lease of goods may be formed even though some terms of the contract or lease are left open.

Question 7

A finance lease is equivalent to a consumer lease.

Question 8

The most important focus of the UCC in determining contract formation is the intent of the parties to be bound by the contract.

Question 9

Which statement is false regarding the United Nations Convention on Contracts for the International Sale of Goods "CISG")?

A)The United Kingdom is not a signatory of the CISG and instead applies English common law.
B)Mexico has signed the CISG.
C)Israel is a signatory of the CISG.
D)The CISG is a treaty.
E)The United States applies the UCC but not the CISG.

Question 10

What did the court in Reilly Foam Corp.v.Rubbermaid Corp.rule in regard to whether a quote is considered an offer under the UCC?

A)That it is well recognized under the UCC that quotes are not considered offers.
B)That it is well recognized under the UCC that quotes are considered offers.
C)That generally quotes are offers but that some price quotes are sufficiently vague to be deemed mere invitations to enter into negotiations or to submit offers.
D)That the UCC does not apply at all to disputes involving quotes because quotes are not goods.
E)That generally quotes are not offers but that some price quotes are sufficiently detailed to be deemed offers.

Question 11

The parol evidence rule aims to protect sales or lease contracts that the parties intend to be the final expression of their agreement.

Question 12

All states,except Louisiana,follow ________ common law.

A)Spanish
B)English
C)Italian
D)French
E)German

Question 13

Unconscionability is a concept recognized by the UCC.

Question 14

The UCC requires that consideration be provided for the modification of sales and lease contracts.

Question 15

All leases are covered under Article 2A)of the UCC.

Question 16

The UCC was designed to include items such as software and information.

Question 17

In Eureka Water Company v.Nestle Waters North America Inc. ,the case in the text involving whether a trade name is considered a good or nongood,which of the following was the result?

A)The court ruled that a trade name is a good.
B)The court ruled that a trade name is not a good.
C)The court ruled that a trade name is a good if it is the only matter involved in a dispute between parties;otherwise,it is a nongood.
D)The court ruled that a trade name is a good if it was considered a good in other previously settled disputes between the same parties;otherwise,it is a nongood.
E)The court ruled that a trade name is a good if other items that are clearly goods are involved in a contractual dispute;otherwise,it is a nongood.

Question 18

The UCC has different rules for transactions involving merchants and transactions involving non-merchants.

Question 19

The UCC pertains to all business transactions.

Question 20

Which statement is true regarding the sources of laws that interpret sales contracts?

A)Two sources of laws that interpret sales contracts exist: state common law and the Uniform Commercial Code.
B)Two sources of laws that interpret sales contracts exist: the Uniform Commercial Code and state statutory law.
C)Two sources of laws that interpret sales contracts exist: state common law and state statutory law.
D)Three sources of laws that interpret sales contracts exist: state common law,the Uniform Commercial Code,and state statutory law.
E)The Uniform Commercial code is the only source of law interpreting sales contracts.

Question 21

In order to resolve contract issues in cases in which a tangible good is mixed with something intangible,most states employ some variation of the ________.

A)Substantial-purpose test
B)Goods-services test
C)Mixed-purpose test
D)Predominant-purpose test
E)Unclear-purpose test

Question 22

Which of the following is true regarding the holding of the court in The Travelers Property Casualty Company of America and Hellmuth Obata & Kassabaum,Inc. ,v.Saint-Gobain Technical Fabrics Canada Limited,the case in the text involving whether the statute of frauds barred enforcement of a contract and also whether the United Nations Convention on Contracts of the International Sale of Goods CISG)applied to a contract in view of the fact that a particular state's law was referenced in the contract?

A)That the CISG did not apply because a construction of an arena,which would result in a type of realty,was concerned and that the statute of frauds contained within the UCC barred enforcement of the contract.
B)That the CISG applied and that oral discussions could have formed a contract.
C)That the CISG applied and that no contract could have resulted because of the lack of a writing.
D)That the CISG did not apply because the contract referred to provisions of the UCC and that the statute of frauds contained within the UCC barred enforcement of the contract.
E)That the CISG did not apply because significant provisions in the contract were left unwritten but that the statute of frauds was inapplicable.

Question 23

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter,which law applies?

A)The civil law rules
B)Federal common law
C)Federal statutory law
D)The common law rules
E)The Uniform Sales Act

Question 24

Which of the following terms is defined under Article 2 of the UCC as tangible things which are movable at the time of identification to the contract for sale?

A)Saleable things
B)Goods
C)Articles
D)Merchandise
E)Attachments

Question 25

Which statement is true regarding materials that are considered goods under the UCC?

A)Minerals taken from real estate and sold by the owner,soil taken from real estate and sold by the owner,and the right to remove soil from real estate are all considered goods under the UCC.
B)The right to remove soil from real estate is considered a good under the UCC,but neither minerals taken from real estate and sold by the owner nor soil taken from real estate and sold by the owner are considered goods under the UCC.
C)Soil taken from real estate and sold by the owner is considered a good under the UCC,but neither minerals taken from real estate and sold by the owner nor the right to remove soil from real estate are considered goods under the UCC.
D)Minerals taken from real estate and sold by the owner and the right to remove soil from real estate are considered goods under the UCC,but soil taken from real estate and sold by the owner is not considered a good under the UCC.
E)Minerals taken from real estate and sold by the owner and soil taken from real estate and sold by the owner are considered goods under the UCC,but the right to remove soil from real estate is not considered a good under the UCC.

Question 26

A lease that 1)has a value of $25,000 or less and 2)exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal,family,or household purpose. ,is called a lease.

A)Commercial
B)Retail
C)Consumer
D)Finance
E)Regulated

Question 27

Which article of the UCC governs sales contracts?

A)6
B)4
C)2
D)4A)
E)2A)

Question 28

Under Article 2 of the UCC,which of the following consists of the passing of title from the seller to the buyer for a price?

A)A lease
B)A transaction
C)A transfer of use
D)A negotiated transfer
E)A sale

Question 29

Under Article 2A)of the UCC,what is the correct term for a person who transfers the right to possession and use of goods under a lease?

A)Lessee
B)Acquirer
C)Buyer
D)Seller
E)Lessor

Question 30

How many states have failed to adopt any portion of the UCC?

A)7
B)18
C)4
D)5
E)0

Question 31

Which article of the UCC governs lease contracts?

A)6
B)2A)
C)4A)
D)4
E)2

Question 32

In what year was the UCC created?

A)1935
B)1943
C)1980
D)1964
E)1952

Question 33

Under Article 2A)of the UCC which of the following is defined as a transfer of the right to possession and use of goods for a term in return for consideration?

A)A rental
B)A consignment
C)A transfer
D)A lease
E)A sale of goods

Question 34

Which of the following is true regarding what meets the UCC definition of a good?

A)Corporate stocks,real estate,and copyrights meet the definition of a good under the UCC,but trade fixtures do not.
B)Real estate,trade fixtures,and corporate stocks meet the definition of a good under the UCC,but copyrights do not.
C)Trade fixtures meet the definition of a good under the UCC,but real estate,corporate stocks,and copyrights do not.
D)Copyrights meet the definition of a good under the UCC,but real estate,corporate stocks,and trade fixtures do not.
E)Real estate,corporate stocks,copyrights,and trade fixtures all meet the definition of a good under the UCC.

Question 35

Which of the following was the result in the case in the text,Novamedix,Limited v.NDM Acquisition Corporation and Vesta Healthcare,Inc. ,in which the plaintiff claimed that a settlement agreement was a contract for the sale of goods breached by the defendant because a type of medical slipper involved in the settlement agreement could not be resold?

A)That the transaction would not be treated as a contract for the sale of goods because it was a mixed type of transaction.
B)That the transaction would be treated as a contract for the sale of goods because it was a mixed type of transaction.
C)That the transaction would not be treated as a contract for the sale of goods because of the involvement of medical treatment issues.
D)That the transaction would not be treated as a contract for the sale of goods because the predominant purpose of the settlement agreement was to settle a patent infringement lawsuit.
E)That the transaction would be treated as a contract for the sale of goods because the essential nature of the agreement was the exchange of slippers for the release of a legal right.

Question 36

Under Article 2A)of the UCC,what is the correct term for a person who acquires the right to possession and use of goods under a lease?

A)Acquirer
B)Lessor
C)Buyer
D)Seller
E)Lessee

Question 37

Under the UCC,items are ________ if they exist physically.

A)Tangible
B)Saleable
C)Real
D)Movable
E)Merchandise

Question 38

Which of the following is a special type of lease?

A)Consumer and finance but not terminal
B)Finance but not consumer or terminal
C)Terminal but not finance or consumer
D)Terminal and finance but not consumer
E)Consumer but not finance or terminal

Question 39

Which of the following is true regarding Chinese law?

A)China currently has legislation that covers the sale of goods and the provision of services,but no legislation that covers leases.
B)China currently has legislation that covers the sale of goods but not the provision of services or leases.
C)China currently has legislation that covers the sale of goods,the provision of services,and leases.
D)China has legislation that covers leases and the sale of goods,but not the provision of services.
E)China currently has legislation that covers leases but not the provision of services or the sale of goods.

Question 40

The UCC is divided into sections known as ________.

A)Articles
B)Divisions
C)Amendments
D)Subsections
E)Clauses

Question 41

Which of the following is true regarding whether the agreement between Lara and Kim for the sale of dresses satisfied the writing requirement of the UCC?

A)The agreement is likely binding because under the UCC,if two merchants have an oral agreement,a written memo from either party to the other is deemed to satisfy the statute of frauds,even if it is not acknowledged by the receiving party.If it is not objected to within 10 days of receipt,the oral agreement,memorialized by the memo,is binding.
B)The agreement is not binding because Lara did not send Kim a registered letter memorializing the oral conversation as is required by the UCC.
C)The agreement is binding because the UCC has no requirement of a writing under any circumstances.
D)The agreement is likely binding because under the UCC,if two merchants have an oral agreement,there is no requirement of a writing so long as another witness is willing to confirm that within 10 days of the agreement,one of the parties memorialized the agreement by a memorandum to the file,even if it was not sent to the other party.
E)The agreement is not binding because Kim never signed anything by which she agreed to the terms of the oral agreement.

Question 42

Regarding the "Case Opener," which of the following best represents the decision on whether the cell towers at issue constituted goods?

A)That the contract involving the purchase of the cell towers was predominantly for the sale of goods for reasons including that the towers had physical property and could be moved.
B)That the contract involving the purchase of the cell towers predominately involved cellular telephone service and that the towers were,therefore,not goods.
C)That the contract involving the purchase of the cell towers was predominately for the purchase of real estate and that the towers were,therefore,not goods.
D)That the contract involving the purchase of the cell towers was predominately for goods because common law was applied by contract.
E)That the contract involving the purchase of the cell towers was not for goods because the towers were not easily movable.

Question 43

Which of the following is true in most states regarding whether the UCC applies to the contract Joaquin had with XYZ Carpet?

A)Common law will be applied,not the UCC,because the contract was mixed.
B)The court will apply the service-warranty test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.
C)The court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.
D)The court will apply the service-warranty test to determine whether the predominant purpose of the contract was the provision of a service in which case the UCC would apply.
E)The UCC will be applied,not common law,because the contract was mixed.

Question 44

Under the UCC,lease contracts requiring payments of ________ or more must be in writing in order to be enforceable.

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

Question 45

Under the UCC,courts allow parties to explain or supplement a written contract with which of the following?

A)Additional terms that are consistent with the terms in the agreement,evidence that helps the court interpret the agreement,and any evidence as to price.
B)Additional terms that are consistent with the terms in the agreement,but not evidence that helps the court interpret the agreement or any evidence as to price.
C)Any evidence as to price,but not additional terms that are consistent with the terms in the agreement or evidence that helps the court interpret the agreement.
D)Additional terms that are consistent with the terms in the agreement and evidence that helps the court interpret the agreement,but not any evidence as to price.
E)Evidence that helps the court interpret the agreement,but not additional terms that are consistent with the terms in the agreement or any evidence as to price.

Question 46

What legal concept aims to protect sales or lease contracts that the parties involved intend to be the final expression of their agreement?

A)Statute of frauds
B)Final evidence regulation
C)Parol evidence rule
D)Anti-oral evidence rule
E)End evidence rule

Question 47

If a firm offer is silent as to time,the UCC assumes ________.

A)A six-month irrevocability period
B)A one-year irrevocability period
C)A three-month irrevocability period
D)A four-month irrevocability period
E)A one-week irrevocability period

Question 48

Under the UCC,when is an acceptance effective?

A)When dispatched only if the U.S.mail is used,otherwise on receipt.
B)When dispatched.
C)When received only if acceptance by electronic means is made,otherwise on dispatch.
D)When received.
E)When dispatched only when the telephone is used,otherwise on receipt.

Question 49

Which of the following is true regarding the enforceability of the offer made by the manager at ABC Carpet?

A)ABC Carpet is bound by the offer,but only for a period of seven days.
B)ABC Carpet is bound by the offer,but only for a period of ten days.
C)ABC Carpet is bound by the offer,but only if Joaquin can establish reliance.
D)ABC Carpet was bound by the offer.
E)ABC Carpet is not bound by the offer because Joaquin did not provide any consideration.

Question 50

[Carpet Woes] Joaquin went shopping at ABC Carpet.He saw some carpet he liked but could not make up his mind.The manager at ABC Carpet wrote down the proposed purchase price for him along with a statement that the price would be good for three months.Two months later,Joaquin went back to ABC Carpet to purchase the carpet.Unfortunately,the price had gone up.Joaquin showed the manager his writing and guaranteed price,but the manager said that the offer was no longer good.Frustrated with ABC Carpet,Joaquin decided to purchase his carpet from XYZ carpet,and he also contracted with XYZ to do the installation.Unfortunately,Joaquin almost immediately started to have problems with the carpet.Joaquin told the sales manager for XYZ Carpet that he was planning on bringing a suit for breach of warranty.The sales manager,however,told him that breach of warranty provisions only applied to sales of goods and that the carpet purchase was for installation,a service.
What kind of offer did the manager at ABC Carpet make to Joaquin?

A)A firm offer
B)An unenforceable offer
C)An illusory offer
D)A mirror offer
E)A consideration offer

Question 51

When courts interpret sales and lease contracts,how do they prioritize the combination of the following four factors?

A)1)Express terms,2)Course of dealing,3)Course of performance,and 4)Usage of trade
B)1)Course of performance,2)Course of dealing,3)Express terms,and 4)Usage of trade
C)1)Express terms,2)Usage of trade,3)Course of dealing,and 4)Course of performance
D)1)Express terms,2)Course of performance,3)Course of dealing,and 4)Usage of trade
E)1)Usage of trade,2)Course of performance,3)Course of dealing,and 4)Express terms

Question 52

Under the UCC,contracts for the sale of goods valued at or more must be in writing in order to be enforceable.

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

Question 53

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

A)If payment terms are omitted,payment is due at the time and place at which the buyer is to receive the goods,and the place for delivery is the seller's place of business.
B)If payment terms are omitted,payment is due at the time and place at which the buyer is to receive the goods,and the place for delivery is the buyer's place of business.
C)If payment terms are omitted,payment is due at least 10 days prior to the date set for delivery,and the place for delivery is the buyer's place of business.
D)If payment terms are omitted,payment is due at least 10 days prior to the date set for delivery,and the place for delivery is the seller's place of business.
E)There is no contract if these terms are omitted.

Question 54

If a court discovers that a contract or lease provision or the contract or lease as a whole is unconscionable,what actions does the UCC provide for the court to take?

A)The court either can refuse to enforce the contract or lease or can enforce the parts of the contract or lease that are fair.
B)The court has no power to enforce the lease and must award the innocent party punitive damages.
C)The court can only refuse to enforce the contract or lease in total.
D)The contract is void.
E)The court can only refuse to enforce the parts of the contract or lease that are unfair.

Question 55

Which of the following is true regarding state rights in relation to the UCC?

A)Because the UCC is a federal law,states have no rights to change it.
B)State legislatures may make changes to Article 2A)of the UCC but not to any other articles.
C)Each state is allowed to rewrite parts of the UCC to reflect the wishes of its state legislature.
D)States must adopt the UCC in full or not at all.
E)State legislatures may make changes to Article 2 of the UCC but not to any other articles.

Question 56

Under the UCC,how may an acceptance be made?

A)Only by electronic communication or by a writing.
B)By any reasonable means of communication.
C)Only orally or by a writing.
D)Only by facsimile or by mail.
E)Only by a writing.

Question 57

A contract or contract provision is said to be ________ if it is so unfair that a court would be unreasonable if it enforced the contract.

A)Voidable
B)Unreasonable
C)Ancillary
D)Unconscionable
E)Viable

Question 58

[Dress Shop Problems] Lara,who has a ladies' dress shop,reached an oral agreement with Kim,a wholesaler,to purchase 100 dresses for $80 each,with the dresses to be delivered within 30 days.Kim later orally agreed to a modification whereby she would add ten belts to go along with certain dresses at no extra charge.Kim did so because she wanted to maintain Lara's good will.Lara sent Kim a memo confirming their oral agreement,including the modification,but heard nothing.When the dresses did not arrive within 30 days,Lara checked with Kim.Kim told her that their agreement was no good because Kim never signed anything and that the UCC does not apply in the retail arena.
Which of the following is true regarding Kim's statement that the UCC does not apply in the retail arena?

A)Kim is partially correct.The UCC does not apply in the retail arena if the parties have had significant past dealings under common law.
B)Kim is partially correct.The UCC does not apply in the retail arena if the parties are located in the same state.
C)Kim is incorrect.
D)Kim is partially correct.The UCC does not apply in the retail arena if the contract at issue is for an amount under $10,000.
E)Kim is correct in that the UCC does not apply in the retail arena.

Question 59

Which of the following is true regarding the creation of the Uniform Commercial Code?

A)The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws,the American Law Institute,and the U.S.Commercial Consortium.
B)The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws and the American Law Institute,but not the U.S.Commercial Consortium.
C)The Uniform Commercial Code was created by state legislative representatives from all 50 states.
D)The Uniform Commercial Code was created by a federal congressional committee.
E)The Uniform Commercial Code was created by the U.S.Commercial Consortium and the National Conference of Commissioners on Uniform State Laws,but not the American Law Institute.

Question 60

Which of the following was offered as a treaty that countries could sign in order to indicate their willingness to allow this treaty to govern international business-to-business sales contracts?

A)The United Nations Convention on Contracts for the International Sale of Goods
B)The International Convention of Contracts for International Sales
C)The Worldwide Federation Convention on the Sale of Goods
D)The Federation Convention on the Uniform Commercial Code
E)The International Agreement on the Sale of Goods

Question 61

Is Morton's contract for PaperCo to purchase his trees covered by the UCC?

A)Yes,but only if Morton sells PaperCo the right to come onto his property and remove the trees.
B)No,because the trees are part of the land and land sales are covered by common law.
C)Yes,but only if PaperCo removes the trees.
D)Yes,because Morton cut them down and then sold them to PaperCo.
E)Yes,because trees are always considered goods.

Question 62

According to Exhibit 21-5 in the text,if quantity is left open in a contract for the sale of goods under the UCC,how will a court most likely interpret this provision?

A)The court will look to the specific industry standards in the UCC.
B)A "reasonable" quantity is supplied at the time of trial.
C)The court generally has no basis for determining a remedy.
D)A "reasonable" quantity is supplied at the time of delivery.
E)The court will decide the quantity.

Question 63

[Cookware Crisis] Aranda owns Aranda's Cooking,a cooking supply company which sells high quality cookware to restaurants and specialty stores.Aranda stopped at a potential customer,Rita's Restaurant,to show Rita a new,elite line of copper cookware,bakeware,and utensils.Rita told Aranda she wanted to buy the entire cookware line for the stated price of $5,000,but needed time to think about the other items.The following day,Rita called Aranda and told her to add the line of bakeware Rita had quoted for $5,000 and the line of utensils.The next week,Aranda delivered the entire cookware line,and said she would return the next day to drop off the bakeware and utensils and pick up a check for $12,000 which included $5,000 for the bakeware and $2,000 for the utensils.Rita was outraged at the price of the utensils and told Aranda not to deliver the utensils because there was no agreement about them.Aranda tells Rita that she agreed to buy the utensils and there is a valid contract,and that she expects full payment when she returns the next day.Rita responds that the addition of the utensils was only a counter-offer,which was not accepted by Rita and there is nothing in writing,and therefore there is no contract.Aranda delivers the bakeware and utensils the following day.
Is Rita correct that her statement to add the utensils did not constitute acceptance?

A)Yes,because additional terms are always permitted in sales contracts under the UCC.
B)No,because additional terms must be in writing.
C)No,because Rita's acceptance was not the mirror-image of Aranda's offer.
D)No,because Aranda never accepted Rita's counter-offer.
E)Yes,because Rita did not expressly condition her acceptance upon Aranda's assent to the additional terms.

Question 64

Which of the following statements is true regarding merchants under the UCC?

A)The UCC has different rules for transactions involving merchants and transactions involving non-merchants,and merchants are generally held to a high standard of care and behavior than non-merchants.
B)The UCC has different rules for transactions involving merchants and transactions involving non-merchants,however merchants and non-merchants are generally held to the same standard of care and behavior.
C)Under the UCC,merchants and non-merchants are sometimes treated differently,however,they are both held to the same standard of care and behavior.
D)Although the UCC applies the same rules for transactions involving merchants and transactions involving non-merchants,merchants are generally held to a high standard of care and behavior than non-merchants.
E)There is no distinction between merchants and non-merchants under the UCC.

Question 65

Are there any steps Emilia should take in small claims court,or before she goes,regarding the customer who ordered the plain T-shirts?

A)Yes,she should attempt to get the customer to admit that he ordered the T-shirts.
B)No,because once the parties are in court,positions of the parties are frozen.
C)Yes,she should dismiss the case before she is charged with the other party's attorney fees.
D)Yes,she should dismiss the case before she is charged with sanctions.
E)No,because once the parties are in court,only the judge can add evidence.

Question 66

Which of the following statements is true about the Uniform Commercial Information Transactions Act UCITA)?

A)UCITA was adopted by the UCC.
B)All states have adopted UCITA.
C)In 2001,Virginia became the first state to enact UCITA,probably because major Internet-related companies are headquartered in Northern Virginia.
D)UCITA applies to physical goods,like the UCC.
E)Unlike the UCC,states can decide whether or not to adopt UCITA.

Question 67

[Lucky Morton] Morton,who owns 500 acres of land in east Texas,has just discovered oil under his property.He calls OilEx,who wants to buy all of the oil from Morton's property.Morton is thrilled about the money he will make from selling the oil and he signs a contract allowing OilEx to set up a drilling station on his property.Thinking he can get more money off his land,Morton cuts down all of his trees with a chainsaw and then sells them to PaperCo to be made into paper.Meanwhile,Morton's neighbor offers to buy Morton's wheat crop after it is harvested in the Fall,and Morton agrees.
Is Morton's contract with OilEx likely covered by the UCC?

A)No,because Morton has sold OilEx the right to come onto his property and remove the oil,which is not covered by the UCC.
B)Yes,because oil is considered a good.
C)Yes,but only if it is over $500 in value and in writing.
D)No,because oil is considered part of the land and land sales are not covered by the UCC.
E)Yes,because the oil is a fixture,which is being removed from the ground and sold.

Question 68

Which of the following items would not be considered a "good" under the UCC?

A)A book that has been copyrighted and sold to a bookstore.
B)Trees cut from a parcel of land to be turned into paper.
C)The copyright of a best-selling novel.
D)Light bulbs to be placed in a skyscraper.
E)A box of hammers,with a value of $499.

Question 69

Under the UCC,when will additional terms negate acceptance of a sales contract?

A)When acceptance is made expressly conditional on assent to the mirror image rule.
B)When acceptance is made expressly conditional on assent to the parol evidence rule.
C)Adding terms to a sales contract always cancels acceptance of a contract.
D)When acceptance is made expressly conditional on assent to the additional terms.
E)Additional terms never cancel the acceptance of a sales contract.

Question 70

What was the court's ruling in DeWeldon.Ltd.v.McKean,the case in the text regarding whether the artist Felix DeWeldon was considered a "merchant" within the meaning of the UCC?

A)The court found that Felix DeWeldon was not a "merchant" because he is an individual.
B)The court found that,even though he recently sold paintings and was a collector,Felix DeWeldon was not a "merchant" because his occupation was not that of an art dealer.
C)The court found that Felix DeWeldon was not a "merchant" because his occupation was an artist and not an art dealer.
D)The court found that Felix DeWeldon was a "merchant" but only because the defendant viewed him as an art dealer.
E)The court found that Felix DeWeldon was a "merchant".

Question 71

Which of the following is true regarding the modification to the agreement involving the belts added to the order at no extra charge?

A)The modification is enforceable because the UCC requires only that modifications be made in good faith.
B)The modification is enforceable because although the UCC requires consideration for modifications,the desire to maintain good will satisfies the requirement of consideration.
C)The modification is not enforceable unless it can be shown that the dresses were designed to have a belt.
D)The modification is not enforceable because no additional consideration was given.
E)The modification is not enforceable because the initial contract involving the sale of the dresses is not enforceable.

Question 72

After conducting a great deal of research,Nora contacts a camping store and signs a contract to purchase forty-five new tents at a reduced rate.According to Exhibit 21-4 of the text,under what circumstances would Nora not be considered a "merchant" under UCC Article 2 with regard to the contract for the purchase of the tents?

A)If Nora deals in tents and if Nora employed a merchant as a broker to buy the tents.
B)If Nora owns a camping store and held herself out as having knowledge and skill unique to camping;or if Nora employed a merchant as a broker to buy the tents.
C)If Nora deals in tents;if she owns a camping store and held herself out as having knowledge and skill unique to camping;and if Nora employed a merchant as a broker to buy the tents.
D)If Nora owns a camping store and held herself out as having knowledge and skill unique to camping.
E)If Nora purchased the tents for use at the summer camp she manages.

Question 73

According to Exhibit 21-6 of the text,which of the following statements about material terms under the UCC and the common law is true?

A)Under both UCC and common law,all material terms other than price must be specified in the contract.
B)Under both UCC and common law,material terms may be left open for subsequent determination by the parties.
C)Under common law,all material terms must be specified in the contract,but under the UCC,material terms may be left open.
D)Under both UCC and common law,all material terms must be specified in the contract.
E)Under the UCC,all material terms must be specified in the contract,but under common law,material terms may be left open.

Question 74

What are the UCC's exceptions to the statute of fraud's writing requirements?

A)Specifically manufactured goods,admission,and modification.
B)Admission and partial-performance,but specifically manufactured goods must be in writing.
C)There are no exceptions for the statute of fraud's writing requirements.
D)Specifically manufactured goods,and admission,but there is no exception for partial performance.
E)Specifically manufactured goods,admission,and partial performance.

Question 75

Which of the following is true regarding Emilia's assertion that she should be allowed to recover from the baseball coach?

A)Based upon the facts given,Emilia cannot recover because the coach was not a merchant in regards to the transaction and had not signed anything showing that he was to be charged for the caps.
B)Emilia can recover only if she can prove by testimony of a witness that the coach received the confirmation letter and read it.
C)Emilia can recover because she sent the coach a confirmation letter,and he did not object within 10 days of receipt.
D)Emilia can recover because she sent the coach a confirmation letter,and he did not object within 20 days of receipt.
E)Emilia can recover because the transaction was not covered by the UCC.

Question 76

What was the court's ruling in Loizeaux Builders Supply Co.v.Donald B.Ludwig Company,the case in the text about whether a supplier's telephone call in February that the low price for concrete "would be adhered to for the year" still applied after January 1,when the supplier raised its price?

A)The court found for the buyer and awarded the lower price for deliveries until February 1,because the contract is between merchants,who are held to a higher standard of care.
B)The court found for the supplier and awarded the higher price for deliveries after January 1,because there were witnesses who supported the supplier's testimony.
C)The court found for the supplier and awarded the higher price for deliveries after January 1,based on the plain meaning of "adhered to for the year",the customer practice in the industry to raise prices January 1,and the fact that the buyer had actual notice of the price increase.
D)The court found for the buyer and split the price difference,because the contract is between merchants,who are held to a higher standard of care,but the buyer had actual notice of the price increase.
E)The court found for the buyer and awarded the lower price for deliveries until February 1,based on the plain meaning of "adhered to for a year".

Question 77

According to Exhibit 21-5 in the text,which terms can be interpreted by the UCC if left open in a contract?

A)Payment,delivery,time,but not price or duration.
B)Time and duration,but not price,payment,or delivery.
C)All terms except price.
D)Delivery,time,and duration,but not price or payment.
E)Price,payment,delivery,time,and duration.

Question 78

Is Morton's contract for Winslow to purchase his wheat crop covered by the UCC?

A)Yes,because crops that are sold while still growing in the field are considered goods.
B)Yes,but only if Morton cuts them down and then sells them to Winslow.
C)No,because the wheat is still growing and affixed to the land,and land sales are covered by common law.
D)No,because crops are not considered goods.
E)Yes,but only if Morton sells Winslow the right to come onto his property and remove the wheat.

Question 79

[Customer Uncertainty] Luke wanted baseball caps with the name of the firm of which he was president,ABC Corporation,emblazoned on the front.Emilia,a merchant in specialized goods,orally agreed with Luke that she would sell him 200 baseball caps at $5 each.No writing was ever made,although there were a number of witnesses to the conversation.After the caps were finished,but before they were shipped,Luke called to cancel the order because his firm had just announced a merger and would no longer be known as ABC Corporation.Emilia told him she would not cancel the contract because she had just finished the caps.Luke told Emilia that she should have been smarter and had him sign something because without a writing,she would not have a chance in court.Emilia is also having problems with other customers.A father who voluntarily coached a youth softball league in his community called and orally ordered 150 baseball caps at a cost of $4 to give out at a league banquet.He wanted a variety of caps with no name on them because players from different teams would be at the banquet.Emilia sent a confirmation letter to the coach and had the caps packed up and ready to go.Just before she shipped them,the coach called and told her that there was a big feud,the banquet was canceled,and that he was canceling the order.She believes that the coach should pay damages,especially because a big order was involved.Finally,Emilia has a merchant customer who orally ordered 500 plain T-shirts at a cost of $5 each,but has not picked them up and has refused to do so after several demands.Emilia wants to take the merchant customer to small claims court.
Which of the following is correct regarding Luke's assertion that Emilia cannot recover the cost of the caps?

A)Luke is correct.Emilia cannot recover because she has nothing in writing.
B)Luke is incorrect because the cost of the caps is insufficient to come within the requirement of a writing under the UCC.
C)Luke is incorrect both because Emilia had already made the caps and also because she had witnesses.
D)Luke is incorrect because Emilia had already made the caps and she cannot sell them to another buyer.
E)Luke is incorrect because Emilia has witnesses.

Question 80

For businesses that operate in the global economy,which of the following types of clauses would be advantageous to include in a contract in order to avoid conflict?

A)Choice-of-law and forum-selection clauses,but not choice-of-language clauses.
B)Choice-of-language and choice-of-law clauses,but not forum-selection clauses.
C)Choice-of-language,forum-selection and choice-of-law clauses would be more harmful than helpful in a sales contract in the global economy.
D)Choice-of-language,forum-selection and choice-of-law clauses.
E)Choice-of-language and forum-selection clauses,but not choice-of-law clauses.