Question 1

The Equal Credit Opportunity Act applies only to consumer transactions.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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 3

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

Accepted Answer

A) True 
 B)False

Question 4

Revocation can be valid any time prior to acceptance.

Accepted Answer

A) True 
 B)False

Question 5

Julia Pitt runs a boutique that specializes in luggage and travel items.Julia contacts Tumi Luggage about carrying its line of messenger satchels.The Tumi representative tells Julia that Tumi would be happy to sell her 100 Tumi Black Messenger bags for $318 each.Julia is happy with the price and asks Tumi to send the bags.The Tumi representative then faxes a confirmation of the shipment of the 100 bags at $318 each.Julia receives the fax.When the bags arrive,Julia contacts Tumi and says there is a business downturn and that she does not want the bags and that there was no contract anyway.

Accepted Answer

A) Julia is correct; the contract requires some type of authentication from Julia to be enforceable. 
B) Julia is correct; the contract required more than a fax to have a sufficient record. 
C) Julia is incorrect; she and Tumi have a valid and enforceable contract. 
D) both a and b

Question 6

What additional disclosures must be made in credit transactions in which the debtor's home will serve as security for the loan?

Accepted Answer

The answer of What additional disclosures must be made in...

Question 7

Under CARD,colleges and universities must:

Accepted Answer

A) disclose financial relationships with the credit card companies. 
B) provide debt counseling for students. 
C) limit locations for student solicitation for credit cards. 
D) do all of these.

Question 8

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.

Accepted Answer

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 9

The parol evidence rule does not apply in UCC contracts.

Accepted Answer

A) True 
 B)False

Question 10

A contract for the sale of potatoes is not governed by the UCC.

Accepted Answer

A) True 
 B)False

Question 11

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?

Accepted Answer

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

Question 12

An ad in a newspaper reads: "AVAILABLE TODAY ONLY.FRIENDLY'S APPLIANCES.CLEARANCE SALE FOR ALL FLOOR ITEMS.75% OFF RETAIL PRICES." Joan Ludwig arrived at Friendly's about one hour after it opened and there were no appliances left.​
-​Which of the following is true?

Accepted Answer

A) Friendly's has breached a contract and owes damages to Joan. 
B) There is no breach of contract. 
C) Joan has no rights of recovery because the contract was required to be in writing. 
D) There was no contract, but Joan can recover on the basis of quasi contract. 
E) none of the above

Question 13

Which of the following contracts would have to have some form or writing or record to be enforced?

Accepted Answer

A) A contract for the sale of a painting for $1,000. 
B) A contract for employment for nine months. 
C) A contract for advertising a house for sale for $50. 
D) All of the above contracts would need to be in writing to be enforceable.

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is effective upon mailing or dispatch?

Accepted Answer

A) offers 
B) rejections 
C) counteroffers 
D) revocation 
E) none of the above

Question 16

The above book contract must be in writing to be valid.

Accepted Answer

A) True 
 B)False

Question 17

A credit application that asks for criminal convictions from the last five years violates the ECOA.

Accepted Answer

A) True 
 B)False

Question 18

"Point and click" is not sufficient for acceptance under UETA.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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."

Accepted Answer

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

Exam 11: Contracts and Sales: Introduction and Formation

The Equal Credit Opportunity Act applies only to consumer transactions.

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

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

Revocation can be valid any time prior to acceptance.

What additional disclosures must be made in credit transactions in which the debtor's home will serve as security for the loan?

Under CARD,colleges and universities must:

The parol evidence rule does not apply in UCC contracts.

A contract for the sale of potatoes is not governed by the UCC.

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?

An ad in a newspaper reads: "AVAILABLE TODAY ONLY.FRIENDLY'S APPLIANCES.CLEARANCE SALE FOR ALL FLOOR ITEMS.75% OFF RETAIL PRICES." Joan Ludwig arrived at Friendly's about one hour after it opened and there were no appliances left. -Which of the following is true?

Which of the following contracts would have to have some form or writing or record to be enforced?

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.

Which of the following is effective upon mailing or dispatch?

The above book contract must be in writing to be valid.

A credit application that asks for criminal convictions from the last five years violates the ECOA.

"Point and click" is not sufficient for acceptance under UETA.

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

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."

Exam 11: Contracts and Sales: Introduction and Formation

The Equal Credit Opportunity Act applies only to consumer transactions.

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

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

Revocation can be valid any time prior to acceptance.

What additional disclosures must be made in credit transactions in which the debtor's home will serve as security for the loan?

Under CARD,colleges and universities must:

The parol evidence rule does not apply in UCC contracts.

A contract for the sale of potatoes is not governed by the UCC.

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?

An ad in a newspaper reads: "AVAILABLE TODAY ONLY.FRIENDLY'S APPLIANCES.CLEARANCE SALE FOR ALL FLOOR ITEMS.75% OFF RETAIL PRICES." Joan Ludwig arrived at Friendly's about one hour after it opened and there were no appliances left.​ -​Which of the following is true?

Which of the following contracts would have to have some form or writing or record to be enforced?

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.

Which of the following is effective upon mailing or dispatch?

The above book contract must be in writing to be valid.

A credit application that asks for criminal convictions from the last five years violates the ECOA.

"Point and click" is not sufficient for acceptance under UETA.

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

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."

An ad in a newspaper reads: "AVAILABLE TODAY ONLY.FRIENDLY'S APPLIANCES.CLEARANCE SALE FOR ALL FLOOR ITEMS.75% OFF RETAIL PRICES." Joan Ludwig arrived at Friendly's about one hour after it opened and there were no appliances left. -Which of the following is true?