Question 1

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.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Discuss why force majuere clauses are beneficial especially in international contracts.

Accepted Answer

The answer of Discuss why force majuere clauses are beneficial...

Question 4

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

Accepted Answer

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 5

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

Accepted Answer

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

Question 6

An ad for Spencer's Appliance read as follows: "Come one, come all, to Spencer's semi-annual storewide sale. Doors open at 7 AM the day after Thanksgiving. The first 50 customers receive $200 off any appliance selling for $500 or more." Joan Dreisden arrived at the store at 6 AM and was number 22 in line. Joan wished to purchase an HD TV for $1300. Spencer's refused to give her the $200 off the price. "Just an ad," was the manager's explanation. Is the manager correct?

Accepted Answer

The answer of An ad for Spencer's Appliance read as...

Question 7

What is another name for subprime loans?

Accepted Answer

A) Void loans 
B) Voidable loans 
C) Predatory lending 
D) Unregulated loans

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The Uniform Electronic Transaction Act (UETA):

Accepted Answer

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 10

Common law does not dictate amounts required for consideration.

Accepted Answer

A) True 
 B)False

Question 11

Under the CISG, acceptance is effective only upon receipt.

Accepted Answer

A) True 
 B)False

Question 12

Usury is charging an interest rate higher than the maximum permitted by law.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

What is the act drafted in 2000 that requires states to allow contracts formed using the Internet to be signed with electronic signatures?

Accepted Answer

A) Uniform Electronic Transactions Act 
B) Electronic Signatures in Global and National Commerce Act 
C) Uniform Computer Information Transaction Act 
D) Electronic Clickwrap Acceptance Act

Question 15

The CISG follows the mirror image rule in formation.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

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

Question 17

Janet Kennedy has received a letter in the mail from BISA International, a credit card firm. The letter describes the card as follows: ​
"This card is yours for only a small annual fee that is billed to your account. There is an annual percentage rate finance charge of 16.5%. There may be other charges for some transactions. There are no late fees, but there will be a charge for going over your credit limit."
​
Which of the following statements is true?

Accepted Answer

A) The letter includes all the necessary disclosures for credit card solicitation under Regulation Z. 
B) The finance charge is usurious. 
C) The letter is missing several items of disclosure required under Regulation Z for credit card solicitation. 
D) None of the above

Question 18

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

Accepted Answer

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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:

Accepted Answer

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.

Exam 10: Contracts and Sales: Introduction and Formation

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."

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

Discuss why force majuere clauses are beneficial especially in international contracts.

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

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

What is another name for subprime loans?

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

The Uniform Electronic Transaction Act (UETA) :

Common law does not dictate amounts required for consideration.

Under the CISG, acceptance is effective only upon receipt.

Usury is charging an interest rate higher than the maximum permitted by law.

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

What is the act drafted in 2000 that requires states to allow contracts formed using the Internet to be signed with electronic signatures?

The CISG follows the mirror image rule in formation.

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

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

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

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: