Question 1

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gena suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is

Accepted Answer

A)  ​Ferris. 
B)  ​Gena. 
C)  ​Home Repair. 
D)  ​none of the parties.

Question 2

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is the uniform international sales law of countries that account for more than two-thirds of all global trade.

Accepted Answer

A) True 
 B)False

Question 3

To be characterized as a "good" under the UCC, an item of property must be movable.

Accepted Answer

A) True 
 B)False

Question 4

Clean Machines Company makes washing machines. Over the phone, Clean offers to sell Dealers Appliance Outlet one hundred model EZ2000 washers at a price of $150 per unit. Clean says that it will keep the offer open for ninety days. Dealers responds that within two or three weeks it will decide whether to accept. One week later, Clean faxes, and Dealer receives, notice that the offer is withdrawn. Dealer immediately phones Clean to accept the $150-per-unit offer. When Clean refuses to deliver at that price, Dealer files a suit. Clean asserts, first, that there is no contract and, second, that if there is a contract, it is unenforceable. Discuss Clean's assertions.

Accepted Answer

The answer of Clean Machines Company makes washing machines. Over...

Question 5

Downtown Contractors LLC and Equipment Rental Corporation are parties to an oral agreement for a one-year lease of a crane with payments totaling more than $10,000. They may satisfy the Statute of Frauds by

Accepted Answer

A)  ​mutually agreeing not to commit fraud. 
B)  ​repeating the terms in a phone call. 
C)  ​setting out the terms in a memo. 
D)  ​shaking hands on the deal.

Question 6

Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation, which sells some of the items to Physicians Clinic, which later sells them to Oscar, a patient and consumer. Article 2 of the UCC applies to the sales transactions between

Accepted Answer

A)  ​all buyers and sellers. 
B)  ​Medico and New Hospital only. 
C)  ​New Hospital and Physicians Clinic only. 
D)  ​Physicians Clinic and Oscar only.

Question 7

Raul agrees to ship to Ben one hundred ceiling fans for $5,000. Raul initials his notes of the deal, which include the terms, and files the notes in his office. Ben initials his own notes of the deal, which include the terms, and files the notes in his office. Raul fails to ship the fans. Against Raul, as a contract, the deal is​

Accepted Answer

A)  ​enforceable, because under the UCC a contract need not written. 
B)  ​enforceable, because Raul's initialed notes are a sufficient writing. 
C)  ​enforceable, because Ben's initialed notes are a sufficient writing. 
D)  ​not enforceable.

Question 8

Under the UCC, the meaning of any agreement must be interpreted in light of commercial practices.

Accepted Answer

A) True 
 B)False

Question 9

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

Accepted Answer

A) True 
 B)False

Question 10

Leslie pays Mobile Electronics $600 for a new phone. Under the UCC, this is

Accepted Answer

A)  ​a merchant's firm offer. 
B)  ​a lease. 
C)  ​a sale. 
D)  ​a requirements contract.

Question 11

Sara and Tim enter into a contract for a sale of orchids. With respect to the specific contractual provisions set out in the UCC, these parties may

Accepted Answer

A)  ​agree to different terms only to a reasonable extent. 
B)  ​agree to different terms unless they "get caught." 
C)  ​agree to whatever terms they wish. 
D)  ​not agree to different terms.

Question 12

The UCC views the entire "commercial transaction for the sale of and payment for goods" as a single legal occurrence.

Accepted Answer

A) True 
 B)False

Question 13

Fact Pattern 15-1
Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods.
-Refer to Fact Pattern 15-1. Growers Market contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Growers Market is arguing that the court should take into account

Accepted Answer

A)  ​the course of dealing. 
B)  ​the course of performance. 
C)  ​the usage of trade. 
D)  ​none of the choices.

Question 14

Goods associated with real estate never fall within the scope of UCC Article 2.

Accepted Answer

A) True 
 B)False

Question 15

Key of G Products, Inc., offers to sell to Harmony Company one hundred MP3 players at $50 a piece, subject to certain specific delivery dates. Harmony replies with a signed purchase order that reads, "Accept your offer for 100 I-appliances at $50 each. Must be delivered to our warehouse." Key of G does not respond or deliver the goods. Harmony files a suit for breach of contract, to which Key of G answers that there is no contract because Harmony's purchase order contained additional terms and is not signed by Key of G. Can Harmony recover? Explain.

Accepted Answer

The answer of Key of G Products, Inc., offers to...

Question 16

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by

Accepted Answer

A)  ​mutually agreeing not to commit fraud. 
B)  ​repeating the terms in a phone call. 
C)  ​setting out the terms in a memo. 
D)  ​shaking hands on the deal.

Question 17

Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs

Accepted Answer

A)  ​the checks. 
B)  ​the payment of the loan. 
C)  ​the sale of the buildings. 
D)  ​the sale of the goods.

Question 18

A merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.

Accepted Answer

A) True 
 B)False

Question 19

The UCC requires a contract modification to be supported by new consideration.

Accepted Answer

A) True 
 B)False

Question 20

Under the UCC, an offeror must be notified within a reasonable time that the offeree has accepted.

Accepted Answer

A) True 
 B)False

Exam 15: The Formation of Sales and Lease Contracts

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gena suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is the uniform international sales law of countries that account for more than two-thirds of all global trade.

To be characterized as a "good" under the UCC, an item of property must be movable.

Downtown Contractors LLC and Equipment Rental Corporation are parties to an oral agreement for a one-year lease of a crane with payments totaling more than $10,000. They may satisfy the Statute of Frauds by

Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation, which sells some of the items to Physicians Clinic, which later sells them to Oscar, a patient and consumer. Article 2 of the UCC applies to the sales transactions between

Under the UCC, the meaning of any agreement must be interpreted in light of commercial practices.

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

Leslie pays Mobile Electronics $600 for a new phone. Under the UCC, this is

Sara and Tim enter into a contract for a sale of orchids. With respect to the specific contractual provisions set out in the UCC, these parties may

The UCC views the entire "commercial transaction for the sale of and payment for goods" as a single legal occurrence.

Goods associated with real estate never fall within the scope of UCC Article 2.

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by

Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs

A merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.

The UCC requires a contract modification to be supported by new consideration.

Under the UCC, an offeror must be notified within a reasonable time that the offeree has accepted.