Question 1

Generally,acceptance of an offer to lease goods may be made in any reasonable manner and by any reasonable means.

Accepted Answer

A) True 
 B)False  True

Question 2

The UCC imposes some different rules on merchants.

Accepted Answer

A) True 
 B)False  True

Question 3

Fresh Dairy,Inc.,is the offeror and Gelato Ice Cream Company is the offeree under a unilateral sales contract in which Hector's Helado Corporation is also interested.Gelato is not notified of Fresh Dairy's performance within a reasonable time.Gelato

Accepted Answer

A)   ​may treat the offer as having lapsed. 
B)   ​must assume that Fresh Dairy has started to perform. 
C)   ​must contact Fresh Dairy. 
D)   ​must notify Hector's. A

Question 4

Jackson owns an antiques store.He sells a grand piano to Fred for $5,000,a old jukebox to Sam for $499,an antebellum chest of drawers to Josephine for $659 and a gold ring to Wendy for $999.Which of Jackson's sales must be in writing to be enforceable?

Accepted Answer

A)   ​The grand piano only 
B)   ​The grand piano and the gold ring only 
C)   ​The grand piano, the chest of drawers and the gold ring only 
D)   ​The grand piano, the chest of drawers, the jukebox and the gold ring

Question 5

Great Grain Farms offers to sell Hearty Bakeries,Inc.,fifty bushels of wheat.Hearty's representative Milena responds,"We agree to buy fifty bushels only if the wheat is Grade A quality." Between Great Grain and Hearty

Accepted Answer

A)   ​a contract is formed. 
B)   ​a contract is formed only if Great Grain can deliver the wheat fast. 
C)   ​Milena's statement is not an acceptance. 
D)   ​Milena's statement is an acceptance.

Question 6

Fact Pattern 18-1Olga enters into a contract to buy a refrigerator from a Prairie States Appliance store with the price to be paid in monthly installments. After thirty-six months of payments, Olga has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract.
-Refer to Fact Pattern 18-1.Olga files a suit against Prairie States,claiming that their contract is so unfair and one sided that it would be unreasonable to enforce it.Olga is asserting

Accepted Answer

A)   ​the concept of good faith. 
B)   ​the principle of fair trade. 
C)   ​the predominant-factor test. 
D)   ​the doctrine of unconscionability.

Question 7

Expert Stitching Corporation enters into a contract to sell denim clothing to Fine Fashion Company,which in turn sells a pair of jeans to Grady,a consumer.In contrast to standards that apply to consumers,the UCC imposes on merchants

Accepted Answer

A)   ​less strict legal standards. 
B)   ​special business standards. 
C)   ​stricter ethical standards. 
D)   ​the same overall standards.

Question 8

Carn' Truck Body & Paint Company orders custom paint from Diverse Hues Inc.,but Diverse does not deliver.Carn' Truck will probably be unable to enforce the agreement if the parties omitted

Accepted Answer

A)   ​a price term. 
B)   ​a delivery date. 
C)   ​a quantity term. 
D)   ​shipping arrangements.

Question 9

Refined Cereal Grains,Inc.,agrees to sell to Sunny Breakfast Cereal Company a certain quantity of refined oats each week but no mention is made of where the goods are to be delivered.In general,the UCC requires that the delivery take place at​

Accepted Answer

A)   ​a neutral place of business halfway between the parties' locations. 
B)   ​a "reasonable" place of delivery. 
C)   ​Refined Cereal's place of business. 
D)   ​Sunny's place of business.

Question 10

Jacob offers to sell Bill a valuable collection of baseball cards.In order for the transaction between Jacob and Bill to be considered a sale under the UCC,Bill

Accepted Answer

A)   ​must pay for the cards in cash. 
B)   ​must pay for the cards with services. 
C)   ​may pay for the cards with cash, goods, or services. 
D)   ​must pay the fair market value of the cards.

Question 11

Megan,who is not an expert on horses,offers to sell a horse,a saddle blanket,and a bridle to her neighbor Nathan for $2,000.Nathan signs the bill of sale and pays the $2,000,but says that he wants a saddle,too.If Megan does not give Nathan a saddle along with the other goods and he files a suit against Megan for breach of contract,the court will probably

Accepted Answer

A)   ​require Megan to give Nathan a saddle without Nathan paying for it. 
B)   ​void the contract and return both parties to their initial status. 
C)   ​enforce the contract according to the original terms. 
D)   ​require Megan to give Nathan a saddle and Nathan to pay Megan for it.

Question 12

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 the...

Question 13

iSharp,Inc.,and Jenene,the owner of a Kitchen Time shop,orally agree to a sale of knives and other utensils for $12,000.Jenene gives iSharp a check for $4,000 as a partial payment.This contract is​

Accepted Answer

A)   ​enforceable to the extent of $4,000. 
B)   ​fully enforceable because it is for specially selected goods. 
C)   ​fully enforceable because it is oral. 
D)   ​not enforceable.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

The answer of Tune Products,Inc.,offers to sell to Unlimited Sales...

Question 16

Under the UCC,an oral contract for a sale of goods is enforceable once payment has been made and accepted.

Accepted Answer

A) True 
 B)False

Question 17

According to the UCC,one open term will cause a sales contract to fail for indefiniteness.

Accepted Answer

A) True 
 B)False

Question 18

Jamie is redoing his kitchen and decides he needs a floor sander to complete the job.Jamie tells Rachel,his neighbor,that he needs a floor sander.Rachel tells Jamie to call Home Repair Rentals,Inc.Home Repair Rentals leases Jamie a floor sander.In this transaction the lessor is

Accepted Answer

A)   ​Jamie. 
B)   ​Rachel. 
C)   ​Home Repair Rentals. 
D)   ​both Jamie and Rachel.

Question 19

In a dispute over a sale involving a bicycle,Dain argues that as to this deal Emil's Hobby Shop,where Dain bought the bike,is a merchant.A court may determine whether Emil's is a merchant by assessing whether

Accepted Answer

A)   ​it has sold any bikes within the last year. 
B)   ​it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction. 
C)   ​its owner enjoys biking. 
D)   ​it subscribes to Bike, a biweekly trade magazine.

Question 20

A course of performance is the conduct that occurs under the terms of a particular agreement.

Accepted Answer

A) True 
 B)False

Exam 18: Introduction to Sales and Lease Contracts

Generally,acceptance of an offer to lease goods may be made in any reasonable manner and by any reasonable means.

The UCC imposes some different rules on merchants.

Fresh Dairy,Inc.,is the offeror and Gelato Ice Cream Company is the offeree under a unilateral sales contract in which Hector's Helado Corporation is also interested.Gelato is not notified of Fresh Dairy's performance within a reasonable time.Gelato

Jackson owns an antiques store.He sells a grand piano to Fred for $5,000,a old jukebox to Sam for $499,an antebellum chest of drawers to Josephine for $659 and a gold ring to Wendy for $999.Which of Jackson's sales must be in writing to be enforceable?

Great Grain Farms offers to sell Hearty Bakeries,Inc.,fifty bushels of wheat.Hearty's representative Milena responds,"We agree to buy fifty bushels only if the wheat is Grade A quality." Between Great Grain and Hearty

Expert Stitching Corporation enters into a contract to sell denim clothing to Fine Fashion Company,which in turn sells a pair of jeans to Grady,a consumer.In contrast to standards that apply to consumers,the UCC imposes on merchants

Carn' Truck Body & Paint Company orders custom paint from Diverse Hues Inc.,but Diverse does not deliver.Carn' Truck will probably be unable to enforce the agreement if the parties omitted

Refined Cereal Grains,Inc.,agrees to sell to Sunny Breakfast Cereal Company a certain quantity of refined oats each week but no mention is made of where the goods are to be delivered.In general,the UCC requires that the delivery take place at​

Jacob offers to sell Bill a valuable collection of baseball cards.In order for the transaction between Jacob and Bill to be considered a sale under the UCC,Bill

iSharp,Inc.,and Jenene,the owner of a Kitchen Time shop,orally agree to a sale of knives and other utensils for $12,000.Jenene gives iSharp a check for $4,000 as a partial payment.This contract is​

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

Under the UCC,an oral contract for a sale of goods is enforceable once payment has been made and accepted.

According to the UCC,one open term will cause a sales contract to fail for indefiniteness.

Jamie is redoing his kitchen and decides he needs a floor sander to complete the job.Jamie tells Rachel,his neighbor,that he needs a floor sander.Rachel tells Jamie to call Home Repair Rentals,Inc.Home Repair Rentals leases Jamie a floor sander.In this transaction the lessor is

In a dispute over a sale involving a bicycle,Dain argues that as to this deal Emil's Hobby Shop,where Dain bought the bike,is a merchant.A court may determine whether Emil's is a merchant by assessing whether

A course of performance is the conduct that occurs under the terms of a particular agreement.

Refined Cereal Grains,Inc.,agrees to sell to Sunny Breakfast Cereal Company a certain quantity of refined oats each week but no mention is made of where the goods are to be delivered.In general,the UCC requires that the delivery take place at

iSharp,Inc.,and Jenene,the owner of a Kitchen Time shop,orally agree to a sale of knives and other utensils for $12,000.Jenene gives iSharp a check for $4,000 as a partial payment.This contract is