Question 1

To be valid, a UCC merchant's firm offer:

Accepted Answer

A)  must be supported by consideration. 
B)  must be evidenced by a record. 
C)  must be signed by both parties. 
D)  all of the above

Question 2

Asking a couple's plans for having children is a violation of the ECOA.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following question(s) on a credit application would be a violation of the Equal Credit Opportunity Act?

Accepted Answer

A)  "Do you plan on getting pregnant within the next two years?" 
B)  "Have you ever declared bankruptcy?" 
C)  "Have you ever been convicted of a crime?" 
D)  All of the above are violations.

Question 4

Requiring credit references for members of one race but not for another is a violation of the ECOA.

Accepted Answer

A) True 
 B)False

Question 5

E-Sign:

Accepted Answer

A)  applies only to interstate transactions. 
B)  must still be adopted by the states to be effective. 
C)  does not apply to contracts for the sale of goods. 
D)  applies in all 50 states. 
E)  none of the above

Question 6

Which of the following contracts must be in writing to be enforceable?

Accepted Answer

A)  A contract for the sale of an easement for $250. 
B)  A contract for the sale of a bike for $175. 
C)  A six-month marketing consulting contract. 
D)  All of the above must be in writing to be enforceable.

Question 7

Trevor Jones accepted a summer internship with Hailey & Thomas, a management consulting firm. The negotiations and offer were all oral. Hailey & Thomas' managing partner did send a letter with the following language:
Welcome to Hailey & Thomas. We are looking forward to working with you. When you arrive in New York, please call me so that we may help you locate lodging for the summer.
Discuss whether Trevor has a contract and if he has sufficient proof of its existence. Also discuss whether the agreement needed to be in writing.

Accepted Answer

The answer of Trevor Jones accepted a summer internship with...

Question 8

The TILA provisions do not apply to commercial loans.

Accepted Answer

A) True 
 B)False

Question 9

Abe and Gabriel entered into a contract for Abe to furnish landscaping services for Gabriel's office complex. The contract provides the fee will be $75 per month. At the time Gabriel signs the agreement, the two discuss the fact that the services required in the winter will be less and the fee will be reduced to $50 per month. Abe adds as Gabriel is signing, "I just forgot to put that sliding scale in this contract. Don't worry - I'll take care of it because we understand each other." Gabriel:

Accepted Answer

A)  will be permitted to introduce evidence about the winter fee reduction. 
B)  will only need to pay $50 during the winter months. 
C)  will pay $75 per month every month because of parol evidence. 
D)  none of the above

Question 10

Jane: "I'll pay you $50 if you will clean my windows." Al: "I'll do it for $75." Jane: "$65 and it's a deal." Al: "No way."
Jane: "Too late. We have a contract." Which of the following statements is true?

Accepted Answer

A)  Jane is correct, there is a contract. 
B)  There is no contract. 
C)  There is a contract to clean the windows for $65. 
D)  There is a contract to clean the windows for $75.

Question 11

A contract for termite extermination at a home would be governed by the UCC.

Accepted Answer

A) True 
 B)False

Question 12

A contract for the sale of a $12.2 million Lear jet would be governed by common law because a document of title is involved.

Accepted Answer

A) True 
 B)False

Question 13

Stan James carelessly left his wallet in the restroom of a gas station while on a business trip. He did not realize his wallet was gone until eight hours later when he went to check into his hotel. Stan called the credit card companies immediately, only to learn that the thief had charged $2000 on his American Express card, $450 on his MasterCard, and $75 on his gas credit card. Stan James' maximum liability on the cards is:

Accepted Answer

A)  $0. 
B)  $50 per card. 
C)  $50. 
D)  none of the above

Question 14

Which of the following questions on a credit application violates the ECOA?

Accepted Answer

A)  "List your place of employment." 
B)  "Other sources of income - if you wish to have them considered in your credit evaluation." 
C)  "Length of time in current residence." 
D)  "Monthly child support income."

Question 15

S has made a valid offer to B.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following contract subject matters would not be covered under the UCC?

Accepted Answer

A)  a contract for the sale of a mobile home from the manufacturer 
B)  a contract for the sale of a mobile home from a previous owner 
C)  a contract for the sale of a mobile home plus its lot 
D)  All of the above are under the UCC.

Question 17

Point-and-click is a valid means of forming a contract if the parties had adequate knowledge of the terms and conditions of the agreement in advance.

Accepted Answer

A) True 
 B)False

Question 18

The following exchange took place in a series of e-mails between Mitchell Raines and Leslie Carroll: Mitchell: I am looking at the Trek bike advertised on your website for $650.00. Would you take $600.00? Leslie: I would take $600 if there were no delivery required.
Mitchell: Well, I have to have it delivered because you are two states away. Leslie: Well, then if there has to be delivery, I could do it for $630.00. Mitchell: Is that cash?
Leslie: Yes.

Accepted Answer

A)  Mitchell and Leslie have a contract for the sale and purchase of the bike for $630.00 with delivery. 
B)  Mitchell and Leslie have a contract for the sale and purchase of the bike for $630.00 without delivery. 
C)  Mitchell and Leslie have an offer on the table of $600 with no delivery. 
D)  Mitchell and Leslie do not have a contract.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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...

Exam 12: Contracts and Sales: Introduction and Formation

To be valid, a UCC merchant's firm offer:

Asking a couple's plans for having children is a violation of the ECOA.

Which of the following question(s) on a credit application would be a violation of the Equal Credit Opportunity Act?

Requiring credit references for members of one race but not for another is a violation of the ECOA.

E-Sign:

Which of the following contracts must be in writing to be enforceable?

The TILA provisions do not apply to commercial loans.

Jane: "I'll pay you $50 if you will clean my windows." Al: "I'll do it for $75." Jane: "$65 and it's a deal." Al: "No way." Jane: "Too late. We have a contract." Which of the following statements is true?

A contract for termite extermination at a home would be governed by the UCC.

A contract for the sale of a $12.2 million Lear jet would be governed by common law because a document of title is involved.

Which of the following questions on a credit application violates the ECOA?

S has made a valid offer to B.

Which of the following contract subject matters would not be covered under the UCC?

Point-and-click is a valid means of forming a contract if the parties had adequate knowledge of the terms and conditions of the agreement in advance.

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

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