Deck 13: Sales Contracts: Agreement, Consideration, and the Statute of Frauds

Question 1

Alexander and Wynn enter into a contract wherein Alexander agrees to sell Wynn 600 widgets but fails to state the price per widget. At trial Alexander will be allowed to present oral statements witnessed by others and industry standards to prove the price under the UCC.

Answer 1

True

Question 2

The UCC allows contracts for the sale of goods to be modified without any new consideration.

Answer 2

True

Question 3

The UCC allows all of the following to be an enforceable contract except

A) Past commercial conduct
B) Correspondence or verbal exchanges between the parties
C) Industry standards and norms
D) Unilateral action

Answer 3

Unilateral action

Question 4

Article 2 of the UCC requires that a contract demonstrate agreement

A) In any manner sufficient to show the parties intended an agreement.
B) In a manner that promotes fair dealing and good faith.
C) In a manner that shows wise and well-founded terms.
D) In a manner that shows thoughtful consideration.

Question 5

Fred Fine Arts sends a letter addressed to Nicole stating it will trade a painting by Georgia O'Keefe for a Norman Rockwell painting Nicole owns. Two days later, Nicole shows up at Fred Fine Arts with the Normal Rockwell painting. According to the UCC, would this be sufficient to be an enforceable contract?

A) No as Nicole never responded to the written offer in the same manner.
B) Yes as the actions of Nicole appear sufficient enough to show agreement by actions.
C) No because the parties never specifically addressed the terms of the contract.
D) Yes because according to the UCC only the offers must be in writing.

Question 6

Jen is in charge of her child's school picnic and calls Uptown Bakery only to get their answering machine. She leaves the following message, "Hi, this it Jen and I am in kind of a difficult situation. A parent backed out for baking 200 zebra cupcakes for our school picnic tomorrow. I know this is last minute, but would you be able to help out?" The next day, Uptown Bakery shows up to the school with 200 zebra cupcakes. According to the UCC would this be an agreement?

A) No as Uptown Bakery never official accepted the offer.
B) No as Jen had no knowledge of their acceptance.
C) No because Jen never stated a price.
D) Yes because Uptown accepted by performance.

Question 7

Japheth offers to purchase a wedding care from Edible Dreams Bakery for $400.00. He states they have two days to accept the offer. This is an example of which type of offer?

A) An open offer
B) A definite offer
C) A firm offer
D) A final offer

Question 8

According to the UCC if a time period of acceptance is not stated in the offer to sell goods, the time period for acceptance will be

A) One week
B) Three months
C) Six months
D) One year

Question 9

Again Motors offers to sell Shelby a 1977 Shelby Mustang Cobra for $10,000 on July 1, 2018. Shelby decides that she must think about it and one year later, on July 1, 2019 Shelby calls up Again Motors and tells them that she accepts their offer and will be to the store that day with the $10,000 for the car. Again Motors refuses to honor the offer even though they still have the exact car setting on the lot. Shelby sues Again Motors to enforce the agreement. Most likely, according to the UCC, what will be the outcome of the case?

A) Since Again Motors did not put a final date of acceptance, Shelby's acceptance can occur at any time. Therefore, Again Motors must honor the offer.
B) The UCC only requires an offer to remain open for a month unless specifically stated otherwise. Therefore, Again Motors does not have to honor the offer.
C) The UCC only requires an offer to remain open for three months unless specifically stated otherwise. Therefore, Again Motors does not have to honor the offer.
D) The UCC states that the offer will be enforced because it did not state a specific method of acceptance. Therefore, Shelby may accept in any manner.

Question 10

When a contract for the sale of goods is missing provisions such as delivery, quantity and payment terms, which of the following statement under the UCC is correct?

A) The contract will be declared unenforceable for missing terms.
B) The contract will be voidable due to missing terms.
C) No contract ever existed because of missing terms.
D) The contract will be acceptable so long as the contract shows that the parties intended to enter into a contract.

Question 11

When a contract is missing key provisions of the contract it is called a(n)

A) Option contract
B) Open contract
C) Closed contract
D) Variable contract

Question 12

Paris offers to buy "all the mulch" Market Basket has and they agree. This contract is called a(n)

A) Option contract
B) Output contract
C) Open contract
D) Variable contract.

Question 13

When a seller enters into an output contract with another, the seller

A) Gives up the right to sell the goods of the contract to another.
B) Must produce a minimum amount of goods as indicated in the agreement.
C) Is required to sell the majority of the good to the buyer.
D) Is under no obligation to create any expectations with the buyer.

Question 14

Joiner Industries agrees to sell to Browning 500 bolts for $1.00 each. After the first 250 bolts are produced, Joiner realizes that they severely under-priced the bolts and that if they continued to make and to sell the additional 250 bolts at the agreed upon price, they would lose a lot of money and most likely go out of business. They approached Browning with their dilemma and requested that they increase the price per bolt to $1.50 each for the entire contract. Browning agreed. According to the UCC which statement below is correct about the modification of the terms of the contract?

A) The modification is invalid because it was not supported by additional consideration.
B) The modification is valid if the court determines the new price represents the fair market value of the bolts.
C) The modification is not valid as the original contract cannot be modified once partial performance occurs.
D) The modification is valid as the UCC does not require any additional consideration to modify the contract.

Question 15

A preprinted form with some blanks in the form to be filled out for specific negotiated terms unique to the transaction is called a

A) Option contract
B) Invoice
C) Purchase order
D) Bill of lading

Question 16

Rachel received a shipment of facial cleaner from Posh Skincare, Inc. In the shipment there was a preprinted document with blanks filled in that stated the items delivered, the price per item and the total price from the seller. This document is a(n)

A) Invoice
B) Purchase order
C) Bill of lading
D) Boilerplate

Question 17

When the terms stated on an invoice conflict with the terms stated on the purchase order in the same transaction it is called

A) A open contract
B) Battle of the forms
C) Unenforceable contract
D) Unconscionable contract

Question 18

Renee purchases online from Bio-Chem Cleaning Supplies, 15 boxes of laundry detergent at $25.00 a box. When the shipment arrives she notices that Bio-Chem inserted an invoice which added an additional $50.00 for shipping and handling and a $10.00 convenience fee for online orders. The website did not mention these additional fees. According to the UCC will Renee be required to pay the additional fees and expenses included on the invoice?

A) Most likely no because when one of the parties to a contract is a non-merchant, additional terms on the invoice will not be included.
B) The additional terms of the invoice will be included if the court determines they are fair and reasonable.
C) The additional terms of the invoice will be included if industry standards justify it.
D) Because Renee is a non-merchant she will be required to abide by the additional terms stated on the invoice.

Question 19

Serena's Soup Bowls sells Betty's Bakery and Restaurant 100 hand-painted soup bowls for $4.00 each bowl. The purchase order states that Serena must deliver the bowls to Betty's. The invoice from Serena states that Betty's must pick up the bowls. According to the UCC, what will most likely be the outcome of this conflicting terms?

A) The seller's terms will always trump that of the buyer's terms.
B) The buyer's term will always trump that of the seller's terms.
C) The conflicting terms will be dropped out of the contract and UCC gap-filler terms will apply.
D) The contract will be declared voidable as there was not meeting of the minds as shown by the contradicting terms.

Question 20

A rule under the UCC where conflicting clauses cancel each other out and neither clause will become part of the contract but rather will be determined by UCC gap-filler rules is called

A) A double jeopardy rule
B) A knockout rule
C) A substitution rule
D) A trump rule

Question 21

ABC Technologies sells to Devon a television with a fair market value of $1000.00. According to the UCC must this contract be in writing to be enforceable?

A) No as long as their actions indicate that they parties entered into an agreement.
B) No as long as verbal statements followed by performance indicated an agreement.
C) Yes as contracts with goods with a total value of $500.00 or more must be in writing to be enforceable.
D) Yes as contracts with goods with a total value of $1000.00 or more must be in writing to be enforceable.

Question 22

According to the rationale behind the statute of frauds of the UCC, all of the following statements are correct, except

A) A writing provides evidence of the terms of the contract.
B) A writing indicates that the parties are taking the transaction more seriously.
C) A writing indicates that the parties have taken time to consider the consequences by writing it down.
D) A writing indicates that both parties are commercially literate.

Question 23

Under the UCC, a writing sufficient according to the statute of frauds, must contain all of the following except,

A) Quantity
B) Signature of the person against whom the contract is being enforced
C) A notarized acknowledgment of the terms of the contract
D) Language that would make the reasonable person conclude the parties intended to form a contract.

Question 24

Abon purchases 500 books with a total value of $2000.00 from the Narnes and Boble Online bookstore. Abon uses an "electronic" signature feature on the website to acknowledge acceptance of the terms of the agreement. When the books are delivered to Abon, he refuses to accept delivery stating that no enforceable contract existed according to the statute of frauds of the UCC. Which statement below is correct about the transaction according to the UCC statute of frauds?

A) The agreement did not satisfy the requirements of statute of frauds as an electronic signature UCC does not recognize electronic signatures.
B) The agreement does not need to be in writing as the UCC statute of frauds only requires that a sale of good valued over $5000.00 must be in writing.
C) This agreement does satisfy the writing requirement of the UCC as electronic signatures are sufficient.
D) The agreement does satisfy the writing requirement of the UCC if Abon understood the terms of the agreement.

Question 25

As long as a contract satisfies the writing requirement of the UCC, any other terms not included in the writing

A) May be proven by testimony and evidence concerning oral agreements.
B) Will not be considered if not specifically addressed in the writing.
C) Will be determined by the courts.
D) Will be determined by boilerplate forms.

Question 26

Compare the requirements of consideration under the UCC Article 2 to its requirements according to common law.