Question 1

According to Exhibit 21-5 in the text, which terms can be interpreted by the UCC if left open in a contract?

Accepted Answer

A)   All terms except price.
B)   Payment, delivery, time, but not price or duration.
C)   Price, payment, delivery, time, and duration.
D)   Delivery, time, and duration, but not price or payment.
E)   Time and duration, but not price, payment, or delivery.F) B) and C)
G) A) and B)

Question 2

Under Article 2(A)  of the UCC, a(n)  ________ is defined as a transfer of the right to possession and use of goods for a term in return for consideration.

Accepted Answer

A)   sale of goods
B)   consignment
C)   assignment
D)   rental
E)   leaseF) C) and D)
G) A) and E)

Question 3

The UCC was created in 1952 and has been adopted by all 50 states and ________.

Accepted Answer

A)   Puerto Rico
B)   Great Britain
C)   the District of Columbia and the Virgin Islands
D)   Guam
E)   Canada and MexicoF) A) and D)
G) A) and B)

Question 4

The UCC distinguishes merchants from ________.

Accepted Answer

A)   employers
B)   government run businesses
C)   regular buyers and sellers
D)   state contractors
E)   merchant agentsF) C) and D)
G) A) and E)

Question 5

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter, which law applies?

Accepted Answer

A)   The common law rules
B)   The civil law rules
C)   Federal common law
D)   Federal statutory law
E)   The Uniform Sales ActF) None of the above
G) B) and C)

Question 6

A lease that (1)  has a value of $25,000 or less and (2)  exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal, family, or household purpose, is called a ________ lease.

Accepted Answer

A)   Finance
B)   Consumer
C)   Regulated
D)   Commercial
E)   RetailF) A) and B)
G) All of the above

Question 7

When may a party be considered a "merchant" under the UCC?

Accepted Answer

The UCC defines merchant as a person who...

Question 8

The ________ is aimed at protecting sales or lease contracts that the parties involved intend to be the final expression of their agreement.

Accepted Answer

A)   statute of frauds
B)   final evidence regulation
C)   parol evidence rule
D)   end evidence rule
E)   blindspot ruleF) B) and C)
G) B) and D)

Question 9

Which statement is true regarding materials that are considered goods under the UCC?

Accepted Answer

A)   Minerals taken from real estate and sold by the owner, soil taken from real estate and sold by the owner, and the right to remove soil from real estate are all considered goods under the UCC.
B)   Soil taken from real estate and sold by the owner is considered a good under the UCC, but neither minerals taken from real estate and sold by the owner nor the right to remove soil from real estate are considered goods under the UCC.
C)   The right to remove soil from real estate is considered a good under the UCC, but neither minerals taken from real estate and sold by the owner nor soil taken from real estate and sold by the owner are considered goods under the UCC.
D)   Minerals taken from real estate and sold by the owner and soil taken from real estate and sold by the owner are considered goods under the UCC, but the right to remove soil from real estate is not considered a good under the UCC.
E)   Minerals taken from real estate and sold by the owner and the right to remove soil from real estate are considered goods under the UCC, but soil taken from real estate and sold by the owner is not considered a good under the UCC.F) B) and D)
G) None of the above

Question 10

Which of the following is true regarding the holding of the court in The Travelers Property Casualty Company of America and Hellmuth Obata & Kassabaum, Inc. v. Saint-Gobain Technical Fabrics Canada Limited, the case in the text involving whether the statute of frauds barred enforcement of a contract and also whether the United Nations Convention on Contracts for the International Sale of Goods (CISG)  applied to a contract in view of the fact that a particular state's law was referenced in the contract?

Accepted Answer

A)   That the CISG did not apply because the contract referred to provisions of the UCC and that the statute of frauds contained within the UCC barred enforcement of the contract.
B)   That the CISG did not apply because the construction of an arena, which would result in a type of realty, was concerned and that the statute of frauds contained within the UCC barred enforcement of the contract.
C)   That the CISG did not apply because significant provisions in the contract were left unwritten but that the statute of frauds was inapplicable.
D)   That the CISG applied and that oral discussions could have formed a contract.
E)   That the CISG applied and that no contract could have resulted because of the lack of a writing.F) A) and B)
G) B) and E)

Question 11

A contract that combines a good with a service is known as a mixed motive contract.

Accepted Answer

A) True 
 B)False

Question 12

Which statement is false regarding the United Nations Convention on Contracts for the International Sale of Goods ("CISG") ?

Accepted Answer

A)   Israel is a signatory of the CISG.
B)   The United States applies the UCC but not the CISG.
C)   The United Kingdom is not a signatory of the CISG and instead applies English common law.
D)   The CISG is a treaty.
E)   Mexico has signed the CISG.F) B) and D)
G) None of the above

Question 13

[Dress Shop Problems] Lara, who has a ladies' dress shop, reached an oral agreement with Kim, a wholesaler, to purchase 100 dresses for $80 each, with the dresses to be delivered within 30 days. Kim later orally agreed to a modification whereby she would add ten belts to go along with certain dresses at no extra charge. Kim did so because she wanted to maintain Lara's good will. Lara sent Kim a memo confirming their oral agreement, including the modification, but heard nothing. When the dresses did not arrive within 30 days, Lara checked with Kim. Kim told her that their agreement was no good because Kim never signed anything and that the UCC does not apply in the retail arena.
-Which of the following is true regarding whether the agreement between Lara and Kim for the sale of dresses satisfied the writing requirement of the UCC?

Accepted Answer

A)   The agreement is likely binding because under the UCC, if two merchants have an oral agreement, a written memo from either party to the other is deemed to satisfy the statute of frauds, even if it is not acknowledged by the receiving party. If it is not objected to within 10 days of receipt, the oral agreement, memorialized by the memo, is binding.
B)   The agreement is likely binding because under the UCC, if two merchants have an oral agreement, there is no requirement of a writing so long as another witness is willing to confirm that within 10 days of the agreement, one of the parties memorialized the agreement by a memorandum to the file, even if it was not sent to the other party.
C)   The agreement is binding because the UCC has no requirement of a writing under any circumstances.
D)   The agreement is not binding because Kim never signed anything by which she agreed to the terms of the oral agreement.
E)   The agreement is not binding because Lara did not send Kim a registered letter memorializing the oral conversation as is required by the UCC.F) D) and E)
G) B) and E)

Question 14

Under what circumstances does the parol evidence rule not apply and parties are allowed to explain or supplement a written contract?

Accepted Answer

Courts allow the parties to explain or s...

Question 15

Which of the following statements is true about the Uniform Commercial Information Transactions Act (UCITA) ?

Accepted Answer

A)   Unlike the UCC, states can decide whether or not to adopt UCITA.
B)   UCITA applies to physical goods, like the UCC.
C)   UCITA was adopted by the UCC.
D)   In 2001, Virginia became the first state to enact UCITA, probably because major Internet-related companies are headquartered in Northern Virginia.
E)   All states have adopted UCITA.F) B) and E)
G) A) and D)

Question 16

Which of the following items would not be considered a "good" under the UCC?

Accepted Answer

A)   Light bulbs to be placed in a skyscraper.
B)   Trees cut from a parcel of land to be turned into paper.
C)   A book that has been copyrighted and sold to a bookstore.
D)   The copyright of a best-selling novel.
E)   A box of hammers, with a value of $499.F) A) and B)
G) B) and E)

Question 17

When does the UCC assume a three-month irrevocability period?

Accepted Answer

A)   Always.
B)   Never.
C)   If a firm offer is silent as to time.
D)   Only if one of the parties is a nonmerchant.
E)   Only if one of the parties lives in Louisiana who does not follow the common law.F) All of the above
G) None of the above

Question 18

Which of the following is true regarding the creation of the Uniform Commercial Code?

Accepted Answer

A)   The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws, the American Law Institute, and the U.S. Commercial Consortium.
B)   The Uniform Commercial Code was created by the U.S. Commercial Consortium and the National Conference of Commissioners on Uniform State Laws, but not the American Law Institute.
C)   The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws and the American Law Institute, but not the U.S. Commercial Consortium.
D)   The Uniform Commercial Code was created by a federal congressional committee.
E)   The Uniform Commercial Code was created by state legislative representatives from all 50 states.F) B) and E)
G) None of the above

Question 19

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

Accepted Answer

A)   There is no contract if these terms are omitted.
B)   If payment terms are omitted, payment is due at the time and place at which the buyer is to receive the goods, and the place for delivery is the seller's place of business.
C)   If payment terms are omitted, payment is due at the time and place at which the buyer is to receive the goods, and the place for delivery is the buyer's place of business.
D)   If payment terms are omitted, payment is due at least 10 days prior to the date set for delivery, and the place for delivery is the seller's place of business.
E)   If payment terms are omitted, payment is due at least 10 days prior to the date set for delivery, and the place for delivery is the buyer's place of business.F) A) and E)
G) A) and D)

Question 20

The UCC requires that consideration be provided for the modification of sales and lease contracts.

Accepted Answer

A) True 
 B)False

Exam 21: Introduction to Sales and Lease Contracts

The ________ is aimed at protecting sales or lease contracts that the parties involved intend to be the final expression of their agreement.

Correct Answer
verified

When may a party be considered a "merchant" under the UCC?

Correct Answer
verified
The UCC defines merchant as a person who...
View Answer

A lease that (1) has a value of $25,000 or less and (2) exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal, family, or household purpose, is called a ________ lease.

Correct Answer
verified

A contract that combines a good with a service is known as a mixed motive contract.

Correct Answer
verified

The UCC was created in 1952 and has been adopted by all 50 states and ________.

Correct Answer
verified

The UCC distinguishes merchants from ________.

Correct Answer
verified

Which statement is false regarding the United Nations Convention on Contracts for the International Sale of Goods ("CISG") ?

Correct Answer
verified

Which statement is true regarding materials that are considered goods under the UCC?

Correct Answer
verified

Under Article 2(A) of the UCC, a(n) ________ is defined as a transfer of the right to possession and use of goods for a term in return for consideration.

Correct Answer
verified

According to Exhibit 21-5 in the text, which terms can be interpreted by the UCC if left open in a contract?

Correct Answer
verified

Which of the following items would not be considered a "good" under the UCC?

Correct Answer
verified

When does the UCC assume a three-month irrevocability period?

Correct Answer
verified

Under what circumstances does the parol evidence rule not apply and parties are allowed to explain or supplement a written contract?

Correct Answer
verified
Courts allow the parties to explain or s...
View Answer

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter, which law applies?

Correct Answer
verified

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

Correct Answer
verified

Which of the following is true regarding the creation of the Uniform Commercial Code?

Correct Answer
verified

Which of the following statements is true about the Uniform Commercial Information Transactions Act (UCITA) ?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The UCC requires that consideration be provided for the modification of sales and lease contracts.

Correct Answer
verified

Exam 21: Introduction to Sales and Lease Contracts

The ________ is aimed at protecting sales or lease contracts that the parties involved intend to be the final expression of their agreement.

Correct AnswerverifiedShow Answer

When may a party be considered a "merchant" under the UCC?

Correct AnswerverifiedThe UCC defines merchant as a person who...View AnswerShow Answer

A lease that (1) has a value of $25,000 or less and (2) exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal, family, or household purpose, is called a ________ lease.

Correct AnswerverifiedShow Answer

A contract that combines a good with a service is known as a mixed motive contract.

Correct AnswerverifiedShow Answer

The UCC was created in 1952 and has been adopted by all 50 states and ________.

Correct AnswerverifiedShow Answer

The UCC distinguishes merchants from ________.

Correct AnswerverifiedShow Answer

Which statement is false regarding the United Nations Convention on Contracts for the International Sale of Goods ("CISG") ?

Correct AnswerverifiedShow Answer

Which statement is true regarding materials that are considered goods under the UCC?

Correct AnswerverifiedShow Answer

Under Article 2(A) of the UCC, a(n) ________ is defined as a transfer of the right to possession and use of goods for a term in return for consideration.

Correct AnswerverifiedShow Answer

According to Exhibit 21-5 in the text, which terms can be interpreted by the UCC if left open in a contract?

Correct AnswerverifiedShow Answer

Which of the following items would not be considered a "good" under the UCC?

Correct AnswerverifiedShow Answer

When does the UCC assume a three-month irrevocability period?

Correct AnswerverifiedShow Answer

Under what circumstances does the parol evidence rule not apply and parties are allowed to explain or supplement a written contract?

Correct AnswerverifiedCourts allow the parties to explain or s...View AnswerShow Answer

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter, which law applies?

Correct AnswerverifiedShow Answer

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the creation of the Uniform Commercial Code?

Correct AnswerverifiedShow Answer

Which of the following statements is true about the Uniform Commercial Information Transactions Act (UCITA) ?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The UCC requires that consideration be provided for the modification of sales and lease contracts.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The UCC defines merchant as a person who...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Courts allow the parties to explain or s...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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