Question 1

Under Article 2A.of the UCC,what is the correct term for a person who acquires the right to possession and use of goods under a lease?

Accepted Answer

A)  Acquirer
B)  Lessor
C)  Buyer
D)  Seller
E)  LesseeF) A) and D)
G) A) and B)

Question 2

The UCC was designed to include items such as software and information.

Accepted Answer

A) True 
 B)False

Question 3

All leases are covered under Article 2A)of the UCC.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Under the UCC,courts allow parties to explain or supplement a written contract with which of the following?

Accepted Answer

A)  Additional terms that are consistent with the terms in the agreement,evidence that helps the court interpret the agreement,and any evidence as to price.
B)  Additional terms that are consistent with the terms in the agreement,but not evidence that helps the court interpret the agreement or any evidence as to price.
C)  Any evidence as to price,but not additional terms that are consistent with the terms in the agreement or evidence that helps the court interpret the agreement.
D)  Additional terms that are consistent with the terms in the agreement and evidence that helps the court interpret the agreement,but not any evidence as to price.
E)  Evidence that helps the court interpret the agreement,but not additional terms that are consistent with the terms in the agreement or any evidence as to price.F) B) and D)
G) A) and D)

Question 6

According to Exhibit 21-6 of the text,which of the following statements about material terms under the UCC and the common law is true?

Accepted Answer

A)  Under both UCC and common law,all material terms other than price must be specified in the contract.
B)  Under both UCC and common law,material terms may be left open for subsequent determination by the parties.
C)  Under common law,all material terms must be specified in the contract,but under the UCC,material terms may be left open.
D)  Under both UCC and common law,all material terms must be specified in the contract.
E)  Under the UCC,all material terms must be specified in the contract,but under common law,material terms may be left open.F) A) and C)
G) A) and B)

Question 7

In Eureka Water Company v.Nestle Waters North America Inc. ,the case in the text involving whether a trade name is considered a good or nongood,which of the following was the result?

Accepted Answer

A)  The court ruled that a trade name is a good.
B)  The court ruled that a trade name is not a good.
C)  The court ruled that a trade name is a good if it is the only matter involved in a dispute between parties;otherwise,it is a nongood.
D)  The court ruled that a trade name is a good if it was considered a good in other previously settled disputes between the same parties;otherwise,it is a nongood.
E)  The court ruled that a trade name is a good if other items that are clearly goods are involved in a contractual dispute;otherwise,it is a nongood.F) A) and B)
G) C) and D)

Question 8

Under the UCC,almost any kind of documentation is usually sufficient to satisfy the writing requirement of the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 9

If a firm offer is silent as to time,the UCC assumes ________.

Accepted Answer

A)  A six-month irrevocability period
B)  A one-year irrevocability period
C)  A three-month irrevocability period
D)  A four-month irrevocability period
E)  A one-week irrevocability periodF) A) and E)
G) A) and C)

Question 10

Regarding the "Case Opener," which of the following best represents the decision on whether the cell towers at issue constituted goods?

Accepted Answer

A)  That the contract involving the purchase of the cell towers was predominantly for the sale of goods for reasons including that the towers had physical property and could be moved.
B)  That the contract involving the purchase of the cell towers predominately involved cellular telephone service and that the towers were,therefore,not goods.
C)  That the contract involving the purchase of the cell towers was predominately for the purchase of real estate and that the towers were,therefore,not goods.
D)  That the contract involving the purchase of the cell towers was predominately for goods because common law was applied by contract.
E)  That the contract involving the purchase of the cell towers was not for goods because the towers were not easily movable.F) A) and B)
G) C) and D)

Question 11

Which of the following statements is true regarding merchants under the UCC?

Accepted Answer

A)  The UCC has different rules for transactions involving merchants and transactions involving non-merchants,and merchants are generally held to a high standard of care and behavior than non-merchants.
B)  The UCC has different rules for transactions involving merchants and transactions involving non-merchants,however merchants and non-merchants are generally held to the same standard of care and behavior.
C)  Under the UCC,merchants and non-merchants are sometimes treated differently,however,they are both held to the same standard of care and behavior.
D)  Although the UCC applies the same rules for transactions involving merchants and transactions involving non-merchants,merchants are generally held to a high standard of care and behavior than non-merchants.
E)  There is no distinction between merchants and non-merchants under the UCC.F) None of the above
G) D) and E)

Question 12

Contrast the requirement of consideration for modification of contracts under the common law and under the UCC.

Accepted Answer

Under the common law,when a contract is ...

Question 13

Which of the following is true regarding state rights in relation to the UCC?

Accepted Answer

A)  Because the UCC is a federal law,states have no rights to change it.
B)  State legislatures may make changes to Article 2A.of the UCC but not to any other articles.
C)  Each state is allowed to rewrite parts of the UCC to reflect the wishes of its state legislature.
D)  States must adopt the UCC in full or not at all.
E)  State legislatures may make changes to Article 2 of the UCC but not to any other articles.F) A) and E)
G) B) and E)

Question 14

After conducting a great deal of research,Nora contacts a camping store and signs a contract to purchase forty-five new tents at a reduced rate.According to Exhibit 21-4 of the text,under what circumstances would Nora not be considered a "merchant" under UCC Article 2 with regard to the contract for the purchase of the tents?

Accepted Answer

A)  If Nora deals in tents and if Nora employed a merchant as a broker to buy the tents.
B)  If Nora owns a camping store and held herself out as having knowledge and skill unique to camping;or if Nora employed a merchant as a broker to buy the tents.
C)  If Nora deals in tents;if she owns a camping store and held herself out as having knowledge and skill unique to camping;and if Nora employed a merchant as a broker to buy the tents.
D)  If Nora owns a camping store and held herself out as having knowledge and skill unique to camping.
E)  If Nora purchased the tents for use at the summer camp she manages.F) None of the above
G) A) and D)

Question 15

The primary method by which sales contracts are interpreted is federal law

Accepted Answer

A) True 
 B)False

Question 16

[Customer Uncertainty] Luke wanted baseball caps with the name of the firm of which he was president,ABC Corporation,emblazoned on the front.Emilia,a merchant in specialized goods,orally agreed with Luke that she would sell him 200 baseball caps at $5 each.No writing was ever made,although there were a number of witnesses to the conversation.After the caps were finished,but before they were shipped,Luke called to cancel the order because his firm had just announced a merger and would no longer be known as ABC Corporation.Emilia told him she would not cancel the contract because she had just finished the caps.Luke told Emilia that she should have been smarter and had him sign something because without a writing,she would not have a chance in court.Emilia is also having problems with other customers.A father who voluntarily coached a youth softball league in his community called and orally ordered 150 baseball caps at a cost of $4 to give out at a league banquet.He wanted a variety of caps with no name on them because players from different teams would be at the banquet.Emilia sent a confirmation letter to the coach and had the caps packed up and ready to go.Just before she shipped them,the coach called and told her that there was a big feud,the banquet was canceled,and that he was canceling the order.She believes that the coach should pay damages,especially because a big order was involved.Finally,Emilia has a merchant customer who orally ordered 500 plain T-shirts at a cost of $5 each,but has not picked them up and has refused to do so after several demands.Emilia wants to take the merchant customer to small claims court.
-Which of the following is correct regarding Luke's assertion that Emilia cannot recover the cost of the caps?

Accepted Answer

A)  Luke is correct.Emilia cannot recover because she has nothing in writing.
B)  Luke is incorrect because the cost of the caps is insufficient to come within the requirement of a writing under the UCC.
C)  Luke is incorrect both because Emilia had already made the caps and also because she had witnesses.
D)  Luke is incorrect because Emilia had already made the caps and she cannot sell them to another buyer.
E)  Luke is incorrect because Emilia has witnesses.F) A) and E)
G) A) and D)

Question 17

Aranda claims that Rita's telephone call with Aranda is an admission of the existence of the contract and an admission constitutes an acceptance to the statute of frauds under the UCC.Is Aranda correct?

Accepted Answer

A)  Yes,an admission is an exception to the statute of frauds under the UCC and Rita admitted the existence of the contract over the telephone.
B)  Yes,an admission is an exception to the statute of frauds under the UCC but only when it is expressly worded as an admission to the other party.
C)  No,an admission is not an exception to the statute of frauds.
D)  No,even though an admission is an exception to the statute of frauds under the UCC,the admission was not made in pleadings,testimony,or court.
E)  No,even though an admission is an exception to the statute of frauds under the UCC,Rita never admitted the existence of a contract.F) C) and D)
G) D) and E)

Question 18

Is Aranda correct that full payment should be made at the time of delivery?

Accepted Answer

A)  Yes,since the terms of payment were left open,payment is due at the time and place at which the buyer is to receive the goods.
B)  Yes,because the UCC requires "reasonable payment terms" to be supplied at the time of delivery.
C)  No,because all material terms must be specified.
D)  No,because the statute of frauds requires payment terms to be in writing.
E)  No,because of the mirror image rule.F) All of the above
G) None of the above

Question 19

[Cookware Crisis] Aranda owns Aranda's Cooking,a cooking supply company which sells high quality cookware to restaurants and specialty stores.Aranda stopped at a potential customer,Rita's Restaurant,to show Rita a new,elite line of copper cookware,bakeware,and utensils.Rita told Aranda she wanted to buy the entire cookware line for the stated price of $5,000,but needed time to think about the other items.The following day,Rita called Aranda and told her to add the line of bakeware Rita had quoted for $5,000 and the line of utensils.The next week,Aranda delivered the entire cookware line,and said she would return the next day to drop off the bakeware and utensils and pick up a check for $12,000 which included $5,000 for the bakeware and $2,000 for the utensils.Rita was outraged at the price of the utensils and told Aranda not to deliver the utensils because there was no agreement about them.Aranda tells Rita that she agreed to buy the utensils and there is a valid contract,and that she expects full payment when she returns the next day.Rita responds that the addition of the utensils was only a counter-offer,which was not accepted by Rita and there is nothing in writing,and therefore there is no contract.Aranda delivers the bakeware and utensils the following day.
-Is Rita correct that her statement to add the utensils did not constitute acceptance?

Accepted Answer

A)  Yes,because additional terms are always permitted in sales contracts under the UCC.
B)  No,because additional terms must be in writing.
C)  No,because Rita's acceptance was not the mirror-image of Aranda's offer.
D)  No,because Aranda never accepted Rita's counter-offer.
E)  Yes,because Rita did not expressly condition her acceptance upon Aranda's assent to the additional terms.F) B) and D)
G) A) and B)

Question 20

In order to resolve contract issues in cases in which a tangible good is mixed with something intangible,most states employ some variation of the ________.

Accepted Answer

A)  Substantial-purpose test
B)  Goods-services test
C)  Mixed-purpose test
D)  Predominant-purpose test
E)  Unclear-purpose testF) A) and C)
G) A) and B)

Exam 21: Introduction to Sales and Lease Contracts

Which of the following is true regarding state rights in relation to the UCC?

Correct Answer
verified

Under the UCC,courts allow parties to explain or supplement a written contract with which of the following?

Correct Answer
verified

All leases are covered under Article 2A)of the UCC.

Correct Answer
verified

If a firm offer is silent as to time,the UCC assumes ________.

Correct Answer
verified

According to Exhibit 21-6 of the text,which of the following statements about material terms under the UCC and the common law is true?

Correct Answer
verified

Correct Answer
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In Eureka Water Company v.Nestle Waters North America Inc. ,the case in the text involving whether a trade name is considered a good or nongood,which of the following was the result?

Correct Answer
verified

Aranda claims that Rita's telephone call with Aranda is an admission of the existence of the contract and an admission constitutes an acceptance to the statute of frauds under the UCC.Is Aranda correct?

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Contrast the requirement of consideration for modification of contracts under the common law and under the UCC.

Correct Answer
verified
Under the common law,when a contract is ...
View Answer

Correct Answer
verified

Regarding the "Case Opener," which of the following best represents the decision on whether the cell towers at issue constituted goods?

Correct Answer
verified

The primary method by which sales contracts are interpreted is federal law

Correct Answer
verified

Which of the following statements is true regarding merchants under the UCC?

Correct Answer
verified

The UCC was designed to include items such as software and information.

Correct Answer
verified

Under the UCC,almost any kind of documentation is usually sufficient to satisfy the writing requirement of the statute of frauds.

Correct Answer
verified

In order to resolve contract issues in cases in which a tangible good is mixed with something intangible,most states employ some variation of the ________.

Correct Answer
verified

Under Article 2A.of the UCC,what is the correct term for a person who acquires the right to possession and use of goods under a lease?

Correct Answer
verified

Is Aranda correct that full payment should be made at the time of delivery?

Correct Answer
verified

Exam 21: Introduction to Sales and Lease Contracts

Which of the following is true regarding state rights in relation to the UCC?

Correct AnswerverifiedShow Answer

Under the UCC,courts allow parties to explain or supplement a written contract with which of the following?

Correct AnswerverifiedShow Answer

All leases are covered under Article 2A)of the UCC.

Correct AnswerverifiedShow Answer

If a firm offer is silent as to time,the UCC assumes ________.

Correct AnswerverifiedShow Answer

According to Exhibit 21-6 of the text,which of the following statements about material terms under the UCC and the common law is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In Eureka Water Company v.Nestle Waters North America Inc. ,the case in the text involving whether a trade name is considered a good or nongood,which of the following was the result?

Correct AnswerverifiedShow Answer

Aranda claims that Rita's telephone call with Aranda is an admission of the existence of the contract and an admission constitutes an acceptance to the statute of frauds under the UCC.Is Aranda correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Contrast the requirement of consideration for modification of contracts under the common law and under the UCC.

Correct AnswerverifiedUnder the common law,when a contract is ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Regarding the "Case Opener," which of the following best represents the decision on whether the cell towers at issue constituted goods?

Correct AnswerverifiedShow Answer

The primary method by which sales contracts are interpreted is federal law

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding merchants under the UCC?

Correct AnswerverifiedShow Answer

The UCC was designed to include items such as software and information.

Correct AnswerverifiedShow Answer

Under the UCC,almost any kind of documentation is usually sufficient to satisfy the writing requirement of the statute of frauds.

Correct AnswerverifiedShow Answer

In order to resolve contract issues in cases in which a tangible good is mixed with something intangible,most states employ some variation of the ________.

Correct AnswerverifiedShow Answer

Under Article 2A.of the UCC,what is the correct term for a person who acquires the right to possession and use of goods under a lease?

Correct AnswerverifiedShow Answer

Is Aranda correct that full payment should be made at the time of delivery?

Correct AnswerverifiedShow 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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Under the common law,when a contract is ...
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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