Chapter 12: Sales and Lease Law

The UCC contains Statute of Frauds provisions for sales and lease contracts. oral contracts. electronic contracts. contracts in breach.

sales and lease contracts.

According to the UCC, a merchant is - a person who deals in the goods of the kind. - a person who, by occupation, holds himself or herself out as having knowledge and skill. - a person who employs a merchant as a broker, agent, or other intermediary. - All of these choices.

- All of these choices.

Brooke is an art collector and hires a broker to buy and sell artworks on her behalf. Under the UCC, in those transactions, Brooke has the status of - a consumer. - an agent or other intermediary. - a merchant. - an employer and manager.

- a merchant.

Life Products, Inc., enters into a contract to sell medical supplies to Med Clinic, which later sells some of the items to Nina, a patient and consumer. Article 2 of the UCC applies to - both transactions. - the sale from Life Products to Med Clinic only. - the sale from Med Clinic to Nina only. - None of the transactions.

- both transactions.

Article 2 sets forth the requirements for - oral contracts. - lease contracts. - sales contracts. - electronic contracts.

- sales contracts.

Which of the following satisfies the UCC's writing requirement? printed contract Emails handwritten contract All of these choices

All of these choices

What price conditions has the UCC set for contracts in writing to be enforceable? Sales contracts of $500 or more. Lease contracts of $1000 payments or more. Both a and b. Neither a nor b.

Both a and b.

Grass Farm LLC offers to sell fifty bales of hay at a certain price to Horse Stable, Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." Their contract is formed according to the new terms of the acceptance. whatever is reasonable. the terms of the original offer. None of the terms.

None of the terms.

A tender of nonconforming goods automatically constitutes consideration. an acceptance. a breach of contract. an accommodation.

a breach of contract.

The right of the seller or lessor to repair, adjust, or replace defective or nonconforming goods is referred to as a substitution. an obligation. a cure. an accommodation.

a cure.

A free repair or replacement of any defective part is a full warranty. an express warranty. an implied warranty. an implied duty of inspection.

a full warranty.

Mining Corporation purchases the business assets of Open Pit, Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under Article 2 of the UCC, this transaction is a contract for services a sublease. a lease. a sale.

a sale.

The passing of title from the seller to the buyer for a price is a lease. a real property deed. a sale. a merchant.

a sale.

A warranty that the law derives by inference from the nature of the transaction, or the relative situations, or circumstances of the parties is called an implied warranty. an express warranty. the implied duty of inspection. None of the choices.

an implied warranty.

When the offeree pays consideration for the offeror's irrevocable promise to keep the offer open for a stated period, this is a firm offer. acceptance. an option contract. accommodation.

an option contract.

The Magnuson-Moss Warranty Act modified UCC warranty rules to which of the following transactions? manufacturer transactions. merchant transactions. consumer transactions. distributor transactions.

consumer transactions.

To determine whether a contract is primarily for the sale of goods or the sale of services courts use the predominant-factor test. courts turn to the Bill of Rights. courts rely on the attorneys. courts don't do anything.

courts use the predominant-factor test.

When a merchant-offeror gives assurances in a signed writing that the offer will remain open, this is considered a sale. lease. consideration. firm offer.

firm offer.

Under the Magnuson-Moss Warranty Act, no seller is required to give a written warranty for consumer goods. opt out of providing an implied warranty. opt out of providing an express warranty. None of the choices.

give a written warranty for consumer goods.

When any seller or lessor (merchant or nonmerchant) knows the particular purpose for which a buyer (or lessee) will use the goods, and knows that the buyer (or lessee) is relying on the skill and judgment of the seller (or lessor) to select suitable goods, this is referred to as the implied duty of inspection. implied warranty of fitness for a particular purpose. an express warranty. implied warranty of merchantability.

implied warranty of fitness for a particular purpose.

Under the UCC, the breaching party must pay for damages. may retract a repudiation. must revise the contract. None of these choices.

may retract a repudiation.

Goods must "reasonably fit for the ordinary purposes for which such goods are used" in order to be warranted. considered. merchantable. refunded.

merchantable.

Under the Statute of Frauds, if ABC company sells products with an estimated value of $2000, then the contract must be in writing since it's more than $500. can be oral. cannot be done electronically. None of these choices.

must be in writing since it's more than $500.

Steel Buildings, Inc., agrees to lease an office space for $1500 a month for two years. According to the UCC, their contract cannot be accepted electronically. can be oral to be enforceable. must be in writing since the payments are more than $1000. None of these choices.

must be in writing since the payments are more than $1000.

(Ooops didn't copy the question) The contract if formed in respect to the original offer and include any of the additional terms in the acceptance.

one or both of the parties is a non-merchant.

Which is an exception to the writing requirement of the Statute of Frauds? consideration. partial performance. accommodation. full performance.

partial performance.

If goods of delivery fail in any respect to conform to the contract, the buyer (or lessee) may accept the goods, reject the entire shipment, or accept part and reject part. This is called the predominant-factor test. statute of frauds. perfect tender rule. reasonable standard rule.

perfect tender rule.

If a commercially reasonable substitute is available, this substitute performance is sufficient tender to the buyer and must be used. insufficient tender to the buyer and cannot be used. sufficient tender to the buyer but cannot be used. insufficient tender to the buyer but can be used.

sufficient tender to the buyer and must be used.

When anticipatory repudiation occurs, the nonbreaching party may suspend accommodation. suspend agreement. suspend consideration. suspend performance.

suspend performance.

When a conflict arises between a common law contract rule and the state statutory law based on the UCC the judge controls. the common law controls. the UCC controls. None of these choices.

the UCC controls.

The additional terms automatically become part of the contract unless one of the following conditions arises both parties object to the contract. the new or changed terms materially alter the contract. consideration was not given to one party. signatures are invalid.

the new or changed terms materially alter the contract.

Rice Corporation offers to sell Sushi Restaurants, Inc., five hundred bushels of rice. Sushi responds, "We agree to buy five hundred bushels only if the rice is Grade A quality." Without more, their contract is formed according to the new terms of the acceptance. whatever is reasonable. the terms of the original offer. None of the terms.

the new terms of the acceptance.

The seller (or lessor) has a right to attempt to "cure" a defect when the goods are delivered by the seller. the buyer receives the goods. the time for performance has not yet expired. the money is exchanged.

the time for performance has not yet expired.

If performance is commercially impracticable—when the contract was made—either party may have been affected by unforeseen occurrences. an implied warranty. objections. puffery.

unforeseen occurrences.

Merchants can satisfy the Statute of Frauds if, after the parties have agreed orally, one of the merchants sends a signed written confirmation to the other merchant within a reasonable time. one month later. one year later. two years later.

within a reasonable time.