LAW CHP. 11 TEST 3
45. Under UCC Article 2, a sale must involve the transfer of the to the goods involved in the sale. a. title b. will c. deed d. bill of sale e. easement
title
124. A(n) is when a buyer agrees to take all of the output of a certain seller. a. output contract b. input contract c. requirements contract d. total contract e. complete sale contract
a. output contract
86. When terms in contracts conflict, it is called: a. the "battle of the forms" b. the "conflict of the forms" c. the "fight of the forms" d. the "tangle of the forms" e. the "amalgamation of the forms"
a. the "battle of the forms"
57. If the parties to a sale under the UCC do not specify when the title to the goods passes, then, assuming goods have to be shipped, title passes to the buyer when: a. the buyer sends full payment b. the seller completes all obligations regarding delivery c. the buyer inspects the goods d. the buyer makes "substantial" payment e. any of the other choices
b. the seller completes all obligations regarding delivery
53. A person may hold legal title to a good if: a. the good exists b. the good has been identified to the contract c. the good is in the possession of a third party d. choices a and b are correct
d. choices a and b are correct
47. The title represents the: a. age of a thing b. bill of sale of a thing c. legal value of a thing d. legal rights to ownership of a thing e. price of a thing
d. legal rights to ownership of a thing
3. Article 2 of the UCC covers the sale of: a. goods b. services c. investment securities d. goods and business services e. all of the other choices
goods
26. The UCC's Article 2 does not cover the sale of: a. land b. furniture c. a load of corn d. a computer sold to a business e. a truck load of printer paper
land
12. Every state except has adopted UCC Article 2. a. Texas b. Illinois c. Alabama d. Louisiana e. Florida
Louisiana
190. means that the good "must be of a quality comparable to that generally acceptable in that line or trade." a. Warrantable b. Profitable c. Merchantable d. Marketable e. Acceptable
Merchantable
67. In Crest Ridge Construction v. Newcourt, where an order for construction materials that Crest Ridge needed was rejected for failure to meet credit terms, and Crest Ridge had to find a higher-cost replacement and sued Newcourt for damages, the appeals court held that: a. Newcourt was liable for breach of contract because there was sufficient evidence that the two companies had formed a contract under the definition found in the UCC b. Newcourt was not liable for breach of contract because there was not sufficient evidence that the two companies had formed a contract under the definition found in the UCC c. Crest Ridge was liable for breach of contract because it failed to inform Newcourt that it would not be able to pay before delivery d. Crest Ridge did not have a case because there was never any indication that they had formed a contract with Newcourt e. Newcourt was not liable for damages, even though there was sufficient evidence that the two companies had formed a contract under the definition found in the UCC
Newcourt was liable for breach of contract because there was sufficient evidence that the two companies had formed a contract under the definition found in the UCC
147. is a valid and sufficient offer of performance under a contract. a. Tender b. Sale c. Completion d. Delivery e. Termination
Tender
110. Under the UCC, parol evidence may not be used: a. "if the court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement" b. "if the court does not find the writing to have been intended also as a complete and exclusive statement of the terms of the agreement" c. "if the court cannot find the writing to have been intended also as a complete and exclusive statement of the terms of the agreement" d. if both parties do not agree e. if there is an unwritten contract between the parties
a. "if the court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement"
22. Which of the following is a contract most likely to fall under UCC Article 2: a. Abbie purchases a suite of office furniture from Office Lots b. Landers hires Ace to move and store her furniture while she is in London for two years c. Nock hires CompuW to service its computers for a year so they are kept in good condition d. Disney buys the copyright on a book to make it into a movie e. none of the other choices
a. Abbie purchases a suite of office furniture from Office Lots
199. Miller needs to paint his metal workshop. He tells the paint store what he needs and says he is concerned about peeling. The seller recommends Pitts, which the company advertises as good for such use. If Miller buys Pitts based on the recommendation, and it peels right away, with respect to fitness for a particular purpose, there is: a. a breach of implied warranty; Miller relied on the maker's judgment and claims b. no breach of implied warranty; sellers are not obligated to supply high quality goods c. no breach of implied warranty; the maker did not have reason to know of Miller's particular use for the paint d. no breach of implied warranty; there were not written warranty terms e. none of the other choices
a. a breach of implied warranty; Miller relied on the maker's judgment and claims
120. If parties to a contract involving a sale of goods fail to specify price, and if there is dispute, so that a court must determine the price, under the UCC the price will be: a. a reasonable price b. the price that the plaintiff specifies c. the price that the defendant specifies d. the price that a court-appointed arbitrator specifies e. no price; there never was a contract so the parties simply stop dealing with each other
a. a reasonable price
14. Louisiana is the only state that has not: a. adopted UCC Article 2 b. adopted UCC Article 3 c. agreed to allow out of state business transactions d. imposed a sales tax e. imposed an income tax
a. adopted UCC Article 2
28. The UCC defines goods as: a. all things which are moveable at the time of identification to the contract for sale b. all services which are relevant at the time of identification to the contract for sale c. any item that a seller offers to a buyer d. the combination of the items and services listed in the contract e. all the items listed in the contract and their related services
a. all things which are moveable at the time of identification to the contract for sale
34. A good is tangible if it: a. can be seen and touched b. can be seen, but not necessarily touched c. can be found in more than one state d. is a service that anyone can perform without special training e. is inexpensive
a. can be seen and touched
6. Commercial codes: a. date back thousands of years b. began in England in the early 1800s to use in the British empire c. were started by the United Nations in the 1950s d. were started by the World Trade Organization in the 1980s e. none of the other choices
a. date back thousands of years
133. If a contract for the sale of goods does not specify where goods are to be delivered, the UCC presumes that in most cases: a. delivery is at the seller's place of business b. delivery to the buyer's place of business c. delivery is to the closest railroad or trucking station d. delivery is to a common carrier e. delivery is to the buyer's agent
a. delivery is at the seller's place of business
144. The seller's basic obligation under the UCC does not include: a. financing the purchase of conforming goods b. transferring conforming goods c. delivering conforming goods d. none of the other specific choices are required unless specifically bargained for e. all of the other specific choices are required
a. financing the purchase of conforming goods
32. An item is movable if: a. it can be carried from one location to another b. it can be cannot be moved c. it is a service that can be performed anywhere d. it can be easily reproduced e. it can be bought in any state
a. it can be carried from one location to another
122. A "reasonable price": a. may or may not be "fair market value" b. must be "fair market value" under the UCC c. is never "fair market value" d. is arbitrary e. is determined by a formula specified by UCC Article 2
a. may or may not be "fair market value"
Lex mercatoria refers to: a. medieval European rules governing trade issues b. ancient Greek rules governing trade issues c. modern Japanese law governing trade issues d. the Supreme Court's views on trade issues e. medieval European rules governing land rental
a. medieval European rules governing trade issues
112. If, when considering a contract under the UCC, the court needs to resolve a term that is not clearly specified, the courts prefer to look to: a. past dealings of the party b. equitable resolutions c. Department of Commerce data d. reliance damages e. none of the other choices
a. past dealings of the party
128. A(n) is one in which a seller agrees to provide all of a certain good that a buyer needs. a. requirements contract b. real contract c. output contract d. total sale contract e. complete supply contract
a. requirements contract
130. When a seller has agreed to supply all of the needs of a buyer, there is a: a. requirements contract b. fulfillment contract c. output contract d. totality contract e. such contracts are not allowed under the UCC
a. requirements contract
115. In Griffith v. Clear Lakes Trout, Griffith grew trout for Clear Lakes; the parties got into a dispute over what were "market size" trout, as Clear Lakes wanted larger fish. The court held that: a. since both parties had agreed for 3 years that "market size" was 12 to 16 ounces, Clear Lakes was liable for breach of contract when it tried to change the definition of "market size" b. since there was no written definition of "market size," Clear Lakes was not liable for breach of contract c. since there was a written contract specifying "market size" as 12 to 16 ounces, Clear Lakes was liable for breach of contract d. Griffith did not have a case because there was never a contract between the parties e. the parties' previous dealings were insufficient to show agreement
a. since both parties had agreed for 3 years that "market size" was 12 to 16 ounces, Clear Lakes was liable for breach of contract when it tried to change the definition of "market size"
101. To satisfy the Statute of Frauds under UCC Article 2 there must be: a. some basis for believing that the parties made a contract of the sale of goods b. a legal document signed by both parties to the contract and witnessed by a judge c. a verbal agreement d. a notarized document detailing all details of the sale and contract e. a full description of all goods involved in the sale
a. some basis for believing that the parties made a contract of the sale of goods
193. Under the UCC, merchantable means that goods must be of a quality comparable to: a. that generally acceptable in that line or trade b. the median standard of industry c. the highest recent quality of the trade d. defect-free goods in the industry e. none of the other choices
a. that generally acceptable in that line or trade
59. If a good has been stolen and is then sold to an unsuspecting buyer: a. the good title does not pass to the buyer b. the good title passes to the buyer as long as he is unaware the good is stolen c. the buyer must pay the rightful owner of the good d. the buyer is liable for damages to the good and may have to serve jail time e. the good title passes to the buyer whether or not he knows the good was stolen
a. the good title does not pass to the buyer
55. If the parties to a sale under the UCC do not specify when the title to the goods passes, then, assuming the goods did not have to be moved, title passes to the buyer when: a. the seller delivers the title documents b. the seller recognizes "payment in full" c. the buyer inspects the goods d. the buyer makes "substantial" payment e. any of the other choices
a. the seller delivers the title documents
104. Under UCC Article 2, when there is a failure to respond to a writing signed by the other party: a. there may be a good contract b. there cannot be a good contract c. there cannot be a good contract, but under the common law there could be d. the court may require the other party to respond in writing to make the contract legal e. the contract will not be binding
a. there may be a good contract
1. ____of the Uniform Commercial Code governs the law of commercial sales. a. Article 1 b. Article 2 c. Article 3 d. Article 4 e. Article 5
b. Article 2
21. Which of the following is a contract most likely to fall under UCC Article 2: a. IBM sells an office building in Atlanta to Microsoft b. GM buys seat belts from Ace to install in new Cadillacs c. Nock hires CompuW to service its computers for a year so they are kept in good condition d. Disney buys the copyright on a book to make it into a movie e. none of the other choices
b. GM buys seat belts from Ace to install in new Cadillacs
84. Lisa mailed an offer to sell cotton to Jeff who sent an acceptance. However, Jeff made changes in the time and place of delivery. Under the UCC's Article 2: a. acceptance cannot change the terms of the offer without being considered either a rejection or a counteroffer b. an acceptance is valid if the parties intend to form a contract⎯even though the acceptance contains some different terms from those in the offer c. alterations are not valid under the UCC so the parties need to look to the common law of contracts for a solution d. acceptance is valid only if this is an option contract e. acceptance is valid only if this is a requirements contract
b. an acceptance is valid if the parties intend to form a contract⎯even though the acceptance contains some
82. Under the common law, an acceptance cannot deviate from the terms of the offer without being considered either a rejection or a counteroffer. Under UCC Article 2: a. an acceptance is not valid if the offeree's acceptance contains different terms from those in the offer b. an acceptance is valid when the parties intend to form a contract⎯even though the offeree's acceptance contains different terms from those in the offer c. an acceptance is only valid if it occurs in writing d. an acceptance is only valid if it is communicated verbally e. an acceptance is only valid if it is made within 3 months of the offer
b. an acceptance is valid when the parties intend to form a contract⎯even though the offeree's acceptance
188. Unlike express warranties, implied warranties: a. are not automatically imposed on sellers unless they specifically disclaim them b. are automatically imposed on sellers unless they specifically disclaim them c. cannot be automatically imposed on sellers d. are imposed by the buyer e. are imposed by the seller
b. are automatically imposed on sellers unless they specifically disclaim them
117. If a price is unclear when a contract is found to exist, the UCC directs the courts to: a. determine "a realistic price" b. determine "a reasonable price" c. determine who should have to pay the price d. determine who should have known the price e. determine a fair way to set the price
b. determine "a reasonable price"
41. Under the UCC, a merchant is not one who: a. uses an agent who holds herself out as having special knowledge about the goods sold b. has an Internet site that links to sellers of multiple goods c. regularly deals in goods of the kind involved in transactions d. presents himself as having skill specialized in the transactions e. all of the other choices are included in the definition of a merchant
b. has an Internet site that links to sellers of multiple goods
61. Suppose parties to a contract that is under the UCC fail to specify some term. The UCC: a. provides appropriate remedies for the breach created by that failure b. has rules to fill the gap about a silent term c. supplies all necessary terms to complete any commercial contract d. requires the terms to be completed before it recognizes a valid contract e. provides a special master to arbitrate all open terms
b. has rules to fill the gap about a silent term
197. If the buyer relies on the seller's skill or judgment to select the goods for that purpose, a(n) suited for that purpose is created. a. explicit warranty b. implied warranty c. extra warranty d. express warranty e. none of the other choices are correct
b. implied warranty
30. The subject matter of a sales contract is not considered a good under Article 2 unless: a. it is real and visible b. it is movable and tangible c. it is ephemeral and tangible d. it is diaphanous and movable e. it is movable and intangible
b. it is movable and tangible
81. Which of the following is not true, under UCC Article 2, about a merchant's firm offer: a. requires a signed writing by the offeror that the offer will remain open for a given period b. it must be open to all members of the public c. stays open for a time not to exceed 3 months, if no other period of time is stated in the offer d. does not require consideration to be irrevocable e. is irrevocable if stated in writing that it remains open for a given time
b. it must be open to all members of the public
7. Sales law developed in medieval Europe was known as: a. lex vendido b. lex mercatoria c. the Medieval Code d. the merchant code e. the rules of sales
b. lex mercatoria
According the UCC's statute of frauds all: a. contracts involving the sale of land must be in writing b. sales of goods worth more than $500 must be in writing c. warranties must be in writing d. material terms must be included in written contracts e. all of the other choices
b. sales of goods worth more than $500 must be in writing
88. In Orkal Industries v. Array Connector, where Orkal bought parts from Array by sending an order form, but Array confirmed with its own form that contained different terms. Orkal did not object to the different terms until litigation arose later at which point the added terms mattered. The courts held that under the UCC: a. the buyer, Orkal, controlled the terms, so the original order form controls b. the buyer, Orkal, controlled the terms, so the original order form controls; Array could have forced a change by requiring Orkal to recognize its different terms, but it failed to do so c. the seller, Array, controlled because Orkal did not object to the change in terms when the contract was formed d. the seller, Array, controlled because under UCC 2-207, a sellers terms always control e. none of the other choices are correct
b. the buyer, Orkal, controlled the terms, so the original order form controls; Array could have forced a change by requiring Orkal to recognize its different terms, but it failed to do so
200. It is customary for new car dealers to clean and check new cars prior to delivery to customers. Danver Chevrolet fails to do those checks before delivering a new car to a buyer. A check would have revealed that the exhaust was going into the passenger compartment. While driving, the buyer is overcome by carbon monoxide and crashes. a. if the buyer can demonstrate "actual reliance" on the seller's expertise, the dealer may be held liable for a breach of an implied warranty of merchantability b. the dealer may be liable to a buyer for damages under a breach of an implied warranty arising from trade usage c. the dealer may be liable to a buyer for damages for breach of an implied warranty arising from merchantability d. since the new car was under warranty, the seller has the right to cure the problem in a reasonable manner e. the dealer cannot be held liable; the problem is with the manufacturer
b. the dealer may be liable to a buyer for damages under a breach of an implied warranty arising from trade usage
136. The seller's basic obligation under the UCC is to: a. ensure the buyer does not lose money b. transfer and deliver goods that conform to the contract to the buyer c. represent the goods properly d. refrain from swindling unsuspecting buyers e. arrange all elements of the transaction and deal with any problems that arise
b. transfer and deliver goods that conform to the contract to the buyer
38. Ready Construction buys a computer system from Ace that Ace will also service. Two years after the sale, a disagreement develops. Ace has determined that the common law of contracts favors it. Article 2 favors Ready. Ace should: a. realize that the agreement is for the sale of goods so it must be covered by Article 2, so work to settle on the best terms possible b. try to show that the value of service dominates c. establish the contract as one for the sale of tangible goods d. define itself as a merchant under Article 2 of the UCC e. none of the other choices
b. try to show that the value of service dominates
113. In Griffith v. Clear Lakes Trout, Griffith grew trout for Clear Lakes; the parties got into a dispute over what were "market size" trout, as Clear Lakes wanted larger fish. The court held that: a. since the contract between the parties was vague about trout size, there was no enforceable contract b. Clear Lakes was correct about trade usage regarding "market size" so Griffith had an obligation to grow larger fish and be in compliance with the contract c. Clear Lakes was incorrect about trade usage regarding "market size" so Griffith had no an obligation to grow larger fish to be in compliance with the contract d. Clear Lakes had underpaid for the trout given current market prices, so owed Griffith damages equal to the market price versus the price paid e. none of the other choices
c. Clear Lakes was incorrect about trade usage regarding "market size" so Griffith had no an obligation to grow larger fish to be in compliance with the contract
63. Under the common law, a contract cannot be formed until an offer is clearly accepted. Under UCC Article 2: a. a contract "must be notarized" and must "show sufficient agreement" between the parties b. a contract "may be made only in the presence of a judicial official" c. a contract "may be made in any manner sufficient to show agreement" between the parties d. a contract is not formed until an offer is clearly accepted e. none of the other choices are correct
c. a contract "may be made in any manner sufficient to show agreement" between the parties
149. Tender is: a. a proper initiation of a contract b. failure to provide a sufficient offer of performance under a contract c. a valid and sufficient offer of performance under a contract d. a type of contract e. a contact that allows the offeree to terminate the contract at any point
c. a valid and sufficient offer of performance under a contract
77. Under the common law, an offer can be revoked: a. anytime the offeror wants b. only if allowed by a district court c. anytime before acceptance d. anytime after acceptance e. anytime the offeree wants
c. anytime before acceptance
11. UCC Article 2 has been adopted: a. by Congress b. by 31 states c. by 49 states d. by all 50 states e. none of the other choices
c. by 49 states
Early sales law was governed by state law. This created a significant legal challenge for managers because: a. Article 2 of the UCC was unclear b. it forced managers to write sales agreements with many terms left open c. different rules developed across the states d. it required a new sales agreement each time a new order was placed e. none of the other choices
c. different rules developed across the states
97. Andrea offered to buy apricots from Aramos. The offer was for 10 tons at $1.20 per pound to be transported to Andrea's warehouse in Aramos trucks. Aramos accepted the offer, but said that the goods would be transported in Andrea's trucks. A dispute later arose and Aramos refused to sell the apricots, asserting that no contract existed. If Aramos sues, it: a. wins because agricultural products are outside the scope of the UCC b. wins because his acceptance changed terms from the original offer by Andrea c. loses if it can be shown that the parties intended to form a contract even though the acceptance contained different terms from those of the offer d. loses if it can be shown that Aramos did not offer new consideration for the transportation modifications to the contract e. none of the other choices
c. loses if it can be shown that the parties intended to form a contract even though the acceptance contained different terms from those of the offer
135. A buyer ordered custom made equipment. The delivery date was not set, but the seller promised to do the job in a reasonable time. When the equipment was not ready when the buyer hoped, the buyer cancelled the order. The seller demanded payment. You would expect the court to hold that: a. failure to deliver by the delivery date expected by the buyer was a breach of contract, so nothing was owed by the buyer b. because UCC 2-207(b) states that special terms are to be specified in the contract, as was the case with this order, the seller was in breach for not fixing a delivery date c. no delivery date was fixed, but the seller worked on the equipment and so will be paid for the work done up to time of cancellation d. no delivery date was specified by the buyer, so he had no right to cancel the order and is liable for all costs plus lost profits e. the breach was done with malice, so punitive damages could be added to the compensatory damages
c. no delivery date was fixed, but the seller worked on the equipment and so will be paid for the work done up to time of cancellation
126. When a buyer has agreed to purchase the total output of a seller, there is a(n): a. requirements contract b. fulfillment contract c. output contract d. totality contract e. such contracts are not allowed under the UCC ANSWER: c
c. output contract
91. Under the common law, contract modifications must be supported by new consideration to be binding on the parties. Under UCC Article 2: a. parties can only modify an existing sales contract in court b. parties may not add new consideration to an existing sales contract c. parties need not provide new consideration to modify an existing sales contract d. parties need to provide new consideration to modify an existing sales contract e. parties cannot modify an existing sales contract
c. parties need not provide new consideration to modify an existing sales contract
39. Ready Construction buys a computer system from Ace that Ace will also service. Two years after the sale, a disagreement develops. Ace has determined that the common law of contracts favors it. Article 2 favors Ready. Ready should: a. realize that the agreement is for the sale of goods, and so settle on the best terms possible b. try to characterize the agreement as a service contract c. show that the value of the system is greater than the value of the service d. define itself as a merchant under Article 2 of the UCC e. none of the other choices
c. show that the value of the system is greater than the value of the service d. define itself as a merchant under Article 2 of the UCC
195. If the buyer relies on the seller's skill or judgment to select the goods for that purpose, an implied warranty is created. a. no implied warranty is created in this situation b. that the goods are not suited for that purpose c. that the goods are suited for that purpose d. that the goods will last for at least a year e. that the goods will be reasonably priced
c. that the goods are suited for that purpose
142. Under the UCC, the seller's basic obligation includes being concerned with: a. what the goods are used for after they leave the seller's possession b. the future financial solvency of the buyer c. the appropriate manner of delivery d. all of the other specific choices are correct e. none of the other specific choices are correct
c. the appropriate manner of delivery
182. Warranty of title includes the warrant that: a. the goods being sold can be sold overseas without any tariff penalties b. the goods being sold are marketable c. the goods being sold are free of any claim of infringement d. the goods being sold might be copyrighted e. the goods being sold are capable of being copyrighted
c. the goods being sold are free of any claim of infringement
140. Under the UCC, the seller's basic obligation includes being concerned with: a. what the goods are used for after they leave the seller's possession b. the future financial solvency of the buyer c. the place of delivery d. all of the other specific choices are correct e. none of the other specific choices are correct
c. the place of delivery
141. Under the UCC, the seller's basic obligation includes being concerned with: a. what the goods are used for after they leave the seller's possession b. the future financial solvency of the buyer c. the quality of the goods provided d. all of the other specific choices are correct e. none of the other specific choices are correct
c. the quality of the goods provided
143. Under the UCC, the seller's basic obligation includes being concerned with: a. what the goods are used for after they leave the seller's possession b. the future financial solvency of the buyer c. the timeliness of delivery d. all of the other specific choices are correct e. none of the other specific choices are correct
c. the timeliness of delivery
18. The UCC's purpose is: a. to give each state a unique set of trade laws b. to mediate international business disputes c. to simplify, clarify and modernize the law governing commercial transactions d. to reduce taxes e. to make it easier to prosecute parties who breach contracts
c. to simplify, clarify and modernize the law governing commercial transactions
95. Balls, Inc. sells all baseballs needed by Major League Baseball (MLB). MLB agrees that prices and quantities will be determined at the beginning of each year. After 4 years, MLB decides its needs fewer balls and demands it be allowed to buy less. Balls demands MLB buy as much as in years before. If MLB sues under the UCC it will likely: a. lose because the contract modification it seeks is not negotiated in good faith b. lose because the contract modification it seeks is not supported by new consideration c. win if the contract modification is sought in good faith d. win because the right to such a contract modification under the UCC is irrevocable without consideration e. lose because baseball is a service and thus is not within the scope of the UCC
c. win if the contract modification is sought in good faith
65. In Crest Ridge Construction v. Newcourt, where an order for construction materials that Crest Ridge needed was rejected for failure to meet credit terms, and Crest Ridge had to find a higher-cost replacement and sued Newcourt for damages, the appeals court held that: a. Crest Ridge had no basis for suit since the credit terms of the contract were clear and it failed to follow the instructions b. Crest Ridge had no basis for suit since the credit terms of the contract were clear and it did not have sufficient credit history to qualify c. Newcourt was liable as it imposed higher credit conditions on Crest Ridge than it stated were necessary in the contract d. Newcourt was liable as its actions gave Crest Ridge reason to believe the sale had been approved e. none of the other choices
d. Newcourt was liable as its actions gave Crest Ridge reason to believe the sale had been approved
23. Contracts under Article 2 of the UCC could include: a. a house b. a patent c. a bank account d. a load of wheat e. all of the other choices
d. a load of wheat
132. Under the UCC Article 2, a "reasonable time" for delivery of a good is determined by: a. trade custom b. the apparent intentions of the parties c. the availability of transportation services d. all of the other specific choices are correct
d. all of the other specific choices are correct
119. When a court must determine a price for a contract under the UCC, they look to: a. fair market value b. usual business practices c. a reasonable price d. all of the other specific choices may be used
d. all of the other specific choices may be used
40. A seller or buyer is considered a merchant by the UCC when he: a. regularly deals in goods of the kind involved in the transaction b. by occupation presents himself as having knowledge or skill specialized to the transaction c. employs an agent or broker who holds himself out as having requisite knowledge or skill d. any of the other specific choices
d. any of the other specific choices
186. A(n)___being sold. is created by a seller's promise or guarantee as to the quality, safety, performance, or durability of goods a. final warranty b. warranty to title c. implied warranty of merchantability d. express warranty e. fitness for a particular purpose
d. express warranty
36. The UCC defines good-faith dealings as: a. the ordinary standards of the industry b. the standards set by the Domestic Corruption Practices Act c. fiduciary obligations among parties involved d. honest in fact in the conduct or transaction incurred e. none of the other choices
d. honest in fact in the conduct or transaction incurred
49. Article 2A of the UCC, recently adopted by most states, expands the UCC to cover: a. sale of investment securities b. sale of service contracts c. sale of real estate d. leases of personal property e. none of the other choices
d. leases of personal property
108. Under the UCC, oral testimony: a. may contradict written documents b. may never be used c. may be used if the goods are not worth more than $10,000 d. may be used to explain trade dealings e. may be used only if both parties agree
d. may be used to explain trade dealings
Article 2 provides minimum requirements that goods must satisfy to be merchantable, including that the goods must be: a. of the highest quality reasonably possible under the contract b. reasonably fit for the purposes for which they are being sold c. of fair, average, merchantable quality d. reasonably fit for the purposes for which they are being sold and of fair, average, merchantable quality e. of the highest quality reasonably possible under the contract and of fair, average, merchantable quality
d. reasonably fit for the purposes for which they are being sold and of fair, average, merchantable quality
20. In Paramount Contracting Co. v. DPS Industries, DPS claimed there was a contract to deliver hundreds of truckloads of dirt for Paramount, which claimed no contract had come into existence. The courts held that: a. the contract fell under the common law and no contract existed because there was no meeting of the minds b. the contract fell under the common law and the terms were sufficiently clear for a binding contract to have been formed c. the contract fell under Article 2 of the UCC and the court would determine the price for the dirt as it was clear the parties intended to deal with each other d. the contract fell under Article 2 of the UCC as it was a contract for goods and Paramount breached the contract e. none of the other choices are correct
d. the contract fell under Article 2 of the UCC as it was a contract for goods and Paramount breached the contract
184. An express warranty may be created by all but which of the following: a. a seller's promise about goods being sold b. a seller's guarantee regarding the safety of a good c. the sample the buyer received from the seller d. the guarantee the buyer reasonably expects for the product e. any of the other choices
d. the guarantee the buyer reasonably expects for the product
By definition, a sale under Article 2 of the UCC requires that: a. both parties involved be merchants b. contracts be for goods or services; that the sale be between merchants; and that the sale take place in the normal course of commerce c. the product or service (good) be classified as a bailment d. title to the goods pass from the seller to the buyer and that a price be paid for the good e. all of the other choices
d. title to the goods pass from the seller to the buyer and that a price be paid for the good
79. Under Article 2 of the UCC, a merchant's firm offer: a. requires a signed writing by the offeror that the offer will remain open for a given period b. is irrevocable if stated in writing that it remains open for a given time c. stays open for a time not to exceed 3 months, if no other period of time is stated in the offer d. does not require consideration to be irrevocable e. all of the other choices
e. all of the other choices
42. Under the UCC, a merchant is not one who: a. uses an agent who holds herself out as having special knowledge about the goods sold b. presents himself as having skill specialized in the transactions c. regularly deals in goods of the kind involved in transactions d. has business expertise used in transactions involving particular goods e. all of the other choices are merchants under the UCC
e. all of the other choices are merchants under the UCC
138. Under the UCC, the seller's basic obligation includes being concerned with: a. the appropriate manner of delivery b. the timeliness of delivery c. the place of delivery d. the quality of the goods provided e. all of the other specific choices are correct
e. all of the other specific choices are correct
185. An express warranty may be created by all but which of the following: a. a seller's promise about goods being sold b. a seller's guarantee regarding the safety of a good c. the sample the buyer received from the seller d. the description of the goods provided by the seller e. any of the other choices
e. any of the other choices
56. If the parties to a sale under the UCC do not specify when the title to the goods passes, then, assuming the goods did not have to be moved, title passes to the buyer when: a. the seller recognizes "payment in full" b. the seller ships the title documents and goods c. the buyer inspects the goods d. the buyer makes "substantial" payment e. any of the other choices
e. any of the other choices
54. In a sale under the UCC, title to goods passes when the goods: a. arrive for shipment at a port or train or trucking facility b. arrive at the buyer's facility c. leave the seller's facility d. when the goods are halfway between buyer and seller e. any of the other choices would be allowed
e. any of the other choices would be allowed
93. Suppose two parties to a contract that is under the UCC decide to make a significant change in the contract, obligating the seller to provide more goods. When the terms of the contract change, it requires: a. fair market value consideration b. at least nominal consideration c. trade usage consideration d. signing a new contract to evidence a willingness to change e. no consideration
e. no consideration
To be a valid contract, the writing of a contract under the UCC must be complete as to: a. price and quantity b. time of payment c. all essential terms d. all parties involved e. none of the other choices
none of the other choices
75. Under UCC Article 2, terms regarding payment, delivery and price are: a. not necessarily necessary for the formation of a contract b. required for the formation of a contract c. not allowed in a formal contract d. not allowed in a "casual contract" e. necessary only when one of the parties is a minor
not necessarily necessary for the formation of a contract
With respect to parol evidence and the UCC: a. it follows the same rule as the common law b. it allows oral testimony to contradict written documents c. oral evidence may be used to explain trade dealings d. oral evidence may be used even if the court finds that the written documents are complete e. oral evidence may never be used
oral evidence may be used to explain trade dealings
72. A buyer and a seller would like to enter into a contract for the sale of goods. In his offer the buyer does not specify a price. The seller agrees with the arrangement. a. under Article 2 there is a contract if the parties have done business before b. under the common law of contracts, but not the UCC, there is a contract because the parties intended to enter into a binding agreement even in the absence of the price term c. there is a contract under Article 2 because it allows the parties to enter into a contract even though the price is to be determined later d. there is no contract under Article 2 because "some of the offer's major terms were omitted or were simply left open for determination later" e. there can be no contract under Article 2 or the common law when price is missing
there is a contract under Article 2 because it allows the parties to enter into a contract even though the price is to be determined later
69. A buyer and seller have been doing business for months without a formal contract. Every Monday, the seller delivers supplies to the buyer's business. Every Thursday, the buyer pays the invoice by mail. Is there a contract between the parties? a. in jurisdictions where the offer-acceptance rule is rigidly applied there is a contract under both the UCC and the common law of contracts b. in jurisdictions where the offer-acceptance rule is rigidly applied there is no contract under either the UCC or the common law of contracts c. under the UCC, a contract has been formed by the conduct of the parties d. under the UCC, there is no contract formed because the delivery of supplies is a service, not a good e. under the UCC there is no contract, but there is a quasi-contract under the common law
under the UCC, a contract has been formed by the conduct of the parties
71. A buyer and seller have been doing business for months without a formal contract. Every Monday, the seller delivers supplies to the buyer's business. Every Thursday, the buyer pays the invoice by mail. Difficult times arrive. The buyer fails to make payment and the seller sues for breach of contract. Is there a contract? a. in jurisdictions where the offer-acceptance rule is rigidly applied there is a contract under both the UCC and the common law of contracts b. in jurisdictions where the offer-acceptance rule is rigidly applied there is no contract under either the UCC or the common law of contracts c. under the UCC, there is no contract because the conduct involves delivery of supplies is a service d. under the UCC, a contract has been formed by the conduct of the parties. The seller will prevail e. none of the other choices
under the UCC, a contract has been formed by the conduct of the parties. The seller will prevail
