BLAW Ch18 quiz

According to the UCC Statute of​ Frauds, lease contracts requiring payments of​ _____ or more must be in writing.

$1,000

According to the UCC Statute of​ Frauds, all contracts for the sale of goods priced at​ _____ or more must be in writing.

$500

Article​ _____ of the UCC applies to domestic transactions in the sales of goods.

2

Article​ _____ (Leases) of the UCC directly addresses personal property leases.

2A

After speaking on the phone with a salesperson from​ Reed, Inc.,​ BEH, Inc., a​ merchant, sends a sales order form that afternoon to purchase​ 3,000 outdoor grills. They are to be delivered in two weeks from​ Reed, Inc., also a​ merchant, for​ $200,000. Reed does not sign the sales form BEH​ sent, but sends back its own signed sales​ form, which contains slightly different terms than the form that BEH sent BEH does not respond to​ Reed's email. Under traditional common law rules and not the​ UCC, _____.

BEH is not bound to the contract because Reed's acceptance was not a mirror image of the original offer

The Uniform​ _____ Code is a model act that includes comprehensive laws that cover most aspects of commercial transactions.

Commercial

_____ are defined as​ _____ items that are movable at the time of their sale.

Goods; tangible

All states except​ _____ have adopted some version of Article 2​ (Sales) of the UCC.

Louisiana

All of the following are true about letters of credit​ EXCEPT?

Most banks do not require that international letters of credit be governed by the Uniform Customs and Practices for Documentary Credits​ (UCP).

After speaking on the phone with a salesperson from​ Reed, Inc.,​ BEH, Inc., a​ merchant, sends a sales order form that afternoon to purchase​ 3,000 outdoor grills. They are to be delivered in two weeks from​ Reed, Inc., also a​ merchant, for​ $200,000. Reed never responds to the email containing the sales order. When Reed fails to make the delivery on June​ 1st, BEH threatens to sue Reed. Under the​ UCC, _____.

Reed is bound to the sales order

Which of the following is NOT true regarding the written confirmation​ rule?

The receiving party has to sign the written confirmation.

A salesperson at a Verizon store offers to sell a cellphone to a buyer. The buyer writes on the sales​ contract, "I accept your​ offer, but I would like a case for the​ phone." Assuming we are following the​ UCC's guidance for additional​ terms, which of the following is​ true?

The salesperson may choose to reject the proposed addition of a phone case and a sales contract of just the phone would still exist.

According to UCC​ 2-206(1)(b), a shipment of nonconforming goods does not constitute an acceptance if the seller reasonably notifies the buyer that the shipment is offered only as​ a(n) _____ to the buyer.

accommodation

Which of the following are considered goods as defined by Article 2 of the​ UCC?

automobiles

After speaking on the phone with a salesperson from​ Reed, Inc.,​ BEH, Inc., a​ merchant, sends a sales order form that afternoon to purchase​ 3,000 outdoor grills. They are to be delivered in two weeks from​ Reed, Inc., also a​ merchant, for​ $200,000. Reed does not sign the sales form BEH​ sent, but sends back its own signed sales​ form, which contains some minor additional terms that were not included in the form from BEH. BEH does not respond to​ Reed's email. Under the​ UCC, _____.

because BEH did not object to the different form, it is bound to the Reed agreement

After speaking on the phone with a salesperson from​ Reed, Inc.,​ BEH, Inc., a​ merchant, sends a sales order form that afternoon to purchase​ 3,000 outdoor grills. They are to be delivered in two weeks from​ Reed, Inc., also a​ merchant, for​ $200,000. Reed never responds to the email containing the sales order. When Reed fails to make the delivery on June​ 1st, BEH threatens to sue Reed. Under traditional common law rules and not the​ UCC, _____.

because Reed did not sign the sales order, it is not bound to the agreement

Occasionally, the express terms of a written contract are not clear on their own and must be interpreted. In such​ cases, reference may be made to certain conduct outside the contract. In what order of priority are these conducts​ considered? (Note: Answers are in descending order of priority​ - most important to least​ important.)

course of performance, course of dealing, usage of trade

​_____ means a computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in​ part, without review or action by an individual.

electronic agent

The​ _____ rule says that a merchant who makes an offer to​ buy, sell, or lease goods and assures the other party in a separate writing that the offer will be held open cannot revoke the offer for the time stated​ or, if no time is​ stated, for a reasonable time.

firm offer

Certain open terms are permitted to be​ "read into" sales or lease contracts. This rule is commonly referred to as the​ _____ rule.

gap-filling

According to UCC​ 1-203, modification of a sales or lease contract must be made​ _____.

in good faith

A​ _____ is a transfer of the right to the possession and use of named goods for a set term in return for certain consideration.

lease

In a lease​ contract, the​ _____ is the person who acquires the right to possession and use of goods under a lease.

lessee

In a lease​ contract, the​ _____ is the person who transfers the right of possession and use of goods under the lease.

lessor

A(n) _____ is a document issued by a bank on behalf of a buyer who purchases goods on credit from a seller guaranteeing that if the buyer does not pay for the​ goods, the bank will pay the seller.

letter of credit

According to Article 2 of the​ UCC, a​ _____ is a person who by his or her occupation holds himself or herself out as having knowledge peculiar to the goods involved in the transaction.

merchant

According to Article 2 of the​ UCC, a​ _____ is a person who deals in goods of the kind involved in a transaction.

merchant

​A(n) _____ sale involves the provision of a service and a good in the same transaction.

mixed

The​ _____ rule states that when a sales or lease contract is evidenced by a writing that is intended to be a final expression of the​ parties' agreement or a confirmatory​ memorandum, the terms of the writing may not be contradicted by evidence of a prior oral or written agreement or a contemporaneous oral agreement.

parol evidence

If a sales contract does not contain a specific​ price, a​ _____ price is implied at the time of delivery.

reasonable

​​​​A(n) _____ consists of the passing of title of goods from a seller to a buyer for a price.

sale

Very New​ Corp, Inc. wants to enter into a contract to purchase​ $1 million of scooters from Old Established​ Scooter, Co. Because Very New Corp does not have well established​ credit, Old Established Scooter asks that Very New Corp provide a​ _____ to guarantee that if Very New Corp does not pay for the​ goods, the bank will pay Old Established Scooter​ $1 million.

standby letter of credit

A finance lease is a​ three-party transaction consisting of a​ lessor, a​ lessee, and a​ _____.

supplier

Article 2 of the UCC applies to mixed sales only if the goods are​ _____ part of the transaction.

the predominant

A cattle rancher contracts to purchase​ 3,000 bushels of​ "corn" from a farmer. The farmer delivers feed​ corn, for​ cattle, to the rancher. The rancher rejects this corn and demands delivery of corn that is fit for human consumption. If the parties did not have any prior course of performance or course of dealing that would indicate​ otherwise, ______________ would be used to interpret the word​ "corn". Thus, the delivery of feed corn​ _____________ and become part of the contract.

usage of trade; would be assumed