Chapter 22 business law

Goods physically existing and owned by a seller at the time of a transaction are called existing goods.

True

The term "course of dealing" refers to the language and customs of an industry.

False

A bailment is a special form of a sale of goods in which possession is transferred to a bailee.

False

A contract that has elements of both goods and services is always classified as a contract for the sale of goods.

False

A firm offer is effective for three months, but only if the merchant receives consideration.

False

A sale of goods is defined under UCC Article 2 as transfer of title to intangible property for a price.

False

An output or requirement contract is not enforceable unless the parties include an estimate of prospective amounts.

False

Any modification of a sales contract between merchants must be supported by some form of consideration.

False

The CISG governs all contracts between parties in the countries that have ratified it.

False

The UCC has adopted the common law 'mirror image' rule.

False

When the price of the goods is $500 or more, a writing signed by the defendant is required in all cases.

False

A bill of sale can be used as proof of an otherwise oral agreement.

True

A gift is a free transfer of the title to property.

True

An offer to buy or sell goods may be accepted in any manner that is reasonable under the circumstances.

True

An oral contract to sell specially manufactured goods is enforceable if the goods cannot be sold to other buyers, and the manufacturer has made a substantial progress in manufacturing the goods.

True

If a contract calls for both rendering services and supplying materials to be used in performing the services, the contract is classified according to its dominant element.

True

Sales law includes special rules that apply to merchants.

True

The provisions of Article 6 concerning bulk transfers are designed to protect creditors.

True

UCC Article 2 applies not only to contracts for the sale of familiar items of personal property, such as automobiles or chairs, but also to the transfer of commodities, such as oil, gasoline, milk, and grain.

True

When an oral contract is made to sell a 75-inch LED LCD TV for $6,800, payment and acceptance of part of the purchase price avoids the bar of the statute of frauds.

True

With regard to transactions between merchants, failure to repudiate a confirming letter within ten (10) days after receipt binds the non-signing merchant, just as if he had signed the letter or a contract.

True

______ is a transfer of possession - but not title - to personal property. a. A bailment. b. An option to purchase. c. A gift d. A consignment

a. A bailment.

__________ represents a pattern of performance between the parties to a contract. a. Course of dealing b. Usage of trade c. Course of trade d. Usage of dealing

a. Course of dealing

Harvested crops would be an example of ______. a. existing goods. b. tangible goods. c. future goods. d. intangible goods.

a. existing goods.

An agreement to periodically deliver home-heating oil to a residential customer that does not indicate the duration of the contract a. is enforceable for a reasonable period of time. b. lasts for one delivery only. c. is not a legally-enforceable contract. d. constitutes a bulk transfer.

a. is enforceable for a reasonable period of time.

If a contract for the sale of goods omits the price to be paid, the: ______. a. contract is void because it is too indefinite to be enforced. b. buyer is required to pay a reasonable price for the goods. c. buyer can pay whatever price the buyer in good faith believes is a proper price. d. seller can rightfully charge whatever price the seller in good faith believes is a proper price.

b. buyer is required to pay a reasonable price for the goods.

Which term is not required in a writing in order to satisfy the statute of frauds? a. language indicating that a sale or contract to sell has been made b. the price of the goods c. the quantity of goods involved in the transaction d. the signature of the defendant

b. the price of the goods

Consumer leases: a. must always be evidenced by a writing. b. are always three- party transactions. c. require the lessor to make all usual warranties made by a seller in a sale of goods.. d. all of these.

c. require the lessor to make all usual warranties made by a seller in a sale of goods..

Carol, who is planning to move out of town, offers to sell her sofa to her friend Betty for $750. Betty says, "I'll take it, and I would like you to throw in the coffee table along with it." Under Article 2 of the UCC, Carol and Betty have: a. no contract, because of the mirror image rule. b. no contract because Carol did not accept Betty's counteroffer. c. a contract for both the sofa and coffee table. d. a contract for the sofa only.

d. a contract for the sofa only.

All of the following are covered by Article 2 of the UCC except: ______. a. big screen TVs b. commodities c. custom-made furniture d. gifts

d. gifts

As a general rule, courts will __________ in recovering money or property transferred under an illegal agreement. a. assist a commercial buyer b. assist a non-commercial buyer c. assist an institutional buyer d. not aid either party

d. not aid either party

Which of the following situations create(s) an exception to the statute of frauds writing requirement? a. non-resellable goods b. receipt and acceptance c. payment d. specially manufactured goods

d. specially manufactured goods

A merchant cannot revoke a firm offer to buy or sell goods if the merchant has: a. promised to keep the offer open. b. declared in the presence of two or more reputable witnesses that the offer will be kept open. c. received consideration to keep the offer open. d. stated in a signed letter that the offer would not be revoked for a specified period of time.

d. stated in a signed letter that the offer would not be revoked for a specified period of time.

A contract involving both services and goods is classified as a contract for the sale of goods if: a. the services are to be performed upon the goods. b. the services cannot be performed unless the goods are supplied. c. no charge is made for the services. d. the sale of goods is the dominant aspect of the transaction.

d. the sale of goods is the dominant aspect of the transaction.