Law 322 ch. 11

None of the other choices are correct

Sales law developed in medieval Europe was known as: a. lex vendido b. the rules of sales c. the Medieval Code d. the merchant code e. none of the other choices are correct Q8

By 49 states

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 Q11

Title

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 Q45

Anytime before acceptance

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 Q77

Date back thousands of years

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

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

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 Q72

Under the UCC, a contract has been formed by the conduct of the parties. The seller will prevail

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 Q71

Under the UCC, a contract has been formed by the conduct of the parties

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 Q69

Can be seen and touched

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 Q34

Choices a and b are correct

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 e. none of the other choices are correct Q53

Any of the other specific choices

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 e. none of the other choices Q40

It can be carried from one location to another

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 Q32

goods

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 Q3

none of the other choices

Article 2 of the UCC covers the sale of: a. the copyright on a book b. business services c. investment securities d. commercial real estate e. none of the other choices Q4

Leases of personal property

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 Q49

Title to the goods pass from the seller to the buyer and that a price be paid for the good

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 Q43

None of the other choices

Contracts under Article 2 of the UCC could include: a. a house b. a patent c. a bank account d. rights to royalties from a book e. none of the other choices Q24

A load of wheat

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 Q23

Different rules developed across the state

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 Q5

None of the other choices are correct

Every state except ______ has adopted UCC Article 2. a. Texas b. Illinois c. Alabama d. Florida e. none of the other choices are correct Q13

Louisana

Every state except _______ has adopted UCC Article 2. a. Texas b. Illinois c. Alabama d. Louisiana e. Florida Q12

The good title does not pass to the buyer

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 Q59

The seller completes all obligations regarding delivery

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 Q57

The seller delivers the title documents

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 Q55*

Any of the other choices

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 Q56*

The contract fell under Article 2 of the UCC as it was a contract for goods and Paramount breached the contract

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 Q20

Any of the other choices would be allowed

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 Q54

None of the other choices are correct

Lex mercatoria refers to: a. medieval European rules governing land rental b. ancient Greek rules governing trade issues c. modern Japanese law governing trade issues d. the Supreme Court's views on trade issues e. none of the other choices are correct Q10

Medieval European rules governing trade issues

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 Q9

Adopted UCC Article 2

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 Q14

The benefits of lowering the costs of doing business across state lines was so great

Most states accept the UCC's provisions on most topics because: a. the benefits of lowering the costs of doing business across state lines was so great b. the federal government gave them no choice c. the European Union required consistency in U.S. sales law to encourage trade d. national unity is very important to all states e. there were a lot of federal tax breaks associated with accepting the UCC Q16

UCC Article 2A

Most states have recently adopted to cover certain leases of personal property. a. UCC Article 2A b. UCC Article 2B c. UCC Article 3 d. UCC Article 22 e. UCC Amendment 2A Q51

None of the other choices are correct

Most states willingly accepted the UCC's provisions on most topics because: a. there were a lot of federal tax breaks associated with accepting the UCC b. the federal government gave them no choice c. the European Union required consistency in U.S. sales law to encourage trade d. national unity is very important to all states e. none of the other choices are correct Q17

Try to show that the value of service dominates

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 Q38

Show that the value of the system is greater than the value of the service

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 Q39

Lex mercatoria

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 Q7

Has rules to fill the gap about a silent term

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 Q61

None of the other choices

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. provides for a special master to arbitrate all open terms c. supplies all necessary terms to complete any commercial contract d. requires the terms to be completed before it recognizes a valid contract e. none of the other choices Q62

Honest in fact in the conduct or transaction incurred

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 Q36

All things which are moveable at the time of identification to the contract for sale

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 Q28

All of the specific choices are covered by Article 2

The UCC's Article 2 does not cover the sale of: a. a truck load of printer paper b. furniture c. a load of corn d. a computer sold to a business e. all of the other specific choices are covered by Article 2 Q27

Land

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 Q26

To simplify, clarify and modernize the law governing commercial transactions

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 Q18

It is movable and tangible

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 Q30

Legal rights to ownership of a thing

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 Q47

All of the other specific choices are correct

Under Article 2 of the UCC a contract can exist even if which of the following terms is(are) omitted: a. payment terms b. delivery terms c. price d. all of the other specific choices are correct e. none of the other specific choices are correct Q74

Not necessarily necessary for the formation of a contract

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 Q75

Has an Internet site that links to sellers of multiple goods

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 Q41

All of the other choices are merchants under the UCC

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 Q42

None of the other choices are correct

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 even without sufficient agreement" between the parties d. a contract is not formed until an offer is clearly accepted e. none of the other choices are correct Q64

A contract "may be made in any manner sufficient to show agreement" between the parties

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 Q63

Abbie purchases a suite of office furniture from Office Lots

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 Q22

GM buys seat belts from Ace to install in new Cadillacs

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 Q21

None of the other choices are correct

_______ of the Uniform Commercial Code governs the law of commercial sales. a. Article 1 b. Article 6 c. Article 3 d. Article 7 e. none of the other choices are correct Q2

Article 2

________ of the Uniform Commercial Code governs the law of commercial sales. Q1