ch 11
136. 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
(A)
187. 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)
218. 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)
134. ____ 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)
231. 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)
223. 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)
145. Every state except ____ has adopted UCC Article 2. (A) Texas (B) Illinois (C) Alabama (D) Louisiana (E) Florida
(D)
179. 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)
163. 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 intangible (C) it is ephemeral and tangible (D) it is diaphanous and movable (E) none of the other choices are correct
(E)
165. An item is movable if: (A) it can be bought in any state (B) it can be cannot be moved (C) it is a service that can be performed anywhere (D) it can be easily reproduced (E) none of the other choices are correct
(E)
190. 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 delivers "payment in full" (B) the seller requests payment (C) the buyer inspects the goods (D) the buyer makes "substantial" payment (E) none of the other choices
(E)
139. 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)
142. 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)
147. 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)
149. 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
(A)
154. 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)
158. 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
(A)
160. 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)
164. 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)
166. 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)
177. 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
(A)
183. 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
(A)
191. 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)
199. 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
(A)
207. 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
(A)
233. 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)
140. 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)
153. 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)
162. 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)
170. 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)
173. 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)
189. 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)
193. 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)
213. 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)
214. 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)
216. 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)
220. 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)
221. 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, sos 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 Orka di 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)
138. 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)
144. 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)
151. 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)
171. 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)
195. 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)
201. 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
(C)
204. 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
(C)
209. 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)
227. 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)
229. 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)
155. 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)
168. 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)
172. 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
(D)
175. 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)
181. 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)
185. 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
(D)
197. 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)
203. 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
(D)
206. 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
(D)
135. ____ 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
(E)
137. 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
(E)
141. 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
(E)
143. 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
(E)
146. Every state except ____ has adopted UCC Article 2. (A) Texas (B) Illinois (C) Alabama (D) Florida (E) none of the other choices are correct
(E)
148. Louisiana is the only state that has not: (A) imposed an income tax (B) adopted UCC Article 9 (C) agreed to allow out of state business transactions (D) imposed a sales tax (E) none of the other choices are correct
(E)
150. 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
(E)
152. The UCC's purpose is: (A) to give each state a unique set of trade laws (B) to mediate international business disputes (C) to make it easier to prosecute parties who breach contracts (D) to reduce taxes (E) none of the other choices are correct
(E)
156. 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
(E)
157. Contracts under Article 2 of the UCC could include: (A) a house (B) a patent (C) a bank account (D) an insurance policy (E) none of the other choices
(E)
159. 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
(E)
161. The UCC defines goods as: (A) all the items listed in a contract and their related services (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 in good faith (D) the combination of the items and services listed in the contract (E) none of the other choices are correct
(E)
167. A good is tangible if it: (A) costs more than $500 (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) none of the other choices are correct
(E)
169. 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) following the terms agreed to in the contract (E) none of the other choices
(E)
174. 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)
176. 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) the seller retains liability unless a warranty accompanies the goods (E) none of the other choices
(E)
178. Under UCC Article 2, a sale must involve the transfer of the ____ to the goods involved in the sale. (A) easement (B) will (C) deed (D) bill of sale (E) none of the other choices are correct
(E)
180. The title represents the: (A) age of a thing (B) bill of sale of a thing (C) legal value of a thing (D) price of a thing (E) none of the other choices are correct
(E)
182. 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) sales of intellectual property (E) none of the other choices
(E)
184. Most states have recently adopted ____ to cover certain leases of personal property. (A) UCC Amendment 2 (B) UCC Article 2B (C) UCC Article 3 (D) UCC Article 22 (E) none of the other choices are correct
(E)
186. 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)
188. 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)
192. If a good has been stolen and is then sold to an unsuspecting buyer: (A) the good title passes to the buyer whether or not he knows the good was stolen (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) none of the other choices are correct
(E)
194. 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
(E)
196. 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
(E)
198. 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 because, at the last minute. it changed the price it was going to charge, which required Crest Ridge to obtain more credit than it could qualify for (E) none of the other choices
(E)
200. 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 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 (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) none of the other choices are correct
(E)
202. 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 there is no contract, but there is a quasi-contract under the common law (D) under the UCC, there is no contract formed because the delivery of supplies is a service, not a good (E) none of the other choices
(E)
205. 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: price never need be specified in such instances (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 can be no contract under Article 2 or the common law when a major term is missing (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) none of the other choices
(E)
208. Under UCC Article 2, terms regarding payment, delivery and price are: (A) necessary only when one of the parties is a minor (B) required for the formation of a contract (C) not allowed in a formal contract (D) not allowed in a "casual contract" (E) none of the other choices are correct
(E)
210. Under the common law, an offer can be revoked: (A) anytime the offeror wants before the contract is sealed (B) only if allowed by a district court (C) anytime the offeree wants (D) anytime after acceptance (E) none of the other choices are correct
(E)
211. 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)
212. 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) 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 are true
(E)
215. 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 only valid if it is made within 3 months of 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) none of the other choices are correct
(E)
217. 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) acceptance is valid only if this is a requirements contract (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) none of the other choices
(E)
219. When terms in contracts conflict, it is called: (A) the "amalgamation of the forms" (B) the "conflict of the forms" (C) the "fight of the forms" (D) the "tangle of the forms" (E) none of the other choices are correct
(E)
222. 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 the contract (B) the buyer, Orkal, would have to provide new consideration for any change in the terms of the original contract (C) the seller, Array, controlled because Orkal's form contained major defects that made it fail as sufficient to create a contact (D) the seller, Array, controlled because under UCC 2-207, a sellers terms always control (E) none of the other choices are correct
(E)
224. 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 cannot modify an existing sales contract (D) parties need to provide new consideration to modify an existing sales contract (E) none of the other choices are correct
(E)
225. 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)
226. 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 the willingness to change (E) none of the other choices
(E)
228. 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) lose because baseball is a service and thus is not within the scope of the UCC (D) win because the right to such a contract modification under the UCC is irrevocable without consideration (E) none of the other choices
(E)
230. 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 because Aramos never got specific permission to change the terms of the initial 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
(E)
232. 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 $50 must be in writing (C) warranties must be written (D) material terms must be included in written contracts (E) none of the other choices
(E)
