Exam 4: Business Law: Chapter 19

No Oral Contract is enforceable under the UCC

False

The UCC imposes special business special business standards on casual and inexperienced sellers and buyers

False

The terms of a fully integrated contract can be contradicted only by evidence of any prior agreements

False

Under the UCC, a sales or lease contract will fail for indefiniteness if one or more terms are left open

False

The UCC imposes a good faith limitation on requirements contracts

True

UCC Articles 2 applies to sales transactions between all buyers and sellers

True

Under the UCC, an agreement modifying a contract needs no consideration to be binding

True

When an offeror does not specify a means of acceptance, acceptance can be made by any means of communication that is reasonable

True

Goods associated with real estate never fall within the scope of UCC Article

False

In a contract between merchants, additional terms in the parties' separate standard form always automatically become part of the contract

True

Readymade Construction Corporation offers to buy from Set-still Cement Company a certain quantity of cement for a certain price. Set-Still can accept the offer by

A promise to ship or a prompt shipment of the cement

Charcoal Briquettes, Inc., is the offeror and Dante's Firewood Company is the offeree under a unilateral sales contract in which Ember's Kindling & Tinder Company is also interested. Charcoal is not notified of Dante's performance within a reasonable time. Charcoal

May treat the offer as having lapsed

Radiant Phone Company and Precision Works, Inc. (PWI), enter into a contract for the sale of a certain quantity of cell-phone parts, with PWI to determine the price. The price must be set according to

The concept of good faith

Over the course of a year, Retail Market, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retails uses to repay a loan from Savers Bank. Article 2 of the UCC governs

The sale of goods

If a contract in which goods and services are combined is primarily a goods contract, any dispute over it will decided under the UCC

True

If a court deems any clause in a contract to have been unconscionable at the time it was made, the court can limit its application

True

Rio Engineering Corporation pays PC Technologies, Inc., $1000 to use a computer for a month. For purposes of the UCC, This is

a lease

Trina pays Urban Edge Electronics store $1500 for a laptop computer. Under the UCC, this is

a sale

Rikki and Sid enter into a sales contract for tennis equipment. With respect to the specific contractual provisions set out in the UCC, Rikki and Sid may

agree to whatever terms they wish

Crafted Countertop, Inc., and Kitchen Design Corporation enter into a contract that does not specify the payment terms. Payment may be made in

any commercially normal or acceptable means

In a dispute over a sale involving bicycle, Dain argues that as to this deal Emory's Hobby Shop, where Dain brought the bike, is a merchant. A court may determine where Emory's is a merchant by assessing whether

it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction

Cleo sells kitchen appliances to persons who come into her store, Buy n' Sell Appliances. One afternoon, Cleo sells a used display shelf to Earline. At a garage sale at her home, Cleo sells a used Sofa to Flavia. Under the UCC, Cleo is a merchant of

kitchen appliances only

Equipment Rental Corporation and Family Farm, Inc., are parties to an oral agreement for a lease of farm equipment with payments in excess of $10,000. They may satisfy the Statute of Frauds by

setting out the terms in a memo

Resource Remarketers, Inc., offers to buy crude oil from Petro Producers Inc. The parties later dispute the deal in court. Petro's claim that Resource ordered 10,000 gallons and resource's testimony that it ordered only 1000 gallons

supports an enforceable contract for 1000 gallons