Law3
The Uniform Commercial Code (UCC) permits ______.
"output" and "requirement" terminology to determine quantity
Which section of the Uniform Commercial Code defines course of dealing?
1-205
Which section of the Uniform Commercial Code defines usage of trade?
1-205(2)
Section ______ of the Uniform Commercial Code requires good faith in the performance and enforcement of every contract. Multiple choice question.
1-304
In which year was the United Nations Convention on Contracts for the International Sale of Goods (CISG) offered as a treaty that countries could sign?
1980
Article ______ of the Uniform Commercial Code focuses on contracts for the sale of goods.
2
Section ______ of the Uniform Commercial Code allows a seller to cancel the contract if the buyer is in breach.
2-703
Section ______ of the Uniform Commercial Code allows a seller to withhold delivery of goods when the buyer is in breach.
2-703(a)
Sections ______ of the Uniform Commercial Code allow a seller or lessor to stop delivery of goods that are in transit.
2-705(1) and 2A-526(1)
Section ______ of the Uniform Commercial Code allows a seller to recover the difference between the resale price and the contract price, plus incidental damages and minus expenses saved.
2-706
Section ______ of the Uniform Commercial Code states that a sale "consists of the passing of title from the seller to the buyer for a price."
2106
Article ______ of the Uniform Commercial Code focuses on contracts for the lease of goods.
2A
Section ______ of the Uniform Commercial Code sometimes allows the lessee in a contract to revoke acceptance of nonconforming goods.
2A-517
Section ______ of the Uniform Commercial Code allows a lessor to cancel the contract if the lessee is in breach.
2A-523(1)(a)
Section ______ of the Uniform Commercial Code allows a lessor to withhold delivery of goods when the lessee is in breach.
2A-523(1)(c)
Section ______ of the Uniform Commercial Code allows a lessor to lease the goods to another party and recover unpaid lease payments and any deficiency between the lease payments due under the original lease contract and those due under the new contract. Multiple choice question.
2A-527(2)
The Uniform Commercial Code Section ______ defines a lease as "a transfer of the right to possession and use of goods for a term in return for consideration." Multiple choice question.
2A103
How many parties are related to a draft's order?
3
With regard to door-to-door sales, the Federal Trade Commission created the Cooling-Off Rule, giving consumers ______ days to cancel purchases they make from salespeople who come to their homes.
3
According to Uniform Commercial Code Section ______, negotiation is the transfer of possession to a third party, who becomes the holder of the negotiable instrument.
3-201
UCC Section _____(a) imposes liability if the party signs the instrument.
3-401
Uniform Commercial Code (UCC) Section ______ defines presentment as making a demand for a drawee to pay an instrument.
3-501(a)
The Uniform Commercial Code Section ______ provides a specific time line in which notice of dishonor of an instrument must be given to a secondarily liable party
3-503
According to the Uniform Commercial Code (UCC) Section ______, if a party who has signed an instrument has an obligation to pay and then pays the full amount due, all parties who are liable will be discharged.
3-602
The bank-customer relationship is governed by Article ______ of the Uniform Commercial Code.
4
Which section of the Uniform Commercial Code addresses postdated checks?
4-401(c)
Which section of the Uniform Commercial Code allows a bank customer to issue a stop-payment order?
4-403
According to the Truth in Lending Act, if your credit card is stolen and someone makes unauthorized purchases on your account, your liability for those charges cannot exceed ______ per card if prompt notification of the theft is made to the credit card company.
50
According to the Uniform Commercial Code, which of the following is an incorrect statement regarding warranty disclaimers and waivers?
A seller may only orally disclaim the implied warranty of merchantability.
Which of the following is not a state option, provided by the Uniform Commercial Code, regarding third-party beneficiaries of warranties?
A seller's warranties extend to competitors' products.
Which of the following is not a state option, provided by the Uniform Commercial Code, regarding third-party beneficiaries of warranties?
A seller's warranties include liquidated damages.
Which of the following is an accurate statement regarding whether a bank must honor a stale check?
Banks are not required to honor stale checks.
Which of the following is not a relevant question to ask when determining whether an exception applies to the basic obligations of a buyer to accept and pay for goods?
In retrospect, did the buyer make a bad bargain?
is the transfer of possession to a third party, who becomes the holder of the negotiable instrument.
Negotiation
______ defenses, also called universal defenses, apply to all parties to a negotiable instrument, while ______ defenses do not apply to holders in due course.
Real; personal
What is the purpose of holder-in-due-course status?
To protect a financial intermediary
The ______ is significant because it clarifies sales law and makes this area of law more predictable to businesses that engage in transactions in more than one state.
Uniform Commercial Code
Under the ______, contracts for the sale of goods may be made in any manner sufficient to show agreement.
Uniform Commercial Code and the United Nations Convention on Contracts for the International Sale of Goods
Most buyer breaches occur when a buyer refuses to ______ goods from the seller and then the goods are subsequently lost or damaged.
accept conforming
Under Sections 2-607, 2-715, and 2A-519 of the Uniform Commercial Code, a lessee is allowed to ______ nonconforming goods and then seek monetary damages to give him or her ______.
accept; the benefit to bargain
A draft is an order by a ______ to a ______ to pay a payee.
drawer; drawee
Under the Uniform Commercial Code, the only requirement for the modification of a contract is that the modification be made in ______.
in good faith
Under Section 2A-516(1) of the Uniform Commercial Code, ______ are obligated to accept and pay for conforming goods in accordance with a contract.
lessees
Which of the following parties has made a promise to pay?
maker
According to the Uniform Commercial Code, a note is a promise by the ______ of the note to pay a ______.
maker; payee
The National Labor Relations Board's functions include all but which of the following?
promote open shops and the right to work, especially in traditionally unionized states
According to the ______ rule, a bank has a duty to pay checks from a customer's account as long as the checks are authorized by the drawer and do not violate the customer-bank agreement.
properly payable
Section 2A-525(2) of the Uniform Commercial Code allows a lessor to ______ goods when the lessee fails to make payments according to the lease terms. Multiple choice question.
reclaim
In order for an instrument to satisfy the writing requirement of a negotiable instrument, it must have two characteristics: ______ and movability.
relative permanence
To say that a party's liability for a negotiable instrument has been discharged means the party is ______.
released from liability
Section 2-608 of the Uniform Commercial Code sometimes allows a buyer to ______ nonconforming goods.
revoke
Pursuant to the Expedited Funds Availability Act of 1987, if a deposited check is drawn on a bank within the same Federal Reserve Bank area, the depositary bank must make the deposited funds available to the customer on the ______ business day following the day of deposit.
second
Which of the following is not a common payment arrangement in a sales contract?
servitude
Generally, if an item is transferred from one person to another, the transferee acquires all the rights that the transferor had in the item. This idea is called the ______ principle.
shelter
When a person signs a negotiable instrument, he or she is potentially liable for the instrument. This type of liability is called ______ liability.
signature
With a(n) ______ contract, the buyer and seller typically execute an agreement, and the buyer leaves with the goods.
simple delivery
Which of the following is not a common payment arrangement in a sales contract?
subornation
The various rights of sellers and buyers are determined by all but which of the following?
the Federal Fair Trade Clause (FFTC)
Which of the following acts includes "Labor's Bill of Rights" that is purportedly designed to protect employees from their own unions?
the Landrum-Griffin Act
Which of the following is not a requirement to be considered a holder in due course (HDC)?
the party must be a merchant
Common law requires some kind of writing created or signed by ______.
the party who is contesting the enforceability of a contract
State laws govern the formation of sales and lease contracts.
true
Under the Uniform Commercial Code, an offeree's acceptance is effective ______
when recieved by the offeree
The Federal Reserve Board of Governors has the power to govern credit provisions related to sales contracts through its Regulation ______.
z
Section _____ of the Uniform Commercial Code (UCC) defines a holder as a party who is in possession of an instrument that is payable to the party or to the ______ of the instrument.
1-201(20); bearer
Pursuant to the Interstate Land Sales Full Disclosure Act, anyone planning to sell or lease ______ or more lots of unimproved land through a common ______ must file an initial statement of record with ______ Office of Interstate Land Sales Registration.
100; promotional plan; Department of Housing and Urban Development's
Section ______ of the Uniform Commercial Code allows a buyer to reject nonconforming goods and then obtain cover or cancel a contract.
2-601
If a demand instrument is a check, the Uniform Commercial Code (UCC) states that the check is overdue ______ days after its date
90
Which of the following is an incorrect statement regarding a certified check?
A bank is required to certify a check.
Which of the following is not a consumer fund transaction identified by the EFTA?
A barter transaction
Which of the following is an incorrect statement regarding warranty disclaimers and waivers?
A buyer cannot waive an express warranty.
Which of the following is a true statement regarding contracts as commercial paper?
A contract is a form of commercial paper.
Which of the following is an incorrect statement in terms of the rules of the Uniform Commercial Code (UCC) regarding postdated checks?
A customer can postdate a check and expect it to be honored without giving the bank prior notice of the postdate.
According to the Uniform Commercial Code, which of the following is not one of the broad factual scenarios for the sale of goods?
A goods-in-kind contract
Which of the following is not an accurate statement regarding money orders?
A money order is a promise to pay a certain sum of money to a payee either on demand or at a definite time.
Which of the following is not an accurate statement regarding a money order?
A money order is considered a promissory note under the Uniform Commercial Code.
Uniform Commercial Code (UCC) Section ______ defines an endorser as a party who signs an instrument to restrict payment of it, negotiate it, or incur liability.
A person's willingness to sign the instrument
Identify a type of warranty liability pertaining to a negotiable instrument.
A presentment warranty
Which of the following is a type of conditional sales contract?
A sale-or-return contract
Which of the following is a type of warranty liability pertaining to a negotiable instrument?
A transfer warranty
Which of the following is an accurate statement about the rights of a holder in due course (HDC) compared with the rights of a holder?
An HDC has greater rights to a negotiated instrument than a holder.
Which of the following is an incorrect statement regarding the "unconditional promise or order to pay" requirement of a negotiable instrument?
An IOU is a negotiable instrument.
Which of the following is an incorrect statement regarding the negotiability of instruments?
An oral, unconditional promise to pay a promisee $50 next Tuesday creates a negotiable instrument since this represents a unilateral contract.
Which of the following is not an accurate statement about accommodation parties?
As a maker, an accommodation party has secondary liability.
Which section of the Uniform Commercial Code protects a remitter or payee if a cashier's or certified check is lost, stolen, or destroyed?
Section 3-312
Which of the following is an accurate statement regarding contracts as commercial paper?
Both a common law contract and a UCC contract can constitute commercial paper.
Which of the following is an accurate statement about overdue instruments?
Both demand and time instruments may be overdue.
Identify a way in which a party who tries to enforce a negotiable instrument can try to avoid liability.
By claiming a defense to liability
According to the Uniform Commercial Code, which of the following is an accurate statement regarding the potential impact of parties' sales contract on the application of the perfect tender rule?
Contracting parties can, by language in their sales contract, limit the strict application of the perfect tender rule.
______ requires the physical handing of an instrument from the person who is entitled to it to the person who is intended to receive it.
Delivery
Which of the following is not a relevant question to ask when determining whether an exception applies to the basic obligations of a buyer to accept and pay for goods?
Did the buyer make a unilateral mistake of fact pertaining to the goods
Which of the following is an incorrect statement regarding digital cash?
Digital cash is illegal
Which of the following is not an issue that must be explored in order to understand the law of negotiable instruments?
Does the delegation of duties involve standardized and nonpersonal work?
Which of the following is not a real defense to liability for a negotiable instrument?
Duress, to the extent it makes a contract enforceable
Because customers were frustrated with extended bank holds on checks, the U.S. Congress enacted the ______ Act, which created explicit timelines that mandate when banks must make deposited funds available to customers
Expedited Funds Availability
The ______ has explicitly stated that Regulation E, which regulates traditional electronic fund transfers, does not apply to e-money transactions.
Federal Reserve
Two major payment systems coordinate wire payments: ______.
Fedwire and the New York Clearing House Interbank Payments Systems (CHIPS)
A holder in due course is generally free from personal defenses but is subject to real defenses. Which of the following is a real defense to the enforceability of an instrument?
Forgery
A holder in due course is generally free from personal defenses but is subject to real defenses. Which of the following is not a personal defense to the enforceability of an instrument?
Fraud in the essence
A holder in due course is generally subject to real defenses. Which of the following is not a real defense to the enforceability of an instrument?
Fraud in the inducement in the underlying contract
Which of the following is an accurate statement regarding bank liability for paying a check that has been altered?
Generally, if a bank pays a check that has been altered, the bank is liable for the alteration.
Which of the following is not a real defense to liability for negotiable instruments?
Immaterial alteration
Which of the following is not a pertinent question to ask when determining whether an exception to the perfect tender rule should be recognized?
Is one of the parties victim of economic or physical duress?
The ______ Act primarily governs the internal operations of labor unions.
Landrum-Griffin
A holder in due course is usually free from personal defenses. Which of the following is not a personal defense to the enforceability of an instrument?
Material alteration of a completed instrument
Which of the following is an incorrect statement regarding online banking?
Online banking is the "last great frontier" for the banking industry since it is not subject to state or federal regulation.
Identify a recognized category of defenses to liability for a negotiable instrument.
Personal defenses
According to the definition of goods as per Section 2-105 of the Uniform Commercial Code, items are tangible if they exist ______.
physically
The Uniform Commercial Code defines a lease as a transfer of the right to ______ of goods ______ in return for consideration.
possession: for a term
The ______ liable party to an instrument must pay without resorting to any other party
primarily
The services most banks with online banking offer include all but which of the following?
racketeering
Under both the Uniform Commercial Code and the United Nations Convention on Contracts for the International Sale of Goods, a court will uphold a contract for the sale of goods as long as the parties intended to make a contract and there is a(n) ______ basis for giving an appropriate remedy.
reasonably certain
According to the Uniform Commercial Code, if a cashier's or certified check is lost, stolen, or destroyed, the ______ or the payee may request a refund.
remitter
If a buyer agrees to buy all the quantity she needs for a certain good but is unable to identify an exact amount, the Uniform Commercial Code recognizes this as an enforceable ______ contract.
requirements
In a(n) ______ contract, the buyer agrees to purchase all of an item the seller produces within a certain time frame.
requirements
Which type of contract allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase?
sale-on-approval contract
An example of a good as defined by the UCC is:
shoes
In a(n) ______ contract, purchased goods are transferred to the buyer from the seller either at the time of the sale or at some time later by the seller's delivery.
simple delivery
According to the Magnuson-Moss Act, if a good is sold for more than $15, a written warranty accompanying the goods must contain all but which of the following items of information?
the amount of liquidated damages
Section 2A-508(1)(a) of the Uniform Commercial Code allows a lessee to cancel the contract and then seek remedies that give the lessee ______.
the benefit of bargain
A buyer receives voidable title if all but which of the following circumstances occur?
the buyer purchased illegal goods
If a holder has notice that an instrument is overdue, ______.
the holder cannot become a holder in due course
Under certain circumstances a breaching party can repair, adjust, or replace nonconforming goods. This is referred to as:
the right to cure
Information that must be given by a bank to its customer pursuant to the Truth-in-Savings Act includes all but which of the following? Multiple choice question.
the specific criteria used to determine whether a prospective lender qualifies for a loan
A(n) ______ instrument is payable at a definite time.
time
In the context of contracts, ______ means ownership.
title
The Uniform Commercial Code states that a sale consists of the passing of ______ from the seller to the buyer for a ______.
title; price
Which of the following parties to an instrument creates a transfer warranty?
transferor
Suppose a buyer wrongfully refuses to accept conforming goods from the seller and then the goods are subsequently lost or damaged during transit. If the original contract was a destination contract and if the seller does not have shipping insurance or the loss exceeds the seller's insurance, the risk of loss ______. Multiple choice question.
transfers to the breaching buyer
A ______ is an order that is payable on demand, drawn on or through a bank, designated by its name, and requires a countersignature by the person whose signature appears on the check.
travelers check
The ______ requires depositary institutions to disclose, in great detail, the terms and conditions of their accounts.
truth in savings act
A contract is ______ if it is so unfair that a court would be unreasonable if it enforced the contract. Multiple choice question.
uncondcionable
The Uniform Commercial Code defines ______ as any practice that members of an industry expect to be part of their dealings.
usage of trade
Which of the following is an example of a major piece of federal legislation regarding labor-management relations in the United States?
wagner act
In the context of contracts, a(n) ______ is an assurance, either express or implied, by one party that the other party can rely on its representations of fact.
warranty
An instrument containing a misspelled name can be properly endorsed by the holder in all but which of the following ways?
with the holder's assumed name
Which of the following is the typical way for a holder to endorse an instrument with a misspelled name?
with the misspelled name followed by the holder's actual name
As a general rule, in order for an instrument to be negotiable, it must be in ______.
writing
Which of the following is an accurate statement regarding the United Nations Convention on Contracts for the International Sale of Goods (CISG) and the "battle of the forms" scenario?
The CISG relies on the common law mirror-image rule.
Federal laws regulating the credit industry to protect consumers include all but which of the following?
The Interstate Land Sales Full Disclosure Act
Which of the following is not an accurate statement regarding the collective bargaining process?
The National Labor Relations Board can order labor and management to reach an agreement.
The various rights of sellers and buyers are determined by all but which of the following?
The Uniform Contracts Code
A buyer receives voidable title if all but which of the following circumstances occur?
The buyer purchased illegal goods.
Which of the following is not a requirement to become a holder in due course (HDC)?
The holder must take the instrument "as is" or "with all faults."
Which of the following is not a requirement for a holder to take an instrument for value?
The holder should promise to perform a preexisting legal obligation.
Which of the following is not required for a holder to take an instrument for value?
The holder should promise to perform a preexisting moral obligation.
Which of the following is an accurate statement regarding the law(s) applicable to e-money?
The laws that apply to e-money are still mostly untested legal ground.
Which of the following is not a requirement to be considered a holder in due course (HDC)?
The party must be a merchant.
Which of the following is an incorrect statement regarding the "unconditional promise or order to pay" requirement of a negotiable instrument?
The promise or order to pay must be implied.
A buyer receives voidable title if all but which of the following circumstances occur?
The purpose of the contract was illegal when the contract was formed
According to the Uniform Commercial Code, which of the following is an accurate statement regarding the quantity term in a contract for the sale of goods?
The quantity element is usually required since without it the courts will have no guideline to determine the intent of the parties.
Which of the following is a Uniform Commercial Code assumption regarding warranty of title?
The seller has the right to transfer title free from any outstanding liens or judgments of which the buyer has no knowledge.
In the context of goods in a contract, which of the following is a Uniform Commercial Code assumption regarding warranties of title?
The seller in the contract has good and valid title to the goods.
Why are negotiable instruments necessary and advantageous?
They greatly facilitate commercial transactions.
The ______ defines course of performance as the history of dealings between the parties in the particular contract at issue.
Uniform Commercial Code
The ______ is a statutory source of contract law in the United States applicable to transactions involving the sale of goods.
Uniform Commercial Code
Which of the following is not an issue that must be explored in order to understand the law of negotiable instruments? Multiple choice question.
Was the consideration received for the negotiable instrument supported by the doctrine of res ipsa loquitur?
When is risk of loss transferred from the seller to the buyer in a destination contract? Multiple choice question.
When the seller delivers the goods to the destination stipulated in the sales contract
According to the Uniform Commercial Code's interpretation of an open price term, if the price term is left open in a contract for the sale of goods, ______.
a reasonable price is supplied at the time of delivery
Which of the following is a type of conditional sales contract?
a sale-on-approval contract
If a firm offer is silent regarding time, the Uniform Commercial Code assumes ______.
a three-month irrevocability period
A(n) ______ party signs an instrument to provide credit for another party who has also signed the instrument.
accommodation
The most obvious way of attaining good title is to ______.
acquire property from someone who has good title
Which of the following is not an issue correlated with title addressed by the Uniform Commercial Code?
age of majority
An ______ is an unauthorized change to an instrument that modifies the obligation of a party to the instrument.
alteration
Which of the following parties are secondarily liable on a negotiable instrument?
an andorser and a drawer
If a merchant sells entrusted goods to a good-faith third-party purchaser, the buyer
aquires good title
The Uniform Commercial Code is divided into sections known as ______.
articles
A time instrument becomes overdue ______ after the expressed due date on the instrument.
at any time
The services most banks with online banking offer include all but which of the following? Multiple choice question.
bankruptcy proceedings
According to the Uniform Commercial Code-recognized ______, if the last set of negotiations during the consideration of a contract is not specifically rejected, then the last terms "standing" are the ones that are applicable to the final transaction.
battle of the forms
Generally, for a check to be considered properly payable, it must satisfy all but which of the following requirements?
be subject to a stop payment from the drawer
Pursuant to the UCC, when must the seller or lessor must provide an opportunity for inspection?
before enforcing payment
If the party that dishonors an instrument is a collection bank, it must give notice of dishonor to a secondarily liable party ______.
before midnight of the next day
Under Section 2-301 of the Uniform Commercial Code, ______ are obligated to accept and pay for conforming goods in accordance with a contract.
buyers
Under the Uniform Commercial Code, an acceptance of a contract may be made
by any reasonable means of communication
A party who tries to enforce a negotiable instrument can try to avoid liability ______.
by claiming that the liability has been discharged
Which of the following is not a recognized way the obligations of sellers and buyers are determined?
by rules outlined by the uniform contracts codeWhich of the following refers to the history of dealings between the parties in the particular contract at issue?
Which of the following is not a recognized way the obligations of lessors and lessees are determined?
by the Restatement (Second) of Leases
Section 2-711(1) of the Uniform Commercial Code allows a buyer to ______ the contract and then seek remedies that give the buyer the benefit of the bargain.
cancel
Which of the following is not an issue correlated with title addressed by the Uniform Commercial Code?
capacity
Cashier's checks are useful because they are considered by many in the business community to be the near equivalent of ______.
cash
A ______ is a check for which both the drawer and the drawee are the same bank.
cashiers
A ______ check is a check that is accepted at the bank at which it is drawn.
certified
Essentially, the Uniform Commercial Code facilitates ______ transactions.
commercial
Goods conforming to contract specifications are known as ______.
conforming
Under common law, when a contract is modified, it must be supported by new ______.
consideration
Conforming goods conform to ______.
contract specification
When you open an account at a bank, you create a ______ relationship with the bank
contractual
Which of the following is not a source of laws that interpret sales contracts?
corporate law
The Uniform Commercial Code defines ______ as previous commercial transactions between the same parties.
course of dealing
Which of the following refers to the history of dealings between the parties in the particular contract at issue?
course of performance
According to the Uniform Commercial Code's interpretation of an open quantity term, if the quantity term is left open in a contract for the sale of goods, ______.
courts generally have no basis for determining a remedy
Under Sections 2-712 and 2A-518 of the Uniform Commercial Code, buyers and lessees are allowed to ______, or substitute, goods for those due under the sales or lease agreement.
cover
One reason banks favor online banking is that it ______ what is known as "float time."
decreases
With a ______ shipping term, risk of loss passes to the buyer when the goods leave the ship.
delivery ex-ship
A(n) ______ instrument becomes overdue if it has been outstanding for an unreasonably long period of time after its date. Multiple choice question.
demand
A check is referred to as an on-us item when the ______ bank is the same bank as the ______ bank.
depositary; payor
Through electronic check presentment, a check can be processed on the day on which it is ____.
deposited
______ contracts require a seller to deliver the goods to the destination stipulated in the sales contract.
destination
If a party who has signed an instrument has an obligation to pay and then pays the full amount due, all parties who are liable will be ______.
discharged
When a party's liability for a negotiable instrument is terminated, the party's liability has been ______.
discharged
An instrument is ______ when a party refuses to pay the instrument.
dishonored
A(n) ______ is an instrument that is an order.
draft
A(n) ______ is an order by a drawer to a drawee to pay a payee.
draft
If the seller does not provide the goods that were described in a contract, the buyer may
either accept the nonconforming goods as is or reject the goods subject to the seller curing the deficiency in the goods
The transfer of funds by an electronic terminal, telephone, or computer is known as a(n)
electronic fund transfer
Order paper must be ______ as well as ______ to be negotiated.
endorsed; delivered
In the context of negotiation of instruments, an endorser is one who issues a(n) ______.
endorsement
A(n) ______ is a party who signs an instrument to restrict payment of it, negotiate it, or incur liability.
endorser
______ is the transfer of goods to a merchant who ordinarily deals in goods of that kind.
entrustment
Consistent with Sections 2-719 and 2A-503 of the Uniform Commercial Code, courts uphold modifications or limitations to remedies unless the remedies fail in their ______ purpose.
essential
Under Sections 2-719 and 2A-503 of the Uniform Commercial Code, parties are allowed to create an agreement making it clear that the remedies outlined in their agreement are ______ remedies.
exclusive
What type of warranty is a description of a good's physical nature or its use that becomes part of the contract?
express warranty
Good faith means honesty in ______.
fact
Which of the following is the most common way the seller breaches a sales contract?
failure to deliver the contracted goods
In the context of holder-in-due-course status, the legal system offers greater protection to certain parties to encourage them to engage in ______.
financial transactions
According to the Uniform Commercial Code, an offer made by a merchant is a(n) ______ offer if it is made in writing and gives assurances that it will be irrevocable for up to three months.
firm
As a general rule, if a signature to a negotiable instrument is unauthorized, the signature will not impose liability to the named party. This rule applies to two cases: ______ and ______.
forgery;unauthorized agents
A writing is a type of documentation that shows contractual intent and satisfies the statute of ______ requirement.
frauds
With a ______ shipping term, the selling price includes transportation costs and the seller carries the risk of loss to either the place of shipment or the place of destination.
free on board
The Magnuson-Moss Act requires that if a seller decides to issue a written warranty for a consumer good, the seller must indicate whether the warranty is a(n) ______ warranty or a(n) ______ warranty.
full; limited
Which of the following refers to title that is acquired from someone who already owns the goods free and clear?
good title
If a holder is aware that an instrument he or she is taking ______, the holder cannot become a holder in due course (HDC).
has been dishonored
Which of the following is not a pertinent question to ask when determining whether an exception to the perfect tender rule should be recognized?
have both parties had equal considerations?
A(n) ______ is a party who is in possession of an instrument that is payable to the party or to the bearer of the instrument. Multiple choice question.
holder
According to the Uniform Commercial Code (UCC), a ______ must take a negotiable instrument in good faith
holder in due course
Which of the following is not a real defense to liability for negotiable instruments?
immaterial alteration
What type of warranty is created when a buyer relies on a seller to choose a saw that will cut through copper tubing?
implied warranty of fitness for particular purpose
The reasonable expectation as to how a product is normally supposed to perform relates to the Uniform Commercial Code's ______.
implied warranty of merchantability
In a common-carrier delivery contract, the common carrier is an ______ and not a(n) ______ of the seller.
independent contractor; agent
Section 2-702(2) of the Uniform Commercial Code allows a seller to reclaim goods when the seller discovers the buyer is ______.
insolvent
The United Nations Convention on Contracts for the International Sale of Goods (CISG) was offered as a treaty countries could sign to indicate their willingness to allow the treaty to govern ______ sales contracts.
international business-to-business
Presentment
is defined as making a demand for a drawee to pay an instrument.
Under Article 3 of the Uniform Commercial Code, commercial paper is called a(n)
negotiable instrument
A holder in due course (HDC) is an individual who acquires a ______ instrument in ______.
negotiable; good faith
Which of the following documents indicates the seller's ownership of the goods in a goods-in-bailment contract?
nonegotiable title
A bearer instrument that falls out of a window, is blown off someone's desk by the wind, and lands in someone else's hand has ______.
not been properly negotiated since the delivery requirement has not been satisfied
According to the Uniform Commercial Code, a ______ is a promise by its maker to pay a payee.
note
______ paper must be endorsed as well as delivered to be negotiated.
order
If a farmer agrees to sell all the grain his fields will produce but is unable to determine a specific amount, then the quantity term has been satisfied under the Uniform Commercial Code as a(n) ______ contract.
output
In a(n) ______ contract, the buyer agrees to purchase all of an item the seller produces within a certain time frame.
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According to the Uniform Commercial Code, in order to cover or substitute goods, a buyer must do all but which of the following?
pay less for the substitute goods than for the goods under the original contract
Which of the following is not a requirement of a traveler's check?
payable in gold or other precious metal
Suppose a sales contract specifies that the seller must have the opportunity to repair or replace nonconforming goods within a particular period of time. Such contract language would effectively limit the strict application of the ______.
perfect tender rule