BUS 206 ch 11

T or F: If a seller delivers goods that do not conform to the contract, the buyer must accept the goods but may reduce payment by the change in value.

False

T or F: With respect to parol evidence, the common law of contracts and Article 2 are the same.

False

T or F: A contract can be formed under Article 2 of the UCC even if some of the offer's major terms are omitted or are simply left open for determination later.

True

T or F: A contract can exist under the UCC even if some terms are changed or added by the offeree.

True

T or F: After a buyer breaches a contract for the sale of goods, the seller can resell the goods (or the remaining balance of the goods) to another buyer.

True

T or F: The UCC requires less formality than does the common law of contracts.

True

T or F: Under the common law, a contract is not formed unless there is no question that an offer has been accepted. Article 2 provides that a contract can be formed in any manner, including "conduct" that shows an agreement between the parties.

True

Under the common law, a contract cannot be formed until an offer is clearly accepted. Under UCC Article 2:

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

Contracts under Article 2 of the UCC could include:

a load of wheat

A warranty of title means:

a seller is the rightful owner of the goods being sold

Which of the following is not true, under UCC Article 2, about a merchant's firm offer:

a. all of the other choices are true b. stays open for a time not to exceed 3 months, if no other period of time is stated in the offer c. is irrevocable if stated in writing that it remains open for a given time d. does not require consideration to be irrevocable e. requires a signed writing by the offeror that the offer will remain open for a given period

The UCC's Article 2 does not cover the sale of:

a. furniture b. all of the other specific choices are covered by Article 2 c. a load of corn d. a computer sold to a business e. a truck load of printer paper

An express warranty may be created by all but which of the following:

a. the sample the buyer received from the seller b. any of the other choices c. the description of the goods provided by the seller d. a seller's guarantee regarding the safety of a good e. a seller's promise about goods being sold

Jill's ordered 1,000 boxes of white paper for use in copying machines. The Paper Company delivered 1,000 boxes of orange paper. Jill's rejected the order but had to put the boxes in storage for two weeks until Paper could get the paper and deliver the right paper. Jill's lost sales to Kingaroos while waiting for the right paper. Suing Paper, Jill's may recover:

a. the value of lost sales b. all of the other specific choices would be possible c. the reasonable costs of storing the paper d. the reasonable costs of inspecting the goods e. none of the other choices would be covered

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. all of the other choices are included in the definition of a merchant c. has an Internet site that links to sellers of multiple goods d. presents himself as having skill specialized in the transactions e. regularly deals in goods of the kind involved in transactions

The UCC defines goods as:

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

The UCC modifies the common law perfect tender rule by:

allowing the buyer to accept less than the entire shipment

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:

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

UCC Article 2 has been adopted:

by 49 states

A good is tangible if it:

can be seen and touched

The Convention on the International Sale of Goods (CISG):

does not contain a statute of frauds provision so that either oral or written contracts in international markets may be enforceable

A(n) ____ is created by a seller's promise or guarantee as to the quality, safety, performance, or durability of goods being sold.

express warranty

The seller's basic obligation under the UCC is to:

financing the purchase of conforming goods

The UCC defines good-faith dealings as:

honest in fact in the conduct or transaction incurred

If the buyer relies on the seller's skill or judgment to select the goods for that purpose, a(n) ____ that the goods are suited for that purpose is created.

implied warranty

If a country has adopted the United Nations' Convention on the Recognition and Enforcement of Foreign Arbitrable Awards then:

its courts are bound to recognize and enforce arbitration decisions that have followed proper procedure

Under UCC Article 2, the buyer has an obligation to:

keep the goods for at least 3 months

The UCC's Article 2 does not cover the sale of:

land

A computer store that one of HJ's friends owned went broke. HJ bought some disk drives from the friend. HJ sold the equipment. Some buyers are mad because the equipment has problems. HJ told them no refunds. If buyers sue him based on the UCC, they are likely to:

lose because HJ does not regularly deal in these goods

A "reasonable price":

may or may not be "fair market value"

Under UCC Article 2, terms regarding payment, delivery and price are:

not necessarily necessary for the formation of a contract

With respect to parol evidence and the UCC:

oral evidence may be used to explain trade dealings

Under the common law, contract modifications must be supported by new consideration to be binding on the parties. Under UCC Article 2:

parties need not provide new consideration to modify an existing sales contract

The CISG applies to contracts for commercial sale of goods made by parties who have ____ in different countries that have ratified the CISG.

places of business

If a good has been stolen and is then sold to an unsuspecting buyer:

the good title does not pass to the buyer

An express warranty may be created by all but which of the following:

the guarantee the buyer reasonably expects for the product

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:

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 the goods did not have to be moved, title passes to the buyer when:

the seller delivers the title documents

By definition, a sale under Article 2 of the UCC requires that:

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

A(n) ____ is a statement or representation made by a seller that goods conform to certain standards of quality, safety, performance, and title.

warranty