LGS EXAM SAMPLE QUESTIONS

Any use of delivered goods by the buyer—even for the limited purpose of testing them—constitutes acceptance.

False

Corporate stocks and bonds meet the requirements to be among the items of property characterized as goods under the UCC.

False

The essential feature of undue influence is that a party being taken advantage of suffers from a mental or physical impairment.

False

After title passes to a buyer, a seller no longer has an insurable interest in the goods.

False

Intoxicated, Efron enters into a contract for the sale of his business, Freight Dispatch, to Gabrielle for less than its market value. This contract is enforceable if, at the time,

Efron understood the legal consequences.

A minor can disaffirm a contract at any time but remains legally obligated to perform it

False

An ad for the New Plays Festival asks playwrights to submit their work and "we might produce it for the world." Omar submits a play with a note that states, "I accept." Between the Festival and Omar, there is

No contract

A contract for a sale of natural gas is a contract for a sale for goods.

TRUE

An offer can be revoked by the performance of an act that is inconsistent with the existence of an offer and that is made is known to the offeree

TRUE

An unconscionable contract is one in which the terms of the agreement are oppressive, unscrupulous, or grossly unfair

TRUE

In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance

TRUE

The presence of fraud affects the authenticity of the innocent party's consent to a contract.

TRUE

Minh owns a beach house that she rents to vacationers. Minh gives her son Ngo a trip to Omaha on his graduation from community college. Minh sells her car to her neighbor Phan for $4,500. UCC Article 2 covers

The sale of Phan

Fatima asks Gianni, a salesperson for Hues & Colors, for a gallon of paint of a certain color and suitable for interior walls. Gianni sells her a gallon of interior paint of a different color. Gianni has breached

an implied warranty of fitness for a particular purpose.

Construction Inc. contracts to buy some heavy equipment from Dig Machines Inc. Before either party performs, Dig sells its assets to Excavation Corporation. On learning of the sale, Construction is concerned about its contract with Dig. Construction should

demand an assurance of performance from the seller.

Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation and when present fails to adequately do her job. This

discharges the employer from the contract.

Holes Inc. begins digging a foundation at a construction site for Investment Company under a contract for a certain price. After six months, Holes demands a higher price because of extraordinary difficulties that were totally unforeseen at the time the contract was formed. An agreement to pay the higher price is

enforceable due to unforeseen difficulties.

Orin, an employee of Plumbing LLC, makes a substantial mathematical mistake in totaling the estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently, Plumbing's bid is significantly low. Any contract with Quality Built that includes the mistake may be rescinded

if Quality Built knew or should have known of the mistake

Brooke is an art collector and hires a broker to buy and sell artworks on her behalf. Under the UCC, in those transactions, Brooke has the status of

merchant

A lease between Mia and Francisco for residential property contains an exculpatory clause. This clause is most likely

unforceable