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244. If, when considering a contract under the UCC, the court needs to resolve a term that is not clearly specified, the courts prefer to look to: a. past dealings of the party b. equitable resolutions c. Department of Commerce data d. reliance damages e. none of the other choices
past dealings of the party
144. UCC Article 2 has been adopted: a. by Congress b. by 31 states c. by 49 states d. by all 50 states
49 states
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
all of the above
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
anytime before acceptance
408. Under the CISG, advertisements: a. take the place of negotiations b. are offers that can be accepted to form a contract c. are illegal d. are binding e. are offers to enter into negotiations
are offers to enter into negotiations
302. When the seller has delivered conforming goods, the buyer has a duty to accept them. This is referred to as: a. buyers duty of acceptance b. buyers duty of rejection c. buyers duty of compliance d. buyers duty of contract
buyers duty of acceptance
242. Under the UCC, parol evidence may not be used: a."if the court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement" b. "if the court does not find the writing to have been intended also as a complete and exclusive statement of the terms of the agreement" c. "if the court cannot find the writing to have been intended also as a complete and exclusive statement of the terms of the agreement"
"if the court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement"
409. Under the CISG, offers made to ____ are valid offers to make a contract. a. "the general public" b. "a broad audience" c. "one or more specific persons" d. "the international business community"
"one or more specific persons"
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
Article 2
387. The ____ was adopted by the United Nations to have a commercial code that parties would think unbiased. a. Uniform Commercial Code b. International Uniform Commercial Code c. Convention on Contracts for the International Sale of Goods d. Convention on the International Commercial Code e. Convention on Contracts for International Business
Convention on Contracts for the International Sale of Goods
145. Every state except ____ has adopted UCC Article 2. a. Texas b. Illinois c. Alabama d. Louisiana e. Florida
Louisiana
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
UCC Article 2A
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
a contract may be made in any manner sufficient to show agreement between the parties
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
a load of wheat
312. A warranty of title means: a. a buyers goods are fit for a particular purpose b. a buyers goods are merchantable c. a seller is the rightful owner of the goods being sold d. a buyer is legally capable of owning the goods for sale
a seller is the rightful owner of the goods being sold
281. Tender is: a. a proper initiation of a contract b. failure to provide a sufficient offer of performance under a contract c. a valid and sufficient offer of performance under a contract d. a type of contract e. a contact that allows the offeree to terminate the contract at any point
a valid and sufficient offer of performance under a contract
418. If a country has adopted the United Nations' Convention on the Recognition and Enforcement of Foreign Arbitrable Awards then:
a. its courts are bound to recognize and enforce arbitration decisions that have followed proper procedure
294. With respect to the buyer's basic obligations under Article 2, the most critical element is: a. the appropriate manner and timeliness of delivery b. the place of tender from the seller c. the quality of tender d. accept conforming goods and pay for them according to the contract
accept conforming goods and pay for them according to the contract
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
all fo the above
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
all things which are moveable at the time of identification to the contract for sale
286. The UCC modifies the common law perfect tender rule by: a. allowing the seller to deliver only half the agreed upon shipment b. not allowing the buyer to sue the seller c. not allowing the buyer to accept less than the entire shipment d. allowing the buyer to accept less than the entire shipment
allowing the buyer to accept less than the entire shipment
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
an acceptance is not valid if the offeree's acceptance contains different terms from those in the offer
320. Unlike express warranties, implied warranties: a. are not automatically imposed on sellers unless they specifically disclaim them b. are automatically imposed on sellers unless they specifically disclaim them c. cannot be automatically imposed on sellers d. are imposed by the buyer e. are imposed by the seller
are automatically imposed on sellers unless they specifically disclaim them
406. Under the CISG, advertisements: a. are not offers that can be accepted to form a contract b. are offers that can be accepted to form a contract c. are illegal d. are binding e. take the place of negotiations
are not offers that can be accepted to form a contract
291. A sellers right to cure an improper tender of goods protects sellers from: a. buyers rejecting shipments based on minor problems when the price of the good is falling b. buyers demanding larger shipments c. buyers failing to pay in a timely manner d. buyers suing for breach of contract e. buyers defaulting on loans
buyers rejecting shipments based on minor problems when the price of the good is falling
300. A buyer who receives goods that are nonconforming may reject them as a breach of contract and withhold payment. This is referred to as: a. buyers right of rejection b. buyers right of return c. buyers right of inspection d. buyers right of return e. buyers duty of acceptance
buyers right of rejection
306. A warranty may be generally defined as a statement: a. of guarantee of payment by the seller b. of guarantee of payment by the buyer c. by the seller that its goods conform to certain quality, safety, performance or title standard
by the seller that its goods conform to certain quality, safety, performance or title standards
389. In international contracts for the sale of goods: a. managers must apply the UCC's international provisions b. sellers generally must apply the commercial code of the country of the buyer c. most managers write contracts that are interpreted as service, rather than goods, contracts d. concerns about differences in contract rules can be managed by use of the CISG e. buyers generally must apply the commercial code from the country of the seller
concerns about differences in contract rules can be managed by use of the CISG
375. ____ are foreseeable damages that result from a sellers breach. a. Incidental damages b. Total damages c. Consequential damages d. Inconsequential damages e. Punitive damages
consequential damages
364. The (higher) price paid by a buyer for substitute goods in the event of a breach by a seller is called: a. consequential damages b. incidental damages c. expectancy damages d. cover
cover
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
date back thousands of years
265. If a contract for the sale of goods does not specify where goods are to be delivered, the UCC presumes that in most cases: a. delivery is at the sellers place of business b. delivery to the buyers place of business c. delivery is to the closest railroad or trucking station d. delivery is to a common carrier e. delivery is to the buyers agent
delivery is at the sellers place of business
249. If a price is unclear when a contract is found to exist, the UCC directs the courts to: a. determine "a realistic price" b. determine "a reasonable price" c. determine who should have to pay the price d. determine who should have known the price e. determine a fair way to set the price
determine a "reasonable price"
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
different rules developed across the states
337. Because the UCC's warranty requirements create a tough standard, sellers may wish to reduce their liability by issuing: a. limits of liability b. disclaimers c. disclosures d. denunciations e. revocations of liability
disclaimers
401. The Convention on the International Sale of Goods (CISG): a. was developed to manage the contract problems inherent in the sale of good to Third World nations b. does not contain a statute of frauds provision so that either oral or written contracts in international markets may be enforceable c. does not apply to civil law countries d. relies heavily on common law contract law principles developed in the United States e. provides that the commercial laws of the seller's country always apply
does not contain a statute of frauds provision so that either oral or written contracts in international markets may be enforceable
276. The seller's basic obligation under the UCC does not include: a. financing the purchase of conforming goods b. transferring conforming goods c. delivering conforming goods d. none of the other specific choices are required unless specifically bargained for e. all of the other specific choices are required
financing the purchase of conforming goods
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
has an internet site that links to sellers of multiple goods
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
has rules to fill the gap about a silent term
359. After a breach of contract by a buyer, expenses associated with stopping delivery, transporting and taking care of the goods after the breach, returning or reselling the goods are all examples of: a. incidental damages b. explicit damages
incidental damages
343. A disclaimer of an implied warranty is permitted if the disclaimer uses the word merchantability and the disclaimer: a. specifies the alternatives b. includes a mail-in form c. does not attempt to disclaim safety issues d. is conspicuous e. none of the other choices; such disclaimers are not allowed
is conspicuous
345. The UCC's definition of "conspicuous" for a disclaimer is that the disclaimer is: a. is the first thing on the page b. is written by hand c. is written so that a reasonable person would notice it d. is written so that an educated person would notice it e. is in smaller text than the rest of the contract
is written so that a reasonable person would notice it
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
it is movable and tangible
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
it must be open to all members of the pubilc
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
land
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
leases of personal property
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
legal rights to ownership of a thing
341. With respect to warranty disclaimers, under the UCC a seller: a. may never disclaim a warranty b. may only disclaim implied warranties c. may disclaim only express warranties d. may disclaim any warranty except a warranty of title e. may disclaim any warranty so long as the disclaimer follows UCC rules
may disclaim any warranty so long as the disclaimer follows UCC rules
254. A "reasonable price": a. may or may not be "fair market value" b. must be "fair market value" under the UCC c. is never "fair market value" d. is arbitrary e. is determined by a formula specified by UCC Article 2
may or may not be "fair market value"
322. ____ means that the good "must be of a quality comparable to that generally acceptable in that line or trade." a. Warrantable b. Profitable c. Merchantable d. Marketable e. Acceptable
merchantable
414. Under the CISG, in the event of breach, the parties:
must be given notice of breach and a chance to clear the problem
403. Under the CISG, contracts: a. must be formally written b. need not be formally written c. cannot be proved by witnesses d. are not binding e. cannot be for goods produced in one country and sold in another
need not be formally written
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
no considerations
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
not necessarily necessary for the formation of a contract
397. Unlike the UCC, the CISG governs: a. only commercial sales or sales between merchants b. only sales to the consuming public c. only sales of intangible goods d. only sales involving goods worth more than $10,000 e. only sales involving electronics
only commercial sales or sales between merchants
238. With respect to parol evidence and the UCC: a. it follows the same rule as the common law b. it allows oral testimony to contradict written documents c. oral evidence may be used to explain trade dealings d. oral evidence may be used even if the court finds that the written documents are complete e. oral evidence may never be used
oral evidence may be used to explain trade dealings
256. A(n) ____ is when a buyer agrees to take all of the output of a certain seller.
output contract
258. When a buyer has agreed to purchase the total output of a seller, there is a(n): a. requirements contract b. fulfillment contract c. output contract d. totality contract e. such contracts are not allowed under the UCC
output contract
284. Under the ____the seller must tender the quality, quantity, and delivery method exactly as specified in the contract or the buyer has the right to reject the goods and rescind the contract. a. fine tender rule b. perfect tender rule c. ultimate tender rule d. common law tender rule e. exact tender rule
perfect tender rule
351. The UCCs remedies for breaches of contract for the sale of goods are intended to: a. place the breaching party in the same position as if the contract had been performed according to its terms b. place the nonbreaching party in the same position as if the contract had been performed according to its terms c. place both parties in the same position as if the contract had been performed according to its terms d. improve the position of the nonbreaching party beyond what it would have been if the contract had been performed according to its terms e. degrade the position of the breaching party
place the non breaching party in the same position as if the contract had been performed according to its terms
396. The CISG applies to contracts for commercial sale of goods made by parties who have ____ in different countries that have ratified the CISG. a. citizenship b. places of business c. significant relations d. all of the other specific choices are correct e. none of the other specific choices are correct
places of business
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
sales of goods worth more than $500 must be in writing
411. Under the CISG, an offer becomes effective when: a. received by the offeree; it may be withdrawn any time before acceptance is communicated b. sent by the offeror; it may be withdrawn any time before acceptance is communicated c. received by the offeree; it may be withdrawn any time after 30 days d. sent by the offeror; it may be withdrawn any time after 30 days e. sent by the offeror; it may be withdrawn any time, but only in writing
sent by the offeror; it may be withdrawn anytime before acceptance is communicated
400. Which of the following commercial sales could not fall under the CISG: a. furniture b. looms to make cloth c. automobiles d. ships
ships
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
show the value of the system is greater than the value of the service
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
some basis for believing that the parties made a contract of the sale of goods
325. Under the UCC, merchantable means that goods must be of a quality comparable to: a. that generally acceptable in that line or trade b. the median standard of industry c. the highest recent quality of the trade d. defect-free goods in the industry e. none of the other choices
that generally acceptable in that line or trade
327. If the buyer relies on the seller's skill or judgment to select the goods for that purpose, an implied warranty ____is created. a. no implied warranty is created in this situation b. that the goods are not suited for that purpose c. that the goods are suited for that purpose d. that the goods will last for at least a year e. that the goods will be reasonably priced
that the goods are suited for that purpose
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"
the "battle of the forms"
392. If a North Carolina firm contracts to buy toys from China, and the contract does not specify which law applies, in case of dispute, which law will apply: a. the law of the buyer (North Carolina) b. the law of the buyer's nation (federal law) c. the law of the seller nation d. the UCC e. the CISG
the CISG
413. Comparing the UCC to the CISG, when it comes to giving judges authority to fill in terms that are not complete in a contract: a. they are very much the same b. the CISG is more generous about filling in unclear or unstated terms c. the UCC is more generous about filling in unclear or unstated terms d. neither law allows any terms to be "filled in"
the UCC is more generous about filling in unclear or unstated terms
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
the benefits of lowering the costs of doing business across state lines was so great
316. An express warranty may be created by all but which of the following: a. a sellers promise about goods being sold b. a sellers guarantee regarding the safety of a good c. the sample the buyer received from the seller d. the guarantee the buyer reasonably expects for the product
the gaurantee the buyer reasonably expects for the product
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
the good title does not pass to the buyer
304. If the buyer is willing to accept nonconforming goods: a. the goods must only be paid for if the nonconformance does not interfere with function b. the goods need not be paid for c. the goods must be paid for
the goods must be paid for
370. In the event of a breach by the seller for shipping improper goods, and assuming the buyer correctly rejected the delivery of the goods, the buyers incidental damages may include: a. the reasonable costs of inspecting, transporting, and caring for goods while in buyers possession b. the value of lost sales c. distress suffered by personnel due to having to work with nonconforming products
the reasonable cost of inspection, transporting, and caring for goods while in buyers possession
310. If goods do not conform to the standards created by the warranty: a. the seller cannot be held liable for damages for breach of warranty b. the seller can be held liable for damages for breach of warranty c. the seller can be held liable for breach of quality
the seller can be held liable for damages for breach of warranty
299. Buyer is obligated to pay damages under Article 2 for a breach of contract if: a. the seller delivered conforming goods to the buyer b. the seller delivered goods to an independent carrier and carrier has delivered to the buyer c. the seller delivered the goods to an independent carrier d. the seller delivered conforming goods to the buyer or delivered goods to an independent carrier that delivered to the buyer
the seller delivered conforming goods to the buyer or delivered goods to an independent carrier that delivered to the buyer
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
the seller delivers the title documents (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)
289. If a buyer rejects a shipment of goods as not conforming, the seller has the right to cure the defect, except for which of the following: a. the seller repairs or replaces the defective goods within the time for performance b. the seller notifies the buyer in a timely manner of the intent to cure the defect c. the time for performance has not passed d. the seller is due a "reasonable time" for repair or performance past the original due date
the seller is due a "reasonable time" for repair or performance past the original due date
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
title to the goods pass from the seller to the buyer and that a price be paid for the good
277. The proper tender of goods to, and their acceptance by, the buyer entitles the seller: a. to be paid at least 50% of the total amount specified in the contract b. to be paid according to the contract c. to be paid no later than one year after the proper tender of the goods d. nothing e. the right to reject the contract
to be paid according to the contract
366. When a seller fails to deliver goods, either by being too late to be useful or because the goods are nonconforming, the buyer is entitled: a. to nothing b. to a compensatory payment of $1000 c. to buy substitute goods and recover the price difference d. to require the seller to find deliver new goods
to buy substitutes goods and recover the price difference
362. The buyers damage provisions under the UCC are designed: a. to allow the buyer to profit b. to allow the seller a way to cure the breach c. to put the buyer in as good a position as if the seller had performed according to the contract
to put the buyer in as good a position as if the seller had performed according to the contract
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`
to simplify, clarify and modernize the law governing commercial transaction
268. The seller's basic obligation under the UCC is to: a. ensure the buyer does not lose money b. transfer and deliver goods that conform to the contract to the buyer c. represent the goods properly d. refrain from swindling unsuspecting buyers e. arrange all elements of the transaction and deal with any problems that arise
transfer and deliver goods that conform to the contract to the buyer
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
under the UCC, a contract has been formed by the conduct of the parties
355. If the buyer breaches a UCC contract while the goods are still in the possession of the seller, the seller is authorized to: a. cancel the contract b. salvage the goods c. stop delivery of the goods d. none of the other choices e. all of the other specific choices are possible
all of the above are possible
296. Under UCC Article 2, the buyer has an obligation to: a. accept conforming goods b. pay for the goods according to the contract c. keep the goods for at least 3 months d. both a and b are correct
both a and b
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
can be seen and touched
136. Article 2 of the UCC covers the sale of: a. goods b. services c. investment securities d. goods and business
goods
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
parties need not provide new consideration to modify an existing sales contract
260. A(n) ____ is one in which a seller agrees to provide all of a certain good that a buyer needs. a. requirements contract b. real contract
requirements contracts
236. Under UCC Article 2, when there is a failure to respond to a writing signed by the other party: a. there may be a good contract b. there cannot be a good contract c. there cannot be a good contract, but under the common law there could be d. the court may require the other party to respond in writing to make the contract legal e. the contract will not be binding
there may be a good contract
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
try to show that the value of service dominates
416. Commercial sales contracts that use the CISG: a. must litigate disputes in the country of the seller b. must litigate disputes in the country of the buyer c. must litigate disputes in a neutral nation that has signed the CISG d. must take disputes to the U.N. Commission on Foreign Awards e. usually go to arbitration
usually go to arbitration
