BLAW Ch18

According to the UCC Statute of​ Frauds, lease contracts requiring payments of​ _____ or more must be in writing. A. 1000 B. 375 C. 250 D. 100 E. 500

A. $1,000

Article​ _____ of the UCC applies to domestic transactions in the sales of goods. A. 2 B. 3 C. 4 D. 5 E. 1

A. 2

_____ are defined as​ _____ items that are movable at the time of their sale. A. ​Goods; tangible B. ​Services; intangible C. Proprietary​ rights; intangible D. ​Services; tangible E. ​Goods; intangible

A. Goods; tangible

All of the following are true about letters of credit​ EXCEPT? A. Most banks do not require that international letters of credit be governed by the Uniform Customs and Practices for Documentary Credits​ (UCP). B. Letters of credit support the international sale of goods. C. A buyer of a letter of credit must pay a bank a fee to write the letter of credit. D. Letters of credit are governed by Article 5​ (Letters of​ Credit) of the Uniform Commercial Code​ (UCC). E. A letter of credit guarantees the seller that if the buyer does not pay for the​ goods, then the bank will pay the seller. Next

A. Most banks do not require that international letters of credit be governed by the Uniform Customs and Practices for Documentary Credits​ (UCP).

Which of the following is NOT true regarding the written confirmation​ rule? A. The receiving party has to sign the written confirmation. B. The merchant receiving the confirmation has 10 days to object to the contract. C. Both parties must be merchants. D. The written confirmation rule applies to both sales and lease contracts. E. The written confirmation must be made within a reasonable time after contracting.

A. The receiving party has to sign the written confirmation.

In a lease​ contract, the​ _____ is the person who transfers the right of possession and use of goods under the lease. A. lessor B. consignor C. lessee D. licensor E. bailor

A. lessor

The​ _____ rule states that when a sales or lease contract is evidenced by a writing that is intended to be a final expression of the​ parties' agreement or a confirmatory​ memorandum, the terms of the writing may not be contradicted by evidence of a prior oral or written agreement or a contemporaneous oral agreement. A. parol evidence B. mailbox C. ​gap-filler D. mirror image E. substantial performance

A. parol evidence

A cattle rancher contracts to purchase​ 3,000 bushels of​ "corn" from a farmer. The farmer delivers feed​ corn, for​ cattle, to the rancher. The rancher rejects this corn and demands delivery of corn that is fit for human consumption. If the parties did not have any prior course of performance or course of dealing that would indicate​ otherwise, ______________ would be used to interpret the word​ "corn". Thus, the delivery of feed corn​ _____________ and become part of the contract. A. usage of​ trade; would be assumed B. course of​ dealings; would be assumed C. usage of​ trade; would not be assumed D. the​ dictionary; would be assumed E. the​ dictionary; would not be assumed

A. usage of trade; would be assumed

According to UCC​ 1-203, modification of a sales or lease contract must be made​ _____. A. within 30 days of the initial​ contract's formation B. in good faith C. in earnest D. in kind E. within 90 days of the initial​ contract's execution

B. in good faith

A​ _____ is a transfer of the right to the possession and use of named goods for a set term in return for certain consideration. A. license B. lease C. bailment D. sale E. consignment

B. lease

Very New​ Corp, Inc. wants to enter into a contract to purchase​ $1 million of scooters from Old Established​ Scooter, Co. Because Very New Corp does not have well established​ credit, Old Established Scooter asks that Very New Corp provide a​ _____ to guarantee that if Very New Corp does not pay for the​ goods, the bank will pay Old Established Scooter​ $1 million. A. written accommodation B. standby letter of credit C. negotiable instrument D. firm offer E. sales contract

B. standby letter of credit

Article 2 of the UCC applies to mixed sales only if the goods are​ _____ part of the transaction. A. not B. the predominant C. a small D. a perceptible E. a significant

B. the predominant

After speaking on the phone with a salesperson from​ Reed, Inc.,​ BEH, Inc., a​ merchant, sends a sales order form that afternoon to purchase​ 3,000 outdoor grills. They are to be delivered in two weeks from​ Reed, Inc., also a​ merchant, for​ $200,000. Reed does not sign the sales form BEH​ sent, but sends back its own signed sales​ form, which contains slightly different terms than the form that BEH sent BEH does not respond to​ Reed's email. Under traditional common law rules and not the​ UCC, _____. A. because Reed made a​ counteroffer, BEH is bound to the agreement B. BEH is bound to the agreement because electronic sales contracts are enforceable C. BEH is not bound to the contract because​ Reed's acceptance was not a mirror image of the original offer D. BEH is not bound to the agreement because no consideration was paid for the option agreement E. BEH is bound to the Reed agreement b

C. BEH is not bound to the contract because​ Reed's acceptance was not a mirror image of the original offer

The Uniform​ _____ Code is a model act that includes comprehensive laws that cover most aspects of commercial transactions. A. Contracts B. Collaborative C. Commercial D. Conditional E. Constructive

C. Commercial

After speaking on the phone with a salesperson from​ Reed, Inc.,​ BEH, Inc., a​ merchant, sends a sales order form that afternoon to purchase​ 3,000 outdoor grills. They are to be delivered in two weeks from​ Reed, Inc., also a​ merchant, for​ $200,000. Reed never responds to the email containing the sales order. When Reed fails to make the delivery on June​ 1st, BEH threatens to sue Reed. Under the​ UCC, _____. A. Reed is not bound to the agreement because no consideration was paid for the option agreement B. Reed is bound by the​ agreement, because it did not object to the order within 10 days Your answer is not correct. C. Reed is bound to the sales order This is the correct answer. D. because Reed did not sign the sales​ order, it is not bound to the agreement E. because Reed made a​ counteroffer, Reed is not bound to the agreement

C. Reed is bound to the sales order

A salesperson at a Verizon store offers to sell a cellphone to a buyer. The buyer writes on the sales​ contract, "I accept your​ offer, but I would like a case for the​ phone." Assuming we are following the​ UCC's guidance for additional​ terms, which of the following is​ true? A. No contract is created because the buyer did not make a definite expression of acceptance. B. The UCC does not offer any guidance on additional terms. C. The salesperson may choose to reject the proposed addition of a phone case and a sales contract of just the phone would still exist. D. The​ buyer's reply would be considered a​ counteroffer, not an acceptance. E. If the salesperson rejects the proposed addition of a phone​ case, no sales contract is created.

C. The salesperson may choose to reject the proposed addition of a phone case and a sales contract of just the phone would still exist.

According to UCC​ 2-206(1)(b), a shipment of nonconforming goods does not constitute an acceptance if the seller reasonably notifies the buyer that the shipment is offered only as​ a(n) _____ to the buyer. A. revocation B. recommendation C. accommodation D. attestation E. rejection

C. accommodation

Which of the following are considered goods as defined by Article 2 of the​ UCC? A. bonds B. stocks C. automobiles D. money E. real estate

C. automobiles

After speaking on the phone with a salesperson from​ Reed, Inc.,​ BEH, Inc., a​ merchant, sends a sales order form that afternoon to purchase​ 3,000 outdoor grills. They are to be delivered in two weeks from​ Reed, Inc., also a​ merchant, for​ $200,000. Reed does not sign the sales form BEH​ sent, but sends back its own signed sales​ form, which contains some minor additional terms that were not included in the form from BEH. BEH does not respond to​ Reed's email. Under the​ UCC, _____. A. because Reed made a​ counteroffer, BEH is not bound to the agreement B. BEH is not bound to the​ contract, because​ Reed's acceptance was not a mirror image of the original offer C. because BEH did not object to the different​ form, it is bound to the Reed agreement D. BEH is not bound to the Reed​ agreement, because it sent its form first E. BEH is not bound to the agreement because no consideration

C. because BEH did not object to the different​ form, it is bound to the Reed agreement

The​ _____ rule says that a merchant who makes an offer to​ buy, sell, or lease goods and assures the other party in a separate writing that the offer will be held open cannot revoke the offer for the time stated​ or, if no time is​ stated, for a reasonable time. A. parol evidence B. commercial impracticability C. firm offer D. anticipatory repudiation E. substantial performance

C. firm offer

In a lease​ contract, the​ _____ is the person who acquires the right to possession and use of goods under a lease. A. lessor B. consignor C. lessee D. licensor E. bailor

C. lessee

​A(n) _____ sale involves the provision of a service and a good in the same transaction. A. conditional B. mixed C. absolute D. dual E. qualifying

C. mixed

A finance lease is a​ three-party transaction consisting of a​ lessor, a​ lessee, and a​ _____. A. delegatee B. delegator C. supplier D. consignor E. consignee

C. supplier

Article​ _____ (Leases) of the UCC directly addresses personal property leases. A. 4A B. 3A C. 2 D. 2A E. 3

D. 2A

​_____ means a computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in​ part, without review or action by an individual. A. Electronic signature B. Electronic record C. Letter of credit D. Electronic agent E. Standby letter of credit

D. Electronic agent

Occasionally, the express terms of a written contract are not clear on their own and must be interpreted. In such​ cases, reference may be made to certain conduct outside the contract. In what order of priority are these conducts​ considered? (Note: Answers are in descending order of priority​ - most important to least​ important.) A. course of​ dealing, course of​ performance, usage of trade B. course of​ performance, usage of​ trade, course of dealing C. usage of​ trade, course of​ performance, course of dealing D. course of​ performance, course of​ dealing, usage of trade E. usage of​ trade, course of​ dealing, course of performance

D. course of performance, course of dealing, usage of trade

Certain open terms are permitted to be​ "read into" sales or lease contracts. This rule is commonly referred to as the​ _____ rule. A. anticipatory repudiation B. substantial performance C. remainder D. ​gap-filling E. repudiation

D. gap-filling

According to the UCC Statute of​ Frauds, all contracts for the sale of goods priced at​ _____ or more must be in writing. A. 50 B. 100 C. 250 D. 500 E. 20

D.$500

All states except​ _____ have adopted some version of Article 2​ (Sales) of the UCC. A. Kansas B. Texas C. Tennessee D. Arizona E. Louisiana

E. Louisiana

After speaking on the phone with a salesperson from​ Reed, Inc.,​ BEH, Inc., a​ merchant, sends a sales order form that afternoon to purchase​ 3,000 outdoor grills. They are to be delivered in two weeks from​ Reed, Inc., also a​ merchant, for​ $200,000. Reed never responds to the email containing the sales order. When Reed fails to make the delivery on June​ 1st, BEH threatens to sue Reed. Under traditional common law rules and not the​ UCC, _____. A. because Reed made a​ counteroffer, Reed is not bound to the agreement B. Reed is bound by the​ agreement, because it did not object to the order within 10 days C. Reed is bound to the sales order D. Reed is not bound to the agreement because no consideration was paid for the option agreement E. because Reed did not sign the sales​ order, it is not bound to the agreement

E. because Reed did not sign the sales​ order, it is not bound to the agreement

According to Article 2 of the​ UCC, a​ _____ is a person who by his or her occupation holds himself or herself out as having knowledge peculiar to the goods involved in the transaction. A. consignee B. licensee C. lessee D. bailor E. merchant

E. merchant

According to Article 2 of the​ UCC, a​ _____ is a person who deals in goods of the kind involved in a transaction. A. bailee B. consignee C. lessee D. bailor E. merchant

E. merchant

​​​​A(n) _____ consists of the passing of title of goods from a seller to a buyer for a price. A. license B. assignment C. lease D. delegation E. sale

E. sale

A(n) _____ is a document issued by a bank on behalf of a buyer who purchases goods on credit from a seller guaranteeing that if the buyer does not pay for the​ goods, the bank will pay the seller. A. negotiable instrument B. allonge C. promissory note D. letter of credit E. draft

letter of credit

If a sales contract does not contain a specific​ price, a​ _____ price is implied at the time of delivery.

reasonable