WALBCH11MC

Under UCC Article 2, a sale must involve the transfer of the ____ to the goods involved in the sale. 'a. title b. will c. deed d. bill of sale e. easement

'a. title

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

a. UCC Article 2A

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

c. to simplify, clarify and modernize the law governing commercial transactions

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

e. any of the other choices would be allowed

Under UCC Article 2, terms regarding payment, delivery and price are: a. necessary only when one of the parties is a minor b. required for the formation of a contract c. not allowed in a formal contract d. not allowed in a "casual contract" e. none of the other choices are correct

e. none of the other choices are correct

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" d. if both parties do not agree e. if there is an unwritten contract between the parties

a. "if the court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement"

Which of the following is a contract most likely to fall under UCC Article 2: a. Abbie purchases a suite of office furniture from Office Lots b. Landers hires Ace to move and store her furniture while she is in London for two years c. Nock hires CompuW to service its computers for a year so they are kept in good condition d. Disney buys the copyright on a book to make it into a movie e. none of the other choices

a. Abbie purchases a suite of office furniture from Office Lots

If parties to a contract involving a sale of goods fail to specify price, and if there is dispute, so that a court must determine the price, under the UCC the price will be: a. a reasonable price b. the price that the plaintiff specifies c. the price that the defendant specifies d. the price that a court-appointed arbitrator specifies e. no price; there never was a contract so the parties simply stop dealing with each other

a. a reasonable price

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

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

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 e. none of the other choices

a. date back thousands of years

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 seller's place of business b. delivery to the buyer's 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 buyer's agent

a. delivery is at the seller's place of business

Article 2 of the UCC covers the sale of: a. goods b. services c. investment securities d. goods and business services e. all of the other choices

a. goods

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

a. may or may not be "fair market value"

Lex mercatoria refers to: a. medieval European rules governing trade issues b. ancient Greek rules governing trade issues c. modern Japanese law governing trade issues d. the Supreme Court's views on trade issues e. medieval European rules governing land rental

a. medieval European rules governing trade issues

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

a. not necessarily necessary for the formation of a contract

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

a. past dealings of the party

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

a. some basis for believing that the parties made a contract of the sale of goods

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

a. the benefits of lowering the costs of doing business across state lines was so great

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

a. the good title does not pass to the buyer

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 e. any of the other choices

a. the seller delivers the title documents

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

a. there may be a good contract

Which of the following is a contract most likely to fall under UCC Article 2: a. IBM sells an office building in Atlanta to Microsoft b. GM buys seat belts from Ace to install in new Cadillacs c. Nock hires CompuW to service its computers for a year so they are kept in good condition d. Disney buys the copyright on a book to make it into a movie e. none of the other choices

b. GM buys seat belts from Ace to install in new Cadillacs

Lisa mailed an offer to sell cotton to Jeff who sent an acceptance. However, Jeff made changes in the time and place of delivery. Under the UCC's Article 2: a. acceptance cannot change the terms of the offer without being considered either a rejection or a counteroffer b. an acceptance is valid if the parties intend to form a contract⎯even though the acceptance contains some different terms from those in the offer c. alterations are not valid under the UCC so the parties need to look to the common law of contracts for a solution d. acceptance is valid only if this is an option contract e. acceptance is valid only if this is a requirements contract

b. an acceptance is valid if the parties intend to form a contract⎯even though the acceptance contains some different terms from those in the offer

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

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

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

b. determine "a reasonable price"

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

b. has an Internet site that links to sellers of multiple goods

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

b. has rules to fill the gap about a silent term

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

b. it is movable and tangible

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

b. it must be open to all members of the public

Sales law developed in medieval Europe was known as: a. lex vendido b. lex mercatoria c. the Medieval Code d. the merchant code e. the rules of sales

b. lex mercatoria

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: a. the buyer sends full payment b. the seller completes all obligations regarding delivery c. the buyer inspects the goods d. the buyer makes "substantial" payment e. any of the other choices

b. the seller completes all obligations regarding delivery

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

b. transfer and deliver goods that conform to the contract to the buyer

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 e. none of the other choices

b. try to show that the value of service dominates

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 e. none of the other choices are correct

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

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

c. anytime before acceptance

UCC Article 2 has been adopted: a. by Congress b. by 31 states c. by 49 states d. by all 50 states e. none of the other choices

c. by 49 states

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 e. none of the other choices

c. different rules developed across the states

Andrea offered to buy apricots from Aramos. The offer was for 10 tons at $1.20 per pound to be transported to Andrea's warehouse in Aramos trucks. Aramos accepted the offer, but said that the goods would be transported in Andrea's trucks. A dispute later arose and Aramos refused to sell the apricots, asserting that no contract existed. If Aramos sues, it: a. wins because agricultural products are outside the scope of the UCC b. wins because his acceptance changed terms from the original offer by Andrea c. loses if it can be shown that the parties intended to form a contract even though the acceptance contained different terms from those of the offer d. loses if it can be shown that Aramos did not offer new consideration for the transportation modifications to the contract e. none of the other choices

c. loses if it can be shown that the parties intended to form a contract even though the acceptance contained different terms from those of the offer

A buyer ordered custom made equipment. The delivery date was not set, but the seller promised to do the job in a reasonable time. When the equipment was not ready when the buyer hoped, the buyer cancelled the order. The seller demanded payment. You would expect the court to hold that: a. failure to deliver by the delivery date expected by the buyer was a breach of contract, so nothing was owed by the buyer b. because UCC 2-207(b) states that special terms are to be specified in the contract, as was the case with this order, the seller was in breach for not fixing a delivery date c. no delivery date was fixed, but the seller worked on the equipment and so will be paid for the work done up to time of cancellation d. no delivery date was specified by the buyer, so he had no right to cancel the order and is liable for all costs plus lost profits e. the breach was done with malice, so punitive damages could be added to the compensatory damages

c. no delivery date was fixed, but the seller worked on the equipment and so will be paid for the work done up to time of cancellation

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

c. 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: 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

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

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 e. none of the other choices

c. show that the value of the system is greater than the value of the service

Under the UCC, the seller's basic obligation includes being concerned with: a. what the goods are used for after they leave the seller's possession b. the future financial solvency of the buyer c. the place of delivery d. all of the other specific choices are correct e. none of the other specific choices are correct

c. the place of delivery

Under the UCC, the seller's basic obligation includes being concerned with: a. what the goods are used for after they leave the seller's possession b. the future financial solvency of the buyer c. the quality of the goods provided d. all of the other specific choices are correct e. none of the other specific choices are correct

c. the quality of the goods provided

A buyer and a seller would like to enter into a contract for the sale of goods. In his offer the buyer does not specify a price. The seller agrees with the arrangement. a. under Article 2 there is a contract if the parties have done business before b. under the common law of contracts, but not the UCC, there is a contract because the parties intended to enter into a binding agreement even in the absence of the price term c. there is a contract under Article 2 because it allows the parties to enter into a contract even though the price is to be determined later d. there is no contract under Article 2 because "some of the offer's major terms were omitted or were simply left open for determination later" e. there can be no contract under Article 2 or the common law when price is missing

c. there is a contract under Article 2 because it allows the parties to enter into a contract even though the price is to be determined later

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

c. under the UCC, a contract has been formed by the conduct of the parties

Balls, Inc. sells all baseballs needed by Major League Baseball (MLB). MLB agrees that prices and quantities will be determined at the beginning of each year. After 4 years, MLB decides its needs fewer balls and demands it be allowed to buy less. Balls demands MLB buy as much as in years before. If MLB sues under the UCC it will likely: a. lose because the contract modification it seeks is not negotiated in good faith b. lose because the contract modification it seeks is not supported by new consideration c. win if the contract modification is sought in good faith d. win because the right to such a contract modification under the UCC is irrevocable without consideration e. lose because baseball is a service and thus is not within the scope of the UCC

c. win if the contract modification is sought in good faith

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

d. a load of wheat

Under Article 2 of the UCC a contract can exist even if which of the following terms is(are) omitted: a. payment terms b. delivery terms c. price d. all of the other specific choices are correct e. none of the other specific choices are correct

d. all of the other specific choices are correct

Under the UCC Article 2, a "reasonable time" for delivery of a good is determined by: a. trade custom b. the apparent intentions of the parties c. the availability of transportation services d. all of the other specific choices are correct e. none of the other specific choices are correct

d. all of the other specific choices are correct

When a court must determine a price for a contract under the UCC, they look to: a. fair market value b. usual business practices c. a reasonable price d. all of the other specific choices may be used e. none of the other choices; such contract is invalid

d. all of the other specific choices may be used

A seller or buyer is considered a merchant by the UCC when he: a. regularly deals in goods of the kind involved in the transaction b. by occupation presents himself as having knowledge or skill specialized to the transaction c. employs an agent or broker who holds himself out as having requisite knowledge or skill d. any of the other specific choices e. none of the other choices

d. any of the other specific choices

A person may hold legal title to a good if: a. the good exists b. the good has been identified to the contract c. the good is in the possession of a third party d. choices a and b are correct e. none of the other choices are correct

d. choices a and b are correct

The UCC defines good-faith dealings as: a. the ordinary standards of the industry b. the standards set by the Domestic Corruption Practices Act c. fiduciary obligations among parties involved d. honest in fact in the conduct or transaction incurred e. none of the other choices

d. honest in fact in the conduct or transaction incurred

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

d. leases of personal property

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 e. price of a thing

d. legal rights to ownership of a thing

Under the UCC, oral testimony: a. may contradict written documents b. may never be used c. may be used if the goods are not worth more than $10,000 d. may be used to explain trade dealings e. may be used only if both parties agree

d. may be used to explain trade dealings

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 e. all of the other choices

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

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

e. all of the other choices

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. presents himself as having skill specialized in the transactions c. regularly deals in goods of the kind involved in transactions d. has business expertise used in transactions involving particular goods e. all of the other choices are merchants under the UCC

e. all of the other choices are merchants under the UCC

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. 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 are true

e. all of the other choices are true

Under the UCC, the seller's basic obligation includes being concerned with: a. the appropriate manner of delivery b. the timeliness of delivery c. the place of delivery d. the quality of the goods provided e. all of the other specific choices are correct

e. all of the other specific choices are correct

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

e. no consideration

A buyer and a seller would like to enter into a contract for the sale of goods. In his offer the buyer does not specify a price. The seller agrees with the arrangement. a. under Article 2 there is a contract if the parties have done business before; price never need be specified in such instances b. under the common law of contracts, but not the UCC, there is a contract because the parties intended to enter into a binding agreement even in the absence of the price term c. there can be no contract under Article 2 or the common law when a major term is missing d. there is no contract under Article 2 because "some of the offer's major terms were omitted or were simply left open for determination later" e. none of the other choices

e. none of the other choices

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 there is no contract, but there is a quasi-contract under the common law d. under the UCC, there is no contract formed because the delivery of supplies is a service, not a good e. none of the other choices

e. none of the other choices

Andrea offered to buy apricots from Aramos. The offer was for 10 tons at $1.20 per pound to be transported to Andrea's warehouse in Aramos trucks. Aramos accepted the offer, but said that the goods would be transported in Andrea's trucks. A dispute later arose and Aramos refused to sell the apricots, asserting that no contract existed. If Aramos sues, it: a. wins because agricultural products are outside the scope of the UCC b. wins because his acceptance changed terms from the original offer by Andrea c. loses because Aramos never got specific permission to change the terms of the initial offer d. loses if it can be shown that Aramos did not offer new consideration for the transportation modifications to the contract e. none of the other choices

e. none of the other choices

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. sales of intellectual property e. none of the other choices

e. none of the other choices

Balls, Inc. sells all baseballs needed by Major League Baseball (MLB). MLB agrees that prices and quantities will be determined at the beginning of each year. After 4 years, MLB decides its needs fewer balls and demands it be allowed to buy less. Balls demands MLB buy as much as in years before. If MLB sues under the UCC it will likely: a. lose because the contract modification it seeks is not negotiated in good faith b. lose because the contract modification it seeks is not supported by new consideration c. lose because baseball is a service and thus is not within the scope of the UCC d. win because the right to such a contract modification under the UCC is irrevocable without consideration e. none of the other choices

e. none of the other choices

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. the seller retains liability unless a warranty accompanies the goods e. none of the other choices

e. none of the other choices

Contracts under Article 2 of the UCC could include: a. a house b. a patent c. a bank account d. rights to royalties from a book e. none of the other choices

e. none of the other choices

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 to the buyer's agent b. delivery to the buyer's place of business c. delivery is to the closest railroad or trucking station d. delivery is to a common carrier e. none of the other choices

e. none of the other choices

If parties to a contract involving a sale of goods fail to specify price, and if there is dispute, so that a court must determine the price, under the UCC the price will be: a. no price, as there will be no contract in such a situation b. the price that the plaintiff specifies c. the price that the defendant specifies d. the price that a court-appointed arbitrator determines e. none of the other choices

e. none of the other choices

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: a. the buyer delivers "payment in full" b. the seller requests payment c. the buyer inspects the goods d. the buyer makes "substantial" payment e. none of the other choices

e. none of the other choices

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 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 e. none of the other choices

e. none of the other choices

Lisa mailed an offer to sell cotton to Jeff who sent an acceptance. However, Jeff made changes in the time and place of delivery. Under the UCC's Article 2: a. acceptance cannot change the terms of the offer without being considered either a rejection or a counteroffer b. acceptance is valid only if this is a requirements contract c. alterations are not valid under the UCC so the parties need to look to the common law of contracts for a solution d. acceptance is valid only if this is an option contract e. none of the other choices

e. none of the other choices

Sales law developed in medieval Europe was known as: a. lex vendido b. the rules of sales c. the Medieval Code d. the merchant code e. none of the other choices

e. none of the other choices

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. provides for a special master to arbitrate all open terms c. supplies all necessary terms to complete any commercial contract d. requires the terms to be completed before it recognizes a valid contract e. none of the other choices

e. none of the other choices

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 the willingness to change e. none of the other choices

e. none of the other choices

The UCC defines good-faith dealings as: a. the ordinary standards of the industry b. the standards set by the Domestic Corruption Practices Act c. fiduciary obligations among parties involved d. following the terms agreed to in the contract e. none of the other choices

e. none of the other choices

To be a valid contract, the writing of a contract under the UCC must be complete as to: a. price and quantity b. time of payment c. all essential terms d. all parties involved e. none of the other choices

e. none of the other choices

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 never be used d. oral evidence may be used even if the court finds that the written documents are a complete statement of terms e. none of the other choices

e. none of the other choices

A "reasonable price": a. is determined by a formula specified by UCC Article 2 b. is always "fair market value" c. is never "fair market value" d. is completely arbitrary e. none of the other choices are correct

e. none of the other choices are correct

If a good has been stolen and is then sold to an unsuspecting buyer: a. the good title passes to the buyer whether or not he knows the good was stolen 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. none of the other choices are correct

e. none of the other choices are correct

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 fair way to set the price c. determine who should have to pay the price d. determine who should have known the price e. none of the other choices are correct

e. none of the other choices are correct

Lex mercatoria refers to: a. medieval European rules governing land rental b. ancient Greek rules governing trade issues c. modern Japanese law governing trade issues d. the Supreme Court's views on trade issues e. none of the other choices are correct

e. none of the other choices are correct

Most states have recently adopted _______to cover certain leases of personal property. a. UCC Amendment 2 b. UCC Article 2B c. UCC Article 3 d. UCC Article 22 e. none of the other choices are correct

e. none of the other choices are correct

Most states willingly accepted the UCC's provisions on most topics because: a. there were a lot of federal tax breaks associated with accepting the UCC 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. none of the other choices are correct

e. none of the other choices are correct

The UCC defines goods as: a. all the items listed in a contract and their related services 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 in good faith d. the combination of the items and services listed in the contract e. none of the other choices are correct

e. none of the other choices are correct

The UCC's purpose is: a. to give each state a unique set of trade laws b. to mediate international business disputes c. to make it easier to prosecute parties who breach contracts d. to reduce taxes e. none of the other choices are correct

e. none of the other choices are correct

The seller's basic obligation under the UCC is to: a. ensure the buyer does not lose money b. arrange all elements of the transaction and deal with any problems that arise c. represent the goods properly d. refrain from swindling unsuspecting buyers e. none of the other choices are correct

e. none of the other choices are correct

The title represents the: a. age of a thing b. bill of sale of a thing c. legal value of a thing d. price of a thing e. none of the other choices are correct

e. none of the other choices are correct

To satisfy the Statute of Frauds under UCC Article 2 there must be: a. a full description of all goods involved in the sale 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. none of the other choices are correct

e. none of the other choices are correct

Under UCC Article 2, when there is a failure to respond to a writing signed by the other party: a. the contract will not be binding 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. none of the other choices are correct

e. none of the other choices are correct

Under the UCC, oral testimony: a. may contradict written documents b. may never be used c. may be used if the goods are not worth more than $10,000 d. may only be used if both parties agree e. none of the other choices are correct

e. none of the other choices are correct

Under the UCC, parol evidence may not be used: a. if there is an unwritten contract between the parties 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" d. if both parties do not agree e. none of the other choices are correct

e. none of the other choices are correct

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 even without sufficient agreement" between the parties d. a contract is not formed until an offer is clearly accepted e. none of the other choices are correct

e. none of the other choices are correct

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 only valid if it is made within 3 months of 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. none of the other choices are correct

e. none of the other choices are correct

Under the common law, an offer can be revoked: a. anytime the offeror wants before the contract is sealed b. only if allowed by a district court c. anytime the offeree wants d. anytime after acceptance e. none of the other choices are correct

e. none of the other choices are correct

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 cannot modify an existing sales contract d. parties need to provide new consideration to modify an existing sales contract e. none of the other choices are correct

e. none of the other choices are correct

Under the UCC, the seller's basic obligation includes being concerned with: a. what the goods are used for after they leave the seller's possession b. the future financial solvency of the buyer c. the financing of the purchase d. all of the other specific choices are correct e. none of the other specific choices are correct

e. none of the other specific choices are correct