Deck 11: Contracts and Sales: Introduction and Formation

Question 1

A merchant's firm offer requires consideration to be valid.

Answer 1

False

Question 2

Under common law,a counteroffer is also a rejection.

Answer 2

True

Question 3

A UCC offer is valid with the subject matter stated even though no price is given.

Answer 3

True

Question 4

Options require consideration to be valid.

Question 5

Contracts for the sale of land must be in writing to be enforceable.

Question 6

"I'll take it,but you must deliver," is a valid acceptance.

Question 7

Revocation can be valid any time prior to acceptance.

Question 8

Implied contracts are unenforceable.

Question 9

Contracts for the sale of real property are governed by the Uniform Commercial Code.

Question 10

The UCC rules on additional terms in acceptance are the same for merchants and nonmerchants.

Question 11

Common law does not dictate amounts required for consideration.

Question 12

Quasi contracts are implied-in-law contracts.

Question 13

The UCC Battle of the Forms provision allows additional terms in an acceptance without invalidating the acceptance.

Question 14

A contract for the sale of a car for $700,under the old UCC,must be in writing to be enforceable.

Question 15

A contract to solicit subscribers through pop-up Internet ads is considered a good under the UCC because it is a list of names.

Question 16

An acceptance of a stipulated means offer by a different means is effective upon receipt.

Question 17

An offer is effectively communicated upon mailing or dispatch.

Question 18

The Restatement of Contracts is another name for the UCC.

Question 19

Under the UCC,offers need price,subject matter,and quantity to be definite enough.

Question 20

Contracts for services are governed by the UCC.

Question 21

The CISG follows the mirror image rule in formation.

Question 22

Under the UCC,an acceptance followed by additional terms is a counteroffer and a rejection.

Question 23

The parol evidence rule does not apply in UCC contracts.

Question 24

The UCC has no timing rules for acceptance.

Question 25

"This offer is limited to these terms," means that between merchants only immaterial terms added in the acceptance will be part of the contract.

Question 26

UETA has not yet been adopted in all of the states.

Question 27

The above book contract must be in writing to be valid.

Question 28

An executory contract is one that is fully performed.

Question 29

"I'm thinking of selling my CD player," is an example of offer language.

Question 30

A contract must be in a formal writing to satisfy the statute of frauds.

Question 31

Parol evidence is always admissible for challenging contract terms.

Question 32

E-Sign requires that there be faxes or written verification of electronic contracts.

Question 33

A contract for the sale of potatoes is not governed by the UCC.

Question 34

A contract for rebinding 500 books at a cost of $1.50/book is governed by the UCC.

Question 35

UETA does not apply when there is an applicable statute of frauds.

Question 36

"Drive my car to Albuquerque,and I'll pay you $500," is not a valid offer.

Question 37

Under the CISG,acceptance is effective only upon receipt.

Question 38

An acceptance by a merchant in response to an offer by a merchant cannot contain any additional terms or it will be treated as a counteroffer under the UCC.

Question 39

"I'll take the bike for $75,but first I have to sell my fish tank," is an example of a valid acceptance.

Question 40

Under E-Sign,clicking on a tab that reads "I accept" is a valid acceptance to an offer.

Question 41

The solicitation of credit card customers is not regulated by the federal government.

Question 42

Under the UCC,a contract for the sale of a car for $700 need not have a record of the contract to be enforceable.

Question 43

E-Sign is a federal law that requires written signatures for electronic contracts to be valid.

Question 44

A contract for the sale of a $12.2 million Lear jet would be governed by common law because a document of title is involved.

Question 45

A record,such as an e-mail or fax,now satisfies the writing requirement under both the UCC and common law.

Question 46

"Would you be interested in selling your Prius for $21,000?",is not an offer.

Question 47

A contract for termite extermination at a home would be governed by the UCC.

Question 48

Asking a couple's plans for having children is a violation of the ECOA.

Question 49

A credit card applicant can be solicited without disclosure of the card's terms.

Question 50

The Equal Credit Opportunity Act applies only to consumer transactions.

Question 51

A negative credit decision cannot be based on an applicant's plans for having children.

Question 52

Point-and-click is a valid means of forming a contract if the parties had adequate knowledge of the terms and conditions of the agreement in advance.

Question 53

Under CARD,credit terms must last for at least two years.

Question 54

Leases of consumer goods are not subject to disclosure requirements.

Question 55

A spouse cannot apply for credit without the signature of his/her spouse.

Question 56

"Point and click" is not sufficient for acceptance under UETA.

Question 57

The Equal Credit Opportunity Act was passed to ensure equal credit opportunity regardless of past credit history.

Question 58

The Truth-in-Lending Act applies to all credit transactions.

Question 59

The liability limitation for credit card holders who report a loss or theft is $50.

Question 60

A three-year warranty on an oven need be evidenced by a record to be enforceable.

Question 61

Which of the following is not required for a valid UCC offer?

A)quantity
B)payment terms
C)subject matter
D)both b and c
E)a, b, and c

Question 62

Requiring credit references for members of one race but not for another is a violation of the ECOA.

Question 63

The subprime lending market uses title loans.

Question 64

An applicant for credit need not disclose spousal support income if he is not relying on it as an income source.

Question 65

A credit application that asks for criminal convictions from the last five years violates the ECOA.

Question 66

B has made a valid acceptance.

Question 67

Predatory lending involves high interest rates and title loans.

Question 68

A bilateral contract is one in which one side promises to perform in exchange for the other side's actions.

Question 69

S has made a valid offer to B.

Question 70

Asking that all sources of income be revealed on a credit application is prohibited by the ECOA.

Question 71

S has made a valid offer to B.

Question 72

The communication between S and B must be evidenced by a record if any rights related to the exchange can be enforced.

Question 73

Which of the following contract subject matters would not be covered under the UCC?

A)a contract for the sale of a mobile home from the manufacturer
B)a contract for the sale of a mobile home from a previous owner
C)a contract for the sale of a mobile home plus its lot
D)All of the above are under the UCC.

Question 74

A price list would be an offer.​

Question 75

Void and voidable contracts are one and the same.

Question 76

The spouse of a credit applicant must disclose his or her credit information if the credit application is for the applicant's business operations.

Question 77

The subprime lending market is also called the predatory lending market.

Question 78

Many states have imposed additional steps for making loans in the subprime lending market.

Question 79

The Fair Credit and Charge Card Disclosure Act prohibits issuing credit cards without the consumer's consent.

Question 80

The subprime lending market collapse in 2008 led to other credit crunches and business impacts.