Deck 21: The Uniform Commercial Code and Sales of Goods Contracts

Question 1

What organization created the UCC?

A) National Conference of the Commissioners on Uniform State Laws
B) American Law Institute
C) All of the above
D) None of the above

Answer 1

All of the above

Question 2

What happens when the UCC is adopted by a jurisdiction?

A) UCC's legal rules replace that jurisdiction's common law doctrines
B) UCC's legal rules are added to that jurisdiction's common law doctrines
C) UCC's legal rules replace that jurisdiction's statutory law
D) UCC's legal rules are added to that jurisdiction's statutory law

Answer 2

UCC's legal rules replace that jurisdiction's common law doctrines

Question 3

What contracts for sale of goods are governed by Article 2 of the UCC?

A) Contracts made by businesses for commercial purposes
B) Contracts made by individuals for non-business reasons
C) All of the above
D) None of the above

Answer 3

All of the above

Question 4

What sale contract is covered by Article 2?

A) Mike buys oranges at a farm
B) Mike hires a mechanic to fix a tractor
C) Mike buys a house
D) All of the above

Question 5

What is an example of goods according to the definition given in Article 2?

A) Farm
B) Copyright
C) Flowers
D) Lake

Question 6

What term describes goods which do not yet exist?

A) Anticipated
B) Future
C) Expected
D) Projected

Question 7

What is a characteristic of fungible goods?

A) Sold by measure
B) Stored in bulk quantities
C) All units are similar
D) All of the above

Question 8

What transaction occurs when the goods are for the buyer's use rather than for resale?

A) Sale on endorsement
B) Sale on approval
C) Sale on agreement
D) Sale on authorization

Question 9

What is a characteristic of sale or return?

A) Goods are primarily for resale
B) Goods may be returned even though they conform to the contract
C) Buyer bears the risk of loss
D) All of the above

Question 10

What term describes a person making a gift?

A) Donor
B) Donee
C) Benefactor
D) Sponsor

Question 11

What term describes a contract to sell all the goods that a company manufactures?

A) Shipment
B) Output
C) Destination
D) Requirements

Question 12

Under the UCC, who is a merchant?

A) Person dealing in goods
B) Agent
C) Broker
D) All of the above

Question 13

What is an example of a merchant?

A) Jack sells seeds in his Farm Supply store
B) Amanda, a nurse, annually sells clothing at her yard sale
C) Bob, a student, sells his textbooks
D) All of the above

Question 14

What is merchantability?

A) Fitness for ordinary use
B) Goods are warranted as fit for the ordinary purpose for which they are to be used
C) Both A and B
D) Goods will be perfect

Question 15

What is an example of puffing?

A) A cup of our coffee will help you to work non-stop without ever being tired!
B) This car will never cause you any troubles!
C) Just a drop of our perfume, and all men will fall in love with you!
D) All of the above

Question 16

What is a characteristic of an implied warranty?

A) Imposed by law
B) Sellers must repair, without cost to the buyer, defective goods
C) Sellers must refund the purchase price of defective goods
D) All of the above

Question 17

According to UCC 2-20, what contract must be in writing to be enforceable?

A) Sale of a bicycle for $350
B) Sale of a car for $400
C) Sale of furniture for $498
D) Sale of a violin for $500

Question 18

To satisfy Article 2's Statute of Fraud, who can sign a written contract?

A) Party against whom enforcement is sought
B) Party's authorized agent
C) Party's authorized broker
D) All of the above

Question 19

What term describes the goods delivered to the buyer in accordance with the contract terms?

A) Fungible
B) Future
C) Conforming
D) Nonconforming

Question 20

What term describes the right of a buyer, after breach by a seller, to purchase similar goods from someone else?

A) Cover
B) Cure
C) Remedies
D) Damages

Question 21

The Uniform Commercial Code is a collection of model statutes.

Question 22

The UCC consists of 11 chapters.

Question 23

All state legislations have adopted Article 2 of the UCC.

Question 24

Article 2 of the UCC does not apply to all contracts for sale of something.

Question 25

The UCC answers the question whether mixed contracts are covered by Article 2.

Question 26

Before title to goods can pass from a seller to a buyer, goods must be identified as those goods to which a contract refers.

Question 27

The transaction is called a contract to sell if title to goods is to pass at a future time.

Question 28

In the UCC, title to goods means custody.

Question 29

All of Article 2's rules apply to everyone who sells goods.

Question 30

Under UCC 2-104, there are three ways to be considered a merchant.

Question 31

The UCC establishes implied warranties that all sellers make.

Question 32

Merchantability means the goods will be perfect.

Question 33

There are four exceptions to the requirements of Article 2's Statute of Frauds.

Question 34

A part of Article 2's Statute of Frauds applies exclusively to merchants.

Question 35

Under UCC2-710, sellers can recover consequential damages from breaching buyers, including reasonable costs of storing the goods after the buyer's breach.

Question 36

If a seller delivered nonconforming goods, he or she breached the contract.

Question 37

In a statutory framework, a collection of laws on the same general topic is called a(n) ________.

Question 38

Article 2 of the UCC expressly covers sales of ________.

Question 39

Contracts that are not covered by Article 2 are governed by the ________ law.

Question 40

Goods sold by weight and stored in bulk quantities are called ________ goods.

Question 41

Some contracts include the sale of goods and ________ associated with the goods.

Question 42

According to the UCC, a sale is the passing of ________ from the seller to the buyer for a price.

Question 43

The UCC holds ________ to a higher standard in their transactions than nonmerchant sellers in certain situations.

Question 44

Under Article 2 of the UCC, there are differences between ________ and implied warranties.

Question 45

According to Article 2, a contract for the sale of goods for the price of $500 or more must be in ________ to be enforceable.

Question 46

Article 2 contains remedies for sellers and buyers in case either party ________ the sales contract.

Question 47

Match the terms with their descriptions:

-Donee

A) Legally established time for bringing a lawsuit
B) Person dealing in goods
C) Collection of model statutes designed to bring uniformity to common commercial transactions
D) Express warranty that does less
E) Signed writing evidencing the transfer of personal property from one person to another
F) Goods not yet manufactured
G) Goods any unit of which is the same as any like unit
H) Person receiving a gift
I) Law requiring that certain contracts must be in writing to be enforceable
J) Equitable remedy

Question 48

Match the terms with their descriptions:

-Fungible goods

A) Legally established time for bringing a lawsuit
B) Person dealing in goods
C) Collection of model statutes designed to bring uniformity to common commercial transactions
D) Express warranty that does less
E) Signed writing evidencing the transfer of personal property from one person to another
F) Goods not yet manufactured
G) Goods any unit of which is the same as any like unit
H) Person receiving a gift
I) Law requiring that certain contracts must be in writing to be enforceable
J) Equitable remedy

Question 49

Match the terms with their descriptions:

-Statute of limitations

A) Legally established time for bringing a lawsuit
B) Person dealing in goods
C) Collection of model statutes designed to bring uniformity to common commercial transactions
D) Express warranty that does less
E) Signed writing evidencing the transfer of personal property from one person to another
F) Goods not yet manufactured
G) Goods any unit of which is the same as any like unit
H) Person receiving a gift
I) Law requiring that certain contracts must be in writing to be enforceable
J) Equitable remedy

Question 50

Match the terms with their descriptions:

-Restraining order

A) Legally established time for bringing a lawsuit
B) Person dealing in goods
C) Collection of model statutes designed to bring uniformity to common commercial transactions
D) Express warranty that does less
E) Signed writing evidencing the transfer of personal property from one person to another
F) Goods not yet manufactured
G) Goods any unit of which is the same as any like unit
H) Person receiving a gift
I) Law requiring that certain contracts must be in writing to be enforceable
J) Equitable remedy

Question 51

Match the terms with their descriptions:

-Merchant

A) Legally established time for bringing a lawsuit
B) Person dealing in goods
C) Collection of model statutes designed to bring uniformity to common commercial transactions
D) Express warranty that does less
E) Signed writing evidencing the transfer of personal property from one person to another
F) Goods not yet manufactured
G) Goods any unit of which is the same as any like unit
H) Person receiving a gift
I) Law requiring that certain contracts must be in writing to be enforceable
J) Equitable remedy

Question 52

Match the terms with their descriptions:

-Bill of sale

A) Legally established time for bringing a lawsuit
B) Person dealing in goods
C) Collection of model statutes designed to bring uniformity to common commercial transactions
D) Express warranty that does less
E) Signed writing evidencing the transfer of personal property from one person to another
F) Goods not yet manufactured
G) Goods any unit of which is the same as any like unit
H) Person receiving a gift
I) Law requiring that certain contracts must be in writing to be enforceable
J) Equitable remedy

Question 53

Match the terms with their descriptions:

-Statute of Frauds

A) Legally established time for bringing a lawsuit
B) Person dealing in goods
C) Collection of model statutes designed to bring uniformity to common commercial transactions
D) Express warranty that does less
E) Signed writing evidencing the transfer of personal property from one person to another
F) Goods not yet manufactured
G) Goods any unit of which is the same as any like unit
H) Person receiving a gift
I) Law requiring that certain contracts must be in writing to be enforceable
J) Equitable remedy

Question 54

Match the terms with their descriptions:

-Uniform Commercial Code

A) Legally established time for bringing a lawsuit
B) Person dealing in goods
C) Collection of model statutes designed to bring uniformity to common commercial transactions
D) Express warranty that does less
E) Signed writing evidencing the transfer of personal property from one person to another
F) Goods not yet manufactured
G) Goods any unit of which is the same as any like unit
H) Person receiving a gift
I) Law requiring that certain contracts must be in writing to be enforceable
J) Equitable remedy

Question 55

Match the terms with their descriptions:

-Limited warranty

A) Legally established time for bringing a lawsuit
B) Person dealing in goods
C) Collection of model statutes designed to bring uniformity to common commercial transactions
D) Express warranty that does less
E) Signed writing evidencing the transfer of personal property from one person to another
F) Goods not yet manufactured
G) Goods any unit of which is the same as any like unit
H) Person receiving a gift
I) Law requiring that certain contracts must be in writing to be enforceable
J) Equitable remedy

Question 56

Match the terms with their descriptions:

-Future goods

A) Legally established time for bringing a lawsuit
B) Person dealing in goods
C) Collection of model statutes designed to bring uniformity to common commercial transactions
D) Express warranty that does less
E) Signed writing evidencing the transfer of personal property from one person to another
F) Goods not yet manufactured
G) Goods any unit of which is the same as any like unit
H) Person receiving a gift
I) Law requiring that certain contracts must be in writing to be enforceable
J) Equitable remedy

Question 57

Define goods. Identify future goods and identified goods. Explain what law governs a mixed contract of goods and services.

Question 58

Define a sale. Identify a sale on approval and a sale or return and discuss how these sales differ.

Question 59

Define remedies. Identify breaching buyers and remedies available to nonbreaching sellers.

Question 60

Olivia, Josh, and Rick made contracts to buy goods. Olivia bought flowers for $355, Josh bought lemons for $505, and Rick bought custom-made stained glass windows for $600. Discuss what requirements their contracts must satisfy to be enforceable.

Question 61

Miranda had a contract with Randy for the delivery of 1000 pieces of Italian tile within a month. In two weeks, Randy delivered 1000 pieces of Brazilian tile, and Miranda rejected the goods. What remedies are available for Miranda?