Question 1

Consumer leases are treated no differently than business leases under the UCC.

Accepted Answer

Consumer leases are actually treated differently than business leases under the UCC. The UCC imposes additional requirements and protections for consumers entering into lease agreements, such as disclosure requirements and the right to terminate the lease early in certain circumstances.

Question 2

The Uniform Electronic Transactions Act,in effect in all of the states,covers contracts not governed by Articles 2 and 2A.

Accepted Answer

The Uniform Electronic Transactions Act (UETA) does apply to electronic records and signatures relating to a transaction, but it does not specifically exclude contracts governed by Articles 2 (Sales) and 2A (Leases) of the Uniform Commercial Code (UCC). The UETA generally applies broadly to electronic transactions but does not make distinctions based on the type of contract or the UCC articles that might govern those contracts.

Question 3

The firm offer provision in Articles 2 and 2A of the UCC covers only merchant sellers.

Accepted Answer

The firm offer provision under the UCC applies specifically to offers made by merchants, as defined in the UCC, which are individuals or entities that deal in goods of the kind or otherwise hold themselves out as having special knowledge or skill regarding the goods involved.

Question 4

"Acceptance" under the UCC always means taking possession of goods.

Accepted Answer

"Acceptance" under the UCC refers to the buyer's agreement to take the goods and may include actions such as receiving or using the goods, as well as indicating acceptance in writing or verbally. It does not necessarily require taking physical possession of the goods.

Question 5

Unless an auction is advertised or announced as being without reserve,the sale is with reserve,and the auctioneer may withdraw the goods at any time until he announces completion of the sale.

Accepted Answer

This statement is true. Unless explicitly stated as an auction without reserve, the auction is conducted with a reserve price and the auctioneer has the right to withdraw goods until the completion of the sale is announced.

Question 6

The UCC treats merchants more leniently than others in transactions involving goods.

Accepted Answer

The UCC often holds merchants to higher standards than non-merchants because merchants are considered to have more knowledge and expertise in commercial transactions involving goods.

Question 7

Alasdair,the owner of a shoe store,purchased 500 Model XT-50 running shoes from her supplier,but price was not stated in the contract.The contract is voidable at Alasdair's option until the parties agree on a price.

Accepted Answer

Under the Uniform Commercial Code (UCC), a contract can still be valid even if it does not specify a price, as the UCC allows for a reasonable price to be determined at the time of delivery if the parties have otherwise intended to form a contract.

Question 8

If a UCC contract does not contain all the terms necessary to carry it out,there will be no contract.

Accepted Answer

According to the UCC, a contract may still be enforceable even if some terms are missing. The missing terms can be filled in by industry customs or the court can imply them.

Question 9

In a contract to sell goods,the sale does not take place until the seller transfers the title to the goods to the buyer.

Accepted Answer

Title transfer is a fundamental aspect of a sales contract for goods. Until the title is transferred to the buyer, the sale is not legally complete.

Question 10

If a contract does not comply with the statute of frauds,it is void.

Accepted Answer

A contract that does not comply with the statute of frauds is not necessarily void but may be unenforceable. The statute of frauds requires certain types of contracts to be in writing to be enforceable, but failure to comply does not automatically void the contract.

Question 11

A written offer from a merchant to buy or sell goods will be irrevocable only if accompanied by consideration.

Accepted Answer

Under the Uniform Commercial Code (UCC), a written offer by a merchant to buy or sell goods can be irrevocable without consideration if it is a signed, written promise to keep the offer open for a stated period of time or, if no time is stated, for a reasonable time, but in no event may such period of irrevocability exceed three months.

Question 12

Most of the Code's provisions are not mandatory but allow the parties to vary or displace them by agreement.

Accepted Answer

Most of the provisions in the Code can be varied or displaced by agreement between the parties, making them not mandatory. However, there are some provisions that are mandatory and cannot be disregarded by agreement.

Question 13

A court faced with an unconscionable lease contract may refuse to enforce the entire contract.

Accepted Answer

If a lease contract is found to be unconscionable, a court may refuse to enforce the entire contract or strike down specific clauses that are found to be unfair or oppressive.

Question 14

Article 2A of the UCC deals with leases of personal property.

Accepted Answer

Article 2A of the UCC (Uniform Commercial Code) specifically deals with leases and governs the leasing of personal property.

Question 15

A prompt promise to ship or prompt shipment of goods is a valid acceptance of an offer to buy goods for prompt or current shipment.

Accepted Answer

A prompt promise to ship or prompt shipment of goods is considered a valid acceptance of an offer to buy goods for prompt or current shipment under the Uniform Commercial Code (UCC). This means that once the buyer receives the assurance of prompt shipping, the contract is formed and both parties are bound by its terms.

Question 16

If a seller buries important terms of its sales agreement in fine print,this could constitute procedural unconscionability.

Accepted Answer

Procedural unconscionability refers to unfairness in the process by which a contract is formed, such as burying important terms in small print or using complex legal language that the average person would not understand. This makes it difficult for the consumer to fully understand the terms of the agreement and negotiate a fair deal. Therefore, burying important terms in fine print could constitute procedural unconscionability.

Question 17

A finance lease is a special type of lease transaction that generally involves three parties instead of two.

Accepted Answer

A finance lease involves the lessor, the lessee, and the supplier of the asset being leased.

Question 18

The common law of contracts has been totally replaced by the Code for the sale of goods.

Accepted Answer

The common law of contracts still applies to contracts other than the sale of goods, and even in the sale of goods, the Code for the sale of goods only supplements the common law rather than completely replacing it.

Question 19

Until the early 1900s,sales transactions were completely governed by general contract law,but now sales of tangible personal property are predominantly governed by statute.

Accepted Answer

Sales of tangible personal property are predominantly governed by the Uniform Commercial Code (UCC), a set of statutes adopted by all 50 states in the United States. Prior to the UCC, sales transactions were governed by general contract law.

Question 20

Sales contracts containing unconscionable clauses are void and unenforceable.

Accepted Answer

The answer of Sales contracts containing unconscionable clauses are void...

Quiz 21: Introduction to Sales and Leases