Question 1

Under the UCC,electronic agents allow for sale and lease contracting of goods over the Internet.

Accepted Answer

The UCC recognizes electronic agents and allows for the sale and lease of goods over the Internet. This is known as electronic contracting or e-contracting.

Question 2

If a buyer receives and accepts goods,pursuant to an oral contract and the Statute of Frauds of applies,then the contract is unenforceable.

Accepted Answer

The Statute of Frauds requires certain types of contracts to be in writing to be enforceable, but there are exceptions, such as when a party has partially performed under an oral contract. If a buyer receives and accepts goods under an oral contract, it may be considered partial performance and the contract could be enforceable despite the lack of a written agreement.

Question 3

The parol evidence rule allows a party to present outside evidence to support their interpretation of a contract.

Accepted Answer

The parol evidence rule generally prohibits the introduction of outside evidence to contradict, modify, or add to the terms of a written contract. The rule aims to discourage parties from attempting to alter the agreement after the fact and to promote certainty and predictability in contract interpretation. There are some exceptions to the rule, such as when the contract is ambiguous or incomplete, or when fraud or mistake is alleged.

Question 4

If an oral modification brings a contract within the Statute of Frauds,then it must be in writing to be enforceable.

Accepted Answer

This statement is true. The Statute of Frauds requires certain contracts to be in writing to be enforceable, including contracts that cannot be performed within one year of their formation. If an oral modification makes a contract fall under the Statute of Frauds, then that modification must also be in writing to be enforceable.

Question 5

Under the UCC,if payment terms are not agreed on,then payment is due within 30 days of delivery of the goods.

Accepted Answer

Under the UCC, if payment terms are not agreed upon, payment is due at the time and place of delivery, unless the parties agree on different terms. If there is no agreement, the UCC provides a default rule of payment being due at the time of delivery, not 30 days after delivery.

Question 6

The written confirmation rule only satisfies the Statute of Frauds requirement if the transaction is between non-merchants.

Accepted Answer

The written confirmation rule satisfies the Statute of Frauds requirement for all transactions, regardless of whether the parties are merchants or non-merchants.

Question 7

Article 2 and 2A and Revised Article 2 and 2A contain the same monetary thresholds for contracts and leases that must be in writing.

Accepted Answer

Article 2 and 2A of the Uniform Commercial Code (UCC) and their revised versions may have different monetary thresholds for contracts and leases that must be in writing, as these thresholds can be subject to amendments and revisions over time.

Question 8

Electronic contracts are not covered by the UCC.

Accepted Answer

Electronic contracts are covered by Article 2 of the UCC, just like traditional paper contracts.

Question 9

Under the UCC,the Statute of Frauds requires that certain contracts be typed on a computer in order to be enforceable.

Accepted Answer

The Statute of Frauds requires certain contracts to be in writing and signed by the party against whom enforcement is sought. While the writing can be on a computer or digital format, typing on a computer is not a specific requirement.

Question 10

Acceptance of goods occurs if the seller sends non-conforming goods and the buyer accepts them.

Accepted Answer

If the buyer accepts non-conforming goods, it implies that they have accepted them despite the fact that they do not meet the agreed-upon standards. As a result, acceptance of the goods occurs.

Question 11

A contract may be exempt from the Statute of Frauds requirement if it deals with specially manufactured goods.

Accepted Answer

The Statute of Frauds requires certain contracts to be in writing, including contracts for the sale of goods over a certain amount. However, a contract for specially manufactured goods may be exempt from this requirement if it can be shown that the goods are unique and would be of no use to the seller in the ordinary course of business. This exemption is known as the "specially manufactured goods" exception.

Question 12

Under the UCC,if a merchant seller gives an assurance that an offer will be held open for a certain amount of time,but sells the goods prior to that date,then the buyer can sue the seller for breach of contract.

Accepted Answer

This statement is correct according to the UCC's rules regarding assurances and firm offers. If a merchant seller provides a firm offer with a specified period for acceptance and then sells the goods before that time, the buyer can sue the seller for breach of contract.

Question 13

If the express terms of a written contract are unclear,the court can consider the previous conduct of the parties,in interpreting the contract.

Accepted Answer

This is called the "course of performance" or "course of dealing" and is one of the factors a court can consider in interpreting an unclear contract.

Question 14

If a sales or lease contract does not state the time of performance then it is unenforceable under the UCC.

Accepted Answer

According to the UCC, if the time for performance is not specified in a sales or lease contract, the default time is a reasonable time. Therefore, the contract is not considered unenforceable, but rather the parties are expected to perform within a reasonable time frame.

Question 15

Under the UCC,an accommodation shipment is considered a counteroffer.

Accepted Answer

An accommodation shipment is considered a counteroffer under the UCC because it is a shipment of goods that is made in response to an offer, but that does not conform to the terms of the offer. This means that the shipment is not an acceptance of the offer, but rather a new offer that the recipient of the shipment can either accept or reject.

Question 16

If,in accepting an offer a non-merchant seller includes additional terms,those additional terms become part of the contract.

Accepted Answer

In contract law, under the Uniform Commercial Code (UCC), additional terms in an acceptance by a non-merchant do not automatically become part of the contract unless the original offeror agrees to them.

Question 17

Under the UCC,an electronic record is not the same as writing.

Accepted Answer

Under the Uniform Commercial Code (UCC), an electronic record is considered equivalent to a written document, as long as it is in a form that can be retained and accurately reproduced.

Question 18

To satisfy the Statute of Frauds requirement,the writing must be sufficient to indicate that a contract has been made between the parties.

Accepted Answer

This is true. The Statute of Frauds requires certain contracts to be in writing, and the writing must be sufficient to show that a contract has been made between the parties.

Question 19

If a party,against whom enforcement is sought,admits to an oral contract in court proceedings,then the Statute of Frauds requirement is waived and the oral contract can be enforced.

Accepted Answer

If the party admits to an oral contract in court, it is considered a written confirmation, and the Statute of Frauds requirement is waived, allowing the oral contract to be enforced.

Question 20

A letter of credit guarantees to the seller,that the bank will pay for the goods if the buyer fails to do so.

Accepted Answer

A letter of credit is a financial tool used in international trade that ensures payment between the buyer and seller by the bank serving as an intermediary. The bank guarantees payment to the seller if the buyer fails to make payment.

Quiz 16: Formation of Sales, Lease, and E-Contracts