Question 1

According to the UCC,if no amount of time is specifically stated,a firm offer provided by a merchant must be kept open for a reasonable period of time,up to:
A) one year.
B) six months.
C) three months.
D) sixty days.

Accepted Answer

According to the UCC, if no time limit is specifically mentioned in a firm offer provided by a merchant, then it must be kept open for a reasonable period of time, which should not exceed three months. Therefore, the best choice is C, which specifies a reasonable time limit of up to three months.

Question 2

A product liability action brought in tort generally permits recovery of economic damages suffered by a purchaser of an inferior or defective product whereas a breach of warranty action would not allow such a claim.

Accepted Answer

This statement is incorrect. A breach of warranty action can also allow a claim for economic damages suffered by a purchaser of an inferior or defective product.

Question 3

If parties to a contract dispute a missing term,the court could simply fill-in the missing term using the __________ provisions of the UCC.
A) Gap-Filler
B) Conditional Acceptance
C) Battle of the Forms
D) Knockout Rule

Accepted Answer

The Gap-Filler provisions of the UCC are used to fill in missing terms in contracts when the parties have not explicitly agreed upon them.

Question 4

A contract is __________ when one party is induced to enter a contract without having any meaningful choice.
A) substantively unconscionable
B) procedurally unconscionable
C) procedurally impracticable
D) substantively impracticable

Accepted Answer

Procedural unconscionability refers to the circumstances surrounding the formation of a contract and whether one party lacked meaningful choice in agreeing to the terms. This can occur when the stronger party presents the contract on a "take it or leave it" basis, without allowing the weaker party to negotiate, or when there is deception or coercion involved in the agreement. Therefore, option B is the correct answer.

Question 5

Under the UCC,a firm offer only applies to:
A) merchants.
B) merchants and non-merchants.
C) non-merchants.
D) option contracts.

Accepted Answer

A firm offer is a binding offer made by a merchant in writing that promises to keep the offer open for a certain period of time (not exceeding three months) without revocation. This offer applies only to merchants.

Question 6

Under Section 2-207(2),if only one party is a merchant,an acceptance containing additional terms:
A) automatically becomes part of the contract unless the offeror objects within ten days.
B) is considered a proposal for additions to the contract.
C) is a counteroffer.
D) has no effect and the contract is accepted without the new terms.

Accepted Answer

Under Section 2-207(2), if only one party is a merchant, an acceptance containing additional terms is considered a proposal for additions to the contract. This means that the acceptance operates as an acceptance of the original offer, but the additional terms become part of the contract only if the offeror (the non-merchant) explicitly agrees to them. If the offeror does not agree to the additional terms, they will not become part of the contract.

Question 7

If a sales contract requires or authorizes the seller to ship goods by carrier,when does the risk of loss pass to the buyer if the contract does not require delivery at a particular destination?
A) At the time the goods are properly delivered to the carrier.
B) At the time the carrier tenders the goods to the buyer.
C) At the time the contract is initially entered into.
D) Not until the buyer has received the goods and had a chance to inspect them.

Accepted Answer

The risk of loss passes to the buyer at the time the goods are properly delivered to the carrier, as the carrier acts as an agent of the buyer for the purpose of delivering the goods. Once the goods are in the carrier's possession, any damage or loss will be the responsibility of the buyer.

Question 8

Under the Convention on Contracts for the International Sale of Goods (CISG),an offer becomes effective when:
A) the offeror sends it.
B) it reaches the offeree.
C) the offeree reads it.
D) the offeree replies.

Accepted Answer

According to Article 15 of the CISG, an offer becomes effective when it reaches the offeree. This means that the offer must be communicated to the offeree in order to be considered valid. Sending the offer is not enough, and the offeree's reading or reply are not necessary for the offer to become effective.

Question 9

If a sales contract requires the seller to ship the goods by carrier and specifies the destination,the risk of loss passes to the buyer when the:
A) goods are properly delivered to the carrier.
B) carrier tenders the goods to the buyer at the specified destination.
C) contract is finalized.
D) seller pays for the goods.

Accepted Answer

The risk of loss passes from the seller to the buyer when the carrier tenders the goods to the buyer at the specified destination. This is in accordance with the terms of the sales contract that require the seller to ship the goods by carrier and specify the destination. Therefore, choice B is the correct answer.

Question 10

A contract is __________ if its terms are unduly harsh or oppressive or unreasonably favorable to one side.
A) substantively unconscionable
B) procedurally unconscionable
C) procedurally impracticable
D) substantively impracticable

Accepted Answer

Substantive unconscionability refers to unfair or oppressive terms in a contract that create a significant imbalance of power between the parties. This can include terms that are extremely favorable to one party or extremely harsh or oppressive to the other party. Procedural unconscionability, on the other hand, refers to the circumstances surrounding the formation of the contract, such as whether one party had unequal bargaining power or whether the terms were presented in an unclear or deceptive way. Substantively impracticable or procedurally impracticable do not accurately describe the concept of unfair or one-sided terms in a contract.

Question 11

Which of the following is governed by Article 2 of the UCC?
A) A contract for sale of a commercial building
B) A contract for sale of office supplies
C) An employment contract
D) A life insurance contract

Accepted Answer

Article 2 of the UCC governs the sale of goods, which includes tangible personal property, such as office supplies. A contract for sale of a commercial building is governed by real estate law, an employment contract is governed by labor law, and a life insurance contract is governed by insurance law.

Question 12

To which of the following does the term "battle of the forms" refer?
A) The situation in which one of the parties wishes to use a preprinted form, but the other party wishes to engage in direct negotiation.
B) The situation in which the parties entered into a formal contract, but the contract has been misplaced by both parties resulting in uncertainty regarding the exact terms of the original contract.
C) The situation in which parties have neglected to bargain over items and then exchange standard printed forms resulting in confusion regarding the terms of the contract.
D) The situation in which a party wishes to claim unconscionability based upon another party's use of a preprinted form.

Accepted Answer

The term "battle of the forms" refers to the situation in which parties have neglected to bargain over items and then exchange standard printed forms resulting in confusion regarding the terms of the contract. This commonly arises in commercial transactions where one party uses a form with their own terms and the other party responds with a form with different terms. The issue is determining which terms govern the contract.

Question 13

__________ are items of personal property attached to real property that cannot be removed without substantial damage.
A) Connectors
B) Relaters
C) Entanglements
D) Fixtures

Accepted Answer

Fixtures are items of personal property that have been permanently attached to real property, such as a building, and cannot be removed without causing damage. Examples include built-in bookshelves, light fixtures, and plumbing fixtures.

Question 14

Which of the following is an example a statement made by a salesperson that would be considered "puffing"?
A) This car will get 35 miles per gallon.
B) This is a genuine diamond ring.
C) This is an original work of art.
D) This copier is the best in the business.

Accepted Answer

"Puffing" is when a salesperson makes exaggerated or subjective claims about a product that cannot be proven or disproven. Saying that a copier is "the best in the business" is an example of puffing because it is subjective and cannot be proven objectively. The other statements are either factual (A), verifiable (B), or provable (C) and therefore would not be considered puffing.

Question 15

To which of the following does Article 2 of the UCC apply?
A) The sale of goods.
B) The rendering of services.
C) The sale of land.
D) Both the sale of goods and the rendering of services.

Accepted Answer

Article 2 of the UCC applies only to the sale of goods. It does not apply to the rendering of services or the sale of land.

Question 16

Under the UCC,the __________ term(s)must be in a writing order to satisfy the statute of frauds.
A) price
B) quantity
C) identity of the parties
D) time and place for delivery

Accepted Answer

Under the UCC, the quantity term must be in writing in order to satisfy the statute of frauds. So, choice B is the correct answer. However, it is worth noting that the other terms (price, identity of the parties, time and place for delivery) do not necessarily have to be in writing.

Question 17

Which of the following is true regarding the UCC's Statute of Frauds?
A) The writing involved must be typed, not handwritten.
B) The writing must be signed by the party to be charged, not necessarily by all parties
C) Any warranties must be included in the writing in order to be enforceable
D) The UCC's requirements regarding a writing are strict and place significant burdens on the parties in regard to adequately including all terms of the agreement in the writing.

Accepted Answer

The UCC's Statute of Frauds requires that certain contracts, including contracts for the sale of goods over $500, be in writing. The writing must be signed by the party to be charged, but it can be handwritten or typed. Additionally, the writing must contain the essential terms of the agreement, but other terms can be included in a separate document. The UCC's requirements are less strict than those of the common law Statute of Frauds.

Question 18

Which of the following is the majority approach when resolvingcontradictory terms in pre-printed forms? (See theRichardson v.Union Carbide Industrial Gases,Inc.case)
A) The majority approach is that the offeror's terms control.
B) The majority approach isthat the offeree's terms control.
C) The majority approach is to applythe knockout rule with conflicting terms knocked out of the contract.
D) The majority approach is the assimilation view whereby terms of the offer prevail over the different terms in the acceptance only if the latter are materially different.

Accepted Answer

The majority approach when resolving contradictory terms in pre-printed forms is to apply the knockout rule with conflicting terms knocked out of the contract. This approach ensures that neither party's terms prevail and the remaining terms that are not in conflict still form a binding contract. This was established in the Richardson v. Union Carbide Industrial Gases, Inc. case.

Question 19

When the seller provides the buyer with a document enabling them to pick up goods held at an independent warehouse,the risk of loss passes to the buyer when the:
A) goods are picked up by the buyer.
B) contract of sale is signed.
C) buyer receives the document entitling it to pick up the goods.
D) buyer pays for the goods.

Accepted Answer

The risk of loss passes to the buyer when they receive the document entitling them to pick up the goods at the independent warehouse. This is because the seller has fulfilled their obligation to deliver the goods by providing the necessary documentation. It is then up to the buyer to arrange for transportation and assume responsibility for the goods.

Question 20

UCC Section 2-319 expressly authorizes the buyer and seller to allocate the __________ between them as they see fit.
A) damages
B) specific performance
C) modification
D) risk of loss

Accepted Answer

UCC Section 2-319 allows the buyer and seller to allocate the risk of loss between them, meaning they can agree on who will bear the risk if the goods are damaged, lost or destroyed during shipment or possession.

Quiz 8: Sales, Licensing, and E-Commerce.

According to the UCC,if no amount of time is specifically stated,a firm offer provided by a merchant must be kept open for a reasonable period of time,up to:

A product liability action brought in tort generally permits recovery of economic damages suffered by a purchaser of an inferior or defective product whereas a breach of warranty action would not allow such a claim.

If parties to a contract dispute a missing term,the court could simply fill-in the missing term using the __________ provisions of the UCC.

A contract is __________ when one party is induced to enter a contract without having any meaningful choice.

Under the UCC,a firm offer only applies to:

Under Section 2-207(2) ,if only one party is a merchant,an acceptance containing additional terms:

If a sales contract requires or authorizes the seller to ship goods by carrier,when does the risk of loss pass to the buyer if the contract does not require delivery at a particular destination?

Under the Convention on Contracts for the International Sale of Goods (CISG) ,an offer becomes effective when:

If a sales contract requires the seller to ship the goods by carrier and specifies the destination,the risk of loss passes to the buyer when the:

A contract is __________ if its terms are unduly harsh or oppressive or unreasonably favorable to one side.

Which of the following is governed by Article 2 of the UCC?

To which of the following does the term "battle of the forms" refer?

__________ are items of personal property attached to real property that cannot be removed without substantial damage.

Which of the following is an example a statement made by a salesperson that would be considered "puffing"?

To which of the following does Article 2 of the UCC apply?

Under the UCC,the __________ term(s) must be in a writing order to satisfy the statute of frauds.

Which of the following is true regarding the UCC's Statute of Frauds?

Which of the following is the majority approach when resolvingcontradictory terms in pre-printed forms? (See theRichardson v.Union Carbide Industrial Gases,Inc.case)

When the seller provides the buyer with a document enabling them to pick up goods held at an independent warehouse,the risk of loss passes to the buyer when the:

UCC Section 2-319 expressly authorizes the buyer and seller to allocate the __________ between them as they see fit.