Question 1

According to Article 2's statute of frauds provision,all written contracts under the UCC must specify all terms of the contract.

Accepted Answer

While the UCC's statute of frauds provision does require written contracts for certain types of transactions, it does not require all terms to be specified in the writing. The provision only requires that the writing contain a quantity term, or a term that can be used to calculate quantity, and the signature of the party to be charged. Other terms may be left open or agreed upon later.

Question 2

The UCC follows a different parol evidence rule than does the common law of contracts.

Accepted Answer

Under the UCC, the parol evidence rule is more relaxed and allows evidence outside of the written contract to be used to help determine the intent of the parties, while the common law generally does not allow such evidence to contradict or vary the terms of a written contract.

Question 3

Like the common law,the UCC provides that the parties must exchange new consideration to modify an existing sales contract.

Accepted Answer

Unlike common law, the Uniform Commercial Code (UCC) allows modification of sales contracts without requiring new consideration from both parties, as long as the modification is made in good faith. This is known as the "firm offer" rule under UCC Section 2-205.

Question 4

"Shrinkwrap" agreements that come attached to products have no legal validity.

Accepted Answer

The answer of "Shrinkwrap" agreements that come attached to products...

Question 5

Under the UCC,if a party modifies a proposed sales contract,new consideration must be provided for the change for a contract to be formed.

Accepted Answer

Under the UCC, modification of a proposed sales contract does not require new consideration for the change for a contract to be formed. However, the modification must meet certain requirements such as good faith, fair dealing, and a signed agreement.

Question 6

In Axelson v.McEvoy-Willis,where Axelson cancelled an order for specialized oil rig equipment,in accord with the contract it sent when the deal was reached,the court held that it would look to the realities of the dealings of the parties,not the details of the contract,in deciding if a breach occurred.

Accepted Answer

The statement accurately reflects the holding of the court in Axelson v. McEvoy-Willis.

Question 7

Under the UCC,when a "battle of the forms" exists,the rule is generally that no contract was formed.

Accepted Answer

Under the UCC, a contract may still be formed even if there are conflicting terms in the parties' respective forms. The terms of the contract will be based on the parties' course of dealing, usage of trade, or other circumstances.

Question 8

In Griffith v.Clear Lakes Trout,where a dispute arose over "market size" trout,the court held that the buyer (Clear Lakes)had the right to expect the seller to grow the trout to a larger size than he had been doing.

Accepted Answer

In Griffith v. Clear Lakes Trout, the court held that the term "market size" was ambiguous and that there was no agreement for the seller to grow the trout to a larger size than what was considered market size at the time of the contract.

Question 9

The statutes of frauds provision of the UCC states that contracts for the sale of goods worth $500.00 or more must be "sealed."

Accepted Answer

The statutes of frauds provision of the UCC requires the contract for the sale of goods worth $500.00 or more to be in writing, but it does not require it to be sealed.

Question 10

With respect to parol evidence,the common law of contracts and Article 2 are the same.

Accepted Answer

While there are some similarities between common law and Article 2 in regards to parol evidence, there are also distinct differences. One notable difference is that Article 2 allows for more liberal use of parol evidence in interpreting contracts for the sale of goods. Therefore, the statement is false.

Question 11

The UCC's statute of frauds provision says that all service contracts must be in writing.

Accepted Answer

The UCC's statute of frauds provision does not require service contracts to be in writing.

Question 12

Under Article 2's statute of frauds,the basic rule is that a contract for the sale of goods priced at $5000 or more is not enforceable unless it is in writing and signed by the party against whom enforcement is sought.

Accepted Answer

Under the Uniform Commercial Code (UCC) Article 2, the statute of frauds applies to sales of goods priced at $500 or more, not $5000. Contracts for the sale of goods at or above this amount must be in writing to be enforceable.

Question 13

Under the UCC,the court will determine a reasonable price in case a contract is unclear about price and the parties cannot agree.

Accepted Answer

This is known as the UCC's "gap filling" rule and is outlined in Section 2-305. The court will determine a reasonable price based on factors such as market value, previous dealings between the parties, and industry standards.

Question 14

In Griffith v.Clear Lakes Trout,where a dispute arose over "market size" trout,the court held that it would look to the history of the dealings between the parties to see what they believed,in practice,to be the proper size of the fish.

Accepted Answer

The statement accurately reflects the holding of the court in Griffith v. Clear Lakes Trout.

Question 15

In Axelson v.McEvoy-Willis,where Axelson cancelled an order for specialized oil rig equipment,in accord with the contract it sent when the deal was reached,the court held that it was the intent of the parties not to follow the written contract so the cancellation was a breach.

Accepted Answer

The court held that the parties did not intend to follow the written contract, so the cancellation was a breach.

Question 16

The UCC operates the same as the common law in how it allows courts to fill the gaps left of contracts that have open terms.

Accepted Answer

The UCC (Uniform Commercial Code) is more flexible than common law in allowing courts to fill gaps in contracts with open terms, particularly in commercial transactions, by implying terms based on reasonableness or industry standards.

Question 17

In Axelson v.McEvoy-Willis,where Axelson cancelled an order for specialized oil rig equipment,in accord with the contract it sent when the deal was reached,the court held that since the terms were clear,Axelson had the right to cancel.

Accepted Answer

The court held that Axelson did not have the right to cancel because the terms of the contract did not allow for cancellation once the order was placed.

Question 18

In Griffith v.Clear Lakes Trout,where a dispute arose over trout,the court held that the buyer,Clear Lakes,had to accept small fish despite their not being "market size," because otherwise Griffith would go bankrupt.

Accepted Answer

In Griffith v. Clear Lakes Trout, the court held that the buyer, Clear Lakes, did not have to accept the small fish because they were not of the "market size" specified in the contract, and the potential bankruptcy of Griffith was not a valid reason to enforce acceptance of non-conforming goods.

Question 19

When contracts conflict,it is called the "battle of paperwork" under the UCC.

Accepted Answer

The answer of When contracts conflict,it is called the "battle...

Question 20

Under the UCC,parol evidence may be admitted to clarify customary trade practices.

Accepted Answer

The UCC allows for parol evidence to be admitted to explain the meaning of terms that are commonly understood in a particular trade or industry. This is known as the "course of dealing" or "usage of trade" evidence.

Quiz 11: Domestic and International Sales