Question 1

The UCC imposes some different rules on merchants.

Accepted Answer

The UCC imposes certain rules and regulations on merchants that differ from those imposed on non-merchants. These rules are designed to govern commercial transactions and provide clarity and consistency in the sale of goods.

Question 2

A lessor is a party who acquires a right to the possession and use of goods under a lease.

Accepted Answer

False

Question 3

A firm offer by a merchant may be oral.

Accepted Answer

False

Question 4

A merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.

Accepted Answer

This is the definition of a merchant according to the Uniform Commercial Code.

Question 5

According to the UCC,one open term will cause a sales contract to fail for indefiniteness.

Accepted Answer

The UCC provides guidelines for determining the terms of a contract when they are not explicitly defined or agreed upon. It allows for open terms such as price or delivery methods to be determined by market standards or other objective factors. Therefore, a sales contract will not fail for indefiniteness if there is one open term.

Question 6

Goods associated with real estate never fall within the scope of UCC Article 2.

Accepted Answer

Goods associated with real estate, such as fixtures, do fall within the scope of UCC Article 2. However, real property itself is not considered a good under the UCC.

Question 7

When no delivery terms are specified in a contract for a sale of goods,there is no basis for determining a remedy.

Accepted Answer

Even when no delivery terms are specified in a contract, the Uniform Commercial Code (UCC) provides default rules for determining delivery terms and remedies for breach. Therefore, there is a basis for determining a remedy.

Question 8

UCC Article 2 applies to sales transactions between all buyers and sellers.

Accepted Answer

UCC Article 2 (Uniform Commercial Code Article 2) applies to the sale of goods between buyers and sellers, including merchants and non-merchants. It does not apply to service contracts or real estate transactions.

Question 9

Intangible property has conceptual existence and thus comes under Article 2.

Accepted Answer

Intangible property is not considered tangible and thus is not covered under Article 2 of the Uniform Commercial Code, which deals with sales of goods. Intangible property may be governed by other laws such as intellectual property laws.

Question 10

Under the UCC,good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

Accepted Answer

This is the definition of good faith as stated in the UCC, specifically in section 1-201(20).

Question 11

To be characterized as a "good" under the UCC,an item of property must be movable.

Accepted Answer

This is stated in Article 2 of the UCC, which applies to the sale of goods. Real estate and other immovable property are not covered by the UCC.

Question 12

Under the UCC,parties to sales and lease contracts are NOT free to establish whatever terms they wish.

Accepted Answer

The UCC allows parties to sales and lease contracts to establish their own terms, as long as they do not violate mandatory provisions of the UCC or other applicable laws.

Question 13

If the parties to a contract for a sale of goods have not agreed on a price,a court will determine a reasonable price at the time for delivery.

Accepted Answer

According to the Uniform Commercial Code (UCC), if the parties to a contract for a sale of goods have not agreed on a price, a court will determine a reasonable price at the time for delivery. This is known as a "gap filler" provision under the UCC.

Question 14

The UCC imposes special business standards on casual and inexperienced sellers and buyers.

Accepted Answer

The UCC applies to all sellers and buyers engaged in the sale of goods, regardless of their level of experience or frequency of transactions. The UCC does not impose special standards on casual or inexperienced parties.

Question 15

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

Accepted Answer

According to the Uniform Commercial Code (UCC), a contract for the sale of minerals is considered a contract for the sale of goods if the seller is responsible for severing the minerals from the ground.

Question 16

Under the UCC,a contract for a sale of goods that does not include the quantity will not fail for indefiniteness.

Accepted Answer

According to the UCC, a contract for the sale of goods must include a quantity term, otherwise it is considered indefinite and unenforceable. Therefore, a contract for the sale of goods that does not include the quantity will fail for indefiniteness.

Question 17

Goods associated with real estate often fall within the scope of Article 2.

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) governs the sale of goods, which can include certain types of real estate-related items such as fixtures and equipment.

Question 18

For an item to be characterized as a "good" under the UCC,it must be intangible.

Accepted Answer

According to the UCC, a "good" refers to tangible personal property, such as clothing, electronics, and furniture. Intangible items, such as services or intellectual property, are not considered goods under the UCC.

Question 19

A lessor is a party who transfers the right to the possession and use of goods under a lease.

Accepted Answer

This is the definition of a lessor.

Question 20

Under the UCC,a sale is the passing of title from a seller to a buyer for a price.

Accepted Answer

The UCC defines a sale as the passing of title from a seller to a buyer for a price or consideration.

Quiz 18: Introduction to Sales and Lease Contracts