Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs
A) the checks.
B) the payment of the loan.
C) the sale of the buildings.
D) the sale of the goods.

Question

Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs
A) ​the checks.
B) ​the payment of the loan.
C) ​the sale of the buildings.
D) ​the sale of the goods.

Quizplus · Accepted Answer

Article 2 of the UCC governs the sale of goods, which is what Retail Marketers, Inc. is doing by selling goods from its inventory and warehouse. The checks and other items received in exchange for the goods are considered payment for the sale, and the loan repayment to Savings Bank is a separate matter that falls outside of Article 2.

Over the Course of a Year, Retail Marketers, Inc