Question 1

The rules governing firm offers apply to all merchants.

Accepted Answer

The answer of The rules governing firm offers apply to...

Question 2

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.

Accepted Answer

Article 2 of the UCC specifically governs the sale of goods, which is exactly what Retail Marketers, Inc. is doing by selling goods from its warehouse. The other choices, such as checks and the payment of a loan, are not directly related to the sale of goods and would fall under different UCC articles.

Question 3

The terms of a fully integrated contract can be contradicted by evidence of any prior agreements.

Accepted Answer

A fully integrated contract is a contract that represents the final agreement between parties and typically includes a merger or integration clause stating that the contract contains the entire agreement and supersedes all prior negotiations and understandings. As a result, evidence of any prior agreements generally cannot be used to contradict the terms of a fully integrated contract.

Question 4

Rally Corporation enters into a contract to sell ski gear to SnoSportz Company,which sells a pair of the skis to Tyra,a consumer,who later sells them to Uli,another consumer. Article 2 of the UCC applies to the sales transactions between
A)all of the buyers and sellers.
B)Rally and SnoSportz only.
C)SnoSportz and Tyra only.
D)Tyra and Uli only.

Accepted Answer

The answer of Rally Corporation enters into a contract to...

Question 5

Under the United Nations Convention on Contracts for the International Sale of Goods,an international sales contract does not need to be evidenced by a writing or to be in any particular form.

Accepted Answer

According to Article 11 of the United Nations Convention on Contracts for the International Sale of Goods, a contract of sale need not be concluded in or evidenced by writing and is not subject to any other requirement as to form.

Question 6

The UCC requires that the mirror image rule be followed for all acceptances.

Accepted Answer

The UCC has modified the traditional common law rule of mirror image, and allows for certain variations in terms and conditions in the acceptance. This is known as the "battle of forms" rule.

Question 7

Under the UCC,an offeree can accept an offer to buy goods by a prompt shipment of conforming goods.

Accepted Answer

According to the UCC, an offeree can accept an offer to buy goods by promptly shipping conforming goods. This is known as the "shipment of goods" or "shipment of performance" rule.

Question 8

Under the "partial performance" exception to the UCC,an oral contract for goods worth more than $500 is enforceable if the goods are specially manufactured for a particular buyer.

Accepted Answer

The partial performance exception to the UCC's statute of frauds allows for enforcement of an otherwise unenforceable oral contract for goods worth over $500 if the goods have been specially manufactured for a particular buyer and cannot be resold to someone else in the ordinary course of business.

Question 9

A course of performance is the conduct that occurs under the terms of a particular agreement.

Accepted Answer

A course of performance refers to the actual behavior of the parties involved in carrying out the terms of an agreement.

Question 10

Under the UCC,an offeror must be notified within a reasonable time that the offeree has accepted.

Accepted Answer

The answer of Under the UCC,an offeror must be notified...

Question 11

Josefina owns a condominium that she leases to Katrina. Josefina gives her daughter Lucia $450 on her sixteenth birthday. Josefina sells her car to her neighbor Maria for $1,500. UCC Article 2 covers
A)thelease with Katrina.
B)the gift to Lucia.
C)thesale to Maria.
D)all of the choices.

Accepted Answer

UCC Article 2 covers the sale of goods, and the sale of a car to Maria falls under this category. The lease with Katrina is a contract for the lease of real property, which is not covered by UCC Article 2. The gift to Lucia is not a sale or transaction involving goods, and therefore is also not covered by UCC Article 2.

Question 12

Katlyn pays Mobile Edge Electronics $500 for a tablet. Under the UCC,this is
A)a gift.
B)a lease.
C)a sale.
D)a non-taxable transaction.

Accepted Answer

The payment of $500 indicates a transaction where ownership of the tablet is being transferred from the seller (Mobile Edge Electronics) to the buyer (Katlyn). This falls under the definition of a sale under the Uniform Commercial Code (UCC).

Question 13

Jacob offers to sell Bill a valuable collection of baseball cards. In order for the transaction between Jacob and Bill to be considered a sale under the UCC,Bill
A)mustpay for the cards in cash.
B)must pay for the cards with services.
C)may pay for the cards with cash,goods,or services.
D)must pay the fair market value of the cards.

Accepted Answer

According to the Uniform Commercial Code (UCC), the payment for the sale of goods can be made in cash, by check, by credit card, or by any other means mutually agreed upon by the parties involved. The UCC also allows for payment through goods or services, as long as the parties agree to it. Therefore, Bill may pay for the baseball cards with cash, goods, or services, making choice C the correct answer.

Question 14

Under the UCC,the meaning of any agreement must be interpreted in light of commercial practices.

Accepted Answer

This is known as the "course of performance" rule under UCC Section 1-303. It provides that "the parties' course of performance, course of dealing, and usage of trade must be considered" when interpreting the meaning of any agreement.

Question 15

A court can refuse to enforce a contract that the court deems to have been unconscionable at the time it was made.

Accepted Answer

An unconscionable contract is one that is so one-sided in favor of the party who has greater bargaining power that it is oppressive and gives rise to a situation where it is unlikely that the weaker party could have freely given informed consent to the terms of the contract. Courts may refuse to enforce such contracts, as they are against public policy.

Question 16

Under the United Nations Convention on Contracts for the International Sale of Goods,there are no irrevocable offers.

Accepted Answer

Under the United Nations Convention on Contracts for the International Sale of Goods, there are provisions for irrevocable offers in certain circumstances, such as when a written offer is received by the offeree and the offer indicates that it is irrevocable for a certain period of time. However, in general, offers are revocable unless otherwise stated in the offer or by law.

Question 17

All oral contracts are enforceable under the UCC.

Accepted Answer

While oral contracts can be enforceable under common law, the UCC requires certain types of contracts (such as sales of goods over $500) to be in writing to be enforceable.

Question 18

Under the UCC,an oral contract for a sale of goods is enforceable once payment has been made and accepted.

Accepted Answer

Under the Uniform Commercial Code (UCC), an oral contract for the sale of goods can be enforceable if payment has been made and accepted, as this constitutes part performance, which is an exception to the Statute of Frauds requirement for a written contract.

Question 19

Under the UCC,an agreement modifying a contract needs new considera¬tion to be binding.

Accepted Answer

A modification of a contract under the UCC does not require new consideration to be binding. Instead, a modification must be made in good faith and can be enforced if it's commercially reasonable.

Question 20

In interpreting a commercial agreement,a court will assume that the usage of trade was taken into account when the agreement was phrased.

Accepted Answer

The principle of "usage of trade" is a well-established practice in commercial law which assumes that parties to an agreement are aware of the customary practices and understandings within their respective industry or market. Therefore, when interpreting a commercial agreement, a court will consider how the language and terms of the agreement align with the typical practices of the relevant business community.

Quiz 20: The Formation of Sales and Lease Contracts