Question 1

Under the UCC, an oral contract for a sale of goods is enforceable if goods have been received and accepted.

Accepted Answer

Under Section 2-206 of the UCC, an enforceable contract for the sale of goods may be made in any manner sufficient to show agreement, including orally. If the goods have been received and accepted by the buyer, the contract is enforceable even if it was not in writing. However, it may be difficult to prove the terms of the oral contract without any written evidence.

Question 2

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 contains all the terms agreed upon by the parties and is intended to be the final and complete expression of their agreement. Evidence of any prior agreements or understandings that contradict the terms of the fully integrated contract is generally not admissible to vary or contradict the contract. This is known as the parol evidence rule.

Question 3

Under the "partial performance" exception to the UCC, an oral contract for goods worth more than $500 is enforceable if the goods are designed to partially perform a specific function.

Accepted Answer

The "partial performance" exception to the Statute of Frauds under the UCC makes an oral contract for goods worth more than $500 enforceable if the goods have been delivered and accepted or if payment has been made and accepted, not based on the design of the goods to partially perform a specific function.

Question 4

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...

Question 5

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

Accepted Answer

Article 2 of the UCC governs the sale of goods, which is exactly what Retail Marketers, Inc. is doing over the course of a year - selling goods from its inventory and warehouse. The payment of the loan from Savings Bank may be governed by a different article or section of the UCC, but it is not specified in the scenario given. The sale of buildings is also not relevant to the scenario. While checks may be received in exchange for the goods sold by Retail Marketers, Inc., the UCC only governs checks to the extent that they are used in payment for the sale of goods.

Question 6

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is the uniform international sales law of countries that account for more than two-thirds of all global trade.

Accepted Answer

The statement is true. The CISG is a widely adopted international convention that applies to contracts for the sale of goods between businesses in different countries. Over 90 countries have ratified or acceded to the CISG, covering a large share of global trade.

Question 7

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

Accepted Answer

This is correct. Section 1-303 of the UCC provides that "unless displaced by the particular provisions of this Act, the principles of law and equity...shall supplement its provisions." One such principle is that the meaning of an agreement may be interpreted in light of commercial practices relevant to the transaction.

Question 8

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

Accepted Answer

UCC Article 2 deals with the sale of goods. The lease with Katrina and the gift to Lucia do not involve the sale of goods, so they are not covered by UCC Article 2. However, the sale of Josefina's car to Maria for $1,500 is covered by UCC Article 2 because it involves the sale of a tangible item (i.e. the car). Therefore, the correct answer is C.

Question 9

Rally Corporation enters into a contract to sell ski gear to Sno-Sports Inc., which sells a pair of the skis to Tyra, a consumer, who later sells them to Upton, another consumer. Article 2 of the UCC applies to the sales transactions between

Accepted Answer

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

Question 10

Generally, acceptance of an offer to lease goods may be made in any reasonable manner and by any reasonable means.

Accepted Answer

According to the Uniform Commercial Code, which governs leases of goods in the United States, acceptance of an offer to lease goods can be made in any manner and by any means that is reasonable under the circumstances. This can include verbal acceptance, written acceptance, or even acceptance through conduct, such as taking possession of the leased goods.

Question 11

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

This is because commercial agreements are often crafted by parties who are familiar with the trade and industry they are operating in, and thus the terms and language used reflect commonly-accepted practices and understandings in that specific field.

Question 12

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 and actions of the parties involved in carrying out the terms of an agreement. It is often used as evidence of the parties' intentions and understanding of the agreement.

Question 13

Under the UCC, prompt shipment of goods is considered an acceptance of an offer to buy the goods.

Accepted Answer

Under Section 2-206 of the UCC, prompt shipment or delivery of goods by a seller to a buyer constitutes acceptance of the buyer's offer to purchase the goods.

Question 14

Leslie pays Mobile Electronics $600 for a new phone. Under the UCC, this is

Accepted Answer

The payment of $600 to Mobile Electronics for a new phone is considered a sale under the UCC (Uniform Commercial Code), as Leslie is purchasing a product from a retailer. It is not a merchant's firm offer, lease or requirements contract.

Question 15

A merchant's firm offer is revocable at any time before acceptance.

Accepted Answer

Under the Uniform Commercial Code (UCC), a merchant's firm offer is irrevocable for the time period stated in the offer, or if no time is stated, for a reasonable time, but in no event may such period exceed three months.

Question 16

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

Accepted Answer

This is known as the "shipment of goods" rule under UCC 2-206. It allows for acceptance of an offer by promptly shipping conforming goods, which creates a binding contract between the parties.

Question 17

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

Accepted Answer

This is true as unconscionability is a doctrine that allows a court to refuse enforcement of a contract due to unfairness or oppression in the formation of the contract. The court may consider factors such as the parties' relative bargaining power, the terms of the contract, and the circumstances surrounding the contract's formation.

Question 18

Jacob offers to sell Bill a collection of baseball cards. For their transaction to be a sale under the UCC, Bill

Accepted Answer

The UCC allows for payment in cash, goods, or services, so Bill may pay for the baseball cards in any of those forms. The answer is not A because paying in cash is one option but not the only option. The answer is not B because services can be a form of payment, but it is not required. The answer is not D because the fair market value is not necessarily the only price that can be paid for the cards.

Question 19

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

Accepted Answer

While the mirror image rule is a common law rule that requires the acceptance to exactly match the terms of the offer, the UCC has a more lenient rule for acceptances known as the "battle of the forms." Under the UCC, an acceptance can contain additional or different terms than the offer, and it will still be considered accepted as long as it doesn't materially alter the original offer and the parties don't object to the new terms. Therefore, the mirror image rule is not always required to be followed for acceptances under the UCC.

Question 20

The UCC requires a contract modification to be supported by new consideration.

Accepted Answer

According to the UCC (Uniform Commercial Code), a contract modification must be supported by new consideration, which means that both parties must exchange something new of value in order for the modification to be valid. Without new consideration, the modification is not binding.

Quiz 13: The Formation of Sales and Lease Contracts