Question 1

A court will uphold a contract for the sale or lease of goods as long as the parties intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy.

Accepted Answer

Under both the Uniform Commercial Code (UCC)and the United Nations Convention on Contracts for the International Sale of Goods (CISG),contracts for the sale or lease of goods may be made in any manner sufficient to show agreement.A court will uphold a contract for the sale or lease of goods as long as the parties intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy.

Question 2

The Uniform Commercial Code does not recognize the concept of unconscionability.

Accepted Answer

A contract or contract provision is unconscionable if it is so unfair that a court would be unreasonable if it enforced the contract.The Uniform Commercial Code outlines actions a court can take if it discovers that a contract or lease provision or the contract or lease as a whole is unconscionable.If a court finds that a contract or lease was unconscionable,in whole or in part,when it was made,the court can either refuse to enforce the contract or lease or enforce the parts that are fair.

Question 3

Under the Uniform Commercial Code,additional terms do not negate acceptance unless acceptance is made expressly conditional on assent to the additional terms.

Accepted Answer

Under the Uniform Commercial Code,additional terms are permitted in contracts for the sale or lease of goods.Under UCC Section 2-207(1),additional terms do not negate acceptance unless acceptance is made expressly conditional on assent to the additional terms.

Question 4

When in doubt,judges will try to interpret the UCC to keep an agreement in force.

Accepted Answer

When in doubt,judges will try to interpret the UCC to keep an agreement in force.As the drafters of the UCC intended,the UCC is designed to facilitate commercial transactions,not construct ways to impede them.

Question 5

The UCC is significant because it clarifies criminal law.

Accepted Answer

The Uniform Commercial Code (UCC)is significant because it clarifies sales law and makes this area of the law more predictable to businesses that engage in transactions in more than one state.Essentially,the UCC facilitates commercial transactions.

Question 6

The Uniform Commercial Information Transactions Act is federal law,binding on all states within the United States.

Accepted Answer

The Uniform Commercial Information Transactions Act (UCITA)promises to do for electronic contracting what the Uniform Commercial Code (UCC)did for transactions in physical goods: protect consumers by providing predictability,uniformity,and clear rules.As with the UCC,states will choose whether to adopt UCITA.In 2001,Virginia became the first state to enact UCITA,probably because major internet-related companies are headquartered in northern Virginia.

Question 7

The Uniform Commercial Code does not require a contract modification to be supported by new consideration.

Accepted Answer

Under the common law,when a contract is modified,it must be supported by new consideration.The Uniform Commercial Code eliminates that requirement for the modification of sales and lease contracts.The UCC requires only that modifications be made in good faith.

Question 8

Under the mirror-image rule,the terms of an acceptance must be on the exact same terms as the offer.

Accepted Answer

The mirror-image rule that applies under common law does not apply under the Uniform Commercial Code.The mirror-image rule states that an offeree's acceptance must be on the exact same terms as the offer.According to this rule,If the attempted acceptance includes additional terms,the acceptance becomes a counteroffer instead of an acceptance.Under the UCC,additional terms are permitted in the contract for the sale or lease of goods.

Question 9

The Uniform Commercial Code defines a mixed sale as a contract for the sale of two or more goods.

Accepted Answer

Sometimes,it is not easy to tell whether something is a good because a tangible item is tied to or mixed with something intangible,such as a service.A contract that combines a good with a service is a mixed sale.Article 2 of the UCC applies to mixed sales if the goods are the predominant part of the transaction.

Question 10

There are three kinds of title: conditional title,unconditional title,and implied title.

Accepted Answer

There are three kinds of title: good title,void title,and voidable title.

Question 11

The UCC states that a sale consists of the passing of title from the seller to the buyer,with or without consideration.

Accepted Answer

The UCC states that a sale consists of the passing of title from the seller to the buyer for a price.

Question 12

Article 2(A)of the Uniform Commercial Code does not cover leases related to real property.

Accepted Answer

Article 2(A)of the Uniform Commercial Code covers contracts for the lease of goods.This section of the UCC is increasingly important because consumers (both individuals and businesses)are more likely to lease goods today than ever before.Consumers lease cars,equipment,and machines.Article 2(A)does not cover leases related to real property.The UCC defines goods as all tangible things which are movable at the time of identification to the contract for sale.Real estate cannot be moved,so it is not a good.

Question 13

Article 2 of the UCC governs lease contracts,while Article 2(A)governs sales contracts.

Accepted Answer

Article 2 of the UCC governs sales contracts while Article 2(A)governs lease contracts.Specifically,Article 2 focuses on contracts for the sale of goods; Article 2(A)focuses on contracts for the lease of goods.

Question 14

Federal law governs the formation of sales and lease contracts.

Accepted Answer

Federal statutes do not govern the formation of sales and lease contracts.Instead,each state passes its own laws to outline rules in this area.

Question 15

Trade fixtures are treated as goods under the UCC.

Accepted Answer

The UCC defines goods as all tangible things which are movable at the time of identification to the contract for sale.Real estate cannot be moved,so it is not a good.Yet items attached to real estate that are used for business activities are known as trade fixtures and are treated as goods under the UCC.

Question 16

A firm offer must be made in writing.

Accepted Answer

Under the Uniform Commercial Code,offers made by merchants are considered firm offers if the offer is made in writing and gives assurances that it will be irrevocable for up to three months despite a lack of consideration for the irrevocability.

Question 17

If a farmer agrees to sell all the grain his fields will produce but is unable to determine a specific amount,then the "quantity" element has been satisfied under the Uniform Commercial Code.

Accepted Answer

Although quantity must usually be specified in a contract or lease,the UCC does permit "output" terminology to determine quantity.If a farmer agrees to sell all the grain his fields will produce but is unable to determine a specific amount,then the "quantity" element has been satisfied under the UCC as an output contract.

Question 18

Within its scope of applicability,the CISG has eliminated the statute of frauds.

Accepted Answer

The United Nations Convention on Contracts for the International Sale of Goods (CISG)has eliminated the statute of frauds writing requirement.The CISG requires only credible and reasonable proof that a contract exists,regardless of whether proof is documented or verbal.

Question 19

Corporate stocks are treated as goods under the UCC.

Accepted Answer

The UCC defines goods as all tangible things which are movable at the time of identification to the contract for sale.Corporate stocks are not tangible,so they are not goods.

Question 20

Someone who purchases stolen goods,knowingly or unknowingly,has implied title.

Accepted Answer

Someone who purchases stolen goods,knowingly or unknowingly,has void title.Void title is not true title.

Quiz 15: Formation and Performance of Sales and Lease Contracts