Question 1

If a writing indicating a sales contract contains only some of the terms that the parties agreed to, a court may allow evidence of consistent additional terms.

Accepted Answer

This is known as the parol evidence rule, which allows evidence of additional terms that are consistent with the written contract. The evidence cannot contradict or vary the terms that are already in the written contract, but it can supplement them.

Question 2

To satisfy the UCC's Statute of Frauds, a writing indicating an intent to form a sales contract must be signed by both parties.

Accepted Answer

While the UCC's Statute of Frauds requires a writing indicating an intent to form a sales contract, it does not require that both parties sign the writing. The writing must be signed by the party against whom enforcement of the contract is being sought or by their authorized agent.

Question 3

Miko owns a lake house that she rents to vacationers. Miko gives her son Ninh a trip to Omaha on his graduation from community college. Miko sells her car to her neighbor Pye for $4,500. UCC Article 2 covers

Accepted Answer

UCC Article 2 covers the sale of goods, which includes the car that Miko sold to Pye. It does not cover the rental of real property (lake house rentals) or a gift (Ninh's trip to Omaha).

Question 4

Life Products Inc. enters into a contract to sell medical supplies to Med Clinic, which later sells some of the items to Nina, a patient and consumer. Article 2 of the UCC applies to

Accepted Answer

Article 2 of the UCC applies to the sale of goods, which includes the medical supplies sold by Life Products to Med Clinic and then by Med Clinic to Nina as a consumer. Therefore, both transactions fall under the scope of Article 2 of the UCC.

Question 5

Under the UCC, contract modifications extorted by one contracting party from the other party are in bad faith but enforceable.

Accepted Answer

The UCC requires that all modifications must be made in good faith, and modifications made under duress or coercion are not enforceable. Therefore, contract modifications extorted from one party by the other party are not enforceable.

Question 6

Under the law that governs the international sale of goods, when an acceptance to a contract includes terms additional to those in the offer, the terms automatically become part of the deal.

Accepted Answer

According to the "battle of the forms" rule under the United Nations Convention on Contracts for the International Sale of Goods (CISG), additional terms in an acceptance do not automatically become part of the contract unless both parties explicitly agree to them.

Question 7

Generally, when an acceptance to a sales contract between merchants includes terms additional to those in the offer, the terms automatically become part of the deal.

Accepted Answer

This is known as the "mirror image rule" in contract law. As long as both parties are merchants and the terms aren't considered to be material alterations, the additional terms are automatically part of the contract.

Question 8

Skyscape LLC regularly engages in the business of leasing construction equipment, primarily to commercial contractors. Tilde, a consumer, leases a backhoe from Skyscape to landscape the property at her home. The price is less than the amount set by state statute. Under the UCC, the deal with Tilde is

Accepted Answer

The lease with Tilde is a consumer lease because she is leasing equipment for personal use, not for a commercial purpose. The fact that Skyscape primarily leases equipment to commercial contractors does not change the nature of the lease with Tilde.

Question 9

The United Nations Convention on Contracts for the International Sale of Goods is the law that governs contracts for the international sale of goods.

Accepted Answer

This statement is true. The United Nations Convention on Contracts for the International Sale of Goods (CISG) is a treaty that governs contracts for the international sale of goods between parties from different countries. It has been adopted by over 90 countries, including the United States, and sets out rules for the formation, validity, and performance of contracts for the sale of goods between parties located in different countries.

Question 10

If the acceptance to a sales contract between non-merchants includes terms different from those in the offer, no contract is formed under the UCC.

Accepted Answer

Under the UCC, if the acceptance to a sales contract between non-merchants includes terms different from those in the offer, a contract is still formed. However, the additional terms become a proposal for addition to the contract and must be agreed upon by both parties. If one party objects to the additional terms, they are not considered part of the contract.

Question 11

Because contracting parties presumably know best what they meant by their words, the course of performance under their agreement is the best indication of what they meant.

Accepted Answer

This statement reflects the principle of course of performance, which holds that the practical application and interpretation of a contract through the behavior of the parties involved is the most reliable indicator of their intent and understanding of the agreement.

Question 12

Under the UCC, the meaning of any agreement must be interpreted in light of commercial practices, so a court will not assume that the usage of trade was taken into account when the agreement was phrased.

Accepted Answer

Under the UCC, courts do consider the usage of trade, course of dealing, and course of performance when interpreting agreements to ensure they are understood in light of commercial practices and the intent of the parties.

Question 13

Acceptance of an offer to lease goods can be made by any means reasonable under the circumstances, including a prompt shipment of the goods.

Accepted Answer

Acceptance of an offer to lease goods can be made by any means reasonable under the circumstances, and a prompt shipment of goods is considered a reasonable means of acceptance in many cases.

Question 14

Jade offers to sell Khan a collection of baseball cards. To qualify as a sale under the UCC, Khan's payment must be

Accepted Answer

According to the UCC, payment can be made in cash, or its equivalent, or in other goods or services. Therefore, Khan's payment can be in any form that Jade and Khan agree upon, as long as it qualifies as consideration for the sale of the baseball cards. The other options mentioned do not affect whether or not a sale under the UCC has taken place.

Question 15

Aaron offers to sell Babe a collection of baseball cards. For their transaction to be a sale under the UCC, title to the collection must be passed from the seller to the buyer for

Accepted Answer

Under the UCC, a sale is a contract where the seller transfers title to goods to the buyer for a price. Therefore, for the transaction to be a sale, there must be a price involved. Choice A is incorrect because cash is just one of many ways to pay for the price of the goods. Choice B is incorrect because services are not considered goods under the UCC. Choice D is also incorrect because while the transaction involves goods, simply exchanging goods does not make it a sale.

Question 16

In response to an order for a hundred baseballs, the shipment of a hundred basketballs is both an acceptance of the offer and a breach of the contract.

Accepted Answer

This is because the shipment of a different product than what was ordered constitutes a breach of contract, as it does not fulfill the terms of the offer. However, it can also be seen as an acceptance of the offer in the sense that the seller is acknowledging the buyer's request for a hundred items.

Question 17

If a sales contract prohibits any changes unless they are in a signed writing, then only those changes agreed to in a signed writing are enforceable.

Accepted Answer

If a sales contract includes the provision that changes must be in writing and signed by both parties, then only changes that fulfill those requirements can be enforced. Any changes made orally or without the necessary signatures would not be legally binding.

Question 18

Under the law that governs the international sale of goods, when the parties to a contract do not specify a price term, or at least provide for its specification, normally no contract will exist.

Accepted Answer

The answer of Under the law that governs the international...

Question 19

An excessive price for goods and unequal bargaining power can indicate to a court that a sales contract is unconscionable.

Accepted Answer

If a court finds that the price of goods is excessively high or that one party has significantly more bargaining power than the other, it may determine that the sales contract is unconscionable, or extremely unfair. This can lead to the contract being voided or revised to be more equitable.

Question 20

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

Accepted Answer

Under the UCC, an oral contract for a sale of goods is enforceable once goods have been received and accepted. This is known as the "acceptance doctrine." However, it can be difficult to prove the terms of an oral contract, so it is generally recommended to have a written contract for any significant transaction.

Quiz 19: The Formation of Sales and Lease Contracts