Question 1

A lease is a contract that transfers the right to the possession and use of named goods for a set term in return for certain consideration.

Accepted Answer

This is the definition of a lease.

Question 2

A lease,under UCC Article 2A does not require that the lessee provide consideration under the agreement.

Accepted Answer

A lease under UCC Article 2A, also known as the Uniform Commercial Code for Leases, does require consideration from the lessee. This consideration can be in the form of payments, services, or other things of value that the lessee provides to the lessor in exchange for the lease.

Question 3

In order to be governed by Article 2 of the UCC,goods must be both movable and tangible.

Accepted Answer

Article 2 of the UCC governs the sale of goods that are both movable and tangible. This means that goods that are not physical or cannot be moved, such as services, are not covered by Article 2.

Question 4

Under the UCC,a court can find that a contract exists even though the court cannot determine exactly when the contract came into existence.

Accepted Answer

Under the UCC, a contract can be formed even if the exact moment of formation cannot be determined. This is known as a "gap-filling" doctrine, and it allows courts to use reasonable standards to determine the existence of a contract.

Question 5

Under common law's mirror image rule,the offeree's acceptance must be on the same terms as the offer.

Accepted Answer

The mirror image rule requires the acceptance to be on the same terms as the offer in order to form a valid contract under common law. If there are any changes or additions to the terms of the offer, it is considered a counteroffer and terminates the original offer.

Question 6

Article 2 of the UCC contains some provisions that either apply only to merchants or impose a greater duty or merchants.

Accepted Answer

Article 2 of the UCC contains provisions specific to merchants, such as warranties of merchantability and fitness for a particular purpose. It also imposes a higher duty of good faith and fair dealing on merchants in their commercial transactions.

Question 7

A finance lease is a three-party transaction.

Accepted Answer

A finance lease involves three parties: the lessor, the lessee, and the supplier or manufacturer of the leased asset. The lessor buys the asset from the supplier and leases it to the lessee, who uses the asset for a fixed period of time in exchange for regular lease payments.

Question 8

A shipment of nonconforming goods offered as an accommodation constitutes an acceptance by the seller and a breach of contract.

Accepted Answer

The answer of A shipment of nonconforming goods offered as...

Question 9

If the price is omitted from a sales contract,a "reasonable price" will be implied upon delivery.

Accepted Answer

According to the Uniform Commercial Code (UCC) Section 2-305, if the price is not specified in a contract, a court can determine a "reasonable price" based on various factors such as market value, previous dealings between the parties, and industry standards. Therefore, a reasonable price will be implied upon delivery if the price is not included in the sales contract.

Question 10

In a contract for the sale of goods,if the seller does not have a place of business and the contract does not mention delivery in any way,delivery is to be made at the seller's residence.

Accepted Answer

According to the Uniform Commercial Code (UCC), if the seller does not have a place of business, delivery is to be made at the seller's residence unless otherwise specified in the contract.

Question 11

The "battle of the forms" refers to the situation where a merchant buyer and merchant seller each use its own standard form contract in the contract formation process,and the law must determine which,if either,controls.

Accepted Answer

The statement accurately describes the concept of the "battle of the forms."

Question 12

Under the UCC,a contract is invalid under all circumstances if it does not state a price.

Accepted Answer

Under the UCC, a contract can still be valid even without a specified price. The contract can establish a price through various means such as a market price, a stated formula, or a reasonable price at the time of delivery. However, not specifying a price may make the contract unenforceable if the parties cannot establish a price by any means.

Question 13

Both the common law and the UCC provide that a contract is created when the offeror receives the acceptance,not when the offeree sends the acceptance.

Accepted Answer

Under the common law, the "mailbox rule" states that a contract is created when the offeree sends the acceptance, not when the offeror receives it. The UCC also generally follows this rule for acceptance.

Question 14

A party can be treated by the UCC as a merchant for some transactions and as a nonmerchant for other transactions.

Accepted Answer

The UCC defines a merchant as someone who deals in goods of the kind or holds themselves out as having knowledge or skill in the practices involved in the transaction. Depending on the specific transaction, a party may or may not meet this definition and thus be treated as a merchant or nonmerchant by the UCC.

Question 15

A lessor is the person who transfers the right of possession and use of goods under the lease.

Accepted Answer

A lessor is indeed the entity that leases or rents out property or equipment to another person or organization who uses it in exchange for periodic payments.

Question 16

As with contracts under common law,the UCC requires that a contract modification be supported by consideration.

Accepted Answer

Under the UCC (Uniform Commercial Code), a contract modification does not require consideration to be binding, unlike under common law.

Question 17

Article 2 of the UCC is not applied by federal courts to sales contracts governed by federal law.

Accepted Answer

The answer of Article 2 of the UCC is not...

Question 18

A UCC sale occurs when possession of property is transferred from one party to another.

Accepted Answer

A UCC sale refers to a sale governed by the Uniform Commercial Code, which primarily deals with the sale of goods, not just the transfer of possession of property.

Question 19

All states have adopted all,or a major part of Article 2 of the UCC.

Accepted Answer

Not all states have adopted Article 2 of the UCC in its entirety; some have made modifications or have not adopted it at all.

Question 20

The lessor is the person who acquires the right to possession and use of goods under a lease.

Accepted Answer

The lessor is the person who grants the right to possession and use of goods under a lease, not the one who acquires it. The person who acquires the right is called the lessee.

Quiz 16: Formation of Sales, Lease, and E-Contracts