Question 1

If a homeowner sells a used lawn mower to his neighbor,Article 2 of the UCC does not apply.

Accepted Answer

False

Question 2

The UCC applies only to sales between merchants.

Accepted Answer

The UCC applies to sales contracts between any parties for the sale of goods, not just between merchants. However, certain UCC provisions may apply only to sales between merchants or to sales of certain types of goods.

Question 3

In a lease,the lessee does not acquire title to the leased goods.

Accepted Answer

In a lease agreement, the lessee obtains the right to use the goods for a specified period but does not gain ownership or title to the goods.

Question 4

Article 2 of the UCC applies to transactions in goods.

Accepted Answer

Article 2 of the UCC specifically applies to transactions in goods, which includes tangible personal property. It outlines the rights and obligations of buyers and sellers in these types of transactions, such as warranties, risk of loss, and delivery.

Question 5

Article 2 of the UCC applies to real estate,because real estate generally has severable things that are goods according to Article 2 of the UCC.

Accepted Answer

Article 2 of the UCC applies to the sale of goods, which are generally defined as tangible, movable property. Real estate is not typically considered a tangible, movable property and therefore falls outside the scope of Article 2 of the UCC. Real estate sales are usually governed by state law and other applicable regulations.

Question 6

A transaction that includes both a goods and a services component will be covered by the UCC so long as the goods are the predominant part of the transaction.

Accepted Answer

According to UCC Article 2, a transaction that includes both goods and services will be covered by the UCC if the goods component is a predominant part of the transaction. The UCC will not cover transactions where the services component is the predominant part of the transaction.

Question 7

In order for title to pass from a seller to a buyer,the purchase of the good must be by cash.

Accepted Answer

The purchase of the good can be by cash or through other means, such as credit or financing, as long as there is an agreement between the seller and buyer regarding payment and transfer of title.

Question 8

The UCC applies to contracts for services as well as to contracts for the sale of goods.

Accepted Answer

The Uniform Commercial Code (UCC) primarily governs contracts for the sale of goods, not services. Contracts for services are generally governed by common law.

Question 9

A party is considered a merchant if that party holds herself out as having special knowledge of the goods involved in the transaction,even if she does not regularly deal in the goods.

Accepted Answer

According to the Uniform Commercial Code (UCC), a party is considered a merchant if they hold themselves out as having special knowledge or skill related to the goods involved in the transaction, regardless of whether they regularly deal in those goods.

Question 10

Growing crops that are severable from real estate may be classified as goods and subject to Article 2.

Accepted Answer

According to Article 2 of the Uniform Commercial Code (UCC), goods are defined as "all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale." Growing crops that can be harvested and sold separately from the real estate would be considered "movable" and therefore classified as goods under Article 2.

Question 11

The lessee is the party who holds himself or herself out as having knowledge or skill peculiar to the goods involved in the transaction.

Accepted Answer

The lessee is the party who rents or leases the goods from the lessor, regardless of their knowledge or skills related to the goods.

Question 12

The common law of contracts governs if either Article 2 or Article 2A is silent on the issue.

Accepted Answer

The common law of contracts applies if either Article 2 (governing the sale of goods) or Article 2A (governing leases) of the Uniform Commercial Code is silent on the issue.

Question 13

A sale involving both goods and services is known as a mixed sale.

Accepted Answer

A mixed sale is a type of sale that involves both goods and services. This could include the sale of a product along with installation or maintenance services, or the sale of a package that includes both physical products and access to online services.

Question 14

A sporting goods dealer is a merchant with respect to golf clubs but not if he sells a wheelbarrow to a neighbor.

Accepted Answer

A sporting goods dealer is considered a merchant with respect to golf clubs because it is a product that is within their line of business. However, if they sell a completely different product like a wheelbarrow to a neighbor, they would not be considered a merchant in that specific transaction.

Question 15

A party that is a merchant in one transaction is a merchant for all transactions in which he/she is involved.

Accepted Answer

A party may be considered a merchant in one transaction if they have expertise or knowledge in that specific area, but not necessarily in all transactions. The status of being a merchant is determined on a case-by-case basis.

Question 16

A finance lease is a three-party transaction comprised of the lessor,the lessee,and the offeror.

Accepted Answer

A finance lease is actually a two-party transaction between the lessor and the lessee. The offeror is not typically involved in a finance lease.

Question 17

The installation of a pacemaker by a hospital is a sale of goods subject to Article 2 of the UCC.

Accepted Answer

Article 2 of the UCC applies to transactions in goods, but the installation of a pacemaker is primarily a service, not a sale of goods.

Question 18

Sales of stocks and bonds are covered by Article 2 of the UCC.

Accepted Answer

Sales of stocks and bonds are not covered by Article 2 of the UCC. Instead, they are governed by securities laws and regulations.

Question 19

Every state except Louisiana has enacted the UCC as its commercial statute.

Accepted Answer

This statement is true. The Uniform Commercial Code (UCC) is a set of laws governing commercial transactions in the United States. All states except Louisiana have adopted the UCC as their official commercial statute. Louisiana has its own commercial law system based on the French Napoleonic Code.

Question 20

Article 2A of the UCC directly addresses personal property leases.

Accepted Answer

Article 2A of the Uniform Commercial Code, also known as the Uniform Commercial Code - Leases, specifically deals with personal property leases.

Quiz 18: Formation of Sales and Lease Contracts