Question 1

A buyer has an absolute right to reject non-conforming goods as long as the rejection is timely.

Accepted Answer

False

Question 2

A buyer's material breach gives the seller the right to refuse to deliver the goods.

Accepted Answer

A buyer's material breach, such as non-payment or failure to accept delivery, can give the seller the right to refuse to deliver the goods.

Question 3

UCC Section 2-204 provides three important rules that enable parties to make a contract quickly and informally. Which of the following is NOT one of these rules?

Accepted Answer

The correct answer is B because UCC Section 2-204 focuses on the formation of contracts and their flexibility, not specifically on the requirements for a writing under the Statute of Frauds. The Statute of Frauds and its requirements for a writing are addressed elsewhere in the UCC and other laws.

Question 4

Harriett raises and sells hippos. In order to keep her hippos happy and healthy, she feeds them Hippo Chow, which she buys from the local pet store. Under the UCC, Harriett is

Accepted Answer

Under the Uniform Commercial Code (UCC), a merchant is defined as someone who deals in goods of the kind or otherwise holds themselves out as having knowledge or skill peculiar to the practices or goods involved in the transaction. Harriett, who raises and sells hippos, would be considered a merchant of hippos because she deals in goods of that kind. However, since she only buys Hippo Chow for her own use and does not sell it, she is not considered a merchant of Hippo Chow.

Question 5

Lian contracted for financial services from E-wise. This contract is governed by Article 2 of the UCC.

Accepted Answer

Article 2 of the UCC governs contracts for the sale of goods, not financial services.

Question 6

Under the UCC, a merchant is frequently held to a higher standard of conduct than a non-merchant.

Accepted Answer

The UCC includes specific provisions regarding the conduct of merchants, requiring them to follow certain standards such as dealing in good faith and maintaining fair dealing in commercial transactions. Therefore, merchants are frequently held to a higher standard of conduct compared to non-merchants.

Question 7

Which of the following is a stated purpose of Article 2 of the UCC?

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) specifically aims to make the laws governing sales of goods uniform across all states, facilitating commerce by providing a consistent legal framework.

Question 8

Pizazz, Inc. sold a condo on the 34^th floor in a building in downtown Chicago. The condo is considered a "good" and the contract will be governed by Article 2 of the UCC.

Accepted Answer

The sale of real estate, such as a condo, is not considered a sale of goods and therefore is not governed by Article 2 of the Uniform Commercial Code (UCC), which applies to the sale of goods.

Question 9

Rachel Retailer sends a preprinted purchase order offering to buy goods from Snidley Supplier. Snidley acknowledges Rachel's offer with a preprinted acceptance form. The terms of the two forms do not mirror each other. To analyze whether an enforceable contract exists, one must first determine whether the new language in the acceptance is an additional term or a different term.

Accepted Answer

When the terms of the acceptance form do not mirror those of the offer, one must first determine whether the new language is an additional or different term. This analysis is necessary to determine whether a contract has been formed and, if so, what the terms are.

Question 10

Under the UCC Statute of Frauds, the writing for a sale of goods must

Accepted Answer

The UCC Statute of Frauds requires that a contract for the sale of goods priced at $500 or more must be in writing to be enforceable. The writing must indicate that a contract for sale has been made and must be signed by the party against whom enforcement is sought. The only element that must be included in the writing is the quantity of goods being sold.

Question 11

If a seller includes an express warranty in the written sales contract, any disclaimer is invalid.

Accepted Answer

An express warranty is a promise or affirmation made by the seller with regards to the goods being sold. If an express warranty is included in the written sales contract, any attempt by the seller to disclaim or limit the warranty will be invalid. This is because the express warranty is a contractual term that has been mutually agreed upon by both parties, and cannot be unilaterally changed by the seller.

Question 12

Megan agrees to sell Nancy her Rolex watch, but she does not specify a price. In such a case, the court would not enforce the agreement because all of the essential terms are not present.

Accepted Answer

The court can enforce the agreement if it finds that the parties intended to make a contract and there is a reasonable basis for giving a remedy. The price can be determined based on the market value or other standards, even if it was not specified in the agreement.

Question 13

Newt, a gun dealer, offers to sell a rare civil war musket to Rush, another dealer, for "$15,000, insurance and shipping paid by buyer." Rush responds, "I accept. Insurance and shipping costs divided equally between seller and buyer." The parties

Accepted Answer

The answer of Newt, a gun dealer, offers to sell...

Question 14

Which of the following would be considered a merchant under the UCC?

Accepted Answer

The gun dealer in option C is engaged in the regular business of selling firearms, which makes them a merchant under the UCC. The other options involve individuals selling personal items which does not make them a merchant under the UCC.

Question 15

Which of the following contracts requires a writing under the UCC, Article 2?

Accepted Answer

Under the Uniform Commercial Code (UCC), Article 2, contracts for the sale of goods priced at $500 or more must be in writing to be enforceable. Choice C involves a transaction for goods valued at $10,000, which clearly exceeds this threshold.

Question 16

Mark, a power tool salesman, promises Jill, a customer, that the Turbo Power Hedge Trimmer 1000 will easily cut through bamboo up to 3 inches thick. Mark's statement constitutes an express warranty if Jill purchases the hedge trimmer.

Accepted Answer

Mark's statement is a specific promise or guarantee about the product's performance, which constitutes an express warranty.

Question 17

Wimble ordered 1,000 pro-quality luminescent orange tennis balls from Sports Unlimited at a cost of $800. On June 1, Sports Unlimited shipped standard white tennis balls, but Wimble rejected them. Wimble bought the same number of pro-quality luminescent orange balls from another supplier the same day for $650. In a suit against Sports Unlimited, Wimble may recover $800.

Accepted Answer

Wimble can only recover the difference in cost between the original order and the purchase from the other supplier, which is $150 ($800 - $650). Wimble cannot recover the full $800.

Question 18

In a mixed contract involving the sale of both goods and services, Article 2 of the UCC will govern if the predominant purpose is the sale of goods.

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) applies to transactions in goods. In a mixed contract that involves both goods and services, the "predominant factor test" is used to determine whether the contract is primarily for the sale of goods. If the sale of goods is the predominant purpose of the contract, then Article 2 of the UCC will govern the transaction.

Question 19

In which of the following cases is the predominant purpose the sale of goods?

Accepted Answer

In case C, the primary transaction is the purchase of a tangible product (gravel), which constitutes a sale of goods. The additional service of loading the gravel into the truck is secondary to the main purpose of the transaction.

Question 20

The UCC is federal legislation enacted by Congress.

Accepted Answer

The UCC, or Uniform Commercial Code, is not federal legislation enacted by Congress. It is a model law drafted by the National Conference of Commissioners on Uniform State Laws and adopted, with some variations, by all 50 states in order to provide consistency in commercial transactions.

Quiz 14: Sales