Question 1

The UCC imposes special business standards on casual and inexperienced sellers and buyers.

Accepted Answer

The UCC applies to all sales transactions, whether between businesses or individuals, but does not impose special standards on casual or inexperienced sellers and buyers.

Question 2

Goods associated with real estate never fall within the scope of UCC Article 2.

Accepted Answer

Goods associated with real estate, such as fixtures, do fall within the scope of UCC Article 2 as long as they are considered "goods."

Question 3

To be characterized as a "good" under the UCC, an item of property must be movable.

Accepted Answer

According to the UCC, only movable property can be considered goods. Real estate and other immovable property are not considered goods.

Question 4

Under the UCC, parties to sales and lease contracts are free to establish whatever terms they wish.

Accepted Answer

The UCC allows parties to sales and lease contracts to establish their own terms as long as they are not prohibited by law or found to be unconscionable.

Question 5

Goods associated with real estate often fall within the scope of Article 2.

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) governs sales of goods, and certain items associated with real estate, such as fixtures and equipment, are considered goods under the UCC and may fall within the scope of Article 2. However, other aspects of real estate transactions, such as title and ownership, are typically governed by real property law and fall outside the scope of Article 2.

Question 6

If the parties to a contract for a sale of goods have not agreed on a price, a court will determine a reasonable price at the time for delivery.

Accepted Answer

This is known as "reasonable price" or "market price" and is determined based on factors such as the price at which similar goods are sold in the market, the quality of the goods, and any relevant circumstances. The Uniform Commercial Code (UCC) also provides rules for determining a reasonable price when one is not specified in the contract.

Question 7

A merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.

Accepted Answer

A merchant is defined as a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold, according to the Uniform Commercial Code (UCC).

Question 8

Intangible property has conceptual existence and thus comes under Article 2.

Accepted Answer

Intangible property is not considered goods or products, and thus does not fall under Article 2 of the Uniform Commercial Code (UCC). The UCC specifically deals with the sale of goods and tangible items. Intangible property is typically governed by other areas of law, such as intellectual property law.

Question 9

The UCC imposes some different rules on merchants.

Accepted Answer

The UCC has specific rules and regulations that apply to merchants, including warranties and obligations related to selling goods.

Question 10

Under the UCC, if a contract for a sale of goods does not specify the quantity, a court will objectively determine what is a reasonable quantity.

Accepted Answer

Under the UCC, a contract for the sale of goods must specify the quantity term to be enforceable; without a specified quantity, the contract is generally considered too indefinite to enforce.

Question 11

A lessor is a party who transfers the right to the possession and use of goods under a lease.

Accepted Answer

A lessor is the party who owns the goods and grants the right to possess and use them to another party, known as the lessee, through a lease agreement.

Question 12

For an item to be characterized as a "good" under the UCC, it must be intangible.

Accepted Answer

A "good" under the UCC refers to tangible personal property, such as products, goods, or commodities. Intangible items, such as intellectual property or services, are classified differently under the UCC.

Question 13

A firm offer by a merchant may be oral.

Accepted Answer

The answer of A firm offer by a merchant may...

Question 14

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

Accepted Answer

The answer of A lessor is a party who acquires...

Question 15

Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

Accepted Answer

This is the exact definition of good faith under the UCC (Uniform Commercial Code), as stated in Section 1-201(20).

Question 16

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

Accepted Answer

In accordance with the Uniform Commercial Code (UCC), a contract for the sale of minerals is considered to be a contract for the sale of goods if the seller is responsible for the severance or extraction of the minerals. Therefore, the answer is True.

Question 17

According to the UCC, one open term will cause a sales contract to fail for indefiniteness.​

Accepted Answer

The UCC allows for open terms in a sales contract as long as the parties intended to form a contract and there is a basis for determining a reasonable price, delivery date, and quantity. The contract will not fail for indefiniteness as long as these open terms can be reasonably determined.

Question 18

When no delivery terms are specified in a contract for a sale of goods, there is no basis for determining a remedy.

Accepted Answer

When no delivery terms are specified in a contract for a sale of goods, the Uniform Commercial Code (UCC) provides default rules for determining delivery and the buyer's remedies if delivery is not made in accordance with those rules.

Question 19

The UCC views the entire "commercial transaction for the sale of and payment for goods" as a single legal occurrence.

Accepted Answer

The UCC (Uniform Commercial Code) does indeed view the entire commercial transaction for the sale of goods and payment as a single legal occurrence. This means that the terms and conditions of the sale, as well as the payment method and terms, are all viewed as part of a cohesive and interrelated transaction.

Question 20

UCC Article 2 applies to sales transactions between all buyers and sellers.

Accepted Answer

UCC Article 2, also known as the Uniform Commercial Code Article 2, applies to the sale of goods between a buyer and a seller in most states in the United States. It outlines important rules and regulations related to sales contracts, warranties, delivery, payment, and other aspects of the sales transaction.

Quiz 20: The Formation of Sales and Lease Contracts