Question 1

Under the UCC,an offeror may not impose a term in an offer that does not allow the offeree to change terms of the offer.

Accepted Answer

The UCC allows an offeror to impose a term in an offer that does not allow the offeree to change the terms of the offer, but such a term must be stated explicitly in the offer. However, the UCC also allows the offeree to accept the offer either with or without the additional term, unless the offeror makes acceptance conditional on the offeree's assent to the additional term.

Question 2

Under Article 2,an acceptance is invalid if the parties intend to form a contract but the offeree's acceptance contains different terms from the original offer.

Accepted Answer

Under Article 2 of the Uniform Commercial Code (UCC), an acceptance does not have to mirror the terms of the offer for a valid contract to exist, especially in the context of sales of goods. A contract can still be formed even if the acceptance contains terms that are additional to or different from those in the offer, subject to certain limitations.

Question 3

Article 2 allows the parties to enter into a binding agreement even though the contract price is to be determined at a later date.

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) does allow parties to enter into a binding agreement even if the contract price is not completely determined at the time of the agreement. This is known as a "open price" or "output/requirement" contract, and the parties are generally required to act in good faith to determine a reasonable price in the future.

Question 4

The UCC requires less formality than does the common law of contracts.

Accepted Answer

The UCC is a set of standardized rules for commercial transactions that emphasizes flexibility and practicality. It typically does not require the same level of formalities (such as written contracts) as the common law of contracts does.

Question 5

A contract can be formed under Article 2 of the UCC even if some of the offer's major terms are omitted or are simply left open for determination later.

Accepted Answer

This is known as the "gap-filling" rule in UCC 2-204, which allows courts to supply missing terms in a contract if the parties intended to form a contract and did not explicitly specify certain terms.

Question 6

In Crest Ridge Construction v.Newcourt,where Newcourt demanded payment in full before delivery because Crest Ridge did not have a credit history,the court held Crest Ridge could sue for the higher price it had to pay another supplier for the same goods.

Accepted Answer

The court held that Crest Ridge could sue for the higher price it had to pay another supplier for the same goods in the case of Crest Ridge Construction v. Newcourt.

Question 7

The UCC,compared to the common law,prefers standard form contracts.

Accepted Answer

The answer of The UCC,compared to the common law,prefers standard...

Question 8

Under the common law of contracts,unlike under Article 2,an acceptance may not deviate from the terms of the offer without being either a rejection or a counteroffer.

Accepted Answer

This statement is true. Under common law, any modifications to the terms of an offer in an acceptance would be considered a counteroffer, not an acceptance. This is known as the "mirror image" rule, which requires that the acceptance exactly mirror the terms of the offer for a valid contract to be formed. However, under Article 2 of the Uniform Commercial Code (UCC), there are certain circumstances where a non-conforming acceptance may still create a contract.

Question 9

In Crest Ridge Construction v.Newcourt,where Newcourt demanded payment in full before delivery because Crest Ridge did not have a credit history,the court held that it would look to the dealings of the parties instead of the written contract to determine the intent of the parties.

Accepted Answer

The statement accurately reflects the holding of the court in Crest Ridge Construction v. Newcourt. They considered the parties' previous dealings in determining the intent behind the contract.

Question 10

If your laptop computer is stolen,and then sold by the thief to a buyer who does not know it is stolen (is "innocent"),new title is created for the innocent buyer.

Accepted Answer

The original owner retains title to stolen property, regardless of whether it is sold to an innocent buyer who is unaware that the item is stolen.

Question 11

Under the common law,a contract is not formed unless there is no question that an offer has been accepted.Article 2 provides that a contract can be formed in any manner,including "conduct" that shows an agreement between the parties.

Accepted Answer

Article 2 provides that a contract can be formed in any manner, including conduct that shows an agreement between the parties, which is different from the common law requirement that an offer must be accepted to form a contract.

Question 12

If parties to the sale of goods under Article 2 fail to state when title passes,then it is presumed to pass when the goods are manufactured and ready for shipment.

Accepted Answer

If the parties to the sale of goods under Article 2 fail to state when title passes, then it is determined based on the intent of the parties, the delivery terms, and the payment terms. Title may pass at different points depending on the specific circumstances of the sale.

Question 13

In Crest Ridge Construction v.Newcourt,where Newcourt demanded payment in full before delivery because Crest Ridge did not have a credit history,the court held Newcourt had the right to impose that payment term given the reality of the matter.

Accepted Answer

The answer of In Crest Ridge Construction v.Newcourt,where Newcourt demanded...

Question 14

A contract can exist under the UCC even if some terms are changed or added by the offeree.

Accepted Answer

Under the UCC, a contract can still exist even if some terms are changed or added by the offeree. This is because the UCC follows the principle of "battle of the forms", which states that when two parties exchange conflicting terms in their offers and counteroffers, a contract can still be formed if both parties accept the goods or services involved in the transaction.

Question 15

Parties to the sale of some goods may control,by contract,when title to the goods is to pass.

Accepted Answer

Parties to a sale contract have the option to determine when title to the goods will pass. This can be done by including specific terms and conditions in the contract, such as an agreement that title passes upon delivery or upon payment of the purchase price.

Question 16

In contrast to the common law of contracts,a merchant's firm offer under Article 2 may be revoked within a reasonable time without consideration and is irrevocable with consideration for a period not to exceed 3 months.

Accepted Answer

In contrast to the common law of contracts, a merchant's firm offer under Article 2 is irrevocable without consideration for a reasonable period not to exceed 3 months, and is irrevocable with consideration.

Question 17

Under both Article 2 and the common law,if parties intend to enter into a binding agreement,but are unable to agree to all major terms,a contract will be formed with the missing terms supplied by the parties at a later date or reasonable terms will be imposed by the court if necessary.

Accepted Answer

Under both Article 2 of the Uniform Commercial Code (UCC) and common law, if parties intend to enter into a binding agreement but are unable to agree on all major terms, no contract is formed until the essential terms are determined. The court may imply reasonable terms for certain missing elements under UCC Article 2 if there is a clear intent to contract and a basis for determining a remedy, but this does not mean a contract exists with all major terms undecided.

Question 18

Article 2 uses the common law rule of each state to determine when an offer has been accepted to form a contract.

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) governs the sale of goods and does not rely on the common law rule of each state for determining when an offer has been accepted to form a contract. Instead, it provides its own set of rules for contracts involving the sale of goods.

Question 19

Under Article 2,if the offeror does not clearly state a particular method of acceptance,a contract is formed when the offer is accepted in any reasonable manner under the circumstances.

Accepted Answer

This is known as the "mailbox rule" and is recognized in many common law jurisdictions. It means that if the offeree accepts the offer by any reasonable means (such as by mail, email, or phone), the contract is formed at the moment of acceptance, regardless of when the offeror receives the acceptance.

Question 20

Under the UCC,when contracts go back and forth between parties with conflicting terms,often written on standard forms,it is referred to as the "battle of the forms."

Accepted Answer

This is true.

Quiz 11: Domestic and International Sales