Question 1

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

According to the Uniform Commercial Code (UCC), a contract for the sale of minerals is considered a contract for the sale of goods if the seller is responsible for severing them from the land. This is because the UCC considers goods to be tangible personal property, which includes minerals that have been severed from the land.

Question 2

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

Accepted Answer

This statement defines the role of a lessor accurately.

Question 3

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

Accepted Answer

The UCC generally follows the principle of freedom of contract, allowing parties to establish their own terms, as long as they are not illegal or unconscionable. However, there are certain provisions in the UCC that may limit or override certain terms.

Question 4

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

Accepted Answer

The UCC imposes the same business standards on all sellers and buyers, regardless of their experience or level of involvement in the transaction.

Question 5

Under the UCC,a sale is the passing of title from a seller to a buyer for a price.

Accepted Answer

This is the basic definition of a sale according to Section 2-106 of the Uniform Commercial Code (UCC).

Question 6

According to the UCC,one open term will cause a sales con-tract to fail for indefiniteness.

Accepted Answer

The UCC provides default terms for open terms, such as reasonable price, quantity, and delivery terms. Therefore, even if one term is left open, a sales contract will not fail for indefiniteness if the UCC can provide a reasonable application of a missing term.

Question 7

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 as stated in Section 1-201(20).

Question 8

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 someone who deals in the goods involved in a sales contract or who holds themselves out as having knowledge or skill about those goods. Therefore, the statement is true.

Question 9

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

Accepted Answer

Real estate goods do not fall within the scope of UCC Article 2, but Article 2 does cover the sale of goods, including fixtures, related to real estate transactions.

Question 10

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

Accepted Answer

Intangible property is not a physical item and does not fall under Article 2 of the UCC (Uniform Commercial Code), which governs the sale of goods. Intangible property, such as intellectual property, is usually governed by other laws and legal frameworks.

Question 11

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

Accepted Answer

To be characterized as a "good" under the UCC, an item must be tangible, meaning it is a physical object that can be touched and has some value. Intangible items, such as intellectual property or services, are not considered goods under the UCC.

Question 12

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 delivery terms and remedies for breach of those terms.

Question 13

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 stated in Section 2-305 of the Uniform Commercial Code (UCC).

Question 14

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

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) covers the sale of goods, including those that are a part of real estate transactions such as fixtures, appliances, and building materials.

Question 15

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

Accepted Answer

This is true. The UCC, a uniform law governing commercial transactions in the United States, applies only to goods that are tangible, movable items of property. This includes things like products, merchandise, and other physical goods, but not real estate or intellectual property.

Question 16

TheUCC allows parties to form sales and lease contracts without observing the same degree of formality used n forming other types of contracts.

Accepted Answer

This is true. The UCC (Uniform Commercial Code) provides more flexibility in forming sales and lease contracts as compared to other types of contracts. For example, a sales contract can be formed through an offer, acceptance, and consideration, without requiring a writing or formal document. However, it is always advisable to have a written contract to avoid disputes and issues in the future.

Question 17

Generally,acceptance of an offer to lease goods may be made in any reasonable manner and by any reasonable means.

Accepted Answer

This statement is true as acceptance of an offer to lease goods can be made through any reasonable means as long as it is clear and unambiguous. This can include verbal or written communication, email, or other electronic means.

Question 18

A firm offer by a merchant may be oral.

Accepted Answer

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

Question 19

The UCC imposes some different rules on merchants.

Accepted Answer

The UCC imposes different rules on merchants compared to non-merchants, including rules related to warranties, sales contracts, and other aspects of commercial transactions.

Question 20

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

Accepted Answer

The answer of A lessoris a party who acquires a...

Quiz 20: The Formation of Sales and Lease Contracts