Question 1

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

Accepted Answer

The UCC applies to all buyers and sellers engaged in the sale of goods, regardless of their level of experience or regularity of business, and does not impose special standards on casual or inexperienced parties.

Question 2

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

Accepted Answer

While parties are generally free to establish their own terms under the UCC, there are certain terms that may be deemed invalid or unenforceable. Additionally, the UCC provides default rules for certain issues, such as warranties and remedies, if the parties do not explicitly address them in their contract.

Question 3

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, movable property, such as cars, furniture, electronics, etc. Intangible items are not considered goods under the UCC.

Question 4

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 the sale of goods, the Uniform Commercial Code (UCC) provides default rules for determining the delivery terms, including the time, place, and manner of delivery. Therefore, there is still a basis for determining a remedy if the delivery terms were not specified in the contract.

Question 5

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 definition of good faith under the UCC as stated in Section 1-201(20).

Question 6

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

Accepted Answer

This statement is true. A lessor is someone who owns an asset (such as a property, vehicle or equipment) and allows someone else to use it in exchange for rent. The person who uses the asset is known as the lessee.

Question 7

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

Accepted Answer

The UCC (Uniform Commercial Code) defines goods as tangible, movable items of property. Therefore, for an item to be considered a good under the UCC, it must be movable.

Question 8

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 the minerals from the earth. This is because the minerals become tangible and moveable personal property once they are severed, which fits the definition of goods under the UCC.

Question 9

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 there is enough information to determine the intent of the parties and a basis for calculating the price. Therefore, one open term in a sales contract does not necessarily cause it to fail for indefiniteness.

Question 10

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 11

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 12

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 consistent with the Uniform Commercial Code (UCC), which provides guidelines for contracts involving the sale of goods. Section 2-305 of the UCC states that if the parties have not agreed on a price, the court may determine a reasonable price based on the circumstances at the time of delivery.

Question 13

The UCC imposes some different rules on merchants.

Accepted Answer

The UCC includes specific rules and regulations for merchants in commercial transactions.

Question 14

A firm offer by a merchant may be oral.

Accepted Answer

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

Question 15

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 sales of goods transactions between buyers and sellers, including merchants and non-merchants. It outlines the rights and obligations of both parties in such transactions.

Question 16

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

This is the definition of a merchant according to the Uniform Commercial Code (UCC).

Question 17

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

Accepted Answer

Intangible property is not a physical object and is not covered by Article 2 of the Uniform Commercial Code, which deals with the sale of goods. It falls under other areas of law, such as contract, intellectual property, and securities law.

Question 18

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

Accepted Answer

Article 2 of the Uniform Commercial Code governs transactions involving the sale of goods, including those that are associated with real estate such as fixtures and appliances.

Question 19

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. However, real estate itself (land and buildings) is not classified as "goods" under the UCC.

Question 20

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

Accepted Answer

According to the UCC, a commercial transaction for the sale of and payment for goods is viewed as a single legal occurrence.

Quiz 13: The Formation of Sales and Lease Contracts