Question 1

The mirror image rule is not enforced under UCC standards.

Accepted Answer

The mirror image rule, which states that the terms of an acceptance must exactly match the terms of the offer, is not strictly enforced under UCC (Uniform Commercial Code) standards. Instead, UCC allows for additional or different terms to be included in an acceptance as long as they do not materially alter the original offer. This is known as the "battle of the forms" rule.

Question 2

The UCC was written,published,and enacted by Congress.

Accepted Answer

The Uniform Commercial Code (UCC) was not written, published, and enacted by Congress. It was created by the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute (ALI), and then adopted individually by each state.

Question 3

Jones Corp.is set to deliver goods ordered by Smith,Inc.and calls to confirm that the goods will be delivered the next day.Smith,Inc.on the phone,notifies Jones Corp.that it has found the same goods available cheaper from another seller and will not accept delivery.In order for Smith,Inc.to officially be in breach of contract,Jones Corp.must deliver and tender conforming goods and have Smith,Inc.wrongfully reject them.

Accepted Answer

Smith, Inc. is already in anticipatory breach by notifying Jones Corp. that it will not accept delivery, as it indicates a clear intention not to fulfill its contractual obligations.

Question 4

In an installment contract,the buyer may reject an installment if the nonconformity substantially impairs the value of that installment or the nonconformity cannot be cured.

Accepted Answer

The answer of In an installment contract,the buyer may reject...

Question 5

If a party has been delivered nonconforming goods and has rejected them and is then forced to cover in order to maintain business operations,the party may sue the seller for the difference in price plus consequential damages.

Accepted Answer

This statement is true according to the UCC (Uniform Commercial Code). If a buyer has rejected nonconforming goods and is forced to cover to continue their business operations, they can sue the seller for the difference in price between the original contract price and the cost of cover, as well as any consequential damages resulting from the seller's breach of contract.

Question 6

The UCC permits terms to be added into a contract or filled in as gap fillers; however,a contract between merchants cannot be enforced unless the parties have agreed to and specified a price in their agreement.

Accepted Answer

Under the UCC, a contract can still be valid and enforceable between merchants even if the price is not specified; the UCC allows for the court or parties to determine a reasonable price at the time of delivery.

Question 7

Uncle Phineas has lent you $10,000 to pay tuition and other school-related costs.You've now graduated,and Uncle Phineas is asking about repayment terms.The loan was never evidenced in writing.This transaction falls under the UCC statute of frauds.

Accepted Answer

The UCC statute of frauds applies to contracts for the sale of goods above a certain dollar amount ($500), but not to loans or lending agreements. However, it is still important to have a written agreement in place for any loan or lending transaction to document the terms and protect both parties.

Question 8

On February 1,Fari's Fedora Manufacturers sent an offer to Henri's Hattery by letter with all price,quality,quantity,and delivery terms clearly stated,indicating that the offer to sell Fari's fedoras would remain open until October 1.On September 1,Henri's sent an acceptance of the offer to Fari's with no material alterations to any of the stated terms in the offer.The acceptance made the contract valid and enforceable.

Accepted Answer

The answer of On February 1,Fari's Fedora Manufacturers sent an...

Question 9

In a shipping contract,the seller is obligated to deliver the good into the "hands" of the buyer.

Accepted Answer

In a shipping contract, the obligation of the seller typically ends when they deliver the goods to a common carrier, not necessarily into the "hands" of the buyer. The specific terms depend on the agreed Incoterms.

Question 10

If the seller ships conforming goods,the buyer has a duty to accept them and may not reject the goods.

Accepted Answer

According to the Uniform Commercial Code (UCC), if the seller ships conforming goods, the buyer has a duty to accept them and may not reject them unless there is a valid reason for rejection such as the goods being damaged or not meeting the agreed upon specifications.

Question 11

The UCC permits a contract to be considered formed entirely by the parties' conduct even if no definite time of formation can be determined.

Accepted Answer

The UCC recognizes the concept of a contract formed by conduct, also known as a "course of dealing," "course of performance," or "usage of trade." This means that the parties' actions and behavior can imply the existence of a contract even if they never explicitly agreed on specific terms or signed a written agreement. This is in contrast to the common law, which generally requires a definite offer, acceptance, and consideration to form a contract. So, even if there is no definite time of formation, the UCC can still recognize the existence of a contract based on the parties' conduct.

Question 12

Beata is moving to New Mexico and offers to sell her television to Ariana.Ariana is not sure if she can afford it and asks for a week to decide.If Beata agrees to hold the offer open for a week and makes the promise in writing,Beata has given Ariana a firm offer.

Accepted Answer

The answer of Beata is moving to New Mexico and...

Question 13

The United Nations Convention on Contracts for the International Sale of Goods does not recognize a formal writing requirement similar to the UCC statute of frauds requirement.

Accepted Answer

The United Nations Convention on Contracts for the International Sale of Goods (CISG) does not require a formal writing to enforce a sale of goods contract, unlike the UCC statute of frauds which requires certain contracts to be in writing to be enforceable. However, Article 11 of the CISG does require that the offer and acceptance be sufficiently definite to establish a contract, and that can depend on the circumstances of each case.

Question 14

While the common law recognizes commercial impracticability as a means to terminate a contract,the UCC rejects and does not recognize commercial impracticability.

Accepted Answer

The statement is false. The UCC recognizes and provides for the concept of commercial impracticability in certain circumstances, and allows a party to be excused from performance if there are unforeseen events that make performance commercially impracticable.

Question 15

If a seller has delivered nonconforming goods that have been rejected,upon notice of an intent to cure,the seller automatically then has 15 days to deliver conforming goods.

Accepted Answer

The Uniform Commercial Code (UCC) allows a seller to cure defects in the goods delivered, but it does not automatically grant a 15-day period for all situations. The specific time for cure depends on the context of the contract and the timing of the rejection.

Question 16

A party holds title to goods when the goods have come into existence and the goods are identified to the contract.

Accepted Answer

This statement is true. Title to goods passes to a party when the goods have come into existence and have been identified to the contract. This means that the party has ownership and control over the goods. The exact terms of when title passes will depend on the specific terms of the contract and any applicable laws.

Question 17

If a buyer knowingly accepts nonconforming goods,the buyer may still sue the seller for monetary damages based on the nonconformity.

Accepted Answer

This is because the buyer may be able to recover damages for any losses suffered as a result of the nonconformity, such as the cost of repairs or replacement of the goods. However, the exact damages that can be recovered may depend on the specific circumstances of the case and the applicable laws.

Question 18

If two companies enter into a sales contract and the shipping terms are omitted from the agreement,the contract will automatically become a shipping contract.

Accepted Answer

According to the Uniform Commercial Code (UCC), if shipping terms are not mentioned in a sales contract, the contract becomes a shipping contract by default.

Question 19

Article 2 rules for acceptance of offers are more rigid than common law rules.

Accepted Answer

Under common law, the rules for the acceptance of offers are generally more rigid, requiring acceptance to mirror the terms of the offer exactly (mirror image rule), whereas Article 2 of the Uniform Commercial Code (UCC), which governs contracts for the sale of goods, is more flexible, allowing for acceptance to form a contract even when there are additional or different terms in the acceptance.

Question 20

Wrongfully revoking an acceptance will constitute a breach of contract by the buyer.

Accepted Answer

Once a buyer accepts an offer, a contract is formed. If the buyer wrongfully revokes their acceptance, they are in breach of the contract.

Quiz 8: Contracts for the Sale of Goods