Question 1

Trina pays Urban Edge Electronics store $1,500 for a laptop com?puter.Under the UCC,this is
A)a gift.
B)a lease.
C)a sale.
D)a crime.

Accepted Answer

Trina is paying for a laptop computer, which constitutes a sale under the UCC (Uniform Commercial Code).

Question 2

Cleo sells kitchen appliances to per?sons who come into her store,Buy n' Sell Appliances.One afternoon,Cleo sells a used display shelf to Earline.At a garage sale at her home,Cleo sells a used sofa to Flavia.Under the UCC,Cleo is a merchant of
A)kitchen appliances only.
B)kitchen appliances and display shelves only.
C)kitchen appliances,display shelves,and sofas.
D)none of the choices.

Accepted Answer

The answer of Cleo sells kitchen appliances to per?sons who...

Question 3

Sweet Tooth Pastries,Inc. ,and other bakers refer to a "baker's dozen" as con?sisting of a collection of thirteen baked goods.This is an example of
A)course of dealing.
B)course of performance.
C)square dealing.
D)usage of trade.

Accepted Answer

The term "baker's dozen" referring to a collection of thirteen baked goods is an example of usage of trade, which is a common practice or custom within a particular industry or trade.

Question 4

Over the course of a year,Retail Market,Inc. ,sells goods from its inventory and one of its warehouses.In exchange,Retail receives checks and other items that substitute for cash,which Retail uses to repay a loan from Savers Bank.Article 2 of the UCC governs
A)the checks.
B)the payment of the loan.
C)the sale of the buildings.
D)the sale of the goods.

Accepted Answer

Article 2 of the UCC governs the sale of goods, which includes the scenario of Retail Market, Inc. selling goods from its inventory and warehouse.

Question 5

Fact Pattern 19-A1 
Olisa enters into a contract to buy a stove from Pay-to-Own Appliance store with the price to be paid in monthly installments.After thirty-six months of payments,Olisa has paid more than twice the price of a similar stove.Eighteen payments remain due under the contract.
-Refer to Fact Pattern 19-A1.Olisa files a suit against Pay-to-Own,claiming that their contract is so unfair and one sided that it would be unreasonable to enforce it.Olisa is asserting
A)the concept of good faith.
B)the principle of fair trade.
C)the predominant-factor test.
D)the doctrine of unconscionability.

Accepted Answer

Olisa is asserting the doctrine of unconscionability, which protects consumers against contracts that are so one-sided and unfair that they are deemed unconscionable and cannot be enforced. The fact that Olisa has paid more than twice the price of the stove and still has 18 payments remaining suggests that the contract may be unconscionable.

Question 6

Sunny Glass Company and Collision Repair Center enter into a contract under which Sunny agrees to deliver a certain quantity of auto glass to Collision Repair each month.The contract does not include a price term.In a suit between the par?ties over the price,a court will
A)determine a reasonable price.
B)impose the lowest market price.
C)impose the highest market price.
D)return the parties to the positions they held before the contract.

Accepted Answer

Since the contract does not specify a price, the court will determine a reasonable price based on the circumstances surrounding the contract. This will take into account factors such as the quantity of the auto glass, the market price at the time of delivery, and any other relevant information.

Question 7

Valley Farms offers to sell Whole Harvest Bakeries,Inc. ,five hundred bushels of wheat.Whole Harvest responds,"We agree to buy five hundred bushels only if the wheat is Grade A quality." This statement is
A)a breach.
B)a counteroffer.
C)a confirmation.
D)an acceptance.

Accepted Answer

Whole Harvest's response is a counteroffer as they are changing the terms of the original offer by adding a condition.

Question 8

Rio Engineering Corporation pays PC Technologies,Inc. ,$1,000 to use a com?puter for a month.For purposes of the UCC,this is
A)a crime.
B)a consignment.
C)a lease.
D)a sale.

Accepted Answer

The payment made by Rio Engineering Corporation to PC Technologies, Inc. for the use of a computer for a month is a lease. According to the UCC, a lease is defined as a transfer of the right to possession and use of goods for a term in return for consideration. In this scenario, Rio Engineering Corporation is paying for the use of the computer for a specific time period, which qualifies as a lease.

Question 9

Rally Corporation enters into a contract to sell ski gear to SnoSportz Company,which sells a pair of the skis to Tyra,a consumer,who later sells them to Uli,another consumer.Article 2 of the UCC applies to the sales transactions between
A)all of the buyers and sellers.
B)Rally and SnoSportz only.
C)SnoSportz and Tyra only.
D)Tyra and Uli only.

Accepted Answer

Article 2 of the UCC applies to the sales transactions between all buyers and sellers involved in the chain of distribution of the ski gear, including Rally, SnoSportz, Tyra, and Uli. Therefore, all choices are incorrect except for choice A.

Question 10

In a dispute over a sale involving a bicycle,Dain argues that as to this deal Emory's Hobby Shop,where Dain bought the bike,is a merchant.A court may determine whether Emory's is a merchant by assessing whether
A)it has sold any bikes within the last year.
B)it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction.
C)its owner enjoys biking.
D)it subscribes to Bike,a biweekly trade magazine.

Accepted Answer

The definition of a merchant under the Uniform Commercial Code includes someone who holds themselves out as having knowledge or skill unique to the goods being sold, in this case bicycles. Whether or not Emory's has sold bikes within the last year, whether the owner enjoys biking, or whether they subscribe to a trade magazine are not relevant factors in determining whether they are a merchant.

Question 11

Fact Pattern 19-A1 
Olisa enters into a contract to buy a stove from Pay-to-Own Appliance store with the price to be paid in monthly installments.After thirty-six months of payments,Olisa has paid more than twice the price of a similar stove.Eighteen payments remain due under the contract.
-Refer to Fact Pattern 19-A1.Under the UCC,the court can evaluate the contract to determine whether it was unreasonably unfair and one sided
A)at the time it was made.
B)at the end of its term.
C)in the middle of its performance.
D)at the time of Gail's suit.

Accepted Answer

Under the UCC, the court can evaluate the contract for unconscionability at the time it was made, which means the court can look at the terms and conditions of the contract when Olisa entered into it, including any unfair or oppressive terms.

Question 12

Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel,including the land,building,furnishings,shares of stock in Suite Dreams Company,and a contract with Trudy to create an ad campaign.Reba suspects that Quinn may be misrepresenting the facts.The UCC Statute of Frauds governs the sale of
A)any of the property evidenced by a writing.
B)any of the property that may involve fraud.
C)the furnishings priced at $500 or more.
D)the land and the building.

Accepted Answer

The answer of Quinn enters into a series of agreements...

Question 13

Overseas Corporation (OC),a U.S.firm,orally agrees to sell six freezers to Pisa Pizza,Ltd. ,in Italy.OC fails to deliver.Under the CISG,Pisa Pizza can
A)enforce the agreement.
B)not enforce the agreement because it is not in writing.
C)not enforce the agreement because the price term is not specified.
D)not enforce the agreement because there is no consideration.

Accepted Answer

Under the CISG, contracts can be formed orally and do not need to be in writing. As long as an agreement was reached between the parties and all necessary elements of a contract are present, including offer, acceptance, and consideration, Pisa Pizza can enforce the agreement against OC.

Question 14

Five Star Flooring orders carpet from Textile Mills Corporation,but Textile does not deliver.Five Star will probably be unable to enforce the agreement if the parties omitted
A)the duration of the deal.
B)a payment term.
C)a quantity term.
D)shipping arrangements.

Accepted Answer

Without a quantity term, there is no way to determine how much carpet Textile Mills Corporation should deliver. This would make it difficult for Five Star Flooring to enforce the agreement as they would not be able to prove the exact amount to be delivered.

Question 15

Pressing Music,Inc. ,offers to buy from Digital Media Corporation (DMC)one million blank CDs of a certain quality.Without notifying Pressing,DMC timely ships CDs of a different quality.With respect to the offer and a possible contract,this shipment is
A)an acceptance and a breach.
B)an acceptance and an accommodation.
C)an acceptance and complete performance.
D)a rejection and a counteroffer.

Accepted Answer

The shipment of CDs of a different quality without notifying the buyer constitutes as an acceptance of the offer, but it also constitutes as a breach of contract as DMC did not meet the terms agreed upon in the offer.

Question 16

Pop Culture Clothiers,Inc. ,sells t-shirts to Trendwell Stores,Inc. ,under an existing con?tract.When textile costs increase,Trendwell agrees to a price increase,but later wants to cancel the con?tract.Trendwell may
A)cancel the contract immediately.
B)cancel the contract only after accepting a final shipment.
C)cancel the contract only on reasonable notice.
D)not cancel the contract.

Accepted Answer

The answer of Pop Culture Clothiers,Inc. ,sells t-shirts to Trendwell...

Question 17

Fresh Harvest,Inc. ,agrees to sell to Gina's Bed & Breakfast Inn a certain amount of locally grown produce each week but no mention is made of where the goods are to be delivered.In general,the UCC requires that the delivery take place at
A)a neutral place of business halfway between the parties' locations.
B)a "reasonable" place of delivery.
C)Fresh Harvest's place of business.
D)Gina's place of business.

Accepted Answer

The answer of Fresh Harvest,Inc. ,agrees to sell to Gina's...

Question 18

Bild-Rite,Inc. ,is a Colorado-based firm that does business with clients throughout North America.Bild-Rite oversees construction projects,and buys and sells commercial buildings,undeveloped land,and construction supplies and other goods.Bild-Rite has had to deal with work-site theft and vandalism.With respect to these circumstances,the Uniform Commercial Code (UCC)provides a framework for
A)commercial transactions for the sale of and payment for goods.
B)international construction contracts.
C)domestic and foreign transactions in real estate.
D)prosecuting crimes against business interests.

Accepted Answer

The UCC provides guidelines for commercial transactions, which includes buying and selling goods, making it the most relevant choice for Bild-Rite's situation of dealing with theft and vandalism at construction sites.

Question 19

Omni Corporation is a Pennsylvania-based firm that does business throughout the United States.With respect to this circumstance,the UCC has been adopted by,and applies in,
A)a few of the states.
B)all of the states,in whole or in part.
C)half of the states.
D)none of the states,to date.

Accepted Answer

The UCC (Uniform Commercial Code) has been adopted by all of the states, either in whole or in part. This means that it applies to all businesses, including Omni Corporation, regardless of which state they are located in or do business in.

Question 20

Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car.This contract is subject to
A)Article 2 of UCC.
B)Article 2A of the UCC.
C)Article 11 of the CISG.
D)the common law only.

Accepted Answer

Article 2A of the UCC applies to leases of goods, which includes the lease of a car. Therefore, the contract between Curtis and Drive-Away Lease Company is subject to Article 2A of the UCC.

Quiz 19: B: The Formation of Sales and Lease Contracts

Trina pays Urban Edge Electronics store $1,500 for a laptop com?puter.Under the UCC,this is

Cleo sells kitchen appliances to per?sons who come into her store,Buy n' Sell Appliances.One afternoon,Cleo sells a used display shelf to Earline.At a garage sale at her home,Cleo sells a used sofa to Flavia.Under the UCC,Cleo is a merchant of

Sweet Tooth Pastries,Inc. ,and other bakers refer to a "baker's dozen" as con?sisting of a collection of thirteen baked goods.This is an example of

Over the course of a year,Retail Market,Inc. ,sells goods from its inventory and one of its warehouses.In exchange,Retail receives checks and other items that substitute for cash,which Retail uses to repay a loan from Savers Bank.Article 2 of the UCC governs

Sunny Glass Company and Collision Repair Center enter into a contract under which Sunny agrees to deliver a certain quantity of auto glass to Collision Repair each month.The contract does not include a price term.In a suit between the par?ties over the price,a court will

Valley Farms offers to sell Whole Harvest Bakeries,Inc. ,five hundred bushels of wheat.Whole Harvest responds,"We agree to buy five hundred bushels only if the wheat is Grade A quality." This statement is

Rio Engineering Corporation pays PC Technologies,Inc. ,$1,000 to use a com?puter for a month.For purposes of the UCC,this is

Rally Corporation enters into a contract to sell ski gear to SnoSportz Company,which sells a pair of the skis to Tyra,a consumer,who later sells them to Uli,another consumer.Article 2 of the UCC applies to the sales transactions between

In a dispute over a sale involving a bicycle,Dain argues that as to this deal Emory's Hobby Shop,where Dain bought the bike,is a merchant.A court may determine whether Emory's is a merchant by assessing whether

Overseas Corporation (OC) ,a U.S.firm,orally agrees to sell six freezers to Pisa Pizza,Ltd. ,in Italy.OC fails to deliver.Under the CISG,Pisa Pizza can

Five Star Flooring orders carpet from Textile Mills Corporation,but Textile does not deliver.Five Star will probably be unable to enforce the agreement if the parties omitted

Pressing Music,Inc. ,offers to buy from Digital Media Corporation (DMC) one million blank CDs of a certain quality.Without notifying Pressing,DMC timely ships CDs of a different quality.With respect to the offer and a possible contract,this shipment is

Pop Culture Clothiers,Inc. ,sells t-shirts to Trendwell Stores,Inc. ,under an existing con?tract.When textile costs increase,Trendwell agrees to a price increase,but later wants to cancel the con?tract.Trendwell may

Fresh Harvest,Inc. ,agrees to sell to Gina's Bed & Breakfast Inn a certain amount of locally grown produce each week but no mention is made of where the goods are to be delivered.In general,the UCC requires that the delivery take place at

Omni Corporation is a Pennsylvania-based firm that does business throughout the United States.With respect to this circumstance,the UCC has been adopted by,and applies in,

Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car.This contract is subject to