Question 1

Each state passes its own laws to outline rules and laws pertaining to sales and lease contracts.

Accepted Answer

A) True 
 B)False

Question 2

Land and service contracts are governed by common law, not the UCC.

Accepted Answer

A) True 
 B)False

Question 3

A contract or contract provision is said to be unconscionable if ________.

Accepted Answer

A)   it is not written out
B)   a party is trying to enforce an oral agreement
C)   it is so unfair that a court would be unreasonable if it enforced the contract
D)   it is less than $25,000 and is not in writing
E)   there are more than two parties associated with the contractF) C) and D)
G) C) and E)

Question 4

Are there any steps Emilia should take in small claims court, or before she goes, regarding the customer who ordered the plain T-shirts?

Accepted Answer

A)   No, because once the parties are in court, positions of the parties are frozen.
B)   No, because once the parties are in court, only the judge can add evidence.
C)   Yes, she should attempt to get the customer to admit that he ordered the T-shirts.
D)   Yes, she should dismiss the case before she is charged with sanctions.
E)   Yes, she should dismiss the case before she is charged with the other party's attorney fees.F) A) and E)
G) C) and D)

Question 5

The parol evidence rule aims to protect sales or lease contracts that the parties intend to be the final expression of their agreement.

Accepted Answer

A) True 
 B)False

Question 6

Aranda claims that Rita's telephone call with Aranda is an admission of the existence of the contract and an admission constitutes an exception to the statute of frauds under the UCC. Is Aranda correct?

Accepted Answer

A)   Yes, an admission is an exception to the statute of frauds under the UCC and Rita admitted the existence of the contract over the telephone.
B)   Yes, an admission is an exception to the statute of frauds under the UCC but only when it is expressly worded as an admission to the other party.
C)   No, even though an admission is an exception to the statute of frauds under the UCC, Rita never admitted the existence of a contract.
D)   No, even though an admission is an exception to the statute of frauds under the UCC, the admission was not made in pleadings, testimony, or court.
E)   No, an admission is not an exception to the statute of frauds.F) None of the above
G) B) and E)

Question 7

For businesses that operate in the global economy, ________ clauses would be advantageous to include in a contract in order to avoid conflict.

Accepted Answer

A)   only choice-of-language and forum-selection
B)   only choice-of-language and choice-of-law
C)   only choice-of-law and forum-selection
D)   choice-of-language, forum-selection and choice-of-law
E)   choice-of-law clauses would be the only allowable clause under the CISGF) B) and E)
G) B) and D)

Question 8

Under Article 2 of the UCC, which of the following consists of the passing of title from the seller to the buyer for a price?

Accepted Answer

A)   A lease
B)   A transaction
C)   A transfer of use
D)   A sale
E)   A negotiated transferF) A) and C)
G) B) and E)

Question 9

Veronica and Paul are arguing about whether or not states have any rights under the UCC. If you were explaining state's rights under the UCC, which of the following is true regarding state rights in relationship to the UCC?

Accepted Answer

A)   Since the UCC is a federal law, states have no right to change it.
B)   Each state is allowed to rewrite parts of the UCC to reflect the wishes of its state legislature and they become part of that state's commercial code.
C)   States must adopt the UCC in full or not at all.
D)   State legislatures may make changes to Article 2 of the UCC but not to any other articles.
E)   State legislatures may make changes to Article 2 and Article 2(
A)   of the UCC but not to any other articles.F) B) and D)
G) All of the above B

Question 10

According to Exhibit 21-5 in the text, if quantity is left open in a contract for the sale of goods under the UCC, how will a court most likely interpret this provision?

Accepted Answer

A)   A "reasonable" quantity is supplied at the time of delivery.
B)   A "reasonable" quantity is supplied at the time of trial.
C)   The court will look to the specific industry standards in the UCC.
D)   The court generally has no basis for determining a remedy.
E)   The court will decide the quantity.F) D) and E)
G) A) and B)

Question 11

[Dress Shop Problems] Lara, who has a ladies' dress shop, reached an oral agreement with Kim, a wholesaler, to purchase 100 dresses for $80 each, with the dresses to be delivered within 30 days. Kim later orally agreed to a modification whereby she would add ten belts to go along with certain dresses at no extra charge. Kim did so because she wanted to maintain Lara's good will. Lara sent Kim a memo confirming their oral agreement, including the modification, but heard nothing. When the dresses did not arrive within 30 days, Lara checked with Kim. Kim told her that their agreement was no good because Kim never signed anything and that the UCC does not apply in the retail arena.
-Which of the following is true regarding the modification to the agreement involving the belts added to the order at no extra charge?

Accepted Answer

A)   The modification is not enforceable because the initial contract involving the sale of the dresses is not enforceable.
B)   The modification is not enforceable because no additional consideration was given.
C)   The modification is not enforceable unless it can be shown that the dresses were designed to have a belt.
D)   The modification is enforceable because although the UCC requires consideration for modifications, the desire to maintain good will satisfies the requirement of consideration.
E)   The modification is enforceable because the UCC requires only that modifications be made in good faith.F) C) and E)
G) A) and E) E

Question 12

After conducting a great deal of research, Nora contacts a camping store and signs a contract to purchase forty-five new tents at a reduced rate. According to Exhibit 21-4 of the text, under what circumstances would Nora not be considered a "merchant" under UCC Article 2 with regard to the contract for the purchase of the tents?

Accepted Answer

A)   If Nora purchased the tents for use at the summer camp she manages.
B)   If Nora owns a camping store and held herself out as having knowledge and skill unique to camping.
C)   If Nora deals in tents and if Nora employed a merchant as a broker to buy the tents.
D)   If Nora owns a camping store and held herself out as having knowledge and skill unique to camping; or if Nora employed a merchant as a broker to buy the tents.
E)   If Nora deals in tents; if she owns a camping store and held herself out as having knowledge and skill unique to camping; and if Nora employed a merchant as a broker to buy the tents.F) A) and C)
G) A) and E) A

Question 13

Under the UCC, which of the following are two special kinds of leases?

Accepted Answer

A)   Consumer and finance
B)   Finance and terminal
C)   Consumer and terminal
D)   Real estate and procedural
E)   Procedural and terminalF) A) and D)
G) B) and D)

Question 14

A finance lease is equivalent to a consumer lease.

Accepted Answer

A) True 
 B)False

Question 15

What was the court's ruling in Loizeaux Builders Supply Co. v. Donald B. Ludwig Company, the case in the text about whether a supplier's telephone call in February that the low price for concrete "would be adhered to for the year" still applied after January 1, when the supplier raised its price?

Accepted Answer

A)   The court found for the supplier and awarded the higher price for deliveries after January 1, based on the plain meaning of "adhered to for the year", the customer practice in the industry to raise prices January 1, and the fact that the buyer had actual notice of the price increase.
B)   The court found for the supplier and awarded the higher price for deliveries after January 1, because there were witnesses who supported the supplier's testimony.
C)   The court found for the buyer and split the price difference, because the contract is between merchants, who are held to a higher standard of care, but the buyer had actual notice of the price increase.
D)   The court found for the buyer and awarded the lower price for deliveries until February 1, because the contract is between merchants, who are held to a higher standard of care.
E)   The court found for the buyer and awarded the lower price for deliveries until February 1, based on the plain meaning of "adhered to for a year".F) A) and B)
G) None of the above

Question 16

What are the UCC's exceptions to the statute of fraud's writing requirements?

Accepted Answer

A)   There are no exceptions for the statute of fraud's writing requirements.
B)   Admission and partial performance, but specifically manufactured goods must be in writing.
C)   Specifically manufactured goods, admission, and modification.
D)   Specifically manufactured goods, admission, and partial performance.
E)   Specifically manufactured goods and admission, but there is no exception for partial performance.F) B) and E)
G) A) and E)

Question 17

[Carpet Woes] Joaquin went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Carpet wrote down the proposed purchase price for him along with a statement that the price would be good for three months. Two months later, Joaquin went back to ABC Carpet to purchase the carpet. Unfortunately, the price had gone up. Joaquin showed the manager his writing and guaranteed price, but the manager said that the offer was no longer good. Frustrated with ABC Carpet, Joaquin decided to purchase his carpet from XYZ Carpet, and he also contracted with XYZ to do the installation. Unfortunately, Joaquin almost immediately started to have problems with the carpet. Joaquin told the sales manager for XYZ Carpet that he was planning on bringing a suit for breach of warranty. The sales manager, however, told him that breach of warranty provisions only applied to sales of goods and that the carpet purchase was for installation, a service.
-Which of the following is true regarding the enforceability of the offer made by the manager at ABC Carpet?

Accepted Answer

A)   ABC Carpet is not bound by the offer because Joaquin did not provide any consideration.
B)   ABC Carpet is bound by the offer, but only for a period of seven days.
C)   ABC Carpet is bound by the offer, but only for a period of ten days.
D)   ABC Carpet is bound by the offer, but only if Joaquin can establish reliance.
E)   ABC Carpet was bound by the offer.F) D) and E)
G) A) and C)

Question 18

The UCC has not adopted the mirror image rule.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is true about the UCC and the CISG?

Accepted Answer

A)   Only the UCC provides guidance in international litigation.
B)   The CISG requirements for the statute of frauds are more lenient than those under the UCC.
C)   Only the UCC covers offer and acceptance.
D)   The CISG requirements for the statute of frauds are the same as those under the UCC.
E)   The UCC preempts the CISG because all states have adopted the UCC in some form.F) D) and E)
G) None of the above

Question 20

Which of the following does not follow the English common law?

Accepted Answer

A)   Louisiana only
B)   Louisiana and Texas
C)   Alaska and Hawaii
D)   New York and California
E)   California onlyF) C) and E)
G) C) and D)

Exam 21: Introduction to Sales and Lease Contracts

Each state passes its own laws to outline rules and laws pertaining to sales and lease contracts.

Correct Answer
verified

Land and service contracts are governed by common law, not the UCC.

Correct Answer
verified

A contract or contract provision is said to be unconscionable if ________.

Correct Answer
verified

Are there any steps Emilia should take in small claims court, or before she goes, regarding the customer who ordered the plain T-shirts?

Correct Answer
verified

The parol evidence rule aims to protect sales or lease contracts that the parties intend to be the final expression of their agreement.

Correct Answer
verified

Aranda claims that Rita's telephone call with Aranda is an admission of the existence of the contract and an admission constitutes an exception to the statute of frauds under the UCC. Is Aranda correct?

Correct Answer
verified

For businesses that operate in the global economy, ________ clauses would be advantageous to include in a contract in order to avoid conflict.

Correct Answer
verified

Under Article 2 of the UCC, which of the following consists of the passing of title from the seller to the buyer for a price?

Correct Answer
verified

Veronica and Paul are arguing about whether or not states have any rights under the UCC. If you were explaining state's rights under the UCC, which of the following is true regarding state rights in relationship to the UCC?

Correct Answer
verified
B

According to Exhibit 21-5 in the text, if quantity is left open in a contract for the sale of goods under the UCC, how will a court most likely interpret this provision?

Correct Answer
verified

Correct Answer
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E

Correct Answer
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A

Under the UCC, which of the following are two special kinds of leases?

Correct Answer
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A finance lease is equivalent to a consumer lease.

Correct Answer
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What was the court's ruling in Loizeaux Builders Supply Co. v. Donald B. Ludwig Company, the case in the text about whether a supplier's telephone call in February that the low price for concrete "would be adhered to for the year" still applied after January 1, when the supplier raised its price?

Correct Answer
verified

What are the UCC's exceptions to the statute of fraud's writing requirements?

Correct Answer
verified

Correct Answer
verified

The UCC has not adopted the mirror image rule.

Correct Answer
verified

Which of the following statements is true about the UCC and the CISG?

Correct Answer
verified

Which of the following does not follow the English common law?

Correct Answer
verified

Exam 21: Introduction to Sales and Lease Contracts

Each state passes its own laws to outline rules and laws pertaining to sales and lease contracts.

Correct AnswerverifiedShow Answer

Land and service contracts are governed by common law, not the UCC.

Correct AnswerverifiedShow Answer

A contract or contract provision is said to be unconscionable if ________.

Correct AnswerverifiedShow Answer

Are there any steps Emilia should take in small claims court, or before she goes, regarding the customer who ordered the plain T-shirts?

Correct AnswerverifiedShow Answer

The parol evidence rule aims to protect sales or lease contracts that the parties intend to be the final expression of their agreement.

Correct AnswerverifiedShow Answer

Aranda claims that Rita's telephone call with Aranda is an admission of the existence of the contract and an admission constitutes an exception to the statute of frauds under the UCC. Is Aranda correct?

Correct AnswerverifiedShow Answer

For businesses that operate in the global economy, ________ clauses would be advantageous to include in a contract in order to avoid conflict.

Correct AnswerverifiedShow Answer

Under Article 2 of the UCC, which of the following consists of the passing of title from the seller to the buyer for a price?

Correct AnswerverifiedShow Answer

Veronica and Paul are arguing about whether or not states have any rights under the UCC. If you were explaining state's rights under the UCC, which of the following is true regarding state rights in relationship to the UCC?

Correct AnswerverifiedB

According to Exhibit 21-5 in the text, if quantity is left open in a contract for the sale of goods under the UCC, how will a court most likely interpret this provision?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedE

Correct AnswerverifiedA

Under the UCC, which of the following are two special kinds of leases?

Correct AnswerverifiedShow Answer

A finance lease is equivalent to a consumer lease.

Correct AnswerverifiedShow Answer

What was the court's ruling in Loizeaux Builders Supply Co. v. Donald B. Ludwig Company, the case in the text about whether a supplier's telephone call in February that the low price for concrete "would be adhered to for the year" still applied after January 1, when the supplier raised its price?

Correct AnswerverifiedShow Answer

What are the UCC's exceptions to the statute of fraud's writing requirements?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The UCC has not adopted the mirror image rule.

Correct AnswerverifiedShow Answer

Which of the following statements is true about the UCC and the CISG?

Correct AnswerverifiedShow Answer

Which of the following does not follow the English common law?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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B

Correct Answer
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E

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A

Correct Answer
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