Question 1

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

Accepted Answer

A)   There is no contract if these terms are omitted.
B)   If payment terms are omitted, payment is due at the time and place at which the buyer is to receive the goods, and the place for delivery is the seller's place of business.
C)   If payment terms are omitted, payment is due at the time and place at which the buyer is to receive the goods, and the place for delivery is the buyer's place of business.
D)   If payment terms are omitted, payment is due at least 10 days prior to the date set for delivery, and the place for delivery is the seller's place of business.
E)   If payment terms are omitted, payment is due at least 10 days prior to the date set for delivery, and the place for delivery is the buyer's place of business.F) B) and E)
G) A) and D)

Question 2

Which of the following is true regarding Chinese law?

Accepted Answer

A)   China currently has legislation that covers the sale of goods, the provision of services, and leases.
B)   China currently has legislation that covers the sale of goods and the provision of services, but no legislation that covers leases.
C)   China currently has legislation that covers the sale of goods but not the provision of services or leases.
D)   China currently has legislation that covers leases but not the provision of services or the sale of goods.
E)   China has legislation that covers leases and the sale of goods, but not the provision of services.F) None of the above
G) A) and C)

Question 3

Under the UCC,how may an acceptance be made?

Accepted Answer

A)   Only by a writing.
B)   Only orally or by a writing.
C)   Only by electronic communication or by a writing.
D)   Only by facsimile or by mail.
E)   By any reasonable means of communication.F) B) and E)
G) B) and C)

Question 4

The UCC pertains to all business transactions.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true regarding the creation of the Uniform Commercial Code?

Accepted Answer

A)   The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws, the American Law Institute, and the U.S. Commercial Consortium.
B)   The Uniform Commercial Code was created by the U.S. Commercial Consortium and the National Conference of Commissioners on Uniform State Laws, but not the American Law Institute.
C)   The Uniform Commercial Code was created by the National Conference of Commissioners on Uniform State Laws and the American Law Institute, but not the U.S. Commercial Consortium.
D)   The Uniform Commercial Code was created by a federal congressional committee.
E)   The Uniform Commercial Code was created by state legislative representatives from all 50 states.F) D) and E)
G) A) and E)

Question 6

How many states have failed to adopt any portions of the UCC?

Accepted Answer

A)   18
B)   7
C)   5
D)   4
E)   0F) A) and E)
G) A) and D)

Question 7

Federal law is the primary method by which to interpret sales contracts.

Accepted Answer

A) True 
 B)False

Question 8

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 9

To resolve contract issues in cases in which a tangible good is mixed with something intangible,most states employ some variation of the ______.

Accepted Answer

A)   Mixed-purpose test
B)   Unclear-purpose test
C)   Goods-services test
D)   Predominant-purpose test
E)   Substantial-purpose testF) B) and E)
G) A) and C)

Question 10

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) B) and C)
G) B) and E)

Question 11

Under Article 2(A) of the UCC,a[n] ______ is a person who acquires the right to possession and use of goods under a lease.

Accepted Answer

A)   Buyer
B)   Seller
C)   Lessee
D)   Lessor
E)   AcquirorF) A) and E)
G) A) and B)

Question 12

All states,except Louisiana,follow the ______ common law.

Accepted Answer

A)   English
B)   French
C)   Italian
D)   Spanish
E)   GermanF) B) and C)
G) A) and C)

Question 13

The ______ is a legal concept that aims to protect sales or lease contracts that the parties intended to be the final expression of their agreement.

Accepted Answer

A)   Statute of frauds
B)   Final evidence regulation
C)   Parol evidence rule
D)   End evidence rule
E)   Anti-oral evidence ruleF) None of the above
G) A) and D)

Question 14

Describe a finance lease and explain how it is different from a regular lease contract.

Accepted Answer

A finance lease is complicated by the ad...

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Under Article 2(A) of the UCC,a[n] ______ is a person who transfers the right to possession and use of goods under a lease.

Accepted Answer

A)   Buyer
B)   Seller
C)   Lessee
D)   Lessor
E)   AcquirorF) A) and D)
G) B) and D)

Question 17

A ______ lease is a lease that (1) has a value of $25,000 or less and (2) exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal family,or household purpose.

Accepted Answer

A)   Finance
B)   Consumer
C)   Regulated
D)   Commercial
E)   RetailF) A) and C)
G) A) and B)

Question 18

The UCC is divided into sections known as ______.

Accepted Answer

A)   Divisions
B)   Articles
C)   Subsections
D)   Clauses
E)   AmendmentsF) B) and D)
G) C) and D)

Question 19

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 Beau 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 only if Beau can establish reliance.
E)   ABC Carpet was bound by the offer.F) A) and C)
G) A) and B)

Question 20

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter,_____.

Accepted Answer

A)   The common law rules apply
B)   The civil law rules apply
C)   Federal common law applies
D)   Federal statutory law applies
E)   The Uniform Sales Act appliesF) A) and C)
G) C) and D)

Exam 21: Introduction to Sales and Lease Contracts

How many states have failed to adopt any portions of the UCC?

Correct AnswerverifiedShow Answer

The UCC is divided into sections known as ______.

Correct AnswerverifiedShow Answer

The ______ is a legal concept that aims to protect sales or lease contracts that the parties intended to be the final expression of their agreement.

Correct AnswerverifiedShow Answer

Under Article 2(A) of the UCC,a[n] ______ is a person who transfers the right to possession and use of goods under a lease.

Correct AnswerverifiedShow Answer

Which of the following is true regarding payment and the place for delivery if those terms are left open under the UCC?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the modification to the agreement involving the belts added to the order at no extra charge?

Correct AnswerverifiedShow Answer

Federal law is the primary method by which to interpret sales contracts.

Correct AnswerverifiedShow Answer

Under the UCC,how may an acceptance be made?

Correct AnswerverifiedShow Answer

To resolve contract issues in cases in which a tangible good is mixed with something intangible,most states employ some variation of the ______.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the enforceability of the offer made by the manager at ABC Carpet?

Correct AnswerverifiedShow Answer

All states,except Louisiana,follow the ______ common law.

Correct AnswerverifiedShow Answer

Describe a finance lease and explain how it is different from a regular lease contract.

Correct AnswerverifiedA finance lease is complicated by the ad...View AnswerShow Answer

Which of the following is true regarding Chinese law?

Correct AnswerverifiedShow Answer

A ______ lease is a lease that (1) has a value of $25,000 or less and (2) exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal family,or household purpose.

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

Under Article 2(A) of the UCC,a[n] ______ is a person who acquires the right to possession and use of goods under a lease.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the creation of the Uniform Commercial Code?

Correct AnswerverifiedShow Answer

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter,_____.

Correct AnswerverifiedShow Answer

The UCC pertains to all business transactions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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A finance lease is complicated by the ad...
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