Question 1

Elizabeth worked as a salesperson in a carpet store.She was in the midst of divorce proceedings and needed some money.Elizabeth sold her wedding ring.Elizabeth is considered a merchant with regard to the sale of the ring.

Accepted Answer

A) True 
 B)False

Question 2

Long's Department Store contracted to buy 1,000 drop-waist velour dresses in heather gray from Durham.Subsequently,Durham called and asked to ship mink-colored dresses instead of heather gray.Long agreed,in writing,to the change.Which statement is correct?

Accepted Answer

A)   The modification is not enforceable since there was no consideration for the change.
B)   The modification is not enforceable since the parties are merchants.
C)   The modification is enforceable.
D)   Whether the modification is enforceable depends on the gap-filler rule.

Question 3

Dean Builders agrees to purchase all of its sump pump requirements for the new houses it builds from Satisfactory Sump Pump,Inc.These two business have had similar agreements the last three years and Dean's requirements have averaged 100 sump pumps per year.This year there was an unusually wet spring and Dean's requirements doubled to 200 sump pumps.Because of the high demand of sump pumps,the market price of the pumps tripled.Satisfactory Sump Pump,Inc.delivers 100 pumps at $75,the contract price.Satisfactory has exhausted its inventory and cannot deliver any more,so Dean buys the other 100 pumps from other suppliers at $225 each.Dean sues Satisfactory Sump Pump,Inc.for the additional expense.What is the most likely result?

Accepted Answer

A)   Satisfactory Sump Pump, Inc. wins; output and requirements contracts are not enforceable since no quantity is stated.
B)   Dean wins; Satisfactory Sump Pump, Inc. agreed to meet the needs of Dean and did not do so, which is a breach.
C)   Satisfactory Sump Pump, Inc. wins; requirements contracts are governed by a good faith standard, and it was unreasonable for Dean to demand so many additional pumps.
D)   Dean wins; the requirement of good faith applies only between merchants, and Dean is not a merchant.

Question 4

The UCC does not apply to a contract for the sale of goods if the value of the goods is less than $500.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the importance of the UCC to the law of sales.Include who created the UCC,how it becomes law,and the stated purposes of the statute.

Accepted Answer

The UCC is the major statute regulating ...

Question 6

In a "mixed contract," one involving a sale of both goods and services,the court will:

Accepted Answer

A)   apply the UCC to the provisions of the contract involving the sale of goods and the common law to the provisions involving the sale of services.
B)   apply the lex mercatoria to the contract.
C)   first determine the dominant purpose of the contract. If the sale of goods dominates the contract, then the court will apply the law of the UCC, Article 2. If the sale of services dominates the contract, the court will apply the common law.
D)   apply UCC Article 2A.

Question 7

Uncle Brandon promises to give his motorcycle to you at the end of the month.This transaction is governed by UCC,Article 2,because a motorcycle is within the definition of "goods."

Accepted Answer

A) True 
 B)False

Question 8

The UCC is federal legislation enacted by Congress.

Accepted Answer

A) True 
 B)False

Question 9

In a mixed contract involving goods and services,Article 2 of the UCC will govern if the predominant purpose is the sale of goods.

Accepted Answer

A) True 
 B)False

Question 10

Betty's BBQ orally contracts with Denny's Design House for 10,000 matchbooks at the price of 10 cents per matchbook.The matchbooks are to be embossed with a logo to be designed by Denny's Design promoting Betty's BBQ.Price,payment terms,delivery terms are agreed upon between the parties.Denny's Design creates the logo,gets Betty's BBQ's approval of the design and begins applying the logo on the matchbook covers.Denny's Design has almost finished the order when Betty's BBQ calls to say it has decided to make the eatery a smoke-free restaurant and cancels the order.Denny's Design sues,but Betty's BBQ states that the agreement is unenforceable under the statute of frauds.Who wins?

Accepted Answer

A)   Denny's Design House wins. This situation falls under an exception to the statute of frauds.
B)   Denny's Design House wins. This is a service contract for design of a logo. Therefore, the UCC, including the statute of frauds provisions of Article 2, does not apply.
C)   Betty's BBQ wins. This is a contract for $1000. The statute of frauds requires all sales contracts in excess of $500 be in writing.
D)   Betty's BBQ wins. The statute of frauds only applies to merchants. Betty's BBQ is not a merchant in this instance because it intended to give the matchbooks away and not sell them.

Question 11

The stated purpose(s) of Article 2 of the UCC is/are:

Accepted Answer

A)   to simplify the law governing sales.
B)   to permit the continued development of business practices through custom and usage.
C)   to make the laws governing sales uniform among the various states.
D)   All of the above are correct.

Question 12

Pizazz,Inc.leased the 34ᵗʰ floor in an office building in downtown Chicago.This contract is governed by Article 2A of the UCC.

Accepted Answer

A) True 
 B)False

Question 13

In which of the following situations is the seller a merchant under Article 2 of the UCC?

Accepted Answer

A)   Paul, a full-time college student, sold his textbooks to State Bookstore.
B)   Randall, a part-time college student and full-time father, sold his textbooks to a friend.
C)   Zompa Inc., a toy manufacturer, contracted to sell dolls to TonTon Department Store.
D)   In all of the above situations the seller is a merchant.

Question 14

Which of the following contracts requires a writing under the UCC,Article 2?

Accepted Answer

A)   Jeremy, a full-time student, sold his snow blower to a friend for $450.
B)   Jeremy, a full-time student, purchased a used computer from Office Plus for $300.
C)   A toy manufacturer contracted to sell dolls valued at $10,000 to a department store.
D)   Tobias Department Store contracted to sell Jenny a $400 doll.

Question 15

The difference between the UCC requirement of good faith and doctrine of unconscionability is that:

Accepted Answer

A)   good faith prohibits shockingly one-sided terms in a contract.
B)   good faith focuses on the parties' behavior as they perform the contract.
C)   unconscionability looks at the parties' attempt to carry out the terms of the contract in a reasonable manner.
D)   unconscionability focuses on whether a party is honest in fact and exercises reasonable commercial standards of fair dealing.

Question 16

To simplify,clarify,and modernize the law governing commercial transactions,the UCC permits the use of "open terms" in sales contracts.In the use of "open terms," which of the following is true?

Accepted Answer

A)   The court will use market value and other comparable sales to determine what a reasonable price would have been at the time of delivery if the parties have not settled the price in the contract.
B)   If time of payment is not mentioned in the contract, payment within a commercially reasonable time is presumed.
C)   If the contract permits the buyer or seller to determine the price during contract performance, the UCC requires the party to do so in good faith.
D)   All of the above are true.

Question 17

Jasmine agrees to purchase 1500 tons of recycled glass from Louie,the price to be determined at the time of delivery.Is such an agreement enforceable? Compare the common law with Article 2 of the UCC.

Accepted Answer

Yes,the agreement is enforceable under A...

Question 18

Lian contracted for financial services from E-wise.This contract is governed by Article 2 of the UCC.

Accepted Answer

A) True 
 B)False

Question 19

Megan agrees to sell Nancy her Rolex watch but they do not specify a price.In such a case,the court would not enforce the agreement because all of the essential terms are not present.

Accepted Answer

A) True 
 B)False

Question 20

Harriett raises and sells hippos.In order to keep her hippos happy and healthy,she feeds them Hippo Chow,which she buys from the local pet store.Under the UCC,Harriett is:

Accepted Answer

A)   a merchant of both hippos and Hippo Chow.
B)   a merchant of hippos, but not of Hippo Chow.
C)   a merchant of Hippo Chow, but not of hippos.
D)   not a merchant of either hippos or Hippo Chow.

Exam 20: Introduction To Sales

The stated purpose(s) of Article 2 of the UCC is/are:

Correct Answer
verified

Discuss the importance of the UCC to the law of sales.Include who created the UCC,how it becomes law,and the stated purposes of the statute.

Correct Answer
verified
The UCC is the major statute regulating ...
View Answer

To simplify,clarify,and modernize the law governing commercial transactions,the UCC permits the use of "open terms" in sales contracts.In the use of "open terms," which of the following is true?

Correct Answer
verified

The difference between the UCC requirement of good faith and doctrine of unconscionability is that:

Correct Answer
verified

Uncle Brandon promises to give his motorcycle to you at the end of the month.This transaction is governed by UCC,Article 2,because a motorcycle is within the definition of "goods."

Correct Answer
verified

The UCC is federal legislation enacted by Congress.

Correct Answer
verified

In a "mixed contract," one involving a sale of both goods and services,the court will:

Correct Answer
verified

Harriett raises and sells hippos.In order to keep her hippos happy and healthy,she feeds them Hippo Chow,which she buys from the local pet store.Under the UCC,Harriett is:

Correct Answer
verified

Elizabeth worked as a salesperson in a carpet store.She was in the midst of divorce proceedings and needed some money.Elizabeth sold her wedding ring.Elizabeth is considered a merchant with regard to the sale of the ring.

Correct Answer
verified

Megan agrees to sell Nancy her Rolex watch but they do not specify a price.In such a case,the court would not enforce the agreement because all of the essential terms are not present.

Correct Answer
verified

In a mixed contract involving goods and services,Article 2 of the UCC will govern if the predominant purpose is the sale of goods.

Correct Answer
verified

Correct Answer
verified

Long's Department Store contracted to buy 1,000 drop-waist velour dresses in heather gray from Durham.Subsequently,Durham called and asked to ship mink-colored dresses instead of heather gray.Long agreed,in writing,to the change.Which statement is correct?

Correct Answer
verified

Pizazz,Inc.leased the 34ᵗʰ floor in an office building in downtown Chicago.This contract is governed by Article 2A of the UCC.

Correct Answer
verified

Which of the following contracts requires a writing under the UCC,Article 2?

Correct Answer
verified

Correct Answer
verified

Lian contracted for financial services from E-wise.This contract is governed by Article 2 of the UCC.

Correct Answer
verified

Jasmine agrees to purchase 1500 tons of recycled glass from Louie,the price to be determined at the time of delivery.Is such an agreement enforceable? Compare the common law with Article 2 of the UCC.

Correct Answer
verified
Yes,the agreement is enforceable under A...
View Answer

In which of the following situations is the seller a merchant under Article 2 of the UCC?

Correct Answer
verified

The UCC does not apply to a contract for the sale of goods if the value of the goods is less than $500.

Correct Answer
verified

Exam 20: Introduction To Sales

The stated purpose(s) of Article 2 of the UCC is/are:

Correct AnswerverifiedShow Answer

Discuss the importance of the UCC to the law of sales.Include who created the UCC,how it becomes law,and the stated purposes of the statute.

Correct AnswerverifiedThe UCC is the major statute regulating ...View AnswerShow Answer

To simplify,clarify,and modernize the law governing commercial transactions,the UCC permits the use of "open terms" in sales contracts.In the use of "open terms," which of the following is true?

Correct AnswerverifiedShow Answer

The difference between the UCC requirement of good faith and doctrine of unconscionability is that:

Correct AnswerverifiedShow Answer

Uncle Brandon promises to give his motorcycle to you at the end of the month.This transaction is governed by UCC,Article 2,because a motorcycle is within the definition of "goods."

Correct AnswerverifiedShow Answer

The UCC is federal legislation enacted by Congress.

Correct AnswerverifiedShow Answer

In a "mixed contract," one involving a sale of both goods and services,the court will:

Correct AnswerverifiedShow Answer

Harriett raises and sells hippos.In order to keep her hippos happy and healthy,she feeds them Hippo Chow,which she buys from the local pet store.Under the UCC,Harriett is:

Correct AnswerverifiedShow Answer

Elizabeth worked as a salesperson in a carpet store.She was in the midst of divorce proceedings and needed some money.Elizabeth sold her wedding ring.Elizabeth is considered a merchant with regard to the sale of the ring.

Correct AnswerverifiedShow Answer

Megan agrees to sell Nancy her Rolex watch but they do not specify a price.In such a case,the court would not enforce the agreement because all of the essential terms are not present.

Correct AnswerverifiedShow Answer

In a mixed contract involving goods and services,Article 2 of the UCC will govern if the predominant purpose is the sale of goods.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Long's Department Store contracted to buy 1,000 drop-waist velour dresses in heather gray from Durham.Subsequently,Durham called and asked to ship mink-colored dresses instead of heather gray.Long agreed,in writing,to the change.Which statement is correct?

Correct AnswerverifiedShow Answer

Pizazz,Inc.leased the 34ᵗʰ floor in an office building in downtown Chicago.This contract is governed by Article 2A of the UCC.

Correct AnswerverifiedShow Answer

Which of the following contracts requires a writing under the UCC,Article 2?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Lian contracted for financial services from E-wise.This contract is governed by Article 2 of the UCC.

Correct AnswerverifiedShow Answer

Jasmine agrees to purchase 1500 tons of recycled glass from Louie,the price to be determined at the time of delivery.Is such an agreement enforceable? Compare the common law with Article 2 of the UCC.

Correct AnswerverifiedYes,the agreement is enforceable under A...View AnswerShow Answer

In which of the following situations is the seller a merchant under Article 2 of the UCC?

Correct AnswerverifiedShow Answer

The UCC does not apply to a contract for the sale of goods if the value of the goods is less than $500.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The UCC is the major statute regulating ...
View Answer

Correct Answer
verified

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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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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Correct Answer
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Correct Answer
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Yes,the agreement is enforceable under A...
View Answer

Correct Answer
verified

Correct Answer
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