Question 1

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)  Mabel, a stay-at-home mom, sold her car to her friend Gloria.E) B) and D)
F) B) and C)

Question 2

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 3

If Edmund and Kaylin have a writing mistakenly showing a sale and purchase of goods for $10,000 when the price should have been $1,000,a court will most likely

Accepted Answer

A)  enforce the agreement, relying on oral testimony to determine the correct price.
B)  only enforce the agreement as written.
C)  not hear the case unless both parties are merchants.
D)  not enforce the agreement since the writing did not reflect a meeting of the minds of the parties.E) B) and C)
F) A) and B)

Question 4

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)  Kayla, 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.E) B) and C)
F) B) and D)

Question 5

A requirements contract is a contract

Accepted Answer

A)  in restraint of trade.
B)  in which the seller provides all of the goods that the buyer needs.
C)  in which the buyer purchases all of the goods that the seller produces.
D)  in which a party must buy a product it does not want in order to be allowed to buy a product it requires.E) All of the above
F) B) and C)

Question 6

Under the UCC,a merchant is frequently held to a higher standard of conduct than a non-merchant.

Accepted Answer

A) True 
 B)False

Question 7

Under the UCC,a modification to a contract for the sale of goods needs no consideration to be binding.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following contracts is most likely to be declared unconscionable?

Accepted Answer

A)  A consumer sales contract which charges 300 times the fair market value of the goods.
B)  A consumer sales contract which limits the consumer's remedies to repair or replacement.
C)  A contract between wholesaler and retailer which adds delivery charges at 15% of the costs of the goods.
D)  A sales contract between wholesaler and retailer which limits remedies such as consequential damages.E) A) and B)
F) B) and C)

Question 9

Patsy is shopping for a used car.She finds a car she likes at Morley Motors.Discuss how the UCC views each party and the standard of conduct it imposes on the parties in performing the sales transaction.

Accepted Answer

The UCC imposes a duty of good faith in ...

Question 10

A court is much more likely to find a contract unconscionable when one party is a consumer than if the two parties are businesses.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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.E) A) and B)
F) A) and C)

Question 13

Oxtren,Inc.is a tools wholesaler.Oxtren sent M&E Tools a purchase order offering to buy 200 Model 308 milling & drilling machines with R-8 spindles.The purchase order stated the credit term to be 2% discount if payment was made in 10 days,with the full amount due in 30 days.M&E responded with an acceptance form accepting the offer.The acceptance form,however,stated that full payment was due on delivery and that disputes under the contract would be settled by arbitration.
(A)Do the parties have an agreement?
(B)What is the payment term?
(C)Is the arbitration clause part of the agreement?

Accepted Answer

(A)Under the UCC,the parties will have a...

Question 14

By definition,a sale under Article 2 of the UCC requires

Accepted Answer

A)  that the parties involved be merchants.
B)  that the product involved be goods, services, or a mixture; that the sale be between or among merchants; and that the sale take place in the normal course of business for that industry.
C)  that title to the goods pass between the seller and the buyer and that a price be paid for the goods.
D)  that the product involved be an item that can be sold or leased.E) A) and B)
F) A) and C)

Question 15

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 for 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.E) A) and B)
F) A) and C)

Question 16

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.E) A) and B)
F) All of the above

Question 17

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

Accepted Answer

The UCC is the major statute regulating ...

Question 18

Uncle Brandon promises to give his motorcycle to you for free 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 19

Which of the following is TRUE regarding an open price term?

Accepted Answer

A)  It makes the contract unenforceable.
B)  The price may be fixed by the seller.
C)  The price is the "reasonable" price at the time of delivery.
D)  The price is set by the buyer.E) None of the above
F) A) and D)

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.E) A) and B)
F) C) and D)

Exam 21: Introduction to Sales

A requirements contract is a contract

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
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(A)Under the UCC,the parties will have a...
View Answer

Which of the following is TRUE regarding an open price term?

Correct Answer
verified

Which of the following contracts is most likely to be declared unconscionable?

Correct Answer
verified

If Edmund and Kaylin have a writing mistakenly showing a sale and purchase of goods for $10,000 when the price should have been $1,000,a court will most likely

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

A court is much more likely to find a contract unconscionable when one party is a consumer than if the two parties are businesses.

Correct Answer
verified

Patsy is shopping for a used car.She finds a car she likes at Morley Motors.Discuss how the UCC views each party and the standard of conduct it imposes on the parties in performing the sales transaction.

Correct Answer
verified
The UCC imposes a duty of good faith in ...
View Answer

By definition,a sale under Article 2 of the UCC requires

Correct Answer
verified

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

Correct Answer
verified

Uncle Brandon promises to give his motorcycle to you for free 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

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

Under the UCC,a modification to a contract for the sale of goods needs no consideration to be binding.

Correct Answer
verified

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

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

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

Under the UCC,a merchant is frequently held to a higher standard of conduct than a non-merchant.

Correct Answer
verified

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

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

Exam 21: Introduction to Sales

A requirements contract is a contract

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverified(A)Under the UCC,the parties will have a...View AnswerShow Answer

Which of the following is TRUE regarding an open price term?

Correct AnswerverifiedShow Answer

Which of the following contracts is most likely to be declared unconscionable?

Correct AnswerverifiedShow Answer

If Edmund and Kaylin have a writing mistakenly showing a sale and purchase of goods for $10,000 when the price should have been $1,000,a court will most likely

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

A court is much more likely to find a contract unconscionable when one party is a consumer than if the two parties are businesses.

Correct AnswerverifiedShow Answer

Patsy is shopping for a used car.She finds a car she likes at Morley Motors.Discuss how the UCC views each party and the standard of conduct it imposes on the parties in performing the sales transaction.

Correct AnswerverifiedThe UCC imposes a duty of good faith in ...View AnswerShow Answer

By definition,a sale under Article 2 of the UCC requires

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Uncle Brandon promises to give his motorcycle to you for free 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

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

Under the UCC,a modification to a contract for the sale of goods needs no consideration to be binding.

Correct AnswerverifiedShow Answer

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

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

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

Under the UCC,a merchant is frequently held to a higher standard of conduct than a non-merchant.

Correct AnswerverifiedShow Answer

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

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

Correct Answer
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Correct Answer
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(A)Under the UCC,the parties will have a...
View Answer

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The UCC imposes a duty of good faith in ...
View 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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The UCC is the major statute regulating ...
View Answer