Question 1

Under the law that governs the international sale of goods, a merchant's firm offer is irrevocable only if the merchant gives assurances in a signed writing.

Accepted Answer

A) True 
 B)False  False

Question 2

Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is

Accepted Answer

A)   a contract for services.
B)   a sublease.
C)   a lease.
D)   a sale.E) All of the above
F) A) and C)

Question 3

To create an express warranty, a reasonable buyer must regard a seller's representation of fact-in an ad, for example-as part of the basis of the bargain.

Accepted Answer

A) True 
 B)False

Question 4

Runners Feet, a shoe store, orders one hundred pair of athletic shoes from Speedster Inc. Absent a contrary agreement between the parties, title will pass to Runners Feet when

Accepted Answer

A)   the parties sign the contract.
B)   the goods exist and are identified.
C)   the seller physically delivers the goods.
D)   the buyer pays for the goods.E) C) and D)
F) B) and D)

Question 5

If a seller supplies ten dishwashers in response to an order for ten washing machines-"F.O.B. the seller's warehouse"-and the goods are damaged in transit to the buyer's store, the loss falls on the seller.

Accepted Answer

A) True 
 B)False

Question 6

If a contract for a sale of goods leaves the quantity term open, a "reasonable quantity" is the standard for determining a remedy.

Accepted Answer

A) True 
 B)False  False

Question 7

Real Stones Inc. and Sparkling Jewelry stores enter into a contract for a sale of gemstones. The seller fails to deliver. Sparkling can recover as damages the difference between

Accepted Answer

A)   any loss avoided and any profit gained.
B)   the actual price and the hoped-for price.
C)   the contract price and the market price.
D)   the current prices in the contracting parties' places of business.E) B) and D)
F) All of the above

Question 8

Dona offers to sell her used sofa, chair, coffee table, end table, and lamp to Etta for $700. Etta responds that she will pay that price if Dona's TV set is included. Neither party is a merchant. Their contract is formed according to

Accepted Answer

A)   the new terms of the acceptance.
B)   whatever is reasonable.
C)   the terms of the original offer.
D)   none of the terms.E) A) and B)
F) All of the above

Question 9

An auto dealer is a merchant when selling or leasing a new car but not when selling or leasing a pre-owned vehicle.

Accepted Answer

A) True 
 B)False

Question 10

In a sale of oranges from Citrus Grove Farms to Donuts & Juice Inc. to be delivered after the harvest, a fire destroys the fruit before it is picked. Under the UCC, the rights and liabilities of Citrus and Donuts in this circumstance are generally determined by

Accepted Answer

A)   the right of ownership.
B)   who has title.
C)   the concepts of identification and risk of loss.
D)   all of the choices.E) B) and D)
F) B) and C)

Question 11

Builder Inc. and Concrete Supply Company enter into a contract for a sale of cement. Concrete delivers, but Builder does not pay. Concrete can recover as damages

Accepted Answer

A)   any profit lost minus any loss avoided.
B)   whatever amount Concrete wishes to claim.
C)   the purchase price plus incidental damages.
D)   the market price at the place at which Concrete delivered the goods.E) All of the above
F) None of the above

Question 12

Mara and Nim enter into a contract for a sale of orchids that requires payment within thirty days of delivery. Under the UCC, the payment term in the contract

Accepted Answer

A)   removes the entire transaction from the UCC.
B)   is superseded by the UCC rule that payment is due on delivery.
C)   is fully enforceable.
D)   is not enforceable because it does not specify a definite date.E) None of the above
F) All of the above

Question 13

Bean Processor Inc. agrees to ship a certain quantity of coffee beans to Coffee Café LLC. Bean sends to Coffee an e-mail indicating that the parties intended to form a contract. Against Bean, as a contract, the e-mail will be sufficient

Accepted Answer

A)   if it is signed by Bean.
B)   if it is signed by Coffee.
C)   if Coffee responds with an acknowledgment of the deal.
D)   under no circumstances.E) None of the above
F) B) and D)

Question 14

An excessive price for goods and unequal bargaining power can indicate to a court that a sales contract is unconscionable.

Accepted Answer

A) True 
 B)False  True

Question 15

Brooke is an art collector and hires a broker to buy and sell artworks on her behalf. Under the UCC, in those transactions, Brooke has the status of

Accepted Answer

A)   a consumer.
B)   an agent or other intermediary.
C)   a merchant.
D)   an employer and manager.E) A) and B)
F) B) and C)

Question 16

Security Insurance Agency contracts with Town Motors to buy six cars. The contract lists the cars by their VINs (vehicle identification numbers) . Under the UCC, identification

Accepted Answer

A)   requires the filing of a copy of the contract in the appropriate state office.
B)   has taken place.
C)   cannot take place unless the cars are in the seller's possession.
D)   cannot take place until the cars are in the buyer's possession.E) A) and C)
F) C) and D)

Question 17

Elegant Carpet Inc. agrees to sell a certain quantity of carpeting to Fabulous Floor stores under a shipment contract. Elegant must

Accepted Answer

A)   allow the buyer to reject the goods for any reason.
B)   deliver the goods to a particular destination.
C)   inspect the goods before shipping it.
D)   place the goods into the hands of a carrier.E) None of the above
F) A) and B)

Question 18

When the time for performance under a contract expires, the seller or lessor's right to cure also expires.

Accepted Answer

A) True 
 B)False

Question 19

Grinders Mill agrees to sell to Harvest Company a certain quantity of refined grains. Some of the other terms in the deal are left open. In the case of a dispute, a court will generally presume

Accepted Answer

A)   whatever favors the non-breaching party.
B)   whatever favors the plaintiff.
C)   whatever is reasonable.
D)   nothing.E) A) and D)
F) A) and B)

Question 20

If the acceptance to a sales contract between non-merchants includes terms different from those in the offer, no contract is formed under the UCC.

Accepted Answer

A) True 
 B)False

Exam 14: Sales and Lease Contracts

Under the law that governs the international sale of goods, a merchant's firm offer is irrevocable only if the merchant gives assurances in a signed writing.

Correct AnswerverifiedFalse

Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is

Correct AnswerverifiedShow Answer

To create an express warranty, a reasonable buyer must regard a seller's representation of fact-in an ad, for example-as part of the basis of the bargain.

Correct AnswerverifiedShow Answer

Runners Feet, a shoe store, orders one hundred pair of athletic shoes from Speedster Inc. Absent a contrary agreement between the parties, title will pass to Runners Feet when

Correct AnswerverifiedShow Answer

If a seller supplies ten dishwashers in response to an order for ten washing machines-"F.O.B. the seller's warehouse"-and the goods are damaged in transit to the buyer's store, the loss falls on the seller.

Correct AnswerverifiedShow Answer

If a contract for a sale of goods leaves the quantity term open, a "reasonable quantity" is the standard for determining a remedy.

Correct AnswerverifiedFalse

Real Stones Inc. and Sparkling Jewelry stores enter into a contract for a sale of gemstones. The seller fails to deliver. Sparkling can recover as damages the difference between

Correct AnswerverifiedShow Answer

Dona offers to sell her used sofa, chair, coffee table, end table, and lamp to Etta for $700. Etta responds that she will pay that price if Dona's TV set is included. Neither party is a merchant. Their contract is formed according to

Correct AnswerverifiedShow Answer

An auto dealer is a merchant when selling or leasing a new car but not when selling or leasing a pre-owned vehicle.

Correct AnswerverifiedShow Answer

In a sale of oranges from Citrus Grove Farms to Donuts & Juice Inc. to be delivered after the harvest, a fire destroys the fruit before it is picked. Under the UCC, the rights and liabilities of Citrus and Donuts in this circumstance are generally determined by

Correct AnswerverifiedShow Answer

Builder Inc. and Concrete Supply Company enter into a contract for a sale of cement. Concrete delivers, but Builder does not pay. Concrete can recover as damages

Correct AnswerverifiedShow Answer

Mara and Nim enter into a contract for a sale of orchids that requires payment within thirty days of delivery. Under the UCC, the payment term in the contract

Correct AnswerverifiedShow Answer

Bean Processor Inc. agrees to ship a certain quantity of coffee beans to Coffee Café LLC. Bean sends to Coffee an e-mail indicating that the parties intended to form a contract. Against Bean, as a contract, the e-mail will be sufficient

Correct AnswerverifiedShow Answer

An excessive price for goods and unequal bargaining power can indicate to a court that a sales contract is unconscionable.

Correct AnswerverifiedTrue

Brooke is an art collector and hires a broker to buy and sell artworks on her behalf. Under the UCC, in those transactions, Brooke has the status of

Correct AnswerverifiedShow Answer

Security Insurance Agency contracts with Town Motors to buy six cars. The contract lists the cars by their VINs (vehicle identification numbers) . Under the UCC, identification

Correct AnswerverifiedShow Answer

Elegant Carpet Inc. agrees to sell a certain quantity of carpeting to Fabulous Floor stores under a shipment contract. Elegant must

Correct AnswerverifiedShow Answer

When the time for performance under a contract expires, the seller or lessor's right to cure also expires.

Correct AnswerverifiedShow Answer

Grinders Mill agrees to sell to Harvest Company a certain quantity of refined grains. Some of the other terms in the deal are left open. In the case of a dispute, a court will generally presume

Correct AnswerverifiedShow Answer

If the acceptance to a sales contract between non-merchants includes terms different from those in the offer, no contract is formed under the UCC.

Correct AnswerverifiedShow Answer

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified