Question 1

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is

Accepted Answer

A)  Ferris.
B)  Gina.
C)  Home Repair.
D)  none of the choices.E) B) and D)
F) A) and B)

Question 2

Curt enters into a contract with Drivers Lease Company for a three-year lease of a car. This contract is subject to

Accepted Answer

A)  Article 2 of UCC.
B)  Article 2A of the UCC.
C)  none of the choices.
D)  the common law only.E) C) and D)
F) B) and D)

Question 3

If a sales contract prohibits any changes unless they are in a signed writing, then only those changes agreed to in a signed writing are enforceable.

Accepted Answer

A) True 
 B)False

Question 4

Auto Body Company orders custom paint from Best Hues Inc., but Best does not deliver. Auto Body will probably be unable to enforce the agreement if the parties omitted

Accepted Answer

A)  a price term.
B)  a delivery date.
C)  a quantity term.
D)  shipping arrangements.E) A) and D)
F) B) and D)

Question 5

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

Question 6

Grass Farm LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." 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) C) and D)
F) A) and D)

Question 7

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 8

Parties to sales and lease contracts are not free to agree to terms different from those stated in the UCC.

Accepted Answer

A) True 
 B)False

Question 9

Power Company offers to buy from Quality Transformers LLC a specific quantity of a certain type of transformer for a stated price. Quality can accept the offer by

Accepted Answer

A)  a counteroffer within a reasonable time.
B)  a promise to ship the goods.
C)  a rejection of the offer with an invitation to negotiate a different price.
D)  any of the choices.E) None of the above
F) A) and B)

Question 10

To qualify as a sale under the UCC, the price in the transaction must be payable in cash.

Accepted Answer

A) True 
 B)False

Question 11

Time Inc. offers to sell to Unlimited Sales Company one hundred digital watches at $50 a piece, subject to certain specific delivery dates. Unlimited replies with a signed purchase order that reads, "Accept your offer for 100 watches at $50 each. Must be delivered to our warehouse." Time does not respond or deliver the goods. Unlimited files a suit for breach of contract, to which Time answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Time. Can Unlimited recover? Explain.

Accepted Answer

Yes. Additional or different terms in an...

Question 12

The United Nations Convention on Contracts for the International Sale of Goods is the law that governs contracts for the international sale of goods.

Accepted Answer

A) True 
 B)False

Question 13

Meds-Free Inc. enters into a contract to sell its product line to Naturopath Clinic, which later sells some of the items to Oneida, a patient and consumer. Article 2 of the UCC applies to

Accepted Answer

A)  both transactions.
B)  the sale from Med-Free to the clinic only.
C)  the sale from the clinic to its patient only.
D)  none of the transactions.E) A) and B)
F) All of the above

Question 14

Corporate stocks and bonds meet the requirements to be among the items of property characterized as goods under the UCC.

Accepted Answer

A) True 
 B)False

Question 15

Under the law that governs the international sale of goods, when the parties to a contract do not specify a price term, or at least provide for its specification, normally no contract will exist.

Accepted Answer

A) True 
 B)False

Question 16

Under the UCC, an oral contract for a sale of goods is enforceable once goods have been received and accepted.

Accepted Answer

A) True 
 B)False

Question 17

An auto lease between a consumer and a car dealer is not governed by the UCC because the statute applies only to transactions between merchants.

Accepted Answer

A) True 
 B)False

Question 18

Except for an option contract, a firm offer by a merchant is irrevocable once it has been made.

Accepted Answer

A) True 
 B)False

Question 19

Aaron offers to sell Babe a collection of movie memorabilia. For the transaction to be a sale under the UCC, title to the collection must be passed from the seller to the buyer for

Accepted Answer

A)  cash.
B)  services.
C)  a price.
D)  goods.E) A) and B)
F) A) and D)

Question 20

Excluded from Article 2 of the UCC are

Accepted Answer

A)  all of the choices.
B)  corporate stocks and bonds.
C)  patents and copyrights.
D)  ordinary contract rights.E) B) and C)
F) A) and B)

Exam 20: Sales and Lease Contracts

Under the law that governs the international sale of goods, when the parties to a contract do not specify a price term, or at least provide for its specification, normally no contract will exist.

Correct Answer
verified

Correct Answer
verified
Yes. Additional or different terms in an...
View Answer

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is

Correct Answer
verified

Auto Body Company orders custom paint from Best Hues Inc., but Best does not deliver. Auto Body will probably be unable to enforce the agreement if the parties omitted

Correct Answer
verified

Corporate stocks and bonds meet the requirements to be among the items of property characterized as goods under the UCC.

Correct Answer
verified

Excluded from Article 2 of the UCC are

Correct Answer
verified

Aaron offers to sell Babe a collection of movie memorabilia. For the transaction to be a sale under the UCC, title to the collection must be passed from the seller to the buyer for

Correct Answer
verified

Parties to sales and lease contracts are not free to agree to terms different from those stated in the UCC.

Correct Answer
verified

To qualify as a sale under the UCC, the price in the transaction must be payable in cash.

Correct Answer
verified

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

Correct Answer
verified

An auto lease between a consumer and a car dealer is not governed by the UCC because the statute applies only to transactions between merchants.

Correct Answer
verified

Meds-Free Inc. enters into a contract to sell its product line to Naturopath Clinic, which later sells some of the items to Oneida, a patient and consumer. Article 2 of the UCC applies to

Correct Answer
verified

The United Nations Convention on Contracts for the International Sale of Goods is the law that governs contracts for the international sale of goods.

Correct Answer
verified

Under the UCC, an oral contract for a sale of goods is enforceable once goods have been received and accepted.

Correct Answer
verified

Grass Farm LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." Their contract is formed according to

Correct Answer
verified

Except for an option contract, a firm offer by a merchant is irrevocable once it has been made.

Correct Answer
verified

Curt enters into a contract with Drivers Lease Company for a three-year lease of a car. This contract is subject to

Correct Answer
verified

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

Correct Answer
verified

If a sales contract prohibits any changes unless they are in a signed writing, then only those changes agreed to in a signed writing are enforceable.

Correct Answer
verified

Power Company offers to buy from Quality Transformers LLC a specific quantity of a certain type of transformer for a stated price. Quality can accept the offer by

Correct Answer
verified

Exam 20: Sales and Lease Contracts

Under the law that governs the international sale of goods, when the parties to a contract do not specify a price term, or at least provide for its specification, normally no contract will exist.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedYes. Additional or different terms in an...View AnswerShow Answer

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is

Correct AnswerverifiedShow Answer

Auto Body Company orders custom paint from Best Hues Inc., but Best does not deliver. Auto Body will probably be unable to enforce the agreement if the parties omitted

Correct AnswerverifiedShow Answer

Corporate stocks and bonds meet the requirements to be among the items of property characterized as goods under the UCC.

Correct AnswerverifiedShow Answer

Excluded from Article 2 of the UCC are

Correct AnswerverifiedShow Answer

Aaron offers to sell Babe a collection of movie memorabilia. For the transaction to be a sale under the UCC, title to the collection must be passed from the seller to the buyer for

Correct AnswerverifiedShow Answer

Parties to sales and lease contracts are not free to agree to terms different from those stated in the UCC.

Correct AnswerverifiedShow Answer

To qualify as a sale under the UCC, the price in the transaction must be payable in cash.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An auto lease between a consumer and a car dealer is not governed by the UCC because the statute applies only to transactions between merchants.

Correct AnswerverifiedShow Answer

Meds-Free Inc. enters into a contract to sell its product line to Naturopath Clinic, which later sells some of the items to Oneida, a patient and consumer. Article 2 of the UCC applies to

Correct AnswerverifiedShow Answer

The United Nations Convention on Contracts for the International Sale of Goods is the law that governs contracts for the international sale of goods.

Correct AnswerverifiedShow Answer

Under the UCC, an oral contract for a sale of goods is enforceable once goods have been received and accepted.

Correct AnswerverifiedShow Answer

Grass Farm LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." Their contract is formed according to

Correct AnswerverifiedShow Answer

Except for an option contract, a firm offer by a merchant is irrevocable once it has been made.

Correct AnswerverifiedShow Answer

Curt enters into a contract with Drivers Lease Company for a three-year lease of a car. This contract is subject 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

If a sales contract prohibits any changes unless they are in a signed writing, then only those changes agreed to in a signed writing are enforceable.

Correct AnswerverifiedShow Answer

Power Company offers to buy from Quality Transformers LLC a specific quantity of a certain type of transformer for a stated price. Quality can accept the offer by

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Yes. Additional or different terms in an...
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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