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Multiple Choice
1. of the Uniform Commercial Code governs the law of commercial sales.
a. Article 1
b. Article 2
c. Article 3
d. Article 4
e. Article 5
2. of the Uniform Commercial Code governs the law of commercial sales.
a. Article 1
b. Article 6
c. Article 3
d. Article 7
e. none of the other choices are correct
3. Article 2 of the UCC covers the sale of:
a. goods
b. services
c. investment securities
d. goods and business services
e. all of the other choices
4. Article 2 of the UCC covers the sale of:
a. the copyright on a book
b. business services
c. investment securities
d. commercial real estate
e. none of the other choices
5. Early sales law was governed by state law. This created a significant legal challenge for managers because:
a. Article 2 of the UCC was unclear
b. it forced managers to write sales agreements with many terms left open
c. different rules developed across the states
d. it required a new sales agreement each time a new order was placed
e. none of the other choices
6. Commercial codes:
a. date back thousands of years
b. began in England in the early 1800s to use in the British empire
c. were started by the United Nations in the 1950s
d. were started by the World Trade Organization in the 1980s
e. none of the other choices
7. Sales law developed in medieval Europe was known as:
a. lex vendido
b. lex mercatoria
c. the Medieval Code
d. the merchant code
e. the rules of sales
8. Sales law developed in medieval Europe was known as:
a. lex vendido
b. the rules of sales
c. the Medieval Code
d. the merchant code
e. none of the other choices are correct
9. Lex mercatoria refers to:
a. medieval European rules governing trade issues
b. ancient Greek rules governing trade issues
c. modern Japanese law governing trade issues
d. the Supreme Court's views on trade issues
e. medieval European rules governing land rental
10. Lex mercatoria refers to:
a. medieval European rules governing land rental
b. ancient Greek rules governing trade issues
c. modern Japanese law governing trade issues
d. the Supreme Court's views on trade issues
e. none of the other choices are correct
11. UCC Article 2 has been adopted:
a. by Congress
b. by 31 states
c. by 49 states
d. by all 50 states
e. none of the other choices
12. Every state except has adopted UCC Article 2.
a. Texas
b. Illinois
c. Alabama
d. Louisiana
e. Florida
13. Every state except has adopted UCC Article 2.
a. Texas
b. Illinois
c. Alabama
d. Florida
e. none of the other choices are correct
14. Louisiana is the only state that has not:
a. adopted UCC Article 2
b. adopted UCC Article 3
c. agreed to allow out of state business transactions
d. imposed a sales tax
e. imposed an income tax
15. Louisiana is the only state that has not:
a. imposed an income tax
b. adopted UCC Article 9
c. agreed to allow out of state business transactions
d. imposed a sales tax
e. none of the other choices are correct
16. Most states accept the UCC's provisions on most topics because:
a. the benefits of lowering the costs of doing business across state lines was so great
b. the federal government gave them no choice
c. the European Union required consistency in U.S. sales law to encourage trade
d. national unity is very important to all states
e. there were a lot of federal tax breaks associated with accepting the UCC
17. Most states willingly accepted the UCC's provisions on most topics because:
a. there were a lot of federal tax breaks associated with accepting the UCC
b. the federal government gave them no choice
c. the European Union required consistency in U.S. sales law to encourage trade
d. national unity is very important to all states
e. none of the other choices are correct
18. The UCC's purpose is:
a. to give each state a unique set of trade laws
b. to mediate international business disputes
c. to simplify, clarify and modernize the law governing commercial transactions
d. to reduce taxes
e. to make it easier to prosecute parties who breach contracts
19. The UCC's purpose is:
a. to give each state a unique set of trade laws
b. to mediate international business disputes
c. to make it easier to prosecute parties who breach contracts
d. to reduce taxes
e. none of the other choices are correct
20. In Paramount Contracting Co. v. DPS Industries, DPS claimed there was a contract to deliver hundreds of
truckloads of dirt for Paramount, which claimed no contract had come into existence. The courts held that:
a. the contract fell under the common law and no contract existed because there was no meeting of the minds
b. the contract fell under the common law and the terms were sufficiently clear for a binding contract to have
been formed
c. the contract fell under Article 2 of the UCC and the court would determine the price for the dirt as it was
clear the parties intended to deal with each other
d. the contract fell under Article 2 of the UCC as it was a contract for goods and Paramount breached the
contract
e. none of the other choices are correct
21. Which of the following is a contract most likely to fall under UCC Article 2:
a. IBM sells an office building in Atlanta to Microsoft
b. GM buys seat belts from Ace to install in new Cadillacs
c. Nock hires CompuW to service its computers for a year so they are kept in good condition
d. Disney buys the copyright on a book to make it into a movie
e. none of the other choices
22. Which of the following is a contract most likely to fall under UCC Article 2:
a. Abbie purchases a suite of office furniture from Office Lots
b. Landers hires Ace to move and store her furniture while she is in London for two years
c. Nock hires CompuW to service its computers for a year so they are kept in good condition
d. Disney buys the copyright on a book to make it into a movie
e. none of the other choices
23. Contracts under Article 2 of the UCC could include:
a. a house
b. a patent
c. a bank account
d. a load of wheat
e. all of the other choices
24. Contracts under Article 2 of the UCC could include:
a. a house
b. a patent
c. a bank account
d. rights to royalties from a book
e. none of the other choices
25. Contracts under Article 2 of the UCC could include:
a. a house
b. a patent
c. a bank account
d. an insurance policy
e. none of the other choices
26. The UCC's Article 2 does not cover the sale of:
a. land
b. furniture
c. a load of corn
d. a computer sold to a business
e. a truck load of printer paper
27. The UCC's Article 2 does not cover the sale of:
a. a truck load of printer paper
b. furniture
c. a load of corn
d. a computer sold to a business
e. all of the other specific choices are covered by Article 2
28. The UCC defines goods as:
a. all things which are moveable at the time of identification to the contract for sale
b. all services which are relevant at the time of identification to the contract for sale
c. any item that a seller offers to a buyer
d. the combination of the items and services listed in the contract
e. all the items listed in the contract and their related services
29. The UCC defines goods as:
a. all the items listed in a contract and their related services
b. all services which are relevant at the time of identification to the contract for sale
c. any item that a seller offers to a buyer in good faith
d. the combination of the items and services listed in the contract
e. none of the other choices are correct
30. The subject matter of a sales contract is not considered a good under Article 2 unless:
a. it is real and visible
b. it is movable and tangible
c. it is ephemeral and tangible
d. it is diaphanous and movable
e. it is movable and intangible
31. The subject matter of a sales contract is not considered a good under Article 2 unless:
a. it is real and visible
b. it is movable and intangible
c. it is ephemeral and tangible
d. it is diaphanous and movable
e. none of the other choices are correct
32. An item is movable if:
a. it can be carried from one location to another
b. it can be cannot be moved
c. it is a service that can be performed anywhere
d. it can be easily reproduced
e. it can be bought in any state
33. An item is movable if:
a. it can be bought in any state
b. it can be cannot be moved
c. it is a service that can be performed anywhere
d. it can be easily reproduced
e. none of the other choices are correct
34. A good is tangible if it:
a. can be seen and touched
b. can be seen, but not necessarily touched
c. can be found in more than one state
d. is a service that anyone can perform without special training
e. is inexpensive
35. A good is tangible if it:
a. costs more than $500
b. can be seen, but not necessarily touched
c. can be found in more than one state
d. is a service that anyone can perform without special training
e. none of the other choices are correct
36. The UCC defines good-faith dealings as:
a. the ordinary standards of the industry
b. the standards set by the Domestic Corruption Practices Act
c. fiduciary obligations among parties involved
d. honest in fact in the conduct or transaction incurred
e. none of the other choices
37. The UCC defines good-faith dealings as:
a. the ordinary standards of the industry
b. the standards set by the Domestic Corruption Practices Act
c. fiduciary obligations among parties involved
d. following the terms agreed to in the contract
e. none of the other choices
38. Ready Construction buys a computer system from Ace that Ace will also service. Two years after the sale, a
disagreement develops. Ace has determined that the common law of contracts favors it. Article 2 favors Ready.
Ace should:
a. realize that the agreement is for the sale of goods so it must be covered by Article 2, so work to settle on the
best terms possible
b. try to show that the value of service dominates
c. establish the contract as one for the sale of tangible goods
d. define itself as a merchant under Article 2 of the UCC
e. none of the other choices
39. Ready Construction buys a computer system from Ace that Ace will also service. Two years after the sale, a
disagreement develops. Ace has determined that the common law of contracts favors it. Article 2 favors Ready.
Ready should:
a. realize that the agreement is for the sale of goods, and so settle on the best terms possible
b. try to characterize the agreement as a service contract
c. show that the value of the system is greater than the value of the service
d. define itself as a merchant under Article 2 of the UCC
e. none of the other choices
40. A seller or buyer is considered a merchant by the UCC when he:
a. regularly deals in goods of the kind involved in the transaction
b. by occupation presents himself as having knowledge or skill specialized to the transaction
c. employs an agent or broker who holds himself out as having requisite knowledge or skill
d. any of the other specific choices
e. none of the other choices
41. Under the UCC, a merchant is not one who:
a. uses an agent who holds herself out as having special knowledge about the goods sold
b. has an Internet site that links to sellers of multiple goods
c. regularly deals in goods of the kind involved in transactions
d. presents himself as having skill specialized in the transactions
e. all of the other choices are included in the definition of a merchant
42. Under the UCC, a merchant is not one who:
a. uses an agent who holds herself out as having special knowledge about the goods sold
b. presents himself as having skill specialized in the transactions
c. regularly deals in goods of the kind involved in transactions
d. has business expertise used in transactions involving particular goods
e. all of the other choices are merchants under the UCC
43. By definition, a sale under Article 2 of the UCC requires that:
a. both parties involved be merchants
b. contracts be for goods or services; that the sale be between merchants; and that the sale take place in the
normal course of commerce
c. the product or service (good) be classified as a bailment
d. title to the goods pass from the seller to the buyer and that a price be paid for the good
e. all of the other choices
44. By definition, a sale under Article 2 of the UCC requires that:
a. both parties involved be merchants
b. contracts be for goods or services; that the sale be between merchants; and that the sale take place in the
normal course of commerce
c. the product or service (good) be classified as a bailment
d. the seller retains liability unless a warranty accompanies the goods
e. none of the other choices
45. Under UCC Article 2, a sale must involve the transfer of the to the goods involved in the sale.
a. title
b. will
c. deed
d. bill of sale
e. easement
46. Under UCC Article 2, a sale must involve the transfer of the to the goods involved in the sale.
a. easement
b. will
c. deed
d. bill of sale
e. none of the other choices are correct
47. The title represents the:
a. age of a thing
b. bill of sale of a thing
c. legal value of a thing
d. legal rights to ownership of a thing
e. price of a thing
48. The title represents the:
a. age of a thing
b. bill of sale of a thing
c. legal value of a thing
d. price of a thing
e. none of the other choices are correct
49. Article 2A of the UCC, recently adopted by most states, expands the UCC to cover:
a. sale of investment securities
b. sale of service contracts
c. sale of real estate
d. leases of personal property
e. none of the other choices
50. Article 2A of the UCC, recently adopted by most states, expands the UCC to cover:
a. sale of investment securities
b. sale of service contracts
c. sale of real estate
d. sales of intellectual property
e. none of the other choices
51. Most states have recently adopted to cover certain leases of personal property.
a. UCC Article 2A
b. UCC Article 2B
c. UCC Article 3
d. UCC Article 22
e. UCC Amendment 2A
52. Most states have recently adopted to cover certain leases of personal property.
a. UCC Amendment 2
b. UCC Article 2B
c. UCC Article 3
d. UCC Article 22
e. none of the other choices are correct
53. A person may hold legal title to a good if:
a. the good exists
b. the good has been identified to the contract
c. the good is in the possession of a third party
d. choices a and b are correct
e. none of the other choices are correct
54. In a sale under the UCC, title to goods passes when the goods:
a. arrive for shipment at a port or train or trucking facility
b. arrive at the buyer's facility
c. leave the seller's facility
d. when the goods are halfway between buyer and seller
e. any of the other choices would be allowed
55. If the parties to a sale under the UCC do not specify when the title to the goods passes, then, assuming the goods
did not have to be moved, title passes to the buyer when:
a. the seller delivers the title documents
b. the seller recognizes "payment in full"
c. the buyer inspects the goods
d. the buyer makes "substantial" payment
e. any of the other choices
56. If the parties to a sale under the UCC do not specify when the title to the goods passes, then, assuming the goods
did not have to be moved, title passes to the buyer when:
a. the seller recognizes "payment in full"
b. the seller ships the title documents and goods
c. the buyer inspects the goods
d. the buyer makes "substantial" payment
e. any of the other choices
57. If the parties to a sale under the UCC do not specify when the title to the goods passes, then, assuming goods have
to be shipped, title passes to the buyer when:
a. the buyer sends full payment
b. the seller completes all obligations regarding delivery
c. the buyer inspects the goods
d. the buyer makes "substantial" payment
e. any of the other choices
58. If the parties to a sale under the UCC do not specify when the title to the goods passes, then, assuming goods have
to be shipped, title passes to the buyer when:
a. the buyer delivers "payment in full"
b. the seller requests payment
c. the buyer inspects the goods
d. the buyer makes "substantial" payment
e. none of the other choices
59. If a good has been stolen and is then sold to an unsuspecting buyer:
a. the good title does not pass to the buyer
b. the good title passes to the buyer as long as he is unaware the good is stolen
c. the buyer must pay the rightful owner of the good
d. the buyer is liable for damages to the good and may have to serve jail time
e. the good title passes to the buyer whether or not he knows the good was stolen
