51) Blue Scales, Inc. entered into a contract to purchase 20,000 units of raw materials from
Scorpio, Inc. If Scorpio fails to deliver on its obligations, which of the following statements is
true?
A) Scorpio will have to pay the amount it has already received from Blue Scales.
B) Scorpio will have to pay the profits lost by Blue Scales.
C) Scorpio will have to pay whatever sum Blue Scales speculates as damages.
D) Scorpio will have to pay Blue Scales the price difference in purchasing from another supplier
plus court costs.
52) Emerald, Inc. enters into a contract to purchase 3,000 chipsets from Atlas, Inc. It agrees to
pay $10 for each chipset. Atlas manages to deliver only 2,700 chipsets on the stipulated day,
leading to a loss in profit for Emerald. The contract did not include a clause about the damages to
be paid. If a court decides that Atlas must pay monetary damages, which of the following types
of damages will be awarded by the court?
A) liquidated
B) nominal
C) compensatory
D) punitive
53) Pattern, Inc. enters into a contract to deliver 10,000 units of raw materials to Phoebus, Inc.
Pattern delivers the raw materials two days after the delivery date. Pattern offers to pay damages
based on a clause in the contract. What type of damages is Pattern paying?
A) liquidated
B) compensatory
C) punitive
D) nominal
54) Which of the following statements best describes reformation?
A) compelling a party to perform in such a way as to meet the terms of the contract
B) correcting the terms in an agreement so that they reflect the true understanding of the parties
C) replacing one party of a contract with another party
D) canceling a contract
55) Which of the following statements best describes specific performance?
A) compelling a party to perform in such a way as to meet the terms of the contract
B) correcting the terms in an agreement so that they reflect the true understanding of the parties
C) replacing one party of a contract with another party
D) canceling a contract
56) To obtain an injunction, the plaintiff must show the court that ________.
A) an enforceable liquidated damages clause exists in the contract
B) the defendant is engaged in the commission of a crime
C) the contract will be reviewed using an alternative dispute resolution method if the injunction
is not granted
D) dollar damages are inadequate and that irreparable harm will be done if the injunction is not
granted
57) Which of the following is true of rescission?
A) It is a court order compelling a party to perform in such a way as to meet the terms of the
contract.
B) It is sought by plaintiffs who wish to be in the position they were in before entering into the
contract.
C) It refers to the correction of terms in an agreement so that they reflect the true understanding
of the parties.
D) It is a temporary or permanent order of the court preventing a party to a contract from doing
something.
58) A court is likely to order specific performance when ________.
A) it rules that the plaintiff should be in the same position as it was in before entering into the
contract
B) the plaintiff seeks a correction in the terms of the agreement
C) the dollar damages are insufficient compensation for the breach of contract
D) it wishes to prevent a person from performing a particular action
59) Jennifer enters into a contract to purchase one of Richard’s sculptures. Richard is known for
his own unique style of sculpting. Due to time constraints, Richard refuses to create a sculpture
for Jennifer. If Richard breaches the contract, which of the following equitable remedies is the
court likely to order?
A) reformation
B) specific performance
C) injunction
D) rescission
60) Under the Uniform Commercial Code (UCC), one of the remedies for the seller resulting
from the buyer’s breach includes the right to ________.
A) recover the purchase price if the seller is unable to sell or dispose of goods
B) revoke an acceptance of goods under certain circumstances
C) recover damages after cancellation of the contract
D) obtain specific performance when the goods are unique or remedy at law is inadequate
61) Under the Uniform Commercial Code (UCC), a remedy available to the buyer if the seller
breaches a contract is the right to ________.
A) recover damages before cancellation of the contract
B) recover the purchase price if the seller is unable to sell or dispose of goods
C) recover damages for accepted goods even if the seller is not notified of the breach of contract
D) keep some goods and reject the others if the goods or tender fail to conform to the contract
62) Courts are reluctant to order specific performance if real estate is involved.
63) Nominal damages are awarded to enable the injured party to recover attorney’s fees.
64) An injunction is awarded when parties wish to correct the terms in an agreement so that they
reflect the true understanding of the parties.
65) Rescission is defined as the canceling of a contract.
66) The right to revoke an acceptance of goods under certain circumstances is a remedy available
to the buyer under the Uniform Commercial Code (UCC).
67) What are the standards set by the courts that the plaintiff-buyer must meet in order to recoup
lost profits when a seller has breached a contract?
68) How did the Supreme Court of Nebraska interpret Section 2-607(3)(a) of the Uniform
Commercial Code (UCC) in the Fitl v. Strek lawsuit?
69) Which of the following is a minimum provision that should be included in an e-contract?
A) a statement of how the goods are to be paid for by the buyer
B) a statement of how and when the goods will be delivered
C) a statement of who is the person authorized to take delivery
D) a statement of the seller’s permit to produce and sell goods
70) The Uniform Computer Information Transaction Act (UCITA) was developed to provide
________.
A) a standard form for licensing copyrighted information contained in books and magazines to
operators of websites
B) guidelines for the enforcement of electronic contracts and the licensing of information
C) guidelines only for the purchase and sale of computers worth more than $5,000
D) guidelines for the shipment of computer hardware by truck or rail
71) Which of the following was established by the Uniform Electronic Transcription Act
(UETA)?
A) Online signatures must be followed by written signatures within 30 days of the online
signatures.
B) Electronic signatures are not legally enforceable.
C) Laws governing electronic signatures must be the same in all states.
D) Signatures may not be denied legal enforceability solely because of their electronic form.
72) A contract that requires a fee of more than $5,000 is enforceable under the Uniform
Computer Information Transaction Act (UCITA) when ________.
A) the contract is authenticated
B) a condition subsequent is included in the contract
C) the seller (licensor) has satisfied the perfect tender rule
D) a physical copy of the contract has been sent to the buyer
73) Which of the following statements is true about e-signatures?
A) Laws governing e-signatures are uniform throughout the country.
B) E-signatures are not binding for contracts involving bank loans and brokerage accounts.
C) The Electronic Signatures in Global and National Commerce Act (E-SIGN) specifies that a
digital signature requires password authentication.
D) The E-SIGN law makes e-signatures binding and allows consumers and businesses to sign
contracts online.
74) The Uniform Electronic Transcription Act (UETA) has been adopted in whole or in part by
________ states.
A) fewer than 15
B) 27
C) 31
D) more than 40
75) Which of the following is an incorrect statement regarding laws governing e-signatures?
A) Laws governing e-signatures differ from state to state.
B) Some states prohibit documents from being signed with e-signatures.
C) The UETA seeks to promote diversity in e-signature laws.
D) The UETA indicates that a signature may not be denied legal enforceability solely because of
its electronic form.
76) Prior to World War II, the ________ was sufficient to handle most of the transactions in a
mainly agricultural society.
A) Uniform Commercial Code
B) Uniform Contracts Code
C) UCITA
D) common law of contracts
77) Which of the following is an incorrect statement regarding the scope of the UCITA?
A) The UCITA deals only with information that is electronically disseminated.
B) Under the UCITA, a computer information transaction is an agreement to create, transfer, or
license computer information.
C) Few provisions of the UCITA are similar to Article 2 of the UCC.
D) Under the UCITA, a licensing agreement may be interpreted by the courts using the express
terms of the agreement, as well as course of performance and usage.
78) Which of the following is a difference between the Uniform Computer Information
Transaction Act (UCITA) and Uniform Commercial Code (UCC)?
A) A contract that requires a fee of less than $250 is enforceable under the UCITA only if the
contract has been authenticated, whereas all contracts are enforceable under the UCC.
B) A contract that requires a fee of less than $250 is enforceable under the UCC only if the
contract has been authenticated, whereas all contracts are enforceable under the UCITA.
C) The UCITA allows the licensor to control the licensee’s right of use, but the UCC does not.
D) The UCC allows the licensor to control the licensee’s right of use, but the UCITA does not.
79) Under the UCITA, if a contract requires a fee of more than ________, it is enforceable only
if it is authenticated.
A) $500
B) $1,000
C) $2,000
D) $5,000
80) Laws governing e-signatures differ from state to state.
81) The Uniform Electronic Transcription Act (UETA) has been adopted in its entirety by all
fifty (50) states.
82) The National Conference of Commissioners issued the Uniform Computer Information
Transaction Act (UCITA).
83) The Uniform Computer Information Transaction Act (UCITA) does not deal with
information that is electronically disseminated.
85) The Uniform Computer Information Transaction Act (UCITA) does not permit click-wrap
agreements to contracts.
86) What was the impact of the Electronic Signatures in Global and National Commerce Act (E-
SIGN)? What guidelines did it provide on the possibility of forging electronic signatures?
87) Who are the parties benefitting from the Uniform Computer Information Transaction Act
(UCITA)? What are the consequences of allowing uniformity in click-wrap agreements?
88) The ________ drafted the Convention on Contracts for the International Sale of Goods.
A) Uniform Commerce Commission
B) European Commission
C) League of Nations Tribunal on Global Commerce Law
D) United Nations Commission on International Trade Law
89) An estimated ________ of all international trade is conducted among the 70 nations that
were signatories to the CISG as of April 2009.
A) 20 percent
B) one-third
C) 45 percent
D) two-thirds
90) Under the CISG, a contract is formed when ________.
A) the acceptance is mailed or otherwise transmitted
B) the acceptance letter is prepared by the buyer (offeree)
C) the buyer (offeree) receives a counteroffer from the seller
D) the seller (offeror) receives acceptance from the offeree
91) Under the UCC, a contract is formed when ________.
A) the acceptance is mailed or otherwise transmitted
B) the acceptance letter is prepared by the buyer (offeree)
C) the buyer (offeree) receives a counteroffer from the seller
D) the seller (offeror) receives acceptance from the offeree
92) Under the CISG, a sales contract of ________ is enforceable if it is oral.
A) no amount
B) less than $5,000
C) less than $500
D) any amount
93) Under the UCC, a sales contract of ________ is enforceable if it is oral.
A) no amount
B) less than $5,000
C) less than $500
D) any amount
94) Which of the following statements is true of the Convention on Contracts for the
International Sale of Goods (CISG)?
A) Parties to a contract can choose to adhere to all or part of the CISG, or they may select other
laws to govern their transactions.
B) Traditional contracts on sale of goods are not covered by the CISG.
C) The CISG is superseded by the Uniform Commercial Code (UCC) in most states.
D) The CISG requires a written contract for a sale of goods of $500 or more.
95) The Convention on Contracts for the International Sale of Goods (CISG) was drafted to
________.
A) reduce the acceleration of export and free trade
B) provide uniformity in international transactions
C) cover licenses of information for traditional copyrighted materials
D) reduce imports from Asia, Latin America, and Europe
96) The United Nations Commission on International Trade Law drafted the Convention on
Contracts for the International Sale of Goods to promote diversity in the law addressing
international transactions.
97) The CISG covers all contracts for the sale of goods in countries that have ratified it.
98) An oral sales contract of any amount is enforceable under the Convention on Contracts for
the International Sale of Goods (CISG).
99) The Convention on Contracts for the International Sale of Goods (CISG) overrides
conflicting state laws dealing with contracts.
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100) How has the shift toward market-oriented economies in many nations affected international
trade? How did the United Nations assist international trade?