37. Richard owns and operates a small business at an outdoor market where he sells fruits and vegetables. What does
the UCC specifically require of Richard with respect to his customers?
a. Observance of reasonable commercial standards of fair dealing
b. That he treat them all alike.
c. A clearly stated return policy.
d. No specific standards of behavior apply to Richard.
38. Karen has agreed to buy May’s car, but the two have not agreed on the price. When there is no agreement in a sales
contract as to price, what effect does it have on the contract?
a. There is a contract, with the price being whatever the seller decides.
b. There is a contract, with the price being a reasonable price at the time the agreement was made.
c. There is no contract, because the agreement is not definite and certain enough.
d. There is a contract, with the price being a reasonable price at the time of delivery.
39. Under Article 2 of the UCC, which of the following would be considered a sale?
a. Bill trades his car for a motorcycle.
b. Bill lends his car to his friend.
c. Bill puts up his car as security for a $500 loan.
d. Bill gives his car to his sister.
40. Shannon orally agrees to buy 500 telephone answering machines from Thomas for $25,000. Thomas delivers 300
answering machines to Shannon, who receives and accepts them. Which of the following is correct with regard to
this transaction?
a. Shannon can enforce the contract for the additional 200 machines.
b. The contract is enforceable only to the extent of the 300 machines that have been received and accepted.
c. The entire contract is in violation of the statute of frauds and cannot be enforced.
d. This is a bad deal and therefore unconscionable and unenforceable from the beginning.
41. To accommodate electronic commerce, which of the following was enacted or promulgated?
a. The UCC
b. The CISG
c. The UETA
d. GATT
42. Which of the following is not a requirement of the statute of frauds provision of Article 2 of the UCC?
a. Some writing or record that indicates a contract has been made
b. Signature of the party against whom enforcement is sought
c. A term specifying quantity
d. A term specifying price
43. The Article 2 battle of the forms provision is found in Section:
a. 2-201.
b. 2–205.
c. 2-207.
d. 2–209.
44. A(n) is a type of transaction generally involving three parties instead of two.
a. finance lease
b. consumer lease
c. sale
d. None of these.
45. The Code defines as “honesty in fact in the conduct or transaction concerned.”
a. good faith
b. unconscionability
c. merchantability
d. entrusting
46. A sequence of previous conduct between a buyer and a seller, which may be regarded as establishing an
understanding for interpreting an agreement between the two parties, is known as:
a. good faith.
b. a course of dealing.
c. a course of performance.
d. usage of trade.
47. Which of the following is true regarding unconscionability under the Code?
a. It is defined in Article 2 as “monstrously extortionately harsh, showing no regard for conscience.”
b. The Code denies or limits enforcement of an unconscionable contract for the sale of goods.
c. Unconscionability may be substantive, but it cannot be procedural.
d. All of the above.
48. Where there is no course of performance, usage of trade, or course of dealing, and where a contract is silent as to
the place of delivery, the place for delivery is:
a. the seller’s place of business.
b. wherever the goods were manufactured.
c. wherever the goods are located.
d. the buyer’s place of business.
49. A contract which does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise
valid, is enforceable in which of the following situations?
a. Where the goods have been delivered and accepted
b. Where payment has been accepted
c. Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of
business
d. All of these are situations where the contract would be enforceable.
50. With regard to uncertainty in a contract that falls within the scope of Article 2, which of the following is true?
a. Uncertainty will usually make the contract unenforceable.
b. Missing terms cannot be supplied at a later date.
c. Uncertainty as to incidental matters will seldom be fatal as long as the parties intend to form a contract.
d. Missing terms will cause the contract to be voidable, but the parties will have a chance to fill them in later.
51. Who among the following is most likely not considered a merchant according to Article 2 of the UCC?
a. Jim who owns a wholesale auto parts business.
b. Tom who, as a hobby, builds and sells birdhouses on the weekends.
c. Kay who sells her 3-year-old fishing boat to her neighbor.
d. Jan who is not knowledgeable about selling sailboats, but employs an experienced person in the trade.
52. In determining whether a contract containing both a sale of goods and a service is a UCC or general contract, the
majority of states follow the:
a. CISG.
b. predominant purpose test.
c. parol evidence test.
d. procedural or bargaining scrutiny.
53. The most important element in determining whether a sales contract has been made is the:
a. language of the contract.
b. fact that the terms of the offer and acceptance are exactly alike.
c. number of open terms.
d. intention of the parties to make a contract.
54. Mary and Renaldi Co. have dealt with each other for many, many years. Mary’s Boutique orders 100 assorted
lipsticks at $3.00 each from Renaldi Co. Renaldi sends back a confirmation letter stating that the shipment will be
made by UPS rather than by U.S. mail as usual. There is:
a. no contract, but a counteroffer.
b. a contract for shipment by UPS unless Mary objects.
c. a contract for shipment by UPS only if Mary agrees.
d. a contract for shipment by U.S. mail.
55. Gary, a partner in G & R Enterprises, went to a trade show and discussed with a manufacturer’s representative of
Foods 4 U, Inc. the purchase of three dozen food processors. A week after the trade show Gary received a signed
letter from the representative thanking Gary for visiting his booth and saying Gary’s order for three dozen Style 418B
food processors at $90 each would be shipped to his business address within 30 days. Can Gary be contractually
bound to accept and pay for the food processors?
a. If, after he returns from the trade show, Gary decides he only wants to purchase twelve food processors, he
would not have to pay for three dozen if they are shipped to him as long as he notifies Foods 4 U of the
change in quantity before it ships the goods.
b. Gary did not sign an order form, and an order this large would have to be in writing and signed by Gary to be
enforceable.
c. If Gary does not object in writing within ten days after receiving the letter, he can be bound to accept and pay
for the three dozen food processors.
d. The letter is not sufficient to bind either Gary or Foods 4 U, Inc. to the purchase and sale of the food
processors.
56. Edie telephoned the office supply store and agreed to buy a dozen boxes of CDs at $23 each. She then realized what
a good buy this was and called the store with a request to modify the contract to read two dozen boxes. What is the
consequence?
a. The modified contract is unenforceable.
b. The modified contract is void.
c. The modified contract is valid and enforceable.
d. There is no consideration, so the contract is void.
57. For $100 each, Helen agrees with Troy Tech to knit 14 sweaters for the soccer team in their school colors with their
names on the front and “Go Tech” on the back. After Helen has almost finished the last sweater, Troy Tech decides
it should spend the money on repairs to the locker room instead of on the sweaters. Does Helen’s contract have to
be in writing for her to enforce it?
a. No, because each sweater only cost $100
b. No, because they are specially manufactured sweaters
c. Yes, because the total cost is $1,400
d. Yes, because they are specially manufactured sweaters
58. In dealing with unconscionability:
a. most cases have involved low-income consumers.
b. courts have demonstrated an unwillingness to limit freedom of contract.
c. courts have applied the doctrine to the negotiation process, which involves substantive unconscionability.
d. courts have not considered inequality in the bargaining positions of the parties.
59. Ari makes a written offer to Linville, who replies with a conditional acceptance. Ari ships the goods, which Linville
accepts. A contract:
a. was formed when Linville conditionally accepted.
b. consists of the written terms to which Ari and Linville agreed, along with supplementary provisions of the
UCC.
c. consists only of the written terms to which Ari and Linville agreed.
d. was never formed.
60. Which of the following is not considered “goods“ within the meaning of Article 2?
a. An unborn calf
b. A field of corn still in the field
c. Timber which is still standing
d. All of these are goods under Article 2.
61. Which of the following is correct with respect to finance leases?
a. A finance lease generally involves three parties instead of two.
b. A finance lessor supplies the goods.
c. The finance lessor typically has special expertise as to the goods.
d. All of these are correct.
62. Which of the following is true about the CISG?
a. The full title is The United States Convention on Contracts for the International Sale of Goods.
b. It does not apply to contracts in which the primary obligation of the party furnishing the goods consists of
supplying labor or services.
c. The CISG governs the formation of the contract, the rights and obligations of the seller and buyer arising from
such contract, and the validity of the contract provisions.
d. All of these.
63. List four areas of contract law where the common law of contracts and the law of sales differ. Give both the
common law rule and the rule under Article 2.
64. What is a “merchant”? Identify four provisions in Article 2 which apply a different standard of conduct to merchants
and nonmerchants.
65.
a. What contracts are covered by Article 2 of the UCC? In other words, what is the scope of the
Article?
b. What types of transactions are outside the scope of Article 2?
66. What does Article 2 say with regard to the following?
a. Good faith.
b. Unconscionability.
c. Expansion of commercial practices.
67. Discuss the similarities or possible differences between the parol evidence rule under the common law of contracts
and the parol evidence rule found in Article 2.