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1. Contracts for the sale of real property are governed by the Uniform Commercial Code.
a. True
b. False
2. The Restatement of Contracts is another name for the UCC.
a. True
b. False
3. Under the UCC, offers need price, subject matter, and quantity to be definite enough.
a. True
b. False
4. An offer is effectively communicated upon mailing or dispatch.
a. True
b. False
5. Revocation can be valid any time prior to acceptance.
a. True
b. False
6. A merchant's firm offer requires consideration to be valid.
a. True
b. False
7. Options require consideration to be valid.
a. True
b. False
8. Under common law, a counteroffer is also a rejection.
a. True
b. False
9. The UCC Battle of the Forms provision allows additional terms in an acceptance without invalidating the
acceptance.
a. True
b. False
10. The UCC rules on additional terms in acceptance are the same for merchants and nonmerchants.
a. True
b. False
11. Contracts for services are governed by the UCC.
a. True
b. False
12. An acceptance of a stipulated means offer by a different means is effective upon receipt.
a. True
b. False
13. Common law does not dictate amounts required for consideration.
a. True
b. False
14. Contracts for the sale of land must be in writing to be enforceable.
a. True
b. False
15. A contract for the sale of a car for $700, under the old UCC, must be in writing to be enforceable.
a. True
b. False
16. A contract to solicit subscribers through pop-up Internet ads is considered a good under the UCC because it is a list
of names.
a. True
b. False
17. Implied contracts are unenforceable.
a. True
b. False
18. Quasi contracts are implied-in-law contracts.
a. True
b. False
19. A UCC offer is valid with the subject matter stated even though no price is given.
a. True
b. False
20. "I'll take it, but you must deliver," is a valid acceptance.
a. True
b. False
21. An acceptance by a merchant in response to an offer by a merchant cannot contain any additional terms or it will
be treated as a counteroffer under the UCC.
a. True
b. False
22. Parol evidence is always admissible for challenging contract terms.
a. True
b. False
23. "I'm thinking of selling my CD player," is an example of offer language.
a. True
b. False
24. "I'll take the bike for $75, but first I have to sell my fish tank," is an example of a valid acceptance.
a. True
b. False
25. "This offer is limited to these terms," means that between merchants only immaterial terms added in the acceptance
will be part of the contract.
a. True
b. False
26. The parol evidence rule does not apply in UCC contracts.
a. True
b. False
27. The CISG follows the mirror image rule in formation.
a. True
b. False
28. "Drive my car to Albuquerque, and I'll pay you $500," is not a valid offer.
a. True
b. False
29. Under the CISG, acceptance is effective only upon receipt.
a. True
b. False
30. Under ESIGN, clicking on a tab that reads “I accept” is a valid acceptance to an offer.
a. True
b. False
31. An executory contract is one that is fully performed.
a. True
b. False
32. The UCC has no timing rules for acceptance.
a. True
b. False
33. A contract must be in a formal writing to satisfy the statute of frauds.
a. True
b. False
34. E-Sign requires that there be faxes or written verification of electronic contracts.
a. True
b. False
35. UETA has not yet been adopted in all of the states.
a. True
b. False
36. UETA does not apply when there is an applicable statute of frauds.
a. True
b. False
37. A contract for the sale of potatoes is not governed by the UCC.
a. True
b. False
38. Under the UCC, an acceptance followed by additional terms is a counteroffer and a rejection.
a. True
b. False
39. A contract for rebinding 500 books at a cost of $1.50/book is governed by the UCC.
a. True
b. False
40. The above book contract must be in writing to be valid.
a. True
b. False
41. A record, such as an e-mail or fax, now satisfies the writing requirement under both the UCC and common law.
a. True
b. False
42. Point-and-click is a valid means of forming a contract if the parties had adequate knowledge of the terms and
conditions of the agreement in advance.
a. True
b. False
43. E-Sign is a federal law that requires written signatures for electronic contracts to be valid.
a. True
b. False
44. Under the UCC, a contract for the sale of a car for $700 need not have a record of the contract to be enforceable.
a. True
b. False
45. A contract for termite extermination at a home would be governed by the UCC.
a. True
b. False
46. “Point and click” is not sufficient for acceptance under UETA.
a. True
b. False
47. A three-year warranty on an oven need be evidenced by a record to be enforceable.
a. True
b. False
48. A contract for the sale of a $12.2 million Lear jet would be governed by common law because a document of title is
involved.
a. True
b. False
49. “Would you be interested in selling your Prius for $21,000?”, is not an offer.
a. True
b. False
50. Which of the following contract subject matters would not be covered under the UCC?
a. a contract for the sale of a mobile home from the manufacturer
b. a contract for the sale of a mobile home from a previous owner
c. a contract for the sale of a mobile home plus its lot
d. All of the above are under the UCC.
51. Which of the following is not required for a valid UCC offer?
a. quantity
b. payment terms
c. subject matter
d. both b and c
e. a, b, and c
52. Which of the following is effective upon mailing or dispatch?
a. offers
b. rejections
c. counteroffers
d. revocation
e. none of the above
53. To be valid, a UCC merchant's firm offer:
a. must be supported by consideration.
b. must be evidenced by a record.
c. must be signed by both parties.
d. all of the above
54. Under both UCC and common law, a counteroffer:
a. must be accepted by the original offeror.
b. is effective upon mailing or dispatch.
c. is also a rejection.
d. none of the above
55. Under the UCC and between nonmerchants, additional terms in acceptance:
a. constitute a counteroffer.
b. are part of the contract.
c. result in rejection or the original offer.
d. none of the above
56. Under the UCC and between merchants, additional terms in acceptance:
a. are part of the contract unless they are material.
b. are part of the contract unless the offer was limited.
c. result in rejection of the original offer.
d. none of the above
57. The mailbox rule applies to:
a. all acceptances.
b. acceptances communicated through the offer's stipulated means.
c. acceptances under UCC only.
d. revocations and acceptances.
e. none of the above
58. Which is not a requirement for a merchant's confirmation memorandum?
a. evidenced by a record
b. signed by both parties
c. underlying oral agreement
d. none of the above
59. Which of the following contracts would not have to be in writing under the old UCC?
a. a contract for the sale of an easement for $450
b. a contract for consulting services for $10,000 over the next 90 days
c. a three-year advertising contract
d. a contract for the sale of furniture for $700
e. All of the above must be in writing.
60. The following series of events occurred between Bull's Meat Market and The Butcher:
May 1 - The Butcher faxes Bull's and offers to buy 200 lbs. of T-bone steak at $3.29 per lb.
May 2 - Bull's faxes back: "Price is okay. Payment prior to delivery."
Bull's and The Butcher:
a. have a contract on May 2 with the payment term.
b. have a contract on May 2 without the payment term.
c. do not have a contract.
d. none of the above
61. Jane Linden is negotiating with James Paul to buy his 1987 Toyota MR5. The following excerpts from letters have
occurred so far:
Jane: "I would be interested in purchasing your MR5."
James: "I am thinking of selling my MR5."
Jane: "I am considering selling my diamond tennis bracelet to buy your MR5."
Which of the following statements is true?
a. James and Jane have a contract to sell the MR5.
b. James and Jane do not have a contract to sell the MR5.
62. John Freeden is negotiating with Bill Murray to buy Bill's mountain bicycle. The following conversation has taken
place:
John: "I will buy your mountain bike for $325.00."
Bill: "I couldn't sell it for less than $375.00."
John: "I'll take it for $375.00."
Which of the following statements is true?
a. Bill and John have a contract for the sale of the bike at $375.00.
b. Bill and John have a contract for the sale of the bike at $325.00.
c. Bill and John do not have a contract.
d. none of the above
63. Jerry Montray is negotiating with Pamela Barnes for the purchase of her mountain bike. The following conversation
has taken place:
Jerry: "I will buy your mountain bike for $375.00."
Pamela: "I will sell it to you."
Jerry: "Good. The tire pump is included."
Which of the following statements is true?
a. Jerry and Pamela have a contract for the bike at $375.00.
b. Jerry and Pamela do not have a contract for the bike at $375.00.
c. Jerry and Pamela have a contract for the bike at $375.00 with the tire pump.
d. none of the above
64. Which of the following is not a risk associated with international contracting?
a. Currency exchange rates
b. Transportation costs
c. Fee collection
d. None of the above
65. Ann Frazer has just purchased a new Maserati. Ann will be borrowing the money from her bank. Ann signed the
contract at 8:00 PM at the dealership and her bank will not be open until 10:00 AM the following day. Ann:
a. has a contract regardless of whether her bank approves her loan.
b. has made a conditional acceptance and has no contract.
c. will be excused from her contract if the bank does not approve her loan.
d. none of the above
