CHAPTER 17—FORMALITIES OF A SALE Key
1. Goods that are specifically made for the buyer and are of such an unusual nature that they are not suitable for
trade in the ordinary course of the seller’s business are called _____.
2. Which of the following is true of oral contract payments?
3. Which of the following descriptions best fits the term “receipt”?
4. Which of the following best describes the term “acceptance”?
5. A(n) _____ is a sale in which a seller or an agent of the seller orally asks for bids on goods and orally accepts
the highest bid.
6. Which of the following is true of an auction sale?
7. Macy’s, an auction house, was slated to put up ten paintings for auction. During the course of the auction, the
auctioneer announced that three of these paintings can be recalled at the discretion of the auction house. In such
a scenario, the seven remaining paintings will be known as goods offered _____.
8. Which of the following is true of the nature of writing required to satisfy the Statute of Frauds?
9. An oral contract can be enforced if the buyer has made a partial payment on the contract.
10. Writing is required when the person against whom enforcement of a sales contract is sought voluntarily
admits, in the course of legal proceedings, to having made the sales contract.
11. No writing is required in the case of nonresellable goods.
12. In an auction, the auctioneer is the one who makes the offer.
13. When a person makes a bid to start the sale, the auctioneer cannot refuse to accept this as a starting bid.
14. If a bid is made while the hammer is falling in acceptance of a prior bid, the auctioneer has the option to
reopen the bid.
15. Goods may be offered for sale in an auction with reserve or without reserve.
16. The terms of writing states that the writing need not indicate that a sale or contract to sell has been made.
17. A signature can be electronic as on an e-mail, as well as be written or stamped.
18. To satisfy the Statute of Frauds, a writing can be made only before the making of the sale.
19. Purchase orders, cash register receipts, sales tickets, invoices, and similar papers satisfy the requirements as
to a signature.
20. Explain nonresellable goods.