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STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ13—1ȱQUIZȱ
LegalȱConceptsȱ
Directions:ȱFillȱinȱtheȱblank(s)ȱwithȱtheȱmostȱappropriateȱtermȱorȱphraseȱtoȱcompleteȱ
theȱsentence.ȱ
ȱȱ1.ȱ ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱareȱgoodsȱthatȱspecificallyȱfulfillȱtheȱobligaȬ
tionsȱunderȱtheȱcontract.ȱ
ȱȱ1.ȱ_____________ȱ
ȱȱ2.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱisȱaȱpersonȱorȱcompanyȱwhoȱȱsellsȱ
goods.ȱ
ȱȱ2.ȱ_____________ȱ
ȱȱ3.ȱAȱcontractȱmayȱbeȱdeclaredȱȱȱȱȱȱȱȱȱ?ȱȱȱ___ȱifȱitȱcontainsȱ
anyȱgrosslyȱunfairȱclauses.ȱ
ȱȱ3.ȱ_____________ȱ
ȱȱ4.ȱTheȱȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱrequiresȱtheȱtenderȱofȱgoodsȱtoȱmatchȱ
theȱbuyer’sȱorderȱabsolutely.ȱ
ȱȱ4.ȱ_____________ȱ
ȱȱ5.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱisȱaȱreceiptȱthatȱservesȱasȱaȱwrittenȱeviȬ
denceȱofȱtheȱtransferȱofȱownershipȱofȱgoods.ȱ
ȱȱ5.ȱ_____________ȱ
ȱȱ6.ȱAȱpersonȱwhoȱpurchasesȱgoodsȱisȱa(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱ.ȱȱȱ6.ȱ_____________ȱ
ȱȱ7.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱoccursȱwhenȱtheȱtransferȱofȱgoodsȱwillȱ
takeȱplaceȱinȱtheȱfuture.ȱ
ȱȱ7.ȱ_____________ȱ
ȱȱ8.ȱTangible,ȱmovable,ȱpersonalȱpropertyȱsuchȱasȱȱ ȱȱȱȱȱȱȱ
clothingȱorȱfoodȱisȱcalledȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱ.ȱ
ȱȱ8.ȱ_____________ȱ
ȱȱ9.ȱTwoȱpartiesȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱwhenȱtheyȱexchangeȱgoodsȱforȱ
goods.ȱ
ȱȱ9.ȱ_____________ȱ
10.ȱ ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱȱisȱtheȱconsiderationȱforȱaȱsale.ȱ10.ȱ_____________ȱ
LegalȱApplicationsȱ
11.ȱWhileȱonȱtheirȱtwoȬweekȱhoneymoon,ȱKeithȱandȱReginaȱstayedȱatȱaȱhotelȱwhereȱ
theȱnightlyȱrateȱwasȱ$65.ȱTheyȱboughtȱtwoȱrollsȱofȱfilmȱandȱaȱbatteryȱforȱ$19.95ȱ
atȱaȱtouristȱshop.ȱKeithȱtookȱsomeȱofȱtheirȱclothesȱtoȱImperialȱCleanersȱandȱ
agreedȱtoȱpayȱ$45ȱtoȱhaveȱthemȱcleaned.ȱReginaȱtradedȱoneȱofȱherȱbraceletsȱforȱaȱ
handȬcarvedȱwoodenȱgiraffe.ȱDoȱanyȱofȱtheseȱtransactionsȱqualifyȱasȱaȱsale?ȱExȬ
plainȱyourȱanswer.ȱ
Chapter 13 Sales Contracts 3-1
STUDENT _______________________________________ CLASS _______________________ DATE _________
LESSONȱ13—1ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ
spaceȱisȱneededȱforȱanswers.ȱ
ȱ
1.ȱBettyȱEpsteinȱvisitedȱaȱbeautyȱparlorȱoperatedȱbyȱGiannattasio.ȱDuringȱtheȱ
treatment,ȱGiannattasioȱusedȱaȱproductȱcalledȱZotosȱ30Ȭdayȱcolor,ȱmanufacturedȱ
wasȱnoȱsaleȱofȱanyȱ“good”ȱtoȱEpsteinȱandȱthereforeȱtheȱUCCȱdoesȱnotȱapply.ȱAreȱ
allȱthreeȱofȱtheȱdefendantsȱincorrect?ȱExplain.ȱ[Epsteinȱv.ȱGiannattasio,ȱ197ȱA.ȱ2dȱ
ȱ
ȱ
ȱ
2.ȱD.ȱR.ȱCurtisȱisȱaȱbrokerageȱfirmȱthatȱactsȱasȱaȱgoȬbetweenȱforȱproducersȱofȱcomȬ
modities,ȱsuchȱasȱcrops,ȱandȱpurchasersȱofȱtheȱcommodities.ȱCurtisȱcontactedȱ
GrantȱMathewsȱtoȱdiscussȱtheȱpurchaseȱofȱMathews’ȱspringȱwheatȱcrop.ȱMaȬ
thewsȱagreedȱtoȱsellȱ30,000ȱbushelsȱofȱwheatȱtoȱCurtis.ȱAlthoughȱtheyȱdiscussedȱ
fusedȱtoȱsellȱCurtisȱtheȱwheatȱafterȱCurtisȱplacedȱtheȱscaleȱatȱ14ȱpercent.ȱCurtisȱ
thenȱhadȱtoȱpurchaseȱtheȱwheatȱelsewhereȱandȱsuedȱMathewsȱforȱdamages.ȱMaȬ
thewsȱcontendedȱthatȱbecauseȱthereȱwasȱnoȱagreedȬuponȱscale,ȱthereȱwasȱnoȱ
agreedȬuponȱprice,ȱandȱtherefore,ȱthereȱwasȱnoȱcontract.ȱIsȱMathewsȱcorrect?ȱ
3-2 Chapter 13 Sales Contracts
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ13—1ȱRETEACHȱ
Directions:ȱFindȱandȱshadeȱinȱtheȱanswerȱtoȱeachȱquestionȱinȱtheȱtableȱandȱthenȱwriteȱ
eachȱanswerȱinȱtheȱanswerȱcolumn.ȱWriteȱtheȱremainingȱunshadedȱlettersȱinȱorderȱ
fromȱleftȱtoȱrightȱtoȱrevealȱaȱstatementȱaboutȱclaims.ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱAnswersȱ
ȱȱ1.ȱWhatȱtypeȱofȱcontractȱisȱgrosslyȱunfair?ȱ1._______________________ȱ
ȱȱ2.ȱWhatȱareȱcontractsȱthatȱinvolveȱtheȱimmediateȱ
transferȱofȱgoodsȱfromȱtheȱsellerȱtoȱtheȱbuyer?ȱ
2._______________________ȱ
ȱȱ3.ȱȱ Whatȱisȱaȱreceiptȱthatȱservesȱasȱevidenceȱofȱaȱ
transferȱofȱownershipȱofȱgoods?ȱ
3._______________________ȱ
ȱȱ4.ȱȱ WhatȱtransactionȱoccursȱwhenȱtheȱbuyerȱdeȬ
liversȱtheȱagreedȱpriceȱandȱtheȱsellerȱacceptsȱit?ȱ
4._______________________ȱ
ȱȱ5.ȱWhatȱisȱaȱpersonȱorȱcompanyȱwhoȱsellsȱgoodsȱ
called?ȱ
5._______________________ȱ
ȱȱ6.ȱWhatȱisȱaȱpersonȱorȱcompanyȱwhoȱpurchasesȱ
goodsȱcalled?ȱ
6._______________________ȱ
ȱȱ7.ȱȱ Whatȱtransactionȱinvolvesȱaȱtransferȱofȱgoodsȱ
inȱtheȱfuture?ȱ
7._______________________ȱ
ȱȱ8.ȱWhatȱkindȱofȱtransactionȱinvolvesȱanȱexchangeȱ
ofȱgoods?ȱ
8._______________________ȱ
ȱȱ9.ȱWhatȱisȱtangible,ȱmovable,ȱpersonalȱpropertyȱ
called?ȱ
9._______________________ȱ
10.ȱWhatȱisȱtheȱconsiderationȱforȱaȱsale?ȱ10.______________________ȱ
ȱ
ȱ
PȱAȱYȱMȱEȱNȱTȱCȱOȱNȱTȱ
TȱGȱOȱOȱDȱSȱSȱAȱLȱEȱSȱ
Chapter 13 Sales Contracts 3-3
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ13—1ȱENRICHMENTȱ
Thisȱlessonȱdefinedȱunconscionableȱsalesȱcontracts—thoseȱthatȱareȱgrosslyȱunfairȱ
andȱoppressiveȱandȱthatȱoffendȱanȱhonestȱperson’sȱconscienceȱandȱsenseȱofȱjustice.ȱ
Theȱtermsȱtoȱtheȱcontractȱneedȱnotȱbeȱcriminalȱnorȱviolateȱaȱstatute,ȱbutȱtheyȱareȱunȬ
ethical.ȱInterviewȱaȱlawyerȱorȱreviewȱaȱlegalȱdatabaseȱtoȱfindȱanȱexampleȱofȱaȱcaseȱ
involvingȱanȱunconscionableȱsalesȱcontract.ȱThenȱanswerȱtheȱfollowingȱquestions.ȱ
ȱ
1.ȱWhyȱdidȱtheȱdefendantȱconsiderȱtheȱcontractȱtoȱbeȱunconscionable?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱDidȱtheȱcourtȱfindȱforȱtheȱdefendant?ȱWhyȱorȱwhyȱnot?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
3.ȱDidȱtheȱcourtȱrefuseȱtoȱenforceȱtheȱcontract?ȱDidȱtheȱcourtȱenforceȱtheȱcontractȱ
withoutȱtheȱunconscionableȱclause?ȱDidȱtheȱcourtȱlimitȱtheȱclause’sȱapplicationȱ
soȱthatȱtheȱcontractȱwasȱnoȱlongerȱunfair?ȱ
3-4 Chapter 13 Sales Contracts
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ13—2ȱQUIZȱ
LegalȱConceptsȱ
Directions:ȱPlaceȱaȱYȱforȱYesȱorȱanȱNȱforȱNoȱinȱtheȱAnswersȱcolumnȱtoȱindicateȱtheȱ
correctȱanswer.ȱ
ȱAnswersȱ
ȱ
ȱȱ1.ȱAreȱoralȱsalesȱcontractsȱusuallyȱenforceableȱinȱcourt?ȱȱȱ1.ȱ_____ȱ
ȱȱ2.ȱCanȱeitherȱpartyȱbreachȱaȱcontract?ȱȱ ȱȱ2.ȱ_____ȱ
ȱȱ3.ȱUnderȱtheȱlawȱofȱsalesȱofȱgoods,ȱareȱnewȱtermsȱorȱtermsȱinȱaȱconȬ
tractȱtreatedȱasȱaȱproposalȱforȱtheȱadditionȱtoȱtheȱcontract?ȱ
ȱȱ3.ȱ_____ȱ
ȱȱ4.ȱIsȱaȱcontractȱenforceableȱbeyondȱtheȱstatedȱnumberȱorȱquantityȱofȱ
goods?ȱ
ȱȱ4.ȱ_____ȱ
ȱȱ5.ȱIsȱtheȱsignatureȱofȱtheȱsuingȱpartyȱsufficientȱtoȱproveȱaȱsalesȱconȬ
tractȱbetweenȱmerchants?ȱ
ȱȱ5.ȱ_____ȱ
ȱȱ6.ȱDoesȱtheȱreceivingȱofȱgoodsȱautomaticallyȱmakeȱanȱoralȱcontractȱ
bindingȱunderȱtheȱStatuteȱofȱFrauds?ȱ
ȱȱ6.ȱ_____ȱ
ȱȱ7.ȱCanȱaȱbuyerȱacceptȱgoodsȱbyȱsimplyȱusingȱthem?ȱȱȱ7.ȱ_____ȱ
ȱȱ8.ȱIsȱanȱoralȱcontractȱalwaysȱenforceableȱinȱfullȱwhenȱtheȱsellerȱhasȱ
acceptedȱpartialȱpaymentȱforȱtheȱgoods?ȱ
ȱȱ8.ȱ_____ȱ
ȱȱ9.ȱCanȱanȱoralȱcontractȱforȱnonȬsalableȱgoodsȱbeȱenforcedȱifȱtheȱselȬ
lerȱhasȱnotȱyetȱbegunȱtoȱmanufactureȱthem?ȱ
ȱȱ9.ȱ_____ȱ
10.ȱIfȱaȱcontractȱinvolvesȱgoodsȱthatȱareȱindivisible,ȱcanȱitȱbeȱenȬ
forcedȱinȱfull?ȱ
10.ȱ_____ȱ
LegalȱApplicationȱ
11.ȱJulieȱCignaȱwentȱtoȱHumble’sȱDecoratingȱCenterȱandȱorallyȱorderedȱ20ȱboxesȱofȱ
ceramicȱtileȱforȱanȱapartmentȱcomplexȱsheȱowns.ȱEachȱboxȱisȱworthȱ$150.ȱJulieȱ
toȱacceptȱandȱpayȱforȱonlyȱ7ȱadditionalȱboxesȱofȱtile.ȱCanȱHumble’sȱforceȱJulieȱtoȱ
payȱforȱtheȱremainingȱ10ȱboxesȱofȱtile?ȱExplainȱyourȱanswer.ȱAttachȱanȱaddiȬ
tionalȱpage,ȱifȱnecessary.ȱ
Chapter 13 Sales Contracts 3-5
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ13—2ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ
spaceȱisȱneededȱforȱanswers.ȱ
ȱ
1.ȱBatemanȱorallyȱagreedȱtoȱsupplyȱL.T.V.ȱAerospaceȱCorporationȱwithȱpackingȱ
casesȱmadeȱtoȱL.T.V.’sȱspecifications.ȱTheȱcasesȱwereȱtoȱbeȱusedȱtoȱtransportȱcerȬ
liveryȱofȱtheȱcases.ȱBatemanȱsuedȱL.T.V.,ȱbutȱL.T.V.ȱraisedȱtheȱdefenseȱofȱtheȱ
StatuteȱofȱFrauds,ȱasȱthereȱwasȱnoȱwriting.ȱSinceȱthisȱisȱanȱoralȱagreement,ȱisȱitȱ
enforceable?ȱExplain.ȱ[L.T.V.ȱCorp.,ȱv.ȱBateman,ȱ492ȱS.W.ȱ2dȱ703ȱ(Tex.ȱApp.ȱ1973)]ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱPollackȱenteredȱintoȱnegotiationsȱtoȱpurchaseȱaȱvehicleȱfromȱNemetȱMotors.ȱAsȱaȱ
resultȱofȱreachingȱanȱagreedȬuponȱpurchaseȱprice,ȱPollackȱgaveȱNemetȱaȱcheckȱ
forȱ$455.00ȱasȱaȱdeposit,ȱwhichȱNemetȱcashed.ȱOnȱtheȱcheck,ȱPollackȱwroteȱ“DeȬ
$13,000.”ȱWhenȱNemetȱattemptedȱtoȱraiseȱtheȱpurchaseȱprice,ȱPollackȱsuedȱtoȱenȬ
forceȱtheȱcontract.ȱNemetȱallegedȱthatȱthereȱwasȱnoȱwritingȱwhichȱevidencedȱtheȱ
contract.ȱIsȱNemet’sȱargumentȱvalid?ȱExplain.ȱ[Pollackȱv.ȱNemetȱMotors,ȱ561ȱ
ȱ
3-6 Chapter 13 Sales Contracts
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ13—2ȱRETEACHȱ
ȱ
Directions:ȱCircleȱtheȱanswersȱtoȱeachȱquestionȱinȱtheȱpuzzleȱbelow.ȱAnswersȱmayȱ
appearȱinȱhorizontalȱorȱverticalȱform.ȱTheyȱmayȱalsoȱbeȱwrittenȱbackwardsȱorȱfromȱ
theȱbottomȱofȱtheȱpuzzleȱtoȱtheȱtop.ȱ
ȱ
ȱȱ1.ȱWhatȱruleȱholdsȱtheȱsaleȱofȱgoodsȱforȱ$500ȱorȱmoreȱmustȱbeȱevidencedȱbyȱ
writingȱinȱorderȱtoȱbeȱenforceableȱinȱcourt?ȱ
ȱȱ2.ȱWhatȱmustȱbeȱstatedȱaboutȱgoodsȱforȱaȱcontractȱtoȱbeȱenforced?ȱȱ
ȱȱ3.ȱWhatȱgroupȱofȱsellersȱareȱgovernedȱbyȱaȱvariationȱinȱtheȱStatuteȱofȱFrauds?ȱ
ȱȱ4.ȱHowȱmanyȱdaysȱdoesȱaȱmerchantȱhaveȱtoȱsendȱaȱwrittenȱobjectionȱtoȱaȱconȬ
firmationȱofȱanȱoralȱcontractȱwithȱanotherȱmerchant?ȱȱ
ȱȱ5.ȱWhatȱcanȱaȱbuyerȱdoȱtoȱgoods,ȱotherȱthanȱuseȱorȱconsumeȱthem,ȱthatȱshowsȱ
hisȱorȱherȱacceptanceȱofȱthem?ȱ
ȱȱ6.ȱWhatȱmustȱaȱbuyerȱdoȱinȱadditionȱtoȱreceivingȱgoodsȱtoȱbeȱboundȱbyȱtheȱconȬ
tract?ȱ
ȱȱ7.ȱIsȱtheȱsignatureȱofȱtheȱsuingȱorȱtheȱsuedȱpartyȱnecessaryȱtoȱenforceȱaȱcontractȱ
betweenȱmerchants?ȱȱ
ȱȱ8.ȱWhatȱareȱgoodsȱcalledȱwhenȱtheyȱareȱnotȱsuitableȱforȱsaleȱtoȱothers?ȱȱ
ȱȱ9.ȱWhatȱkindȱofȱpaymentȱtoȱtheȱsellerȱcausesȱaȱcontractȱtoȱbeȱcompletelyȱenȬ
forceable?ȱȱ
10.ȱWhatȱruleȱholdsȱtheȱsaleȱofȱgoodsȱforȱ$500ȱorȱmoreȱmustȱbeȱevidencedȱbyȱaȱ
writingȱinȱorderȱtoȱbeȱenforceableȱinȱcourt?ȱ
ȱ
PȱAȱRȱTȱLȱYȱIȱDȱSȱRȱDȱ
OȱPȱAȱAȱFȱPȱBȱTȱTȱCȱAȱ
NȱOȱLȱPȱBȱTȱAȱSȱOȱNȱEȱ
Chapter 13 Sales Contracts 3-7
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ13—2ȱENRICHMENTȱ
Asȱyouȱlearnedȱinȱthisȱchapter,ȱtheȱUniformȱCommercialȱCodeȱappliesȱspecialȱrulesȱ
toȱmerchants.ȱSelectȱgoodsȱ(suchȱasȱanȱautomobile,ȱcomputer,ȱorȱsportsȱequipment)ȱ
thatȱyouȱorȱyourȱfamilyȱowns.ȱIdentifyȱfromȱwhomȱtheyȱwereȱpurchased,ȱandȱanȬ
swerȱtheȱfollowingȱquestions.ȱȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱWasȱtheȱpurchaseȱmadeȱfromȱaȱmerchantȱorȱcasualȱseller?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
3.ȱCompareȱandȱcontrastȱhowȱtheȱrightsȱandȱobligationsȱofȱyouȱandȱtheȱmerchantȱ
areȱsimilarȱtoȱorȱdifferentȱfromȱtheȱrightsȱandȱobligationsȱofȱtheȱcasualȱsellerȱunȬ
derȱtheȱUCC?ȱ
3-8 Chapter 13 Sales Contracts
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱ
TESTȱ
CHAPTERȱ13
SECTION I—IDENTIFY LEGAL TERMS
Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ
hetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱw
Answers
ȱȱ1.ȱAȱcontractȱinȱwhichȱownershipȱofȱgoodsȱtransfersȱimmediatelyȱ
fromȱtheȱsellerȱtoȱtheȱbuyerȱforȱaȱpriceȱisȱaȱcontractȱtoȱsell.ȱ
1. _____
ȱȱ2.ȱWhenȱpartiesȱexchangeȱgoodsȱforȱgoods,ȱtheȱsaleȱisȱaȱbarter.ȱ 2. _____
ȱȱ3.ȱTheȱUniformȱCommercialȱCodeȱ(UCC)ȱgovernsȱsalesȱofȱgoodsȱandȱ
contractsȱtoȱsellȱgoodsȱinȱtheȱfuture.ȱ
3. _____
ȱȱ4.ȱUnderȱtheȱlawȱofȱsalesȱofȱgoods,ȱnewȱtermsȱorȱtermsȱinȱaȱcontractȱ
areȱtreatedȱasȱaȱproposalȱforȱadditionȱtoȱtheȱcontract.ȱ
4. _____
ȱȱ5.ȱTheȱbillȱofȱsaleȱisȱabsoluteȱproofȱofȱownership.ȱ 5. _____
ȱȱ6.ȱContractsȱofȱadhesionȱareȱmoreȱlikelyȱtoȱbeȱunconscionable.ȱ 6. _____
ȱȱ7.ȱWhenȱownershipȱtransfersȱfromȱoneȱpartyȱtoȱanother,ȱsoȱdoȱtheȱ
useȱandȱenjoymentȱofȱtheȱproperty.ȱ
7. _____
ȱȱ8.ȱCasualȱsellersȱareȱalsoȱconsideredȱmerchants.ȱ 8. _____
ȱȱ9.ȱBetweenȱmerchants,ȱtheȱsignatureȱofȱtheȱpartyȱwhoȱisȱsuingȱmayȱ
sufficeȱtoȱproveȱanȱotherwiseȱunenforceableȱsalesȱcontract.ȱ
ȱȱ9.ȱ_____ȱ
10.ȱAnȱoralȱcontractȱisȱbindingȱwhenȱtheȱgoodsȱareȱreceived.ȱ10.ȱ_____ȱ
Chapter 13 Sales Contracts 3-9
SECTION II—THINK CRITICALLY ABOUT LEGAL CONCEPTS
Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ
representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ
ȱȱ Answersȱ
11.ȱConsiderationȱforȱaȱsaleȱorȱcontractȱtoȱsellȱgoodsȱmayȱbeȱexȬ
pressedȱinȱ(a)ȱbarter,ȱ(b)ȱprice,ȱ(c)ȱservices,ȱ(d)ȱallȱofȱtheseȱ
11._______ȱ
clothing,ȱ(b)ȱdogs,ȱ(c)ȱpatentsȱandȱcopyrights,ȱ(d)ȱanyȱofȱtheseȱ
13.ȱAcceptanceȱofȱgoodsȱoccursȱwhenȱ(a)ȱtheȱgoodsȱareȱusedȱorȱreȬ
sold,ȱ(b)ȱtheȱbuyerȱhasȱagreedȱbyȱwordsȱorȱconductȱthatȱtheȱ
goodsȱreceivedȱareȱsatisfactory,ȱ(c)ȱtheȱbuyerȱfailsȱtoȱrejectȱtheȱ
goodsȱwithinȱaȱreasonableȱlengthȱofȱtime,ȱ(d)ȱallȱofȱtheseȱ
13._______ȱ
14.ȱWhenȱbothȱpartiesȱareȱmerchants,ȱaȱnewȱtermȱinsertedȱbyȱtheȱ
offereeȱautomaticallyȱbecomesȱpartȱofȱtheȱcontractȱifȱ(a)ȱtheȱofȬ
ferorȱfailsȱtoȱobjectȱwithinȱaȱreasonableȱtime,ȱ(b)ȱtheȱgoodsȱareȱ
acceptedȱbyȱtheȱbuyer,ȱ(c)ȱdeliveryȱisȱmade,ȱ(d)ȱtheȱfinalȱpayȬ
mentȱisȱmadeȱ
14._______ȱ
15.ȱȱ Unconscionableȱcontractsȱareȱ(a)ȱcriminalȱinȱnature,ȱ(b)ȱnullȱandȱ
void,ȱ(c)ȱunethical,ȱ(d)ȱallȱofȱtheseȱ
15._______ȱ
16.ȱIfȱaȱnewȱtermȱinsertedȱintoȱtheȱcontractȱbyȱtheȱoffereeȱisȱmateȬ
rial,ȱitȱisȱincludedȱinȱtheȱcontractȱ(a)ȱifȱtheȱofferorȱdoesn’tȱnoticeȱ
it,ȱ(b)ȱifȱtheȱoffereeȱthinksȱtheȱofferorȱwon’tȱmind,ȱ(c)ȱifȱtheȱofȬ
ferorȱfailsȱtoȱobjectȱwithinȱaȱreasonableȱtime,ȱ(d)ȱonlyȱifȱtheȱ
originalȱofferorȱexpresslyȱshowsȱanȱintentionȱtoȱbeȱboundȱbyȱitȱ
16._______ȱ
17.ȱȱ Casualȱsellersȱ(a)ȱmayȱbeȱrequiredȱtoȱbeȱlicensed,ȱ(b)ȱonlyȱsellȱ
occasionally,ȱ(c)ȱonlyȱsellȱcasualȱitems,ȱ(d)ȱareȱusuallyȱsubjectedȱ
toȱspecialȱtaxationȱ
17._______ȱ
18.ȱSalesȱcontractsȱareȱvalidȱandȱenforceableȱinȱcourtȱifȱtheyȱareȱȱȱ
(a)ȱwritten,ȱ(b)ȱoral,ȱ(c)ȱimpliedȱfromȱtheȱconductȱofȱtheȱparties,ȱ
(d)ȱallȱofȱtheseȱ
18._______ȱ
19.ȱAȱsellerȱcanȱenforceȱanȱoralȱcontractȱforȱnonȬresalableȱgoodsȱifȱ
(a)ȱgoodsȱfromȱthirdȱpartiesȱhaveȱbeenȱcontracted,ȱ(b)ȱmanufacȬ
turingȱhasȱsubstantiallyȱbegun,ȱ(c)ȱaȱandȱb,ȱ(d)ȱnoneȱofȱtheseȱ
19._______ȱ
20.ȱIfȱaȱpartyȱadmitsȱinȱlegalȱtestimonyȱthatȱheȱagreedȱtoȱpartȱorȱallȱ
ofȱanȱoralȱcontractȱgovernedȱbyȱtheȱStatuteȱofȱFrauds,ȱtheȱconȬ
tractȱwouldȱbeȱ(a)ȱbindingȱtoȱtheȱextentȱadmitted,ȱ(b)ȱnullȱandȱ
void,ȱ(c)ȱrewrittenȱandȱsignedȱbyȱbothȱparties,ȱ(d)ȱnoneȱofȱtheseȱ
20._______ȱ
Chapter 13 Sales Contracts 3-11
SECTION III—APPLY LEGAL PRACTICES
21.ȱMayerȱFarmsȱcontractedȱtoȱsellȱitsȱentireȱpotatoȱcropȱtoȱSam’sȱSpudsȱatȱcurrentȱ
marketȱprices.ȱAlthoughȱMayerȱhadȱ95%ȱofȱhisȱcropȱalreadyȱharvestedȱandȱinȱ
storageȱbeforeȱtheȱdevastatingȱfloodȱcame,ȱheȱchargedȱSam’sȱSpudsȱtheȱafterȬ
floodȱinflatedȱpriceȱdueȱtoȱlimitedȱsupply.ȱIsȱthisȱanȱunconscionableȱcontract?ȱ
Explainȱyourȱanswer.ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
22.ȱTaoȱpurchasedȱaȱsmallȱtractȱofȱlandȱatȱtheȱtopȱofȱtheȱhillȱonȱwhichȱwasȱanȱoldȱ
countryȱstore.ȱWhenȱtheȱfamilyȱinȱtheȱvalleyȱbelowȱtheȱstoreȱlostȱlivestockȱdueȱtoȱ
pollutedȱwater,ȱitȱwasȱdiscoveredȱthatȱtheȱcountryȱstoreȱusedȱtoȱbeȱaȱgasȱstationȱ
andȱthereȱwereȱoldȱdeterioratingȱundergroundȱstorageȱtanksȱseepingȱgasolineȱ
intoȱtheȱground’sȱwaterȱtable.ȱIsȱTaoȱliableȱasȱtheȱtanksȱareȱonȱherȱproperty?ȱExȬ
plainȱyourȱanswer.ȱ
ANSWERS
Lessonȱ13—1ȱ
Quiz
4.ȱperfectȱtenderȱruleȱ
7.ȱcontractȱtoȱsellȱ
ȱ
11.ȱTheȱpurchaseȱofȱtheȱcameraȱequipmentȱwasȱtheȱonlyȱsale.ȱTheȱdryȱcleaningȱandȱ
Practice Activity
1.ȱNo,ȱallȱthreeȱdefendantsȱwereȱcorrect.ȱTheȱcourtȱagreedȱwithȱallȱthree,ȱstatingȱ
thatȱunderȱtheȱUCC,ȱtheȱproductȱusedȱwasȱincidentalȱtoȱtheȱserviceȱprovidedȱ
andȱwasȱnotȱtheȱprimaryȱfeatureȱofȱtheȱtransaction.ȱTherefore,ȱthereȱisȱnoȱliabilȬ
2.ȱNo,ȱMathewsȱisȱnotȱcorrect.ȱSinceȱthisȱisȱaȱcontractȱforȱtheȱsaleȱofȱgrain,ȱitȱisȱaȱ
contractȱforȱtheȱsaleȱofȱgoodsȱandȱthusȱcoveredȱbyȱtheȱUCC.ȱTheȱcourtȱsaidȱthatȱ
underȱtheȱUCC,ȱcertainȱtermsȱcanȱbeȱleftȱopenȱwhenȱtheȱpartiesȱmakeȱtheirȱ
Reteach
ȱ
3-12 Chapter 13 Sales Contracts
Chapter 13 Sales Contracts 3-13
© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
PȱAȱYȱMȱEȱNȱTȱCȱOȱNȱTȱ
VȱEȱNȱDȱOȱRȱRȱAȱCȱTȱSȱ
SȱAȱLȱEȱSȱMȱAȱDȱCȱOȱNȱ
TȱRȱAȱCȱTȱTȱOȱSȱEȱLȱLȱ
EȱFȱOȱRȱPȱRȱIȱCȱEȱPȱEȱ
RȱSȱOȱNȱAȱBȱAȱRȱTȱEȱRȱ
LȱSȱEȱRȱVȱUȱNȱCȱOȱNȱSȱ
CȱIȱOȱNȱAȱBȱLȱEȱIȱCȱEȱ
ȱ
Contractsȱmadeȱforȱpersonalȱservicesȱareȱnotȱsales.ȱ
ȱ
Enrichment Activity
Answersȱwillȱvary.ȱ
ȱ
Lessonȱ13—2ȱ
Quiz
ȱ
11.ȱJulieȱmadeȱanȱoralȱcontractȱforȱtheȱceramicȱtile.ȱTheȱcontractȱisȱonlyȱenforceableȱ
Practice Activity
1.ȱUnderȱtheȱUCC,ȱsalesȱofȱgoodsȱofȱ$500ȱorȱmoreȱareȱrequiredȱtoȱbeȱinȱwritingȱinȱ
orderȱtoȱbeȱenforceable.ȱIfȱtheyȱareȱnot,ȱthereȱareȱsomeȱexceptionsȱtoȱtheȱruleȱ
that,ȱifȱpresent,ȱwillȱmakeȱtheȱagreementȱenforceableȱevenȱwithoutȱaȱwriting.ȱ
2.ȱTheȱcourtȱruledȱthatȱtheȱcheck,ȱpayableȱtoȱtheȱdealership,ȱwithȱnotationsȱindicatȬ
ingȱdeposit,ȱpurchaseȱprice,ȱandȱanȱagreementȱtoȱpurchaseȱsubjectȱtoȱinspection,ȱ
Reteach
3-14 Chapter 13 Sales Contracts
© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
PARTLYI DSRD
ED I RTASUING
ERN I NDRATUO
LSTNAHCREM
G
BRESELLF IBE
ABR I VASFGRL
LLNULETOHEA
AKAS LROENSS
Enrichment Activity
Chapter 13 Sales Contracts 3-15
ANSWERS TO TEST QUESTIONS
SECTION I
SECTION II
SECTION III
ȱ
