ch. 20

Question 1

To satisfy the UCC’s Statute of Frauds, a writing indicating an intent to form a sales contract must signed by both parties.

Answer 1

False

Question 2

Because contracting parties presumably know best what they meant by their words, the course of performance under their agreement is the best indication of what they meant.

Answer 2

True

Question 3

If a court determines that a contract involving both goods and services is primarily a goods contract, any dispute over the deal will be decided under the UCC.

Answer 3

True

Question 4

Jo owns a condominium that she leases to Kia. Jo gives her daughter Liu $450 on her sixteenth birthday. Jo sells her car to her neighbor Maia for $1,500. Article 2 of the UCC covers

Answer 4

the sale to Maia.

Question 5

Talk Inc. offers to buy from Ultra Corporation 1,000 phones with certain features. Without notifying Talk, Ultra timely ships phones with fewer features. With respect to the offer, this shipment is an acceptance and

Answer 5

a breach.

Question 6

Under a contract with Assemble Inc. for the delivery of a shipment of TV sets, Buyers Store refuses to pay for sets with cracked cases. Assemble files a suit against Buyers, claiming that the defendant assumed the risk of damaged goods. The court may allow evidence of this term if it finds that the parties’ contract is

Answer 6

not fully integrated.

Question 7

Dona offers to sell her used sofa, chair, coffee table, end table, and lamp to Etta for $700. Etta responds that she will pay that price if Dona’s TV set is included. Neither party is a merchant. Their contract is formed according to

Answer 7

the terms of the original offer.

Question 8

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris’s neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is

Answer 8

Home Repair.

Question 9

The UCC provides that a sale or lease contract will fail for indefiniteness if more than one of its terms is left open.

Answer 9

False

Question 10

If a sales contract prohibits any changes unless they are in a signed writing, then only those changes agreed to in a signed writing are enforceable.

Answer 10

True

Question 11

Curt enters into a contract with Drivers Lease Company for a three-year lease of a car. This contract is subject to

Answer 11

Article 2A of the UCC.

Question 12

Embers Corporation orders twelve fire extinguishers from Firefighting Inc., which delivers the equipment. This is most likely

Answer 12

a sale of goods.

Question 13

An auto lease between a consumer and a car dealer is not governed by the UCC because the statute applies only to transactions between merchants.

Answer 13

False

Question 14

Seacoast Transport Company pays Trucks & Trailers Inc. a stated price for the use of seven tractor-trailer rigs for a year. Under the UCC, this is

Answer 14

a lease.

Question 15

An auto dealer is a merchant when selling or leasing a new car but not when selling or leasing a pre-owned vehicle.

Answer 15

False

Question 16

Auto Body Company orders custom paint from Best Hues Inc., but Best does not deliver. Auto Body will probably be unable to enforce the agreement if the parties omitted

Answer 16

a quantity term.

Question 17

Minh owns a beach house that she rents to vacationers. Minh gives her son Ngo a trip to Omaha on his graduation from community college. Minh sells her car to her neighbor Phan for $4,500. UCC Article 2 covers

Answer 17

the sale to Phan.

Question 18

When a sales contract contemplates shipment of the goods but does not specify the arrangements, either party can make those arrangements.

Answer 18

False

Question 19

An excessive price for goods and unequal bargaining power can indicate to a court that a sales contract is unconscionable.

Answer 19

True

Question 20

In response to an order for a hundred baseballs, the shipment of a hundred basketballs is both an acceptance of the offer and a breach of the contract.

Answer 20

True

Question 21

Meds-Free Inc. enters into a contract to sell its product line to Naturopath Clinic, which later sells some of the items to Oneida, a patient and consumer. Article 2 of the UCC applies to

Answer 21

both transactions.

Question 22

Skyscape LLC regularly engages in the business of leasing construction equipment, primarily to commercial contractors. Tilde, a consumer, leases a backhoe from Skyscape to landscape the property at her home. The price is less than the amount set by state statute. Under the UCC, the deal with Tilde is

Answer 22

a consumer lease.

Question 23

Excluded from Article 2 of the UCC are

Answer 23

all of the choices.

Question 24

Aaron offers to sell Babe a collection of movie memorabilia. For the transaction to be a sale under the UCC, title to the collection must be passed from the seller to the buyer for

Answer 24

a price.