UCC Article 2 - Application and Formation

Question 1

What is the UCC assumed term if a contract term has an open price term?

Answer 1

A reasonable or market price at the time of delivery will apply or if price is to be fixed by either party good faith is required in doing so

Question 2

Is consideration required for the modification of a contract?

Answer 2

No consideration required, good faith is required

Question 3

List the 3 methods by which a seller can accept a buyer’s shipment order

Answer 3

1. ) Delivery of conforming good to carrier
2. ) A prompt promise to ship
3. ) Shipment of nonconforming goods delivery without notice of accommodation

Question 4

Define merchant

Answer 4

A person who deals in goods of the kind being sold, or a person who by occupation holds himself or herself out as having knowledge or skill

Question 5

What law governs the sale of goods

Answer 5

UCC- Article 2

Question 6

Define goods

Answer 6

All movable and tangible personal property other than money, investments, securities, and things in action

Question 7

What is the UCC supplied term if a contract has an open place of payment term?

Answer 7

Sellers place of business or if none residence

Question 8

What is the UCC supplied term if a contract term has an has an open time for contracted performance?

Answer 8

In absence of agreement, it is a reasonable time

Question 9

Describe the elements of a merchant’s firm offer

Answer 9

1. ) Offer by a merchant
2. ) States that it will be kept open (max. 3 months)
3. ) Signed or authenticated by merchant. Irrevocable for time stated or max of 3 months

Question 10

What happens to additional terms in acceptance-merchants?

Answer 10

Additional terms become part of the contract unless they are material, the offer is limited, or the party objects

Question 11

Define sale of goods

Answer 11

1. ) Passage of title to goods from a seller to a buyer for a price
2. ) No passage of title required for a bailment
3. ) No price required for a gift

Question 12

In what special circumstances will an offeree’s additional terms not be valid when both parties in the transaction are merchants?

Answer 12

1. ) The offeror limits acceptance to his or her terms
2. ) The additional terms materially alter the contract
3. ) The offeror specifically with notice objects to the additional terms

Question 13

What happens to additional terms in acceptance-nonmerchants

Answer 13

Additional terms do not become part of the contract - original offer terms control

Question 14

What is the UCC supplied term if a contract term has an open payment term?

Answer 14

Payment is due at time and place buyer is to receive the goods

Question 15

List the requirements for a sale of goods contract

Answer 15

1. ) Intent
2. ) Object
3. ) Quantity

Question 16

Describe the concept of a merchant’s battle of the forms

Answer 16

Formation situation in which boiler plate language in merchant’s individual forms add terms to the original offer

Question 17

What is the result of a shipment of a nonconforming goods delivery?

Answer 17

1. ) Acceptance and automatic breach

2. ) Not an acceptance if shipper notifies that shipment is only an accommodation