Question 1

For an item to be characterized as a "good" under the UCC, it must be intangible.

Accepted Answer

A "good" under the UCC refers to tangible items, such as products or goods that can be sold, bought, or traded. Intangible items, such as intellectual property or rights, are not considered goods under the UCC.

Question 2

When no delivery terms are specified in a contract for a sale of goods, there is no basis for determining a remedy.

Accepted Answer

When no delivery terms are specified in a contract for a sale of goods, the Uniform Commercial Code (UCC) provides default delivery terms and remedies for breach, such as allowing the buyer to reject the goods or revoke acceptance.

Question 3

A lessor is a party who transfers the right to the possession and use of goods under a lease.

Accepted Answer

This statement accurately defines the role of a lessor in a lease agreement.

Question 4

Under the UCC, a sales or lease contract will fail for indefiniteness if one or more terms are left open.

Accepted Answer

The UCC allows for certain terms to be open and filled in by the parties or by default rules provided by the UCC. The contract will not fail for indefiniteness as long as the essential terms (such as price, quantity, and delivery date) are agreed upon.

Question 5

A merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.

Accepted Answer

This is the definition of a merchant according to the Uniform Commercial Code (UCC).

Question 6

Under the UCC, a contract for a sale of goods that does not include the quantity will not fail for indefiniteness.

Accepted Answer

According to UCC Section 2-204, a contract for the sale of goods must include a quantity term in order to be enforceable. Without a specific quantity, the contract is considered indefinite and cannot be enforced.

Question 7

A firm offer by a merchant may be oral.

Accepted Answer

The answer of A firm offer by a merchant may...

Question 8

Requirements contracts are common in the business world and normally are enforceable.

Accepted Answer

Requirements contracts are enforceable as long as they meet certain criteria, such as being definite and certain in their terms, not being unconscionable, and not violating public policy. However, it is important for businesses to carefully draft and review requirements contracts to ensure that they comply with legal requirements and accurately reflect the parties' intentions.

Question 9

The UCC imposes some different rules on merchants.

Accepted Answer

The UCC does have special rules and expectations for merchants in areas such as warranty and contract enforcement.

Question 10

Article 2 of the UCC sets forth the requirements for sales contracts and Article 2A covers similar issues for lease contracts.

Accepted Answer

Article 2 of the UCC pertains to sales contracts and Article 2A pertains to lease contracts, so the statement is true.

Question 11

If the parties to a contract for a sale of goods have not agreed on a price, a court will determine a reasonable price at the time for delivery.

Accepted Answer

This statement is true according to the Uniform Commercial Code (UCC), which governs contracts for the sale of goods in the United States. Section 2-305 of the UCC states that in the absence of an agreement between the parties concerning the price, "the price is a reasonable price at the time for delivery if (a) nothing is said as to price; or (b) the price is left to be agreed by the parties and they fail to agree."

Question 12

Real estate transactions are always governed by Article 2 of the UCC.

Accepted Answer

Real estate transactions are typically governed by state-specific laws and regulations, rather than the Uniform Commercial Code (UCC), which is a set of laws related to commercial transactions.

Question 13

Even if a contract in which goods and services are mixed is primarily a goods contract, any dispute over the services portion will not be decided under the UCC.

Accepted Answer

The UCC governs the sale of goods, not services.

Question 14

Article 2 of the UCC covers any transaction that creates a lease of goods.

Accepted Answer

The answer of Article 2 of the UCC covers any...

Question 15

The UCC views the entire commercial transaction for the sale and payment for goods as a single legal occurrence.

Accepted Answer

The UCC (Uniform Commercial Code) treats the sale and payment for goods as a single legal occurrence, also known as a "transaction". This means that the terms of the sale, delivery of the goods, and payment must all be agreed upon in the same transaction, and any disputes or issues must be resolved within that transaction.

Question 16

Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

Accepted Answer

Good faith under the UCC is defined as honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

Question 17

Under the UCC, a sale is the passing of title from a seller to a buyer for a price.

Accepted Answer

This is the basic definition of a sale as per the UCC (Uniform Commercial Code).

Question 18

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

Accepted Answer

Under the Uniform Commercial Code (UCC), a contract for the sale of minerals is considered a contract for the sale of goods if the seller is responsible for the severance (i.e. extraction) of the minerals. This is because the UCC considers goods to include minerals that have been extracted from the earth, along with other tangible personal property.

Question 19

Under the UCC, parties to sales and lease contracts are not free to establish whatever terms they wish.

Accepted Answer

The answer of Under the UCC, parties to sales and...

Question 20

Certain provisions of UCC Article 2A apply only to consumer leases.

Accepted Answer

UCC Article 2A, which governs the leasing of goods, includes specific provisions that only apply to consumer leases (leases made for personal, household, or family purposes). For example, consumers have certain rights to early termination of a lease and disclosure of important lease terms that do not apply to commercial leases.

Quiz 17: The Formation of Sales and Lease Contracts