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Exam 19: Introduction to Sales and Leases

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Question 1

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Marvin offers to sell his lawnmower to Cheryl for $75 if she pays cash and picks the mower up at his house the following week.Cheryl replies that she would like to buy the mower and thinks $75 is a fair price, but she has no way to transport the mower, so she will buy it for cash if Marvin will have it delivered to her house.In this situation:

A) Cheryl has provided an additional term, which will be construed as a proposal which Marvin can accept or reject.
B) Marvin and Cheryl are considered merchants in relation to the mower, so the delivery of the mower is an additional term which will become part of the contract unless Marvin objects within a reasonable time.
C) the delivery of the mower is a different term from that in the offer, and it generally will not become part of the contract unless Marvin specifically agrees to it.
D) courts would all agree that the different delivery terms cancel each other out and the Code would provide the missing term.

E) A) and B)
F) A) and C)

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Question 2

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Which of the following is correct with respect to "finance leases"?

A) A finance lease generally involves four parties.
B) Finance leases are governed by the Truth in Lending Act rather than the UCC.
C) The finance lessor functions merely as a source of credit.
D) All of the above are correct.

E) A) and B)
F) A) and C)

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Question 3

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A contract has an open price term if the agreement:

Davis Co.and Ruby Creations enter an oral contract providing that Ruby will deliver three dozen dresses to Davis at $20 per dress.The next day, Davis sent Ruby a letter signed by Davis's purchasing agent confirming the quantity and item, but not mentioning the price.Which of the following is true?

Mary and Remaldi Co.have dealt with each other for many years.Mary's Boutique orders 100 assorted lipsticks at $2.00 each from Remaldi Co.Remaldi sends back a confirmation letter with an additional, nonmaterial term.There is:

What does the UCC say with regard to the following? a.Good faith. b.Unconscionability. c.Expansion of commercial practices.

Which of the following is considered "goods" within the meaning of Article 2?

A lessee under a consumer lease and a buyer under a sale of goods are provided with the same protections against unconscionability under the UCC.

What is a "merchant?" Identify the subject matter of four provisions in Article 2 that apply to merchants, but not to others.

The case of Construction Associates, Inc.v.Fargo Water Equipment Co.illustrates the doctrine of:

Under the CISG, contracts for the sale of goods do not have to be evidenced by a writing to be enforceable, unless one of the parties has its place of business in a country that provides otherwise.

In determining whether a contract containing both a sale of goods and a service is a UCC contract or general contract, a majority of states follow the predominant purpose test.

"Goods" for purposes of the Code are tangible, movable, personal property.

Mike inherited some antiques.Pat agrees to buy them.In the contract, Mike and Pat agree to value the antiques at whatever the Sotheby's representative says.If they are valued much higher than either Mike or Pat anticipated, Pat:

Explain when a writing is required under the UCC for a contract for the sale of goods and what is needed in that writing.Identify three exceptions to the requirement of a writing or record for the sale of goods.

Identify what law would govern: (a) a sale of a computer between a U.S.company and a U.S.consumer; (b) an insurance policy sale between a U.S.company and a U.S.consumer; and (c) a sale of manufactured goods between a U.S.manufacturer and a buyer in another country.

Which of the following nonsales transactions would likely be covered by an extension of Article 2 principles?

Edie telephoned the office supply store and agreed to buy a dozen ink cartridges at $26 each.She then realized what a good buy this was and called the store with a request to modify the contract to read two dozen.What is the consequence?

UCC Articles 2 and 2A have been amended to accommodate electronic commerce.

Substantive unconscionability involves scrutiny by the court for "bargaining naughtiness."