Question 1

Which of the following acceptances is allowed for an offer under common law?

Accepted Answer

A)  mirror image rule acceptance
B)  open term acceptance
C)  deposited rule acceptance
D)  additional terms acceptanceE) B) and C)
F) A) and B)

Question 2

Which of the following is an example of an irrevocable offer?

Accepted Answer

A)  counteroffer
B)  gift promise
C)  option contract
D)  accommodationE) A) and B)
F) A) and D)

Question 3

The ________ requires all contracts for the sale of goods costing $500 or more and lease contracts involving payments of $1,000 or more to be in writing.

Accepted Answer

A)  parol evidence rule
B)  Lord Tenterden's Act
C)  firm offer rule
D)  Statute of FraudsE) None of the above
F) All of the above

Question 4

Which of the following is true of a finance lease?

Accepted Answer

A)  It involves leasing out money to a lessee.
B)  The lessor is the supplier of goods.
C)  It consists of a lessor, a lessee, and a supplier.
D)  The lessee acquires the title of the goods.E) A) and C)
F) All of the above C

Question 5

A contract is created only when the offeror receives the offeree's acceptance.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true for goods under the purview of Article 2 of the Uniform Commercial Code?

Accepted Answer

A)  Goods can be replaced by money.
B)  Intangible goods must be exchanged for other intangible goods.
C)  Goods in the contract must be movable.
D)  Immovable goods like real estate must have provisions of service attached to their contracts.E) A) and C)
F) A) and B)

Question 7

Under common law,the inclusion of additional terms in the acceptance of an offer is considered a counteroffer rather than an acceptance.

Accepted Answer

A) True 
 B)False

Question 8

What is the function of the gap-filling rule used under the UCC?

Accepted Answer

A)  It helps open terms be "read into" a contract.
B)  It helps a merchant revoke his offer even after acceptance.
C)  It assures the offeree that goods will be held open for a reasonable time.
D)  It protects the offeror from additional terms that may be added by the offeree.E) B) and C)
F) All of the above

Question 9

According to the UCC,a seller or buyer who reserves the right to fix a price must do so in good faith.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following describes a mixed sale?

Accepted Answer

A)  a sale that involves two or more intangible goods
B)  a sale that involves the passing of title of goods from a seller to a buyer for a price
C)  a sale that involves the possession and use of named goods for a set term
D)  a sale that involves the provision of a service and a good in the same transactionE) All of the above
F) B) and D)

Question 11

Under the UCC,an agreement sufficient to constitute a contract for the sale or lease of goods may be found even though the moment of its making is undetermined.

Accepted Answer

A) True 
 B)False

Question 12

The written confirmation rule requires that both parties to an oral agreement send written confirmation of the sale or lease.

Accepted Answer

A) True 
 B)False

Question 13

The battle of the forms occurs when the offeror receives an acceptance drafted from the offeree's own form contract.

Accepted Answer

A) True 
 B)False

Question 14

A shipment that is offered to a buyer as a replacement for the original shipment when the original shipment cannot be filled is referred to as a(n) ________.

Accepted Answer

A)  consideration
B)  accommodation
C)  surrogate
D)  open deliveryE) All of the above
F) A) and C)

Question 15

How does the Uniform Commercial Code (UCC)define a merchant?

Accepted Answer

Generally,Article 2 of the UCC applies to all sales contracts,whether they involve merchants or not.However,Article 2 contains several provisions that either apply only to merchants or impose a greater duty on merchants.The UCC defines a merchant as (1)a person who deals in the goods of the kind involved in the transaction or (2)a person who,by his or her occupation,holds himself or herself out as having knowledge or skill peculiar to the goods involved in the transaction.

Question 16

As per the UCC law of sales,contract modifications do not require considerations.

Accepted Answer

A) True 
 B)False  True

Question 17

The formation of sales and lease contracts requires consideration.

Accepted Answer

A) True 
 B)False

Question 18

The firm offer rule allows the offeror to revoke an offer at any point of time prior to its acceptance.

Accepted Answer

A) True 
 B)False

Question 19

Modification to a sales or lease contract is binding even if it is made under duress.

Accepted Answer

A) True 
 B)False

Question 20

Article 2 of the Uniform Commercial Code (UC
C)is also applied by federal courts to sales contracts governed by federal law.

Accepted Answer

A) True 
 B)False

Exam 18: Formation of Sales and Lease Contracts

Which of the following acceptances is allowed for an offer under common law?

Correct Answer
verified

Which of the following is an example of an irrevocable offer?

Correct Answer
verified

The ________ requires all contracts for the sale of goods costing $500 or more and lease contracts involving payments of $1,000 or more to be in writing.

Correct Answer
verified

Which of the following is true of a finance lease?

Correct Answer
verified
C

A contract is created only when the offeror receives the offeree's acceptance.

Correct Answer
verified

Which of the following is true for goods under the purview of Article 2 of the Uniform Commercial Code?

Correct Answer
verified

Under common law,the inclusion of additional terms in the acceptance of an offer is considered a counteroffer rather than an acceptance.

Correct Answer
verified

What is the function of the gap-filling rule used under the UCC?

Correct Answer
verified

According to the UCC,a seller or buyer who reserves the right to fix a price must do so in good faith.

Correct Answer
verified

Which of the following describes a mixed sale?

Correct Answer
verified

Under the UCC,an agreement sufficient to constitute a contract for the sale or lease of goods may be found even though the moment of its making is undetermined.

Correct Answer
verified

The written confirmation rule requires that both parties to an oral agreement send written confirmation of the sale or lease.

Correct Answer
verified

The battle of the forms occurs when the offeror receives an acceptance drafted from the offeree's own form contract.

Correct Answer
verified

A shipment that is offered to a buyer as a replacement for the original shipment when the original shipment cannot be filled is referred to as a(n) ________.

Correct Answer
verified

How does the Uniform Commercial Code (UCC)define a merchant?

As per the UCC law of sales,contract modifications do not require considerations.

Correct Answer
verified
True

The formation of sales and lease contracts requires consideration.

Correct Answer
verified

The firm offer rule allows the offeror to revoke an offer at any point of time prior to its acceptance.

Correct Answer
verified

Modification to a sales or lease contract is binding even if it is made under duress.

Correct Answer
verified

Article 2 of the Uniform Commercial Code (UC C)is also applied by federal courts to sales contracts governed by federal law.

Correct Answer
verified

Exam 18: Formation of Sales and Lease Contracts

Which of the following acceptances is allowed for an offer under common law?

Correct AnswerverifiedShow Answer

Which of the following is an example of an irrevocable offer?

Correct AnswerverifiedShow Answer

The ________ requires all contracts for the sale of goods costing $500 or more and lease contracts involving payments of $1,000 or more to be in writing.

Correct AnswerverifiedShow Answer

Which of the following is true of a finance lease?

Correct AnswerverifiedC

A contract is created only when the offeror receives the offeree's acceptance.

Correct AnswerverifiedShow Answer

Which of the following is true for goods under the purview of Article 2 of the Uniform Commercial Code?

Correct AnswerverifiedShow Answer

Under common law,the inclusion of additional terms in the acceptance of an offer is considered a counteroffer rather than an acceptance.

Correct AnswerverifiedShow Answer

What is the function of the gap-filling rule used under the UCC?

Correct AnswerverifiedShow Answer

According to the UCC,a seller or buyer who reserves the right to fix a price must do so in good faith.

Correct AnswerverifiedShow Answer

Which of the following describes a mixed sale?

Correct AnswerverifiedShow Answer

Under the UCC,an agreement sufficient to constitute a contract for the sale or lease of goods may be found even though the moment of its making is undetermined.

Correct AnswerverifiedShow Answer

The written confirmation rule requires that both parties to an oral agreement send written confirmation of the sale or lease.

Correct AnswerverifiedShow Answer

The battle of the forms occurs when the offeror receives an acceptance drafted from the offeree's own form contract.

Correct AnswerverifiedShow Answer

A shipment that is offered to a buyer as a replacement for the original shipment when the original shipment cannot be filled is referred to as a(n) ________.

Correct AnswerverifiedShow Answer

How does the Uniform Commercial Code (UCC)define a merchant?

As per the UCC law of sales,contract modifications do not require considerations.

Correct AnswerverifiedTrue

The formation of sales and lease contracts requires consideration.

Correct AnswerverifiedShow Answer

The firm offer rule allows the offeror to revoke an offer at any point of time prior to its acceptance.

Correct AnswerverifiedShow Answer

Modification to a sales or lease contract is binding even if it is made under duress.

Correct AnswerverifiedShow Answer

Article 2 of the Uniform Commercial Code (UC C)is also applied by federal courts to sales contracts governed by federal law.

Correct AnswerverifiedShow Answer

Correct Answer
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C

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True

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