#1
Which article of the Uniform Commercial Code (UCC) governs sales contracts?
Article 2
ExplanationArticle 2 governs sales contracts under the UCC.
#2
Under the UCC, when does title to goods typically pass from the seller to the buyer in a sales contract?
At the time the goods are delivered to the buyer
ExplanationTitle passes when goods are delivered to the buyer.
#3
Under the UCC, when does the risk of loss typically pass from the seller to the buyer in a sales contract?
At the time the goods are delivered to the buyer
ExplanationRisk of loss passes upon delivery to the buyer.
#4
Which of the following contracts would NOT be covered by Article 2 of the UCC?
A contract for the sale of a house
ExplanationContracts for the sale of houses are not covered by Article 2.
#5
Which party typically bears the risk of loss during transportation in a shipment contract under the UCC?
The seller
ExplanationSeller typically bears risk of loss during shipment.
#6
Under the UCC, what is the effect of an acceptance that contains additional or different terms compared to the offer?
The additional or different terms become part of the contract unless they materially alter it.
ExplanationAdditional terms are part of the contract unless materially altering.
#7
Which of the following is NOT a requirement for a valid sales contract under the UCC?
Seal
ExplanationA seal is not a requirement for a valid sales contract under the UCC.
#8
In a sales contract governed by the UCC, what is the implied warranty that goods sold are fit for the ordinary purpose for which they are used?
Warranty of merchantability
ExplanationThe implied warranty is the Warranty of Merchantability.
#9
Which of the following is true regarding the Statute of Frauds under the UCC?
Only contracts exceeding $500 in value must be in writing to be enforceable.
ExplanationContracts exceeding $500 must be in writing under the Statute of Frauds.
#10
Which of the following is NOT a method of termination for a sales contract under the UCC?
Revocation
ExplanationRevocation is not a method of termination under the UCC.
#11
Under the UCC, what is the difference between an offer and an invitation to negotiate?
An offer is a definite proposal that can be accepted, while an invitation to negotiate is not.
ExplanationOffer is definite; invitation to negotiate is not.
#12
In a sales contract governed by the UCC, what is the implied warranty of title?
The warranty that the seller has the right to sell the goods and that the transfer of title is rightful.
ExplanationImplied warranty of title ensures rightful transfer.
#13
Under the UCC, what happens if a buyer rightfully rejects non-conforming goods?
The buyer is entitled to a full refund and may return the goods
ExplanationBuyer can reject non-conforming goods and seek a refund.
#14
Under the UCC, which of the following is NOT considered an essential term of a sales contract?
Payment method
ExplanationPayment method is not an essential term under the UCC.
#15
What is the main purpose of the UCC's 'perfect tender rule'?
To allow buyers to reject goods that do not perfectly conform to the contract.
ExplanationAllows buyers to reject non-conforming goods.
#16
Under the UCC, what happens if a seller fails to deliver goods as promised in the sales contract?
The buyer can rescind the contract and seek damages for any losses suffered.
ExplanationBuyer can rescind and seek damages for non-delivery.
#17
Under the UCC, what is the purpose of the 'battle of the forms' doctrine?
To establish a hierarchy of terms in conflicting contract documents.
ExplanationDetermines hierarchy in conflicting contract documents.
#18
What is the UCC's stance on oral contracts for the sale of goods?
They are generally enforceable, but subject to certain exceptions.
ExplanationOral contracts are generally enforceable with exceptions.