Module 3 Sample Questions Part 1

Module 3 Sample Questions Part 1 - Module 3 Sample...

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Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. An example of the "course of dealing" concept that courts will use in interpreting a contract under the UCC would be: a. Steven and Michelle have been involved in contracts together for over 5 years. Steven maintains the sign for Michelle's restaurant. Each time Steven sees the sign needs repair, he fixes it without need of express consent from Michelle. Michelle has always paid the bill promptly. b. Temaco, Superior Oil, and AllBig, are the largest national oil companies in the country. In each refinery, orders are placed at the beginning of each quarter for priority delivery to distributors. c. Bob sees an ad in the local paper for heritage poppy seeds sold by Mel. He calls Mel and is so excited by his find that he orders a quantity of the seeds to be shipped as soon as pos- sible but does not inquire as to price. Mel sends him the seeds and the invoice. d. None of the above. ____ 2. Which of the following transactions is governed by Article 2 of the UCC? a. The sale of an apartment complex. b. The sale of oranges to be picked from a 10-acre grove. c. The sale of common stock of a soft drink company. d. A contract to receive medical services in a hospital. ____ 3. A "merchant" is defined as a person who: a. is a dealer in a particular type of goods. b. by his occupation holds himself out as having knowledge or skills peculiar to certain goods or practices. c. employs an agent or broker whom he holds out as having such knowledge or skill. d. All of the above. ____ 4. Karen has agreed to buy Sara's car, but the two have not agreed on the price. When there is no agreement as to price in a contract for a sale of goods, what effect does it have on the contract? a. The price is whatever the seller decides. b. The price is a reasonable price at the time of making the contract. c. The price is a reasonable price at the time of delivery. d. There is no contract, because the agreement is not definite and certain enough. ____ 5. Shannon orally agrees to buy 500 telephone answering machines from Thomas for $25,000. Thomas delivers 300 answering machines to Shannon, who receives and accepts them. Which of the following is correct with regard to this transaction? a. Shannon can enforce the contract for the additional 200 machines. b. The contract is enforceable to the extent of the 300 machines that have been received and accepted. c. The entire contract is in violation of the statute of frauds and cannot be enforced. d. This is a bad deal, and is therefore commercially unconscionable from the beginning and unenforceable. ____ 6. The definition of "usage of trade" includes: a. a sequence of previous conduct between the parties that may fairly be regarded as estab- lishing a common basis of understanding for interpreting their expressions and agreement. b.
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This note was uploaded on 01/20/2011 for the course MGT 641 taught by Professor Staff during the Spring '08 term at Kentucky.

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Module 3 Sample Questions Part 1 - Module 3 Sample...

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