Mann_TB_Ch21 - Chapter 21Introduction to Sales and Leases...

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Chapter 21—Introduction to Sales and Leases TRUE/FALSE 1. A contract to purchase stocks and bonds is governed by Article 2 of the UCC. ANS: F PTS: 1 2. The firm offer provision in Articles 2 and 2A of the UCC covers only merchant sellers. ANS: T PTS: 1 3. If a merchant makes a written offer to buy or sell goods, this will be irrevocable only if accompanied by consideration. ANS: F PTS: 1 4. In a contract to sell goods, the sale does not take place until the seller transfers the title to the goods to the buyer. ANS: T PTS: 1 5. Most of the Code's provisions are not mandatory but allow the parties to vary or displace them by agreement. ANS: T PTS: 1 6. Article 2A of the UCC, approved by drafters of the Code in 1987 and amended in 1990, deals with leases of personal property, which exceed $100 billion annually. ANS: T PTS: 1 7. Code provisions dealing with unconscionability are the same for sales and leases of goods. ANS: F PTS: 1 8. Consumer leases are treated no differently than business leases under the UCC. ANS: F PTS: 1 9. A finance lease is a special type of lease transaction that generally involves three parties instead of two. ANS: T PTS: 1 10. Leslie, the owner of a shoe store, purchased 500 Model XT-50 running shoes from her supplier, but price was not stated in the contract. The contract is voidable at Leslie's option until the parties agree on a price. ANS: F PTS: 1 11. The general law of contracts is displaced by the Code in all aspects of the sale of goods.
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ANS: F PTS: 1 12. Andrew has a contract to buy 100 tables from Bartholomew at a price of $50 a table. Five days before Bartholomew is to deliver the tables, he calls Andrew to say that he is sorry, but $50 won't cover his costs; he will need at least $75 a table. Andrew agrees, because he needs the tables for his special sale. The modified contract is enforceable even though Andrew isn't getting new consideration, so long as Bartholomew is acting in good faith. ANS: T PTS: 1 13. The Uniform Electronic Transactions Act, in effect in all of the states, covers contracts not governed by Articles 2 and 2A. ANS: F PTS: 1 14. "Acceptance" under the UCC always means taking possession of goods. ANS: F PTS: 1 15. A court faced with an unconscionable lease contract may refuse to enforce the entire contract. ANS: T PTS: 1 16. Sales contracts containing unconscionable clauses are void and unenforceable. ANS: F PTS: 1 17. The UCC treats merchants more leniently than others in transactions involving goods. ANS: F PTS: 1 18. If a UCC contract does not contain all the terms necessary to carry it out, there will be no contract. ANS: F PTS: 1 19. Unless an auction is advertised or announced as being without reserve, the sale is with reserve, and the auctioneer may withdraw the goods at any time until he announces completion of the sale.
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This note was uploaded on 04/13/2011 for the course IDS 371 taught by Professor Staff during the Spring '08 term at Ill. Chicago.

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Mann_TB_Ch21 - Chapter 21Introduction to Sales and Leases...

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