Mann_BLRB 9_TB_Ch19

Business Law and the Regulation of Business

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 19—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 TOP: AICPA BB-Legal MSC: AACSB Analytic 2. The definition of "goods" in the UCC may include timber, minerals, growing crops, or a building. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 3. If a merchant signs a written offer to buy or sell goods, this will be irrevocable only if accompanied by consideration. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 4. UCC Articles 2 and 2A have been amended to accommodate electronic commerce. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 5. A lease is the transfer of title to goods from seller to buyer for a price. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 6. Article 2A of the UCC affords special treatment for consumer leases. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 7. A finance lease is a special type of lease transaction that generally involves three parties instead of two. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 8. Leslie, the owner of a shoe store, purchased 500 Model XT-50 running shoes from her supplier, but a price was not stated in the contract. The contract is voidable at Leslie's option until the parties agree on a price. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 9. 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. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 10. Albert 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 Albert to say that he is sorry, but $50 won't cover his costs; he will need at least $75 a table. Albert agrees, because he needs the tables for his special sale. The modified contract is enforceable even though Albert isn't getting any new consideration, so long as Bartholomew is acting in good faith and the agreement to the new price is put in writing. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
11. Under the Code, if the parties have reached no agreement on price, the price is a reasonable one at the time for delivery. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 12. The UCC definition of "unconscionable" is clear and unambiguous. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 13. Contracts containing unconscionable clauses are void and unenforceable. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 14. Substantive unconscionability involves scrutiny by the court for "bargaining naughtiness." ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 15. The purpose of Article 2 of the UCC is to modernize, clarify, simplify, and make uniform the law of sales. ANS: T
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 02/06/2012.

Page1 / 10

Mann_BLRB 9_TB_Ch19 - Chapter 19-Introduction to Sales and...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online