CHAPTER 21 GUIDE Know that the firm offer provision in Articles 2 and 2A of the UCC covers only merchant sellers Know that If a merchant makes a written offer to buy or sell goods this will be irrevocable and DOES NOT need to be accompanied by a consideration Know that In a contract to sell goods the sale does not take place until the seller transfers the title to the goods to the buyer agreement two FALSE Know that Most of the Code s provisions are not mandatory but allow the parties to vary or displace them by Know that 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 Know that If a seller buries important terms of its sales agreement in fine print this could constitute procedural unconscionability which could result in a court s refusal to enforce the entire sales contract or at least the part the court finds unconscionable Know that Consumer leases ARE treated differently than business leases under the UCC Know that A finance lease is a special type of lease transaction that generally involves three parties instead of 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 NO This statement is FALSE The general law of contracts is displaced by the Code in all aspects of the sale of goods NO This statement is 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 tells Andrew 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 without new consideration so long as Bartholomew is acting in good faith CORRECT This statement is TRUE 13 The Uniform Electronic Transactions Act in effect in all of the states covers contracts not governed by Articles 2 and 2A FALSE completely Mumbo JUMBO UETA concerns electronic signature 14 Acceptance under the UCC always means taking possession of goods FAAAAALSE Acceptance relates to contracts not possession YES 15 A court faced with an unconscionable lease contract may refuse to enforce the entire contract TRUE 16 Sales contracts containing unconscionable clauses are void and unenforceable FALSE this alone usually does not void and a legit contract HARSHER ON MERHCANTS 17 The UCC treats merchants more leniently than others in transactions involving goods FALSE their 18 If a UCC contract does not contain all the terms necessary to carry it out there will be no contract FALSE ALL TERMS ARENT NECESSARY TO CREATE A CONTRACT 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 TRUUUUE 20 The Code provides that its remedies shall be liberally administered to place the aggrieved party in a position as good as the one she would have occupied had the defaulting party fully performed TRUUUUUUE 21 If a contract does not comply with the statute of frauds it is void FALSE STATUTE ONLY MEANS 22 A prompt promise to ship or prompt shipment of goods is a valid acceptance of an offer to buy goods for prompt or current shipment TRUUUE 23 The common law mirror image rule has been modified by the Code TRUUE 24 The Code addresses the battle of the forms problem by focusing on the intent of the parties TRUUE 25 Goods for purposes of the Code are essentially tangible movable personal property TRUUE 26 If the original agreement was oral a subsequent oral modification which brings the resulting contract within the statute of frauds is binding on and enforceable by the parties FALSE 27 The CISG governs contracts for the international sale of goods between parties located in different nations that have ratified the CISG TRUUE 28 The CISG supersedes the UCC in any situation to which either could apply TRUUE 29 The CISG does not apply to sales of goods for personal family or household use TRUUE 30 Under the Code good faith for merchants is defined as honesty in fact in the conduct or transaction concerned FALSE For merchants it means MORE they also have to abide by MORE RULES then regular citizens 31 The doctrine of unconscionability deals only with whether the actual terms of the contract are grossly ANS F PTS 1 unfair or oppressive FALSE ANS F PTS 1 32 Under the Code a contract to sell or lease personal property is recognized whenever the parties manifest such an intent even if they cannot identify a precise moment the contract was formed TRUUE Which of the following is correct with respect to Article 2A of the UCC It is an analogue of Article 2 that adopts many of the same rules Article 2A specifically excludes security interests from its scope 2 A sale as defined by the UCC takes place when the title is transferred to the buyer 3 The UCC provides rules where the parties do not set forth terms in their contract to cover terms of payment place of delivery particulars of performance 4 Which of the following transactions is governed by Article 2 of the UCC The sale of oranges to be picked from a 10 acre grove 5 Richard owns and operates a small business at an outdoor market where he sells fruits and vegetables What does the UCC specifically require of Richard with respect to his customers Observance of reasonable commercial standards of fair dealing Honesty in fact 6 Under Article 2 of the UCC which of the following would be considered a sale Bill trades his car for a motorcycle 7 Karen has agreed to buy May s car but the two have not agreed on the price When there is no agreement in a sales contract as to price what effect does it have on the contract There is a contract with the price being a reasonable price at the time of delivery 8 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 The contract is enforceable only to the extent of the 300 machines that have been received and accepted 9 To accommodate electronic commerce which of the following was enacted or promulgated Amendments to UCC Articles 2 and 2A in 2003 The UETA 10 Which of the following is not a requirement of the statute of frauds