1. A contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations?

a.

Where the goods have been delivered and accepted.

b.

Where payment has been accepted.

c.

Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business.

d.

All of these are situations where the contract would be enforceable.

2. The most important element in determining whether a sales contract has been made is the:

a.

language of the contract.

b.

fact that the terms of the offer and acceptance are exactly alike.

c.

number of open terms.

d.

intent of the parties to make a contract.

3. What is the test to determine whether the UCC or common law or Contracts applies to a particular contract:

a.

Preferred purpose test

b.

Preferential purpose test

c.

Predominant purpose test

d.

Intermediate Scrutiny.

4. Mary and Remaldi Co. have dealt with each other for many years. Mary's Boutique orders 100 assorted lipsticks at $2.00 each from Remaldi Co. Remaldi sends back a confirmation letter with an additional, nonmaterial term. There is:

a.

no contract, but a counteroffer.

b.

a contract with the additional term unless Mary objects.

c.

a contract with the additional term only if Mary agrees.

d.

a contract without the additional term.

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5. The Code has made certain offers irrevocable without the offeree's giving any consideration for the promise to keep the offer open. These offers are known as:

a.

options.

b.

firm offers.

c.

variant acceptances.

d.

auctions.

6. Which of the following illustrates a shipment contract?

a.

F.O.B. buyer's place of business.

b.

C.O.D. (Cash on Delivery with no destination listed)

c.

No arrival, no sale.

d.

All of these are shipment contracts.

7. Tender of delivery requires:

a.

only that the seller put and hold goods that conform to the contract at the buyer's disposition.

b.

that the goods be made available to the buyer for at least one week if they are not perishable.

c.

that the seller gives the buyer reasonable notice of the tender.

d.

that tender occurs during the buyer's normal business hours.

8. If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may:

a.

reject the whole.

b.

accept the whole.

c.

accept any unit(s) and reject the rest.

d.

Any of these.

9. When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

a.

If he fails to reject the goods after he has had a reasonable opportunity to inspect them.

b.

Immediately upon delivery.

c.

Only when he pays for them.

d.

Only after an express acceptance.

10. Goods are to be sent from Buffalo, NY to Raleigh, NC by UPS using the delivery terms F.O.B. Buffalo, NY. Where does tender occur?

a.

Where the goods are identified.

b.

Where the goods are shipped.

c.

Where the goods are delivered and picked up by the buyer.

d.

Where the goods are taken by the buyer.

11. A manifestation by the buyer of his unwillingness to become the owner of the goods is:

a.

cure.

b.

revocation.

c.

rejection.

d.

tender.

12. If Mary allows the seller, Sellmart Co., four weeks to repair the defects in her kitchen set and they have tried but have not done a good job at it, she may revoke her acceptance if she:

a.

notifies Sellmart of revocation.

b.

does not use the table and chairs.

c.

could not discover the defects easily.

d.

inspected the goods herself.

13. Howard stole a computer and then sold it to his friend Ivan for $100. Ivan has:

a.

good title to the computer, because he paid for it.

b.

a voidable title to the computer.

c.

a void title to the computer.

d.

good title to the computer, because he is a good faith purchaser for value.

14. Which of the following is necessary to be considered a good faith purchaser?

a.

The purchaser must act honestly.

b.

The purchaser must give value for the item.

c.

The purchaser must take the goods without notice or knowledge of any defect in the title of the transferor.

d.

All of these are necessary.

15. Which of the following is true regarding identification of the goods under Article 2?

a.

Only the buyer can identify the goods.

b.

Identification of existing goods gives the buyer a special property right.

c.

Identification of fungible goods occurs when the seller separates the contracted units from the whole.

d.

All of these are correct.

TRUE/FALSE (2 points each total 30 points)

1. 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.

1. 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.

1. The purpose of Article 2 of the UCC is to modernize, clarify, simplify, and make uniform the law of sales.

1. A buyer's or lessee's right to reject nonconforming goods depends on the size or extent of the breach of the seller's or lessor's duty to tender conforming goods.

1. If no place of tender is indicated by the contract, delivery is presumed to be made at seller's place of business.

1. In most sales, the buyer has the right to inspect the goods before he pays.

1. A buyer is obliged to accept conforming goods and to pay for them according to the contract terms.

1. The UCC applies the Mirror Image Rule.

1. The buyer's rejection of nonconforming goods or tender is rightful under the perfect tender rule.

10. Les contracts to the sell and deliver to Chan 300 rolls of insulation. Unless the parties agree otherwise, Les must tender all 300 rolls in a single delivery, and Chan's payment is due at the time of the tender.

1. Revocation of acceptance is effective without notice to the seller.

1. In their contract for the sale of window shades, Lela Window Treatments, Inc. and Shane agree that Lela will have the right to replace any defective goods that are delivered to Shane. This contractual provision will not have any effect because the perfect tender rule of the UCC will control in a sale of goods transaction.

1. The distinction between a void and voidable title is not important in determining the rights of good faith purchasers of goods.

1. A void title may allow a good title to pass in special circumstances.

1. Goods must be both existing and identified to the contract before any interest in them can pass.