1

Which of the following statements regarding the Uniform Commercial Code (UCC) is correct?

a. Courts will not consider the UCC unless the contract involves a sale of goods.

b. Article 2 of the UCC applies to all contracts where the parties are both merchants.

c. The UCC originally contained nine articles, but has since added two more.

d. All of the above.

2

Which of the following statements concerning the Restatement of Contracts is NOT true?

a. The Restatement of Contracts was issued by a private organization.

b. The Restatement of Contracts does not have the force of law.

c. The Restatement of Contracts is viewed as a highly persuasive authority.

d. The Restatement of Contracts was initially published by the American Bar Association.

3

Which of the following parties would be considered to be a merchant under the Uniform Commercial Code?

Select one:

a. A person who deals in goods of the kind involved in the contract.

b. A person who by his occupation holds himself out as having special knowledge peculiar to the goods involved in the transaction.

c. A person who by his occupation holds himself out as having skill peculiar to the goods involved in the transaction.

d. All of the above.

4

Which of the following normally establishes mutual assent?

a. An offer only.

b. Acceptance only.

c. An offer and an acceptance.

d. Only a clearly identifiable offer and acceptance.

5

Which of the following statements regarding the determination of the intent of the parties to a contract is correct?

a. The objective theory of contracts is the dominant theory applied today.

b. The objective theory of contracts applied at common law, but is not generally followed today.

c. The subjective theory of contracts has always been the dominant theory in application.

d. The subjective theory plays no role today in contract interpretation.

6

Peter is worried about the upcoming flu season, so he consults his family doctor, David. David says that for $50 he will administer a vaccine to Peter that will "guarantee that Peter will not get the flu during the next six months." Peter pays the $50, is administered the vaccine, but catches the flu 5 months later. Is David liable for breach of contract?

a. Yes, because, as a doctor, David would be considered to be a merchant.

b. Yes, because David made an offer that was accepted by Peter.

c. No, because David's statement was an expression of opinion.

d. No, because David could not guarantee success of the vaccine.

7

Paul agreed to sell his car to his neighbor Dora for $10,000. Which of the following, if true, would lead to a conclusion that no contract was formed?

a. Paul did not actually intend to sell his car, but a reasonable person would have thought him to be serious.

b. Dora did not actually intend to buy the car, but a reasonable person would have thought her to be serious.

c. A reasonable person would have thought the parties to be serious about the transaction, but Dora knew that Paul was not serious.

d. None of the above; since Paul and Dora outwardly agreed to the sale of the car, a contract was formed regardless of the parties' intent.

Question 8

A supermarket places an advertisement in a newspaper: "50 Grade A Turkeys. Get yours now for Thanksgiving. $10.00 each, first come, first served." The advertisement will most likely be considered to be:

a. A valid offer.

b. A valid acceptance.

c. Neither a valid offer nor an acceptance.

d. A validly formed contract.

9

Alice wrote to Betty: "I have always admired your house. Would you sell it to me for $250,000?" Betty replied: "I will indeed sell you my house for $250,000." There was no further communication between the parties. Was a contract formed between Alice and Betty?

a. Yes, because Alice made an offer that was accepted by Betty.

b. Yes, because Betty's reply demonstrated a clear intent to contract.

c. No, because an offer was never made.

d. No, because Betty's reply was an offer that was not accepted by Alice.

10

Which of the following statements is correct?

a. An estimate can never be an offer.

b. A "letter of intent" can never be an offer.

c. An advertisement can never be an offer.

d. None of the above.

Morten worked for XYZ Company as an inspector. Hannah, Morten's supervisor, decided to give Morten a raise effective June 1 and informed the payroll department to adjust Morten's pay as of June 1. The payroll department failed to make the adjustment. On August 1, Morten first learned about the raise from a co-worker in the XYZ payroll department. If Morten brings an action in court seeking the amount of the salary increase for June and July, will Morten succeed?

a. Yes, because a valid contract was formed.

b. Yes, because Morten continued to work for XYZ Company.

c. No, because Hannah never made an offer to Morten.

d. No, Morten never accepted Hannah's offer.

12

Jason says to Samantha, "Boy, my car is so dirty. The next time I see your son, Billy, I am going to pay him ten dollars to wash it for me." Samantha returned home and told her son Billy what Jason has said. Billy went to Jason's house and told him, "I accept your offer and agree to wash your car for ten dollars." Was a contract formed between the Billy and Jason?

a. Yes, because Billy accepted Jason's offer.

b. Yes, because a reasonable person would have considered the exchange between the parties as forming a contract.

c. No, because the contract is not covered by the Uniform Commercial Code.

d. No, because Jason never made an offer to Billy.

13

Susan says to Pam, "I would love to have a child as well-mannered as yours." Pam laughed and responded, "If you want her, she is yours." Susan immediately responded, "I accept your offer." Is Pam's statement likely be considered to be an offer to enter into a contract?

a. Yes, because Pam's statement constitutes a promise.

b. Yes, because Pam's statement manifests an intent to contract.

c. No, because Pam was not serious about giving up her child.

d. No, because a reasonable person in Susan's position would not have thought that Pam was making a serious offer.

14

George, Paula, and Della were having lunch together. Paula mentioned that she was interested in buying a bicycle. Della stated: "I have a bicycle I would be willing to sell you, but I am not sure on what would be a good price. George stated: "I've seen your bicycle, Della, and I think it is worth $100." Paula and Della immediately stated that $100 was a proper price. Have Paula and Della entered into a contract?

a. Yes, because there was agreement to the price term suggested by George.

b. Yes, provided that $100 is indeed a fair price.

c. No, because there was no mutual assent between Paula and Della since they did not suggest the price.

d. No, because it is not possible to specifically identify the offer and acceptance.

15

Derek, a mechanic, sent a price list to everyone who lived in the same town as Derek detailing Derek's charges for performing different services. The price list stated that Derek charged $100 for an oil change. Pablo, who received the price list, called Derek and stated: "I accept your offer to change the oil on my car for $100." Has a contract been formed between Pablo and Derek?

a. Yes, because mutual assent existed.

b. Yes, because Derek was a merchant.

c. No, because Derek did not make an offer to Pablo.

d. No, because the terms were not sufficiently stated in the offer.