Chapter 19 1. An auto lease between a consumer and a car dealer is not governed by the UCC because the statute applies only to transactions between merchants. a. True b. False 2. The UCC promotes commerce by simplifying and streamlining commercial transactions. a. True b. False 3. To the extent that it has not been modified by the UCC, the common law of contracts applies to sales contracts. a. True b. False 4. To qualify as a sale under the UCC, the price in the transaction must be payable in cash. a True b. False 5. A contract for a sale of natural gas is a contract for a sale for goods. a. True b. False 6. If a court determines that a contract involving both goods and services is primarily a goods contract, any dispute over the deal will be decided under the UCC. a. True b. False 7. Under the UCC, merchant's choice is the test to determine whether a contract is primarily fo r the sale of goods or services. a. True b. False 8. An auto dealer is a merchant when selling or leasing a new car but not when selling or leasi ng a pre-owned vehicle. a True b. False 9. The UCC provides that a sale or lease contract will fail for indefiniteness if more than one of its terms is left open a True b. False 10. In response to an order for a hundred baseballs, the shipment of a hundred basketballs is bo th an acceptance of the offer and a breach of the contract. a True b. False 11. Ifa sales contract prohibits any changes unless they are in a signed writingthen only those changes agreed to in a signed writing are enforceable. a True b False 12. Any contract for the sale of goods over $300 must be in writing pursuant to the Statute of Frauds provision of the UCC a. True b. False 13. Milo owns a lake house that she rents to vacationers. Miko gives her son John a trip to Oma ha on his graduation from college. Miko sells her car to her neighbor Jessica for $4,500. UCC Article 2 covers... a. The lake house rental b. The gift to John c. The sale to Jessica d. None of the Above. 14. Samantha is refinishing her kitchen floor. She leases a floor sander from Home Repair Rentals, Inc. In this scenario, the lessor is... a. Samantha b. Home Repair Rentals, Inc. 15. Joel sells a violin to Key for $5,000, a cello to Leda for $400, and five music stands to Micafo r $50. A writing is required to enforce the sale of a Violin only b. The Violin and Cello only c. None of these d. All of these 16. Under a contract with Farm Inc. for a delivery of vegetables, Growers Mart refuses to pay for some of the produce. The buyer contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Growers Martis arguing that the court should take into account: a Course of dealing b. Course of performance c. Usage of trade d. None of these Chapter 20 17. In most situations involving sales or leases, rights and liabilities are generally not determine d by who has title to the goods a True b. False 18. Identification is one of the concepts involved in determining the rights and liabilities of parti es to a sales contract a. True b. False 19. Title can pass to the buyer from the seller before the goods are identified to the contract. a. True b. False 20. Identification is the express designation of the goods provided for in a contract. a True b. False 21. Risk of loss cannot pass from seller to buyer unless the goods are identified to the contract. a. True b. False 22. The parties can agree in their contract when identification will take place. a True b. False 23. If the contract calls for the sale or lease of specific goods that are already in existence, identi fication takes place when the goods are shipped a True h False 24. In a sales contract, the passage of risk of loss from a seller to a buyer gives the buyer the rig ht to insure the goods. a. True b. False 25. Generally, all contracts are assumed to be destination contracts if nothing to the contrary is stated in the contract. a. True b. False 26. When no documents of title are required, title does not pass. a. True b. False 27. Generally, the buyer acquires whatever title the seller has to the goods sold. a. True b. False 28. In a destination contract, risk of loss passes to the buyer or lessee when the goods are delive red to the carrier. a. True b. False 29. On a contract-"F.O.B. New York- for a sale of almonds by a broker in California, the risk of loss passes to the buyer when conforming goods are placed in the possession of the carrier. a. True b. False 30. If the seller is a merchant who is holding the goods for the buyer to pick up, the risk of loss p asses when the buyer takes physical possession of the goods. a True b. False 31. If a seller supplies ten dishwashers in response to an order for ten washing machines- "F.O.B. the seller's warehouse and the goods are damaged in transit to the buyer's store, the loss falls on the seller. a. True b. False
