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Exam 20: Sales and Lease Contracts

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Question 31

True/False

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Parties to sales and lease contracts are not free to agree to terms different from those stated in the UCC.

A) True
B) False

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Question 32

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Except for an option contract, a firm offer by a merchant is irrevocable once it has been made.

A) True
B) False

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Question 33

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Under the law that governs the international sale of goods, when the parties to a contract do not specify a price term, or at least provide for its specification, normally no contract will exist.

Time Inc. offers to sell to Unlimited Sales Company one hundred digital watches at $50 a piece, subject to certain specific delivery dates. Unlimited replies with a signed purchase order that reads, "Accept your offer for 100 watches at $50 each. Must be delivered to our warehouse." Time does not respond or deliver the goods. Unlimited files a suit for breach of contract, to which Time answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Time. Can Unlimited recover? Explain.

Aaron offers to sell Babe a collection of movie memorabilia. For the transaction to be a sale under the UCC, title to the collection must be passed from the seller to the buyer for

Auto Body Company orders custom paint from Best Hues Inc., but Best does not deliver. Auto Body will probably be unable to enforce the agreement if the parties omitted

To qualify as a sale under the UCC, the price in the transaction must be payable in cash.

If a sales contract prohibits any changes unless they are in a signed writing, then only those changes agreed to in a signed writing are enforceable.

Curt enters into a contract with Drivers Lease Company for a three-year lease of a car. This contract is subject to

Meds-Free Inc. enters into a contract to sell its product line to Naturopath Clinic, which later sells some of the items to Oneida, a patient and consumer. Article 2 of the UCC applies to

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is

Power Company offers to buy from Quality Transformers LLC a specific quantity of a certain type of transformer for a stated price. Quality can accept the offer by

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.

The United Nations Convention on Contracts for the International Sale of Goods is the law that governs contracts for the international sale of goods.

Grass Farm LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." Their contract is formed according to

Under the UCC, an oral contract for a sale of goods is enforceable once goods have been received and accepted.

An excessive price for goods and unequal bargaining power can indicate to a court that a sales contract is unconscionable.

Excluded from Article 2 of the UCC are

Corporate stocks and bonds meet the requirements to be among the items of property characterized as goods under the UCC.

An auto dealer is a merchant when selling or leasing a new car but not when selling or leasing a pre-owned vehicle.