ALLIED BUS230 MODULE 6 check your understanding

Question Points
1. A
contract for the sale of goods is either a present sale or a contract to sell.
a. True
b. False
2. A sale on
approval is a present sale.
a. True
b. False
3. Under
Article 2 of the UCC which of the following factors is the most important in
determining which party bears the risk of loss in a contract for the sale of
goods?
a. How the goods
were lost.
b. Who has title to
the goods.
c. The shipping
terms in a sales contract.
d. The method of
shipping the goods.
4. Under the
UCC, the one term of a sale that must be in writing is the:
a. date.
b. quantity.
c. unit price.
d. total sale price.
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5. The
“mirror-image” rule has been incorporated into the UCC.
a. True
b. False
6. Under the
common law the location of title formed the basis of the sale of goods to the
buyer.
a. True
b. False
7. Johnson
and Wales are both merchants. Johnson offers to sell Wales several items, and
Wales accepts but adds additional terms to the acceptance. Wales’ terms
automatically become part of the contract unless:
a. the offer
expressly limits acceptance to the terms of the offer.
b. the new terms
materially alter the contract.
c. the offeror
rejects the new terms and notifies the offeree within a reasonable time.
d. all of the
choices apply.
8. Freedom
of contract is a basic principle of the UCC. Consequently, its provisions are
not mandatory.
a. True
b. False
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9. Under
Article 2 of the UCC, when a contract involves a mixed sale such as a sale of
goods and a sale of services, which of the following statements is correct?
a. The courts
ordinarily will apply Article 2 to any contract that involves goods.
b. The courts
ordinarily will apply Article 2 when the sale of goods is the primary purpose
of the transaction.
c. The courts
ordinarily will not apply Article 2 to any contract that involves the sale of
services.
d. Whether Article 2 applies depends upon the
dollar amount of the contract.
10. Article 2
of the UCC does not cover a contract for:
a. services.
b. the sale of
growing crops.
c. the sale of a
computer.
d. the sale of goods
that have been specifically manufactured.
11. Under
Article 2 of the UCC, a firm offer will be created only if the:
a. offer states the
time period during which it will remain open.
b. offer is made by
a merchant in a signed writing.
c. offeree gives
some form of consideration.
d. offeree is a
merchant.
12. Under the
UCC:
a. Risk of loss is
placed on the party who has title.
b. Risk of loss is
always placed on the buyer.
c. Risk of loss is
always placed on the seller.
d. None of the
choices apply.
14. Under the
UCC, if a merchant offers to keep an offer open:
a. the offer must be
in writing.
b. the offer may be
withdrawn at any time.
c. the offer is firm
for at least three months.
d. the offeree must
have given consideration.
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15. Richardson
offered to sell her used motorcycle to Evans for $450.00. Evans said, “I
accept, but would you also replace the front tire.” Neither Richardson nor
Evans is a merchant.
a. Evans has
accepted the offer.
b. Evans has
rejected the offer.
c. Richardson may
treat her offer as accepted or rejected.
d. Evans’s statement
“I accept” is of no legal significance.
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16. Which of
the following statements applies to a sale on approval under Article 2 of the
UCC?
a. Both buyer and
seller must be merchants.
b. The buyer must be
purchasing the goods for resale.
c. Risk of loss for
the goods pass after the trial period is up.
d. Title to goods
passes to the buyer on the delivery of the goods to the buyer for trial
purposes.

17. Blacklaw
in a signed letter to Ekis made the following request (offer): “Ship
promptly 100 dozen of the new light saver type light bulbs.” This offer:
a. may be accepted
only by a prompt shipment.
b. may be accepted only by a prompt promise to
ship.
c. may be accepted
by either a prompt promise to ship or a prompt shipment.
d. is invalid
because no price was mentioned.
18. Which of
the following statements does not apply to a written contract governed by
Article 2 of the UCC?
a. The contract must
involve the sale of goods of $5,000 or more.
b. The contract may
involve the sale of personal property.
c. The requirements
of the contract must be carried out by both parties in good faith.
d. The obligations
of a merchant may be different from those of a non- merchant.
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19. Goods that
are not in existence and not yet identified are called:
a. personal goods.
b. unidentified
goods.
c. future goods.
d. unsatisfactory
goods.
20. Generally,
a buyer obtains no better title to goods than the seller had.
a. True
b. False