UNIFORM COMMERCIAL CODE (UCC) PRACTICE
EXAMINATION 100 Questions and Answers
100%CORRECT QUESTIONS AND ANSWERS ALREADY
GRADED A+
SECTION A: GENERAL PROVISIONS AND SCOPE
(Questions 1-20)
QUESTION 1
The Uniform Commercial Code (UCC) has been adopted by how many states?
A) Forty-nine (49)
B) All fifty (50)
C) Thirty-five (35)
D) Forty-eight (48)
ANSWER: B
Explanation: The UCC has been adopted by all fifty states, the District of Columbia, and U.S.
territories. Louisiana has adopted most articles except Article 2 in its entirety .
QUESTION 2
Article 2 of the UCC governs __________ contracts, while Article 2A governs __________
contracts.
A) Lease; sales
B) Sales; lease
C) Service; sale of goods
D) Sale of goods; service
,ANSWER: B
Explanation: Article 2 governs contracts for the sale of goods, while Article 2A governs contracts
for the lease of goods .
QUESTION 3
Under UCC Section 2-105, "goods" are defined as:
A) All things movable at the time of identification to the contract for sale
B) Only manufactured products
C) Only tangible property
D) Services and goods combined
ANSWER: A
Explanation: UCC Section 2-105 defines goods as "all things (including specially manufactured
goods) which are movable at the time of identification to the contract for sale" .
QUESTION 4
To resolve contract issues in cases where a tangible good is mixed with a service, most states
employ which test?
A) Perfect tender test
B) Predominant-purpose test
C) Substantial performance test
D) Commercial impracticability test
ANSWER: B
Explanation: The predominant-purpose test is used to determine whether a contract is
primarily for goods (UCC Article 2 applies) or primarily for services (common law applies) .
QUESTION 5
A "sale" under the UCC consists of:
A) The passing of title from the seller to the buyer for a price
B) The transfer of possession only
C) A lease agreement
D) The delivery of goods without payment
,ANSWER: A
Explanation: UCC Section 2-106 defines a sale as "the passing of title from the seller to the
buyer for a price" .
QUESTION 6
Which of the following factors is an indication of "merchant" status?
A) The party typically deals in the kinds of goods involved in the sales contract
B) The party is a casual seller
C) The party has no specialized knowledge
D) The party has never sold goods before
ANSWER: A
Explanation: A merchant is a person who deals in goods of the kind, or by occupation holds out
as having knowledge or skill peculiar to the practices or goods involved .
QUESTION 7
Under the UCC, contracts for the sale of goods must be in writing if they are valued at:
A) $50 or more
B) $500 or more
C) $5,000 or more
D) Any amount
ANSWER: B
Explanation: The UCC statute of frauds (Section 2-201) requires a writing for contracts for the
sale of goods priced at $500 or more .
QUESTION 8
Under a lease, a __________ is a person who transfers the right to possession and use of goods,
while a __________ is a person who acquires that right.
A) Seller; buyer
B) Lessor; lessee
C) Lessee; lessor
D) Buyer; seller
, ANSWER: B
Explanation: A lessor transfers the right to possession and use of goods under a lease, while a
lessee acquires that right .
QUESTION 9
Good faith under the UCC means:
A) Knowledge of all relevant facts
B) Honesty in fact in the conduct or transaction concerned
C) Commercial reasonableness
D) Following industry standards
ANSWER: B
Explanation: UCC Section 1-201 defines good faith as "honesty in fact in the conduct or
transaction concerned" .
QUESTION 10
The UCC defines __________ as any practice that members of an industry expect to be part of
their dealings.
A) Course of dealing
B) Usage of trade
C) Course of performance
D) Good faith
ANSWER: B
Explanation: UCC Section 1-205(2) defines usage of trade as any practice or method of dealing
having such regularity of observance in a place, vocation, or trade as to justify an expectation
that it will be observed .
QUESTION 11
__________ refers to the history of dealings between the parties involved in the present
contract.
A) Course of performance
B) Usage of trade
C) Course of dealing
D) Accord and satisfaction
EXAMINATION 100 Questions and Answers
100%CORRECT QUESTIONS AND ANSWERS ALREADY
GRADED A+
SECTION A: GENERAL PROVISIONS AND SCOPE
(Questions 1-20)
QUESTION 1
The Uniform Commercial Code (UCC) has been adopted by how many states?
A) Forty-nine (49)
B) All fifty (50)
C) Thirty-five (35)
D) Forty-eight (48)
ANSWER: B
Explanation: The UCC has been adopted by all fifty states, the District of Columbia, and U.S.
territories. Louisiana has adopted most articles except Article 2 in its entirety .
QUESTION 2
Article 2 of the UCC governs __________ contracts, while Article 2A governs __________
contracts.
A) Lease; sales
B) Sales; lease
C) Service; sale of goods
D) Sale of goods; service
,ANSWER: B
Explanation: Article 2 governs contracts for the sale of goods, while Article 2A governs contracts
for the lease of goods .
QUESTION 3
Under UCC Section 2-105, "goods" are defined as:
A) All things movable at the time of identification to the contract for sale
B) Only manufactured products
C) Only tangible property
D) Services and goods combined
ANSWER: A
Explanation: UCC Section 2-105 defines goods as "all things (including specially manufactured
goods) which are movable at the time of identification to the contract for sale" .
QUESTION 4
To resolve contract issues in cases where a tangible good is mixed with a service, most states
employ which test?
A) Perfect tender test
B) Predominant-purpose test
C) Substantial performance test
D) Commercial impracticability test
ANSWER: B
Explanation: The predominant-purpose test is used to determine whether a contract is
primarily for goods (UCC Article 2 applies) or primarily for services (common law applies) .
QUESTION 5
A "sale" under the UCC consists of:
A) The passing of title from the seller to the buyer for a price
B) The transfer of possession only
C) A lease agreement
D) The delivery of goods without payment
,ANSWER: A
Explanation: UCC Section 2-106 defines a sale as "the passing of title from the seller to the
buyer for a price" .
QUESTION 6
Which of the following factors is an indication of "merchant" status?
A) The party typically deals in the kinds of goods involved in the sales contract
B) The party is a casual seller
C) The party has no specialized knowledge
D) The party has never sold goods before
ANSWER: A
Explanation: A merchant is a person who deals in goods of the kind, or by occupation holds out
as having knowledge or skill peculiar to the practices or goods involved .
QUESTION 7
Under the UCC, contracts for the sale of goods must be in writing if they are valued at:
A) $50 or more
B) $500 or more
C) $5,000 or more
D) Any amount
ANSWER: B
Explanation: The UCC statute of frauds (Section 2-201) requires a writing for contracts for the
sale of goods priced at $500 or more .
QUESTION 8
Under a lease, a __________ is a person who transfers the right to possession and use of goods,
while a __________ is a person who acquires that right.
A) Seller; buyer
B) Lessor; lessee
C) Lessee; lessor
D) Buyer; seller
, ANSWER: B
Explanation: A lessor transfers the right to possession and use of goods under a lease, while a
lessee acquires that right .
QUESTION 9
Good faith under the UCC means:
A) Knowledge of all relevant facts
B) Honesty in fact in the conduct or transaction concerned
C) Commercial reasonableness
D) Following industry standards
ANSWER: B
Explanation: UCC Section 1-201 defines good faith as "honesty in fact in the conduct or
transaction concerned" .
QUESTION 10
The UCC defines __________ as any practice that members of an industry expect to be part of
their dealings.
A) Course of dealing
B) Usage of trade
C) Course of performance
D) Good faith
ANSWER: B
Explanation: UCC Section 1-205(2) defines usage of trade as any practice or method of dealing
having such regularity of observance in a place, vocation, or trade as to justify an expectation
that it will be observed .
QUESTION 11
__________ refers to the history of dealings between the parties involved in the present
contract.
A) Course of performance
B) Usage of trade
C) Course of dealing
D) Accord and satisfaction
