LAW 3220 CHAPTER 11 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
What does the Uniform Commercial Code (UCC) govern? - Answers Contracts for the sale of goods.
What is the UCC's stance on contracts that mix goods and services? - Answers UCC applies if the
dominant value is in goods; common law applies if the dominant value is in services.
What is the purpose of the UCC? - Answers To simplify, clarify, and modernize the law governing
commercial contracts.
Which states have adopted the UCC? - Answers All states except Louisiana, which has not adopted
Article 2.
What does Article 2 of the UCC cover? - Answers Contracts for the sale of goods.
What is the significance of merchants under Article 2 of the UCC? - Answers Merchants are held to a
higher standard of conduct, requiring good faith and honest dealing.
What are the requirements for a merchant under the UCC? - Answers 1) Regularly deals in the goods
in question; 2) Presents himself as having specialized knowledge or skill; 3) Has an agent who does the
same.
In the case of Venable v. SunTrust Bank, what was the main legal issue? - Answers Whether the
statute of limitations under UCC Article 2 or common law applied to the contract.
What was the outcome of Venable v. SunTrust Bank? - Answers SunTrust's suit was time-barred
under the 4-year statute of limitations of UCC Article 2.
What does UCC 2-403 state about Amazon's role in product sales? - Answers Amazon was not
considered a seller but an entrustee, merely passing on the seller's rights to the buyer.
What conditions must be met for title to pass under the UCC? - Answers 1) Goods must exist; 2)
Goods must be identified to the contract; 3) Seller completes all obligations regarding delivery.
What is required to form a sales contract under the UCC? - Answers Agreement between parties,
even if major terms like price or delivery are missing.
What is a 'merchant's firm offer' under the UCC? - Answers An irrevocable offer when signed in
writing that will remain open for a specified period or a reasonable time if not stated.
In Crest Ridge Construction v. Newcourt, Inc., what was the main issue? - Answers Whether
Newcourt had the right to cancel the order at the last minute due to credit approval.
What was the jury's decision in Crest Ridge Construction v. Newcourt, Inc.? - Answers The jury
awarded Crest Ridge $70,214 in damages for breach of contract by Newcourt.
What does UCC Article 1 cover? - Answers General provisions, guidance, and definitions related to
the UCC.
What does UCC Article 3 address? - Answers Negotiable instruments, including checks and
promissory notes.
What is covered under UCC Article 4? - Answers Rights and duties of banks and their clients regarding
bank deposits and collections.
What does UCC Article 5 pertain to? - Answers Letters of credit, which guarantee payment by a bank
on behalf of a client.
What is the focus of UCC Article 6? - Answers Bulk transfers and bulk sales, including auctions and
sales of large assets.
What does UCC Article 7 deal with? - Answers Warehouse receipts, bills of lading, and other
documents of title related to storage and bailment of goods.
What is the subject of UCC Article 8? - Answers Investment securities, focusing on rights and duties
related to stocks and financial assets.
What does UCC Article 9 cover? - Answers Secured transactions, where the seller holds a security
interest in the goods sold.
What is the role of good faith in UCC transactions? - Answers All parties are bound to a standard of
good faith and honest dealing.
Under what conditions can title pass in a sale of goods? - Answers Title can pass when the goods
arrive for shipment, arrive at the buyer's warehouse, leave the seller's warehouse, or are halfway
between buyer and seller.
What is an 'indefinite offer' in the context of UCC sales contracts? - Answers An offer that can be
missing major terms but still be valid if the parties intended to be bound.
What documents were exchanged between the parties in the construction industry? - Answers Price
quotes, purchase orders, and binding documents.
What was left blank in the agreement between the parties? - Answers Terms of payment.
What does the Uniform Commercial Code (UCC) govern? - Answers Contracts for the sale of goods.
What is the UCC's stance on contracts that mix goods and services? - Answers UCC applies if the
dominant value is in goods; common law applies if the dominant value is in services.
What is the purpose of the UCC? - Answers To simplify, clarify, and modernize the law governing
commercial contracts.
Which states have adopted the UCC? - Answers All states except Louisiana, which has not adopted
Article 2.
What does Article 2 of the UCC cover? - Answers Contracts for the sale of goods.
What is the significance of merchants under Article 2 of the UCC? - Answers Merchants are held to a
higher standard of conduct, requiring good faith and honest dealing.
What are the requirements for a merchant under the UCC? - Answers 1) Regularly deals in the goods
in question; 2) Presents himself as having specialized knowledge or skill; 3) Has an agent who does the
same.
In the case of Venable v. SunTrust Bank, what was the main legal issue? - Answers Whether the
statute of limitations under UCC Article 2 or common law applied to the contract.
What was the outcome of Venable v. SunTrust Bank? - Answers SunTrust's suit was time-barred
under the 4-year statute of limitations of UCC Article 2.
What does UCC 2-403 state about Amazon's role in product sales? - Answers Amazon was not
considered a seller but an entrustee, merely passing on the seller's rights to the buyer.
What conditions must be met for title to pass under the UCC? - Answers 1) Goods must exist; 2)
Goods must be identified to the contract; 3) Seller completes all obligations regarding delivery.
What is required to form a sales contract under the UCC? - Answers Agreement between parties,
even if major terms like price or delivery are missing.
What is a 'merchant's firm offer' under the UCC? - Answers An irrevocable offer when signed in
writing that will remain open for a specified period or a reasonable time if not stated.
In Crest Ridge Construction v. Newcourt, Inc., what was the main issue? - Answers Whether
Newcourt had the right to cancel the order at the last minute due to credit approval.
What was the jury's decision in Crest Ridge Construction v. Newcourt, Inc.? - Answers The jury
awarded Crest Ridge $70,214 in damages for breach of contract by Newcourt.
What does UCC Article 1 cover? - Answers General provisions, guidance, and definitions related to
the UCC.
What does UCC Article 3 address? - Answers Negotiable instruments, including checks and
promissory notes.
What is covered under UCC Article 4? - Answers Rights and duties of banks and their clients regarding
bank deposits and collections.
What does UCC Article 5 pertain to? - Answers Letters of credit, which guarantee payment by a bank
on behalf of a client.
What is the focus of UCC Article 6? - Answers Bulk transfers and bulk sales, including auctions and
sales of large assets.
What does UCC Article 7 deal with? - Answers Warehouse receipts, bills of lading, and other
documents of title related to storage and bailment of goods.
What is the subject of UCC Article 8? - Answers Investment securities, focusing on rights and duties
related to stocks and financial assets.
What does UCC Article 9 cover? - Answers Secured transactions, where the seller holds a security
interest in the goods sold.
What is the role of good faith in UCC transactions? - Answers All parties are bound to a standard of
good faith and honest dealing.
Under what conditions can title pass in a sale of goods? - Answers Title can pass when the goods
arrive for shipment, arrive at the buyer's warehouse, leave the seller's warehouse, or are halfway
between buyer and seller.
What is an 'indefinite offer' in the context of UCC sales contracts? - Answers An offer that can be
missing major terms but still be valid if the parties intended to be bound.
What documents were exchanged between the parties in the construction industry? - Answers Price
quotes, purchase orders, and binding documents.
What was left blank in the agreement between the parties? - Answers Terms of payment.
