BUS3055 Business Law for Commercial
Transactions
Midterm Exam Review (Qns & Ans)
2025
**Question 1:*
*Case Study: Acme Corp., a major manufacturer, enters into a
contract with Beta Inc. for the sale of 10,000 widgets. The written
contract does not specify a delivery date. Under the Uniform
Commercial Code (UCC), when no delivery time is stated, which
principle governs the timing for delivery?
A. The contract is void without an express delivery date
B. Delivery must occur “on demand”
C. Delivery must occur within a “reasonable time”
D. Delivery is deferred until written notice is provided
©2025
,**Correct ANS:* C. Delivery must occur within a “reasonable
time”
**Rationale:* UCC Article 2 presumes that if a contract for the
sale of goods does not specify a delivery time, delivery is to occur
within a “reasonable time” based on the nature of the transaction
and industry standards.
---
**Question 2:*
*Case Study: Beta Inc. agrees to purchase a consignment of
specialty chemicals from Gamma LLC. After shipment, quality
issues are discovered. Which of the following remedies is the
buyer most likely entitled to under the UCC if the goods fail to
conform?
A. Rejection of the goods and recovering damages
B. Immediate termination of all contractual obligations without
further remedy
C. Acceleration of the performance schedule
D. Requiring the seller to perform “strict compliance” with no
opportunity to cure
**Correct ANS:* A. Rejection of the goods and recovering
damages
©2025
,**Rationale:* Under the UCC, if goods fail to conform to the
contract, the buyer may reject them and sue for damages, which is
among the primary remedies for breach of a sales contract in
commercial transactions.
---
**Question 3:*
*Case Study: A retailer modifies its standard contract for the sale
of goods. Under the UCC, the parties agree to change a term
without providing additional consideration.
**Question:* Which doctrine permits this modification?
A. Consideration must always be new for modifications
B. The doctrine of promissory estoppel
C. The UCC’s gap rule for contract modifications
D. The pre‑existing duty rule
**Correct ANS:* C. The UCC’s gap rule for contract
modifications
**Rationale:* Under UCC Article 2, an agreement modifying a
contract for the sale of goods need not be supported by new
consideration as long as the modification is made in good faith.
©2025
, ---
**Question 4:*
*Case Study: A buyer who contracts for the sale of goods valued
at $800 fails to reduce the contract to writing. Under the UCC, is
the contract enforceable?
A. Yes, if the goods are specially manufactured
B. No, because it violates the Statute of Frauds
C. Yes, because the $500 threshold under the UCC is satisfied
D. No, unless accompanied by a verbal assurance from the seller
**Correct ANS:* C. Yes, because the $500 threshold under the
UCC is satisfied
**Rationale:* The UCC requires contracts for the sale of goods
priced at $500 or more to be in writing. However, if sufficient
written confirmation or other exceptions (like specially
manufactured goods) apply, the contract may be enforceable. In
this case, as the transaction meets the threshold and assuming
basic written evidence exists, enforcement is likely.
---
**Question 5:*
©2025
Transactions
Midterm Exam Review (Qns & Ans)
2025
**Question 1:*
*Case Study: Acme Corp., a major manufacturer, enters into a
contract with Beta Inc. for the sale of 10,000 widgets. The written
contract does not specify a delivery date. Under the Uniform
Commercial Code (UCC), when no delivery time is stated, which
principle governs the timing for delivery?
A. The contract is void without an express delivery date
B. Delivery must occur “on demand”
C. Delivery must occur within a “reasonable time”
D. Delivery is deferred until written notice is provided
©2025
,**Correct ANS:* C. Delivery must occur within a “reasonable
time”
**Rationale:* UCC Article 2 presumes that if a contract for the
sale of goods does not specify a delivery time, delivery is to occur
within a “reasonable time” based on the nature of the transaction
and industry standards.
---
**Question 2:*
*Case Study: Beta Inc. agrees to purchase a consignment of
specialty chemicals from Gamma LLC. After shipment, quality
issues are discovered. Which of the following remedies is the
buyer most likely entitled to under the UCC if the goods fail to
conform?
A. Rejection of the goods and recovering damages
B. Immediate termination of all contractual obligations without
further remedy
C. Acceleration of the performance schedule
D. Requiring the seller to perform “strict compliance” with no
opportunity to cure
**Correct ANS:* A. Rejection of the goods and recovering
damages
©2025
,**Rationale:* Under the UCC, if goods fail to conform to the
contract, the buyer may reject them and sue for damages, which is
among the primary remedies for breach of a sales contract in
commercial transactions.
---
**Question 3:*
*Case Study: A retailer modifies its standard contract for the sale
of goods. Under the UCC, the parties agree to change a term
without providing additional consideration.
**Question:* Which doctrine permits this modification?
A. Consideration must always be new for modifications
B. The doctrine of promissory estoppel
C. The UCC’s gap rule for contract modifications
D. The pre‑existing duty rule
**Correct ANS:* C. The UCC’s gap rule for contract
modifications
**Rationale:* Under UCC Article 2, an agreement modifying a
contract for the sale of goods need not be supported by new
consideration as long as the modification is made in good faith.
©2025
, ---
**Question 4:*
*Case Study: A buyer who contracts for the sale of goods valued
at $800 fails to reduce the contract to writing. Under the UCC, is
the contract enforceable?
A. Yes, if the goods are specially manufactured
B. No, because it violates the Statute of Frauds
C. Yes, because the $500 threshold under the UCC is satisfied
D. No, unless accompanied by a verbal assurance from the seller
**Correct ANS:* C. Yes, because the $500 threshold under the
UCC is satisfied
**Rationale:* The UCC requires contracts for the sale of goods
priced at $500 or more to be in writing. However, if sufficient
written confirmation or other exceptions (like specially
manufactured goods) apply, the contract may be enforceable. In
this case, as the transaction meets the threshold and assuming
basic written evidence exists, enforcement is likely.
---
**Question 5:*
©2025
