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Sales & Leases Multiple Choice
Questions Exam Prep 2026 | Brand New
Version | Comprehensive Student Study
Guide & Practice Test Questions | A+
Guaranteed
Buyer and Seller, who have never done business with each other before,
enter into an installment contract in which Seller agrees to ship to Buyer
a series of 10 installments of 100 widgets in each installment. The
contract says that Seller will deliver each installment at Seller's expense
to Buyer's place of business. For the first eight installments, Buyer picks
up the widgets at Seller's place of business. Immediately prior to the date
for performance of the ninth installment of widgets, Buyer calls Seller
and insists that Seller deliver the widgets to Buyer's place of business.
Which of the following statements is most accurate?
A. Buyer might have to pick up the widgets, because course of
performance is relevant to showing waiver of an express term.
B. Seller must deliver the widgets, because express terms of the contract
control course of performance.
C. Seller must deliver the widgets, because express terms of
----Solution☑️☑️☑️☑️A. Buyer might have to pick up the widgets,
because course of performance is relevant to showing waiver of an
express term.
Which of the following contracts is least likely to be governed by UCC
Article 2?
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A. A contract with an artist to buy one of his original sculptures.
B. A contract for the sale of a raffle ticket in which the winning prize is
a computer.
C. A contract between a retail buyer and a retail bookstore for the sale of
a book.
D. A contract to buy the original Mona Lisa painting from a seller who
has not even acquired it yet from the museum that owns the painting.
E. A contract for the sale of natural gas.
----Solution☑️☑️☑️☑️B. A contract for the sale of a raffle ticket in which
the winning prize is a computer.
Caterer agrees to cook, deliver, and serve a fancy steak dinner for
Charity Corp's annual fundraising event for 200 people. The dinner takes
place as planned, but several dozen of the steak dinners served by
Caterer that night contain meat that is spoiled. A number of Charity
Corp's guests get sick as a result, and Charity Corp suffers significant
financial and reputational damage. If Charity Corp sues Caterer for
breach of contract damages, will the contract to provide that night's
dinner for Charity Corp be covered by UCC Article 2?
A. Yes, if the court uses the predominant purpose test, but not if the
court uses the gravamen of the action test.
B. Yes, if the court uses the gravamen of the action test, but not if the
court uses the predominant purpose test.
C. Yes, whether the court uses the gravamen of the action test or the
predominant purpose test.
D. No, whether the court uses the gravamen of the action test o
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----Solution☑️☑️☑️☑️C. Yes, whether the court uses the gravamen of the
action test or the predominant purpose test.
In a famous article written over 50 years ago, Professor Stewart
Macaulay reported the results of his empirical study involving dozens of
interviews with business people concerning the role that commercial law
played in their day-to-day business dealings. Professor Macaulay
concluded in his article that the law has less to do with the daily
decisions that business people make than do other non-legal factors such
as a company's reputation in an industry. Which of the following
describes a way that sales law is nevertheless relevant in business
practice?
A. Litigation can serve as a last resort for an aggrieved party when the
two sides cannot work out their differences informally.
B. During settlement negotiations, the law provides a background
against which parties negotiate so that such negotiations take place "in
the shadow of the law."
C. Business people regularly consult the relevant law to re-write the
other side
----Solution☑️☑️☑️☑️D. Both (A) and (B) are true.
Car Dealership decides to repaint its buildings for the first time in five
years. Because Car Dealership does not repaint very often, it mistakenly
ends up buying about twice as much paint as it needs for the job. Car
Dealership then decides to sell the excess paint to a furniture warehouse
down the street. Which of the following statements concerning this sale
of excess paint is most accurate?
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A. Car Dealership makes an implied warranty of merchantability
regarding the paint, because Car Dealership is a merchant by virtue of its
knowledge of business practices generally.
B. Car Dealership makes an implied warranty of merchantability
regarding the paint, because Car Dealership is not a consumer.
C. Car Dealership makes no implied warranty of merchantability
regarding the paint, because although Car Dealership is a merchant
generally, in selling the paint Car Dealership is not acting in its
mercantile capacity.
D. Car
----Solution☑️☑️☑️☑️E. Car Dealership makes no implied warranty of
merchantability regarding the paint, because this is an isolated sale of
paint for Car Dealership.
Lessor and Lessee agree to a lease of a used automobile that has, at the
time of the lease's inception, a remaining useful life of 12 years. The car
is currently worth $16,000, and Lessee has no option to terminate the
lease. The lease is for four years at $400 per month and Lessee is
responsible for maintenance and insurance. At the end of the lease
period, Lessee has an option to purchase the car for an amount equal to
its fair market value at the time of the purchase option. Which of the
following statements about the lease is most accurate?
A. This is probably a true lease, since there appears to be a reasonable
likelihood that Lessor will receive the car back at a time when it still has
a meaningful residual value.
B. This is probably not a true lease, since a fair-market value purchase
option is so attractive that Lessee is almost certain to exercise it and thus
will almost certainly become the owner of the car
Sales & Leases Multiple Choice
Questions Exam Prep 2026 | Brand New
Version | Comprehensive Student Study
Guide & Practice Test Questions | A+
Guaranteed
Buyer and Seller, who have never done business with each other before,
enter into an installment contract in which Seller agrees to ship to Buyer
a series of 10 installments of 100 widgets in each installment. The
contract says that Seller will deliver each installment at Seller's expense
to Buyer's place of business. For the first eight installments, Buyer picks
up the widgets at Seller's place of business. Immediately prior to the date
for performance of the ninth installment of widgets, Buyer calls Seller
and insists that Seller deliver the widgets to Buyer's place of business.
Which of the following statements is most accurate?
A. Buyer might have to pick up the widgets, because course of
performance is relevant to showing waiver of an express term.
B. Seller must deliver the widgets, because express terms of the contract
control course of performance.
C. Seller must deliver the widgets, because express terms of
----Solution☑️☑️☑️☑️A. Buyer might have to pick up the widgets,
because course of performance is relevant to showing waiver of an
express term.
Which of the following contracts is least likely to be governed by UCC
Article 2?
,2|Page
A. A contract with an artist to buy one of his original sculptures.
B. A contract for the sale of a raffle ticket in which the winning prize is
a computer.
C. A contract between a retail buyer and a retail bookstore for the sale of
a book.
D. A contract to buy the original Mona Lisa painting from a seller who
has not even acquired it yet from the museum that owns the painting.
E. A contract for the sale of natural gas.
----Solution☑️☑️☑️☑️B. A contract for the sale of a raffle ticket in which
the winning prize is a computer.
Caterer agrees to cook, deliver, and serve a fancy steak dinner for
Charity Corp's annual fundraising event for 200 people. The dinner takes
place as planned, but several dozen of the steak dinners served by
Caterer that night contain meat that is spoiled. A number of Charity
Corp's guests get sick as a result, and Charity Corp suffers significant
financial and reputational damage. If Charity Corp sues Caterer for
breach of contract damages, will the contract to provide that night's
dinner for Charity Corp be covered by UCC Article 2?
A. Yes, if the court uses the predominant purpose test, but not if the
court uses the gravamen of the action test.
B. Yes, if the court uses the gravamen of the action test, but not if the
court uses the predominant purpose test.
C. Yes, whether the court uses the gravamen of the action test or the
predominant purpose test.
D. No, whether the court uses the gravamen of the action test o
,3|Page
----Solution☑️☑️☑️☑️C. Yes, whether the court uses the gravamen of the
action test or the predominant purpose test.
In a famous article written over 50 years ago, Professor Stewart
Macaulay reported the results of his empirical study involving dozens of
interviews with business people concerning the role that commercial law
played in their day-to-day business dealings. Professor Macaulay
concluded in his article that the law has less to do with the daily
decisions that business people make than do other non-legal factors such
as a company's reputation in an industry. Which of the following
describes a way that sales law is nevertheless relevant in business
practice?
A. Litigation can serve as a last resort for an aggrieved party when the
two sides cannot work out their differences informally.
B. During settlement negotiations, the law provides a background
against which parties negotiate so that such negotiations take place "in
the shadow of the law."
C. Business people regularly consult the relevant law to re-write the
other side
----Solution☑️☑️☑️☑️D. Both (A) and (B) are true.
Car Dealership decides to repaint its buildings for the first time in five
years. Because Car Dealership does not repaint very often, it mistakenly
ends up buying about twice as much paint as it needs for the job. Car
Dealership then decides to sell the excess paint to a furniture warehouse
down the street. Which of the following statements concerning this sale
of excess paint is most accurate?
, 4|Page
A. Car Dealership makes an implied warranty of merchantability
regarding the paint, because Car Dealership is a merchant by virtue of its
knowledge of business practices generally.
B. Car Dealership makes an implied warranty of merchantability
regarding the paint, because Car Dealership is not a consumer.
C. Car Dealership makes no implied warranty of merchantability
regarding the paint, because although Car Dealership is a merchant
generally, in selling the paint Car Dealership is not acting in its
mercantile capacity.
D. Car
----Solution☑️☑️☑️☑️E. Car Dealership makes no implied warranty of
merchantability regarding the paint, because this is an isolated sale of
paint for Car Dealership.
Lessor and Lessee agree to a lease of a used automobile that has, at the
time of the lease's inception, a remaining useful life of 12 years. The car
is currently worth $16,000, and Lessee has no option to terminate the
lease. The lease is for four years at $400 per month and Lessee is
responsible for maintenance and insurance. At the end of the lease
period, Lessee has an option to purchase the car for an amount equal to
its fair market value at the time of the purchase option. Which of the
following statements about the lease is most accurate?
A. This is probably a true lease, since there appears to be a reasonable
likelihood that Lessor will receive the car back at a time when it still has
a meaningful residual value.
B. This is probably not a true lease, since a fair-market value purchase
option is so attractive that Lessee is almost certain to exercise it and thus
will almost certainly become the owner of the car
