BUL 5810 CORRECT EXAMS ANSWERS AND
QUESTIONS SET A+
✔✔T or F: A minor's contracts are voidable at the minor's option. - ✔✔True
✔✔What is disaffirmance? - ✔✔Avoidance of the contract; may be done during minority
and for a reasonable time after reaching majority.
✔✔T or F: A minor who has disaffirmed a contract is entitled to restitution from the other
party for any benefit the minor has conferred on the other party; the courts differ
regarding the obligation of the minor to make restitution to the other party. - ✔✔True
✔✔What is ratification? - ✔✔Affirmation of the entire contract; may be done upon
reaching majority.
✔✔T or F: A minor is liable for the reasonable value of necessary items (those that
reasonably supply a person's needs). - ✔✔True
✔✔In the case of potential liability for misrepresentation of age, the prevailing view is: -
✔✔that a minor may disaffirm the contract.
✔✔A minor is not liable in tort if a tort and a contract are so intertwined that to enforce
the tort the court must: - ✔✔enforce the contract.
✔✔A contract made by a mentally incompetent person placed under guardianship by
court order is ________. - ✔✔void
✔✔A contract entered into by a nonadjudicated mentally incompetent person (one who
is unable to understand the nature and consequences of his acts) is: - ✔✔voidable
✔✔A contract entered into by an intoxicated person (one who cannot understand the
nature and consequence of her actions) is: - ✔✔voidable
, ✔✔Goods are defined as: - ✔✔movable personal property
✔✔A sale is a: - ✔✔transfer of title to goods from seller to buyer for a price.
✔✔A a transfer of right to possession and use of goods in return for consideration is a: -
✔✔lease
✔✔Leases by a merchant to an individual who leases for personal, family, or household
purposes for no more than $25,000 are: - ✔✔consumer leases
✔✔A special type of lease transaction generally involving three parties: the lessor, the
supplier, and the lessee is a: - ✔✔finance lease
✔✔Sales Transactions are governed by Article 2 of the Code, but where general
contract law has not been specifically modified by the Code: - ✔✔general contract law
continues to apply.
✔✔Lease Transactions governed by Article 2A of the Code, but where general contract
law has not been specifically modified by the Code: - ✔✔general contract law continues
to apply.
✔✔Transactions Outside the Code include: - ✔✔employment contracts, service
contracts, insurance contracts, contracts involving real property, and contracts for the
sale of intangibles.
✔✔What is the purpose of Article 2 and 2A of the UCC? - ✔✔To modernize, clarify,
simplify, and make uniform the law of sales and leases.
✔✔The Code requires all sales and lease contracts to be performed in good faith, which
means: - ✔✔honesty in fact in the conduct or transaction concerned; in the case of a
merchant (and a nonmerchant under Revised Article 1), it also includes the observance
of reasonable commercial standards.
✔✔T or F: A court may refuse to enforce an unconscionable contract or any part of a
contract found to be unconscionable. - ✔✔True
✔✔Procedural Unconscionability is: - ✔✔unfairness of the bargaining process.
✔✔Substantive Unconscionability is: - ✔✔oppressive or grossly unfair contractual
provisions.
QUESTIONS SET A+
✔✔T or F: A minor's contracts are voidable at the minor's option. - ✔✔True
✔✔What is disaffirmance? - ✔✔Avoidance of the contract; may be done during minority
and for a reasonable time after reaching majority.
✔✔T or F: A minor who has disaffirmed a contract is entitled to restitution from the other
party for any benefit the minor has conferred on the other party; the courts differ
regarding the obligation of the minor to make restitution to the other party. - ✔✔True
✔✔What is ratification? - ✔✔Affirmation of the entire contract; may be done upon
reaching majority.
✔✔T or F: A minor is liable for the reasonable value of necessary items (those that
reasonably supply a person's needs). - ✔✔True
✔✔In the case of potential liability for misrepresentation of age, the prevailing view is: -
✔✔that a minor may disaffirm the contract.
✔✔A minor is not liable in tort if a tort and a contract are so intertwined that to enforce
the tort the court must: - ✔✔enforce the contract.
✔✔A contract made by a mentally incompetent person placed under guardianship by
court order is ________. - ✔✔void
✔✔A contract entered into by a nonadjudicated mentally incompetent person (one who
is unable to understand the nature and consequences of his acts) is: - ✔✔voidable
✔✔A contract entered into by an intoxicated person (one who cannot understand the
nature and consequence of her actions) is: - ✔✔voidable
, ✔✔Goods are defined as: - ✔✔movable personal property
✔✔A sale is a: - ✔✔transfer of title to goods from seller to buyer for a price.
✔✔A a transfer of right to possession and use of goods in return for consideration is a: -
✔✔lease
✔✔Leases by a merchant to an individual who leases for personal, family, or household
purposes for no more than $25,000 are: - ✔✔consumer leases
✔✔A special type of lease transaction generally involving three parties: the lessor, the
supplier, and the lessee is a: - ✔✔finance lease
✔✔Sales Transactions are governed by Article 2 of the Code, but where general
contract law has not been specifically modified by the Code: - ✔✔general contract law
continues to apply.
✔✔Lease Transactions governed by Article 2A of the Code, but where general contract
law has not been specifically modified by the Code: - ✔✔general contract law continues
to apply.
✔✔Transactions Outside the Code include: - ✔✔employment contracts, service
contracts, insurance contracts, contracts involving real property, and contracts for the
sale of intangibles.
✔✔What is the purpose of Article 2 and 2A of the UCC? - ✔✔To modernize, clarify,
simplify, and make uniform the law of sales and leases.
✔✔The Code requires all sales and lease contracts to be performed in good faith, which
means: - ✔✔honesty in fact in the conduct or transaction concerned; in the case of a
merchant (and a nonmerchant under Revised Article 1), it also includes the observance
of reasonable commercial standards.
✔✔T or F: A court may refuse to enforce an unconscionable contract or any part of a
contract found to be unconscionable. - ✔✔True
✔✔Procedural Unconscionability is: - ✔✔unfairness of the bargaining process.
✔✔Substantive Unconscionability is: - ✔✔oppressive or grossly unfair contractual
provisions.
