8/4/24, 3:04 PM
Commercial Law - MCQs
Jeremiah
Terms in this set (103)
1. Which of the following cases would most C. Van Dyne Apps sold Gately Construction a standard software package, identical to
likely be governed by Article 2? the package Van Dyne Apps sold to many small businesses.
A. Gately Construction provided detailed
specifications for inventory control software.
Van Dyne Apps agreed to design, develop,
and test software to meet those
specifications.
B. Van Dyne Apps agreed to provide
inventory control software, update the
software periodically, make any adaptations
necessary to run it on Gately Construction's
system, and train Gately Construction's
employees to use the software.
C. Van Dyne Apps sold Gately Construction
a standard software package, identical to the
package Van Dyne Apps sold to many small
businesses.
D. All of the above.
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,8/4/24, 3:04 PM
1. Incandenza liked a Marconi sedan offered B. No. The transaction is governed by UCC Article 2A, Leases.
at Pemulis Auto for $14,000, but wished to
keep options open. Incandenza and Pemulis
Auto signed a "Sales Contract," under which
Incandenza would pay $400 per month to
Pemulis Auto to use the car. Incandenza
could at any time return the car and be
obliged to make no more payments.
Incandenza may also keep the car forever, as
long as he makes the monthly payment.
Does Article 2 apply to the transaction?
A. Yes. The contract clearly states that it is a
sales contract.
B. No. The transaction is governed by UCC
Article 2A, Leases.
C. Article 2 will apply until Incandenza
returns the car.
D. Yes. The subject of the contract is a car,
which falls into the category of goods, not
services.
1. Avril agreed to design and build a custom A. Yes, because Article 2 applies to specially made goods.
wheelchair for Mario. The contract specified
capabilities and dimensions of the chair and
provided for Avril to determine the design
and build the chair. Upon completion and
delivery, Avril would be entitled to a lump-
sum payment based on her time and other
specified costs. Does Article 2 apply to the
transaction?
A. Yes, because Article 2 applies to specially
made goods.
B. No, because the predominant purpose of
the contract is services in designing and
building the chair.
C. No, because Avril is not a merchant.
D. Yes, because Avril is a merchant.
1. Steeply runs an art gallery in Baldwinsville, B. UCC Article 2, because the CISG allows the parties to choose the law to govern their
New York. She signs a contract to purchase a transaction.
security system from Marathe Prevention of
Montreal, Quebec. The contract provides
that it is governed by Article 2 of the UCC. Is
the contract governed by Article 2 of the
UCC or by the Convention on Contracts for
the International Sale of Goods (CISG)?
A. CISG, because the parties live in two
countries that are party to the CISG.
B. UCC Article 2, because the CISG allows
the parties to choose the law to govern their
transaction.
C. Conduct in Quebec is governed by the
CISG and conduct in the United States by
UCC Article 2.
D. The parties must comply with all
provisions of both the UCC and the CISG.
Commercial
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1. Van Dyne Apps sold Gately Construction E. All of the above.
some software that would run its inventory
control systems. What difference would it
make if the transaction is governed by
Article 2 of the UCC, rather than the
common law of contracts?
A. Article 2 provides an implied warranty of
merchantability, even if Van Dyne Apps did
not make any specific promises about the
software.
B. Article 2's rules on contract formation are
more flexible, finding an enforceable
contract even where there is no matching
offer and acceptance.
C. Article 2's perfect tender rule may require
the seller to deliver exactly the software
agreed upon to be entitled to the price.
Common law contract may only require
substantial performance.
D. Article 2 will readily fill in gaps that the
parties did not address, such as price or time
for performance.
E. All of the above.
1. Wilson had the highest bid on eBay, the D. eBay is not liable, because it did not sell the painting.
online auction site, for a painting, which the
seller described as an original Jackson
Pollock. After some email exchanges with
the seller, Wilson sent a cashier's check, and
a few days later received a suspiciously fresh
painting, although Pollock died in 1956.
Unable to locate the seller, Wilson sued
eBay for breach of express warranty under
Article 2 of the UCC. Which is likely to be the
best argument for eBay?
A. Fraud is legal, in order to encourage
buyers to be careful.
B. Article 2 of the UCC does not apply to
paintings.
C. Article 2 does not apply, because the
transaction was not a sale of goods, rather
was a service transaction (shipping a
painting).
D. eBay is not liable, because it did not sell
the painting.
Commercial Law - MCQs
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, 8/4/24, 3:04 PM Commercial Law - MCQs Flashcards | Quizlet
1. Djuna purchased a 3D printer from Joyce 1. All of the above.
for $19,390. As part of the transaction, Djuna
signed a piece of paper promising to pay
$19,390. What difference does it make if that
piece of paper is a negotiable instrument?
1. If it is a negotiable instrument, Djuna would
have to pay $19,390 to a holder in due
course of the paper, even if Joyce delivered
a defective printer or no printer at all.
2. If it is not a negotiable instrument, Djuna
would have to pay only if she was obliged to
pay under contract law. If Joyce does not
deliver as promised, that would reduce or
excuse Djuna's obligation to pay.
3. If it is a negotiable instrument, UCC Article
3 would govern most issues that would arise:
how to transfer rights in the paper to
someone else, who is liable if the paper is
stolen, how to present the paper for
payment, what effect it would have if there
were a mistake in the numbers on the paper,
etc.
4. All above.
1. The paper that Djuna signed contains this 3. No. It is conditional and so not a negotiable instrument.
provision: "Djuna is obliged to pay if Joyce
delivers the 3D printer as promised." Can the
paper be a negotiable instrument?
1. Yes. She has made an unconditional
promise to pay once the printer is delivered.
2. Yes, but she only has to pay if Joyce
delivers the 3D printer as promised.
3. No. It is conditional and so not a
negotiable instrument.
4. No. Negotiable instruments are used only
in loan transactions, not sales.
Commercial Law - MCQs
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Commercial Law - MCQs
Jeremiah
Terms in this set (103)
1. Which of the following cases would most C. Van Dyne Apps sold Gately Construction a standard software package, identical to
likely be governed by Article 2? the package Van Dyne Apps sold to many small businesses.
A. Gately Construction provided detailed
specifications for inventory control software.
Van Dyne Apps agreed to design, develop,
and test software to meet those
specifications.
B. Van Dyne Apps agreed to provide
inventory control software, update the
software periodically, make any adaptations
necessary to run it on Gately Construction's
system, and train Gately Construction's
employees to use the software.
C. Van Dyne Apps sold Gately Construction
a standard software package, identical to the
package Van Dyne Apps sold to many small
businesses.
D. All of the above.
1/43
,8/4/24, 3:04 PM
1. Incandenza liked a Marconi sedan offered B. No. The transaction is governed by UCC Article 2A, Leases.
at Pemulis Auto for $14,000, but wished to
keep options open. Incandenza and Pemulis
Auto signed a "Sales Contract," under which
Incandenza would pay $400 per month to
Pemulis Auto to use the car. Incandenza
could at any time return the car and be
obliged to make no more payments.
Incandenza may also keep the car forever, as
long as he makes the monthly payment.
Does Article 2 apply to the transaction?
A. Yes. The contract clearly states that it is a
sales contract.
B. No. The transaction is governed by UCC
Article 2A, Leases.
C. Article 2 will apply until Incandenza
returns the car.
D. Yes. The subject of the contract is a car,
which falls into the category of goods, not
services.
1. Avril agreed to design and build a custom A. Yes, because Article 2 applies to specially made goods.
wheelchair for Mario. The contract specified
capabilities and dimensions of the chair and
provided for Avril to determine the design
and build the chair. Upon completion and
delivery, Avril would be entitled to a lump-
sum payment based on her time and other
specified costs. Does Article 2 apply to the
transaction?
A. Yes, because Article 2 applies to specially
made goods.
B. No, because the predominant purpose of
the contract is services in designing and
building the chair.
C. No, because Avril is not a merchant.
D. Yes, because Avril is a merchant.
1. Steeply runs an art gallery in Baldwinsville, B. UCC Article 2, because the CISG allows the parties to choose the law to govern their
New York. She signs a contract to purchase a transaction.
security system from Marathe Prevention of
Montreal, Quebec. The contract provides
that it is governed by Article 2 of the UCC. Is
the contract governed by Article 2 of the
UCC or by the Convention on Contracts for
the International Sale of Goods (CISG)?
A. CISG, because the parties live in two
countries that are party to the CISG.
B. UCC Article 2, because the CISG allows
the parties to choose the law to govern their
transaction.
C. Conduct in Quebec is governed by the
CISG and conduct in the United States by
UCC Article 2.
D. The parties must comply with all
provisions of both the UCC and the CISG.
Commercial
Citizens do not chooseLaw - MCQs
the law.
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,8/4/24, 3:04 PM Commercial Law - MCQs Flashcards | Quizlet
1. Van Dyne Apps sold Gately Construction E. All of the above.
some software that would run its inventory
control systems. What difference would it
make if the transaction is governed by
Article 2 of the UCC, rather than the
common law of contracts?
A. Article 2 provides an implied warranty of
merchantability, even if Van Dyne Apps did
not make any specific promises about the
software.
B. Article 2's rules on contract formation are
more flexible, finding an enforceable
contract even where there is no matching
offer and acceptance.
C. Article 2's perfect tender rule may require
the seller to deliver exactly the software
agreed upon to be entitled to the price.
Common law contract may only require
substantial performance.
D. Article 2 will readily fill in gaps that the
parties did not address, such as price or time
for performance.
E. All of the above.
1. Wilson had the highest bid on eBay, the D. eBay is not liable, because it did not sell the painting.
online auction site, for a painting, which the
seller described as an original Jackson
Pollock. After some email exchanges with
the seller, Wilson sent a cashier's check, and
a few days later received a suspiciously fresh
painting, although Pollock died in 1956.
Unable to locate the seller, Wilson sued
eBay for breach of express warranty under
Article 2 of the UCC. Which is likely to be the
best argument for eBay?
A. Fraud is legal, in order to encourage
buyers to be careful.
B. Article 2 of the UCC does not apply to
paintings.
C. Article 2 does not apply, because the
transaction was not a sale of goods, rather
was a service transaction (shipping a
painting).
D. eBay is not liable, because it did not sell
the painting.
Commercial Law - MCQs
https://quizlet.com/861306656/commercial-law-mcqs-flash-cards/ 3/43
, 8/4/24, 3:04 PM Commercial Law - MCQs Flashcards | Quizlet
1. Djuna purchased a 3D printer from Joyce 1. All of the above.
for $19,390. As part of the transaction, Djuna
signed a piece of paper promising to pay
$19,390. What difference does it make if that
piece of paper is a negotiable instrument?
1. If it is a negotiable instrument, Djuna would
have to pay $19,390 to a holder in due
course of the paper, even if Joyce delivered
a defective printer or no printer at all.
2. If it is not a negotiable instrument, Djuna
would have to pay only if she was obliged to
pay under contract law. If Joyce does not
deliver as promised, that would reduce or
excuse Djuna's obligation to pay.
3. If it is a negotiable instrument, UCC Article
3 would govern most issues that would arise:
how to transfer rights in the paper to
someone else, who is liable if the paper is
stolen, how to present the paper for
payment, what effect it would have if there
were a mistake in the numbers on the paper,
etc.
4. All above.
1. The paper that Djuna signed contains this 3. No. It is conditional and so not a negotiable instrument.
provision: "Djuna is obliged to pay if Joyce
delivers the 3D printer as promised." Can the
paper be a negotiable instrument?
1. Yes. She has made an unconditional
promise to pay once the printer is delivered.
2. Yes, but she only has to pay if Joyce
delivers the 3D printer as promised.
3. No. It is conditional and so not a
negotiable instrument.
4. No. Negotiable instruments are used only
in loan transactions, not sales.
Commercial Law - MCQs
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