LEB 320F Unit 5 Exam Questions and
Answers 100% Solved | Graded A+
What is Article 2 of the UCC? - ✔✔deals with the sale of goods, and rules
for contracts selling goods
What does a sale of goods contract not pertain to? - ✔✔temporary
possession of the goods (such as leases) or gifts
What is a requirement to specify that something is a good under the UCC?
- ✔✔It must be tangible and movable
Are sales of minerals or structures sales of goods? - ✔✔only if they are to
be severed form the land without material harm to the real estate;
otherwise they are sales of real estate
Name 3 special goods classifications. - ✔✔Unborn animals, money -
collectible coins etc, and things specially manufactured for a buyer (vs a
service)
How do we distinguish a good from a service? - ✔✔Is the predominant
factor, thrust, and purpose of the transaction as a selling a good or
supplying a service?
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Ex. Giving blood to a patient, dying a person's hair
Rottner v. Avg Technologies Inc - premise - ✔✔Rottner downloads
PCTuneUp, but it slows down his computer and destroys his hard drive. He
sues under the USS and Avg technologies moves to dismiss, saying that
their product is not a good
Rottner v. Avg Technologies Inc - outcome - ✔✔the sale of a software
package has been classified as the sale of a good for UCC purposes.
motion to dismiss denied.
What is a merchant? - ✔✔One who "deals in goods of the kind" that are
involved. if a person does not regularly "deal" in a particular type of goods,
he is nevertheless a merchant if he "by his occupation holds himself out as
having knowledge or skill peculiar to the practices or goods involved in the
transaction." (ex. Building contractor). One is also a merchant if he or she
employs a merchant to act in his or her behalf in a transaction. Essentially if
you have a degree of commercial expertise not found in a member of the
general public you're a merchant
Brooks Cotton v. Williams - premise - ✔✔Farmer Williams orally agrees to
sell 1206 bales of cotton to Brooks Cotton but cannot deliver the entire
order. Brooks Cotton sues. Williams says it's unenforceable because
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, because it was not in writing as required by the UCC's statute of frauds
provision. However, Brooks Cotton sent written confirmation of the alleged
agreement to Williams within 30 days after the oral agreement. Because
Williams did not object or respond to the written confirmation, the oral
agreement for sale of goods is enforceable, but only if both parties to the
contract are merchants. The trial court held in ruling on a summary
judgment motion that Williams was a merchant. He appealed.
Brooks Cotton v. Williams - outcome - ✔✔A farmer may be considered a
merchant when the farmer possesses sufficient expertise in not only the
cultivation, but also the sale of crops. Williams was not a farmer-merchant
and therefore the judgement is reversed and remanded
Under what article of the UCC are leases governed? - ✔✔A true lease is
governed by bailment law, while a lease intended as security for a loan is
subject to UCC Article 9 and 2A.
This is decided by the structure of the lease
What are the lessor's remedies under the UCC article 2A? - ✔✔If the
lessee breaches the lease by failing to make payments when due, the
lessor can cancel the lease, repossess, and collect damages
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Answers 100% Solved | Graded A+
What is Article 2 of the UCC? - ✔✔deals with the sale of goods, and rules
for contracts selling goods
What does a sale of goods contract not pertain to? - ✔✔temporary
possession of the goods (such as leases) or gifts
What is a requirement to specify that something is a good under the UCC?
- ✔✔It must be tangible and movable
Are sales of minerals or structures sales of goods? - ✔✔only if they are to
be severed form the land without material harm to the real estate;
otherwise they are sales of real estate
Name 3 special goods classifications. - ✔✔Unborn animals, money -
collectible coins etc, and things specially manufactured for a buyer (vs a
service)
How do we distinguish a good from a service? - ✔✔Is the predominant
factor, thrust, and purpose of the transaction as a selling a good or
supplying a service?
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Ex. Giving blood to a patient, dying a person's hair
Rottner v. Avg Technologies Inc - premise - ✔✔Rottner downloads
PCTuneUp, but it slows down his computer and destroys his hard drive. He
sues under the USS and Avg technologies moves to dismiss, saying that
their product is not a good
Rottner v. Avg Technologies Inc - outcome - ✔✔the sale of a software
package has been classified as the sale of a good for UCC purposes.
motion to dismiss denied.
What is a merchant? - ✔✔One who "deals in goods of the kind" that are
involved. if a person does not regularly "deal" in a particular type of goods,
he is nevertheless a merchant if he "by his occupation holds himself out as
having knowledge or skill peculiar to the practices or goods involved in the
transaction." (ex. Building contractor). One is also a merchant if he or she
employs a merchant to act in his or her behalf in a transaction. Essentially if
you have a degree of commercial expertise not found in a member of the
general public you're a merchant
Brooks Cotton v. Williams - premise - ✔✔Farmer Williams orally agrees to
sell 1206 bales of cotton to Brooks Cotton but cannot deliver the entire
order. Brooks Cotton sues. Williams says it's unenforceable because
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, because it was not in writing as required by the UCC's statute of frauds
provision. However, Brooks Cotton sent written confirmation of the alleged
agreement to Williams within 30 days after the oral agreement. Because
Williams did not object or respond to the written confirmation, the oral
agreement for sale of goods is enforceable, but only if both parties to the
contract are merchants. The trial court held in ruling on a summary
judgment motion that Williams was a merchant. He appealed.
Brooks Cotton v. Williams - outcome - ✔✔A farmer may be considered a
merchant when the farmer possesses sufficient expertise in not only the
cultivation, but also the sale of crops. Williams was not a farmer-merchant
and therefore the judgement is reversed and remanded
Under what article of the UCC are leases governed? - ✔✔A true lease is
governed by bailment law, while a lease intended as security for a loan is
subject to UCC Article 9 and 2A.
This is decided by the structure of the lease
What are the lessor's remedies under the UCC article 2A? - ✔✔If the
lessee breaches the lease by failing to make payments when due, the
lessor can cancel the lease, repossess, and collect damages
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
