LAW OF COMMERCIAL TRANSACTIONS EXAM 1 QU
CORRECT ANSWERS
The cUniform cCommercial cCode c- cCORRECT cANS✔✔A cgeneral cand cinclusive cgroup cof claws c
call cthe cstates cto cfurther cuniformity cand cfair cdealing cin cbusiness cand ccommercial ctransactions.
When csomething cis cmissing cin ca cK cyou clook cto cthe cUCC
What cis cthe cpurpose cof cthe cUCC? c- cCORRECT cANS✔✔(1) cto csimplify, cclarify, cand cmoderniz
ccommercial ctransactions; c(2) cto cpermit cthe ccontinued cexpansion cof ccommercial cpractices cthro
cagreement cof cthe cparties; cand c(3) cto cmake cuniform cthe claw camong cthe cvarious cjurisdictions
In cother cwords cit's ca csingle, cintegrated cframework cfor ccommercial ctransactions.
Article c2 cof cthe cUCC csets cforth cthe...? c- cCORRECT cANS✔✔requirements cfor csales ccontracts,
cobligations cof cthe cparties cinvolved cin cthe csales ccontract.
Article c2A ccovers csimilar cissues cfor...? c- cCORRECT cANS✔✔lease ccontracts. cBear cin cmind, ch
csales cor clease ccontracts care cfree cto cagree cto cterms cdifferent cfrom cthose cstated cin cthe cUCC.
Article c2 cdeals cwith cthe...? c- cCORRECT cANS✔✔sale cof cgoods. cIt cdoes cnot cdeal cwith creal cpr
cor cintangible cproperty csuch cas cstocks cand cbonds. cThus, cif cthe csubject cmatter cof ca cdispute cis
cit cis creal cestate cor cservices, cthe ccommon claw capplies.
Sale c- cCORRECT cANS✔✔"consists cin cthe cpassing cof ctitle cfrom cthe cseller cto cthe cbuyer cfor ca
Good c- cCORRECT cANS✔✔All cthings cthat care cmovable cat cthe ctime cof cidentification cto ca ccont
cincludes cfuture cgoods, cspecially cmanufactured cgoods, cthe cunborn cyoung cof canimals, cgrowing
cthings cattached cto creality cas cdescribed cin cSection c2-107
Anything cboth ctangible cand cmovable
Oil cand cGas ca c"good"? c- cCORRECT cANS✔✔If cthe c"owner" cextracts cit chimself cit ccan cbe ca cgo
When ccontracts cinvolve ca ccombination cof cgoods cand cservices, ccourts cgenerally...? c- cCORREC
cpredominant-factor ctest cto cdetermine cwhether ca ccontract cis cprimarily cfor cthe csale cof cgoods co
, A cfinance clease cinvolves ca...? c- cCORRECT cANS✔✔lessor, ca clessee, cand ca csupplier. cThe cles
cfrom cthe csupplier cand cleases cor csubleases cthem cto cthe clessee c[UCC c2A-103(1)(g)]. cTypically
clessor cis csimply cfinancing cthe ctransaction.
The clessee cmust cperform cand ccontinue cto cmake clease cpayments ceven cif...? c- cCORRECT cAN
cturns cout cto cbe cdefective. cThe clessee cmust clook calmost centirely cto cthe csupplier cfor cany creco
Open cPrice cTerms c- cCORRECT cANS✔✔If cthe cparties chave cnot cagreed con ca cprice, cthe ccourt
cprice cat cthe ctime cfor cdelivery" c[UCC c2-305(1)]. cIf ceither cthe cbuyer cor cthe cseller cis cto cdetermi
cbe cdecided cin cgood cfaith c[UCC c2-305(2)].
Perez cand cMerrick center cinto ca ccontract cfor cthe csale cof cgoods cand cagree cthat cPerez cwill cdet
crefuses cto cspecify cthe cprice. cMerrick ccan...? c- cCORRECT cANS✔✔either ctreat cthe ccontract cas
creasonable cprice c[UCC c2-305(3)].
Open cPayment cTerm c- cCORRECT cANS✔✔When cthe cparties cdo cnot cspecify cpayment cterms, c
cand cplace cat cwhich cthe cbuyer cis cto creceive cthe cgoods c[UCC c2-310(a)]. cThe cbuyer ccan ctende
ccommercially cnormal cor cacceptable cmeans, csuch cas ca ccheck cor ccredit ccard. cIf cthe cseller cdem
chowever, cthe cbuyer cmust cbe cgiven ca creasonable ctime cto cobtain cit c[UCC c2-511(2)].
Open cDelivery cTerm c- cCORRECT cANS✔✔When cno cdelivery cterms care cspecified, cthe cbuyer cn
cseller's cplace cof cbusiness c[UCC c2-308(a)]. cIf cthe cseller chas cno cplace cof cbusiness, cthe cseller'
cgoods care clocated cin csome cother cplace cand cboth cparties cknow cit, cdelivery cis cmade cthere. cIf
cdelivery cis cnot cclearly cspecified cin cthe csales ccontract, cthen cthe ccourt cwill cinfer ca c"reasonable
c2-309(1)].
Duration cof cOngoing cContract c- cCORRECT cANS✔✔A csingle ccontract cmight cspecify csuccessiv
cindicate chow clong cthe cparties care crequired cto cdeal cwith ceach cother. cIn cthis csituation, ceither cp
congoing ccontractual crelationship. cNevertheless, cprinciples cof cgood cfaith cand csound ccommercia
cnotification cbefore ctermination cso cas cto cgive cthe cother cparty csufficient ctime cto cseek ca csubstit
309(2), c(3)].
Options/Cooperations cwith cregard cto cPerformance c- cCORRECT cANS✔✔When cthe ccontract cco
cgoods cbut cdoes cnot cspecify cthe cshipping carrangements, cthe cseller chas cthe cright cto cmake cthe
cmust cmake cthe carrangements cin cgood cfaith, cusing ccommercial creasonableness cin cthe csituatio
When ca csales ccontract comits cterms crelating cto cthe cassortment cof cgoods, cthe cbuyer ccan cspec
Open cQuantity cTerms c- cCORRECT cANS✔✔Normally, cas cmentioned cearlier, cif cthe cparties cdo c
ccontract cis cformed.
The cUCC crecognizes ctwo cexceptions cto cthis crule cin crequirements cand coutput ccontracts c[UCC
Requirements cContract c- cCORRECT cANS✔✔An cagreement cin cwhich ca cbuyer cagrees cto cpurch
csell call cor cup cto ca cstated camount cof cwhat cthe cbuyer cneeds cor crequires.
Output cContract c- cCORRECT cANS✔✔An cagreement cin cwhich ca cseller cagrees cto csell cand ca cb
cto ca cstated camount cof cwhat cthe cseller cproduces.
Under cregular ccontract cprinciples, can coffer ccan cbe...? c- cCORRECT cANS✔✔revoked cat cany ctim
cwhen ctheres can coption ccontract cor cfirm coffer cmade cby ca cmerchant.
Option cContract c- cCORRECT cANS✔✔when cthe cofferee cpays cconsideration cfor cthe cofferor's cir
coffer copen cfor ca cstated cperiod.
CORRECT ANSWERS
The cUniform cCommercial cCode c- cCORRECT cANS✔✔A cgeneral cand cinclusive cgroup cof claws c
call cthe cstates cto cfurther cuniformity cand cfair cdealing cin cbusiness cand ccommercial ctransactions.
When csomething cis cmissing cin ca cK cyou clook cto cthe cUCC
What cis cthe cpurpose cof cthe cUCC? c- cCORRECT cANS✔✔(1) cto csimplify, cclarify, cand cmoderniz
ccommercial ctransactions; c(2) cto cpermit cthe ccontinued cexpansion cof ccommercial cpractices cthro
cagreement cof cthe cparties; cand c(3) cto cmake cuniform cthe claw camong cthe cvarious cjurisdictions
In cother cwords cit's ca csingle, cintegrated cframework cfor ccommercial ctransactions.
Article c2 cof cthe cUCC csets cforth cthe...? c- cCORRECT cANS✔✔requirements cfor csales ccontracts,
cobligations cof cthe cparties cinvolved cin cthe csales ccontract.
Article c2A ccovers csimilar cissues cfor...? c- cCORRECT cANS✔✔lease ccontracts. cBear cin cmind, ch
csales cor clease ccontracts care cfree cto cagree cto cterms cdifferent cfrom cthose cstated cin cthe cUCC.
Article c2 cdeals cwith cthe...? c- cCORRECT cANS✔✔sale cof cgoods. cIt cdoes cnot cdeal cwith creal cpr
cor cintangible cproperty csuch cas cstocks cand cbonds. cThus, cif cthe csubject cmatter cof ca cdispute cis
cit cis creal cestate cor cservices, cthe ccommon claw capplies.
Sale c- cCORRECT cANS✔✔"consists cin cthe cpassing cof ctitle cfrom cthe cseller cto cthe cbuyer cfor ca
Good c- cCORRECT cANS✔✔All cthings cthat care cmovable cat cthe ctime cof cidentification cto ca ccont
cincludes cfuture cgoods, cspecially cmanufactured cgoods, cthe cunborn cyoung cof canimals, cgrowing
cthings cattached cto creality cas cdescribed cin cSection c2-107
Anything cboth ctangible cand cmovable
Oil cand cGas ca c"good"? c- cCORRECT cANS✔✔If cthe c"owner" cextracts cit chimself cit ccan cbe ca cgo
When ccontracts cinvolve ca ccombination cof cgoods cand cservices, ccourts cgenerally...? c- cCORREC
cpredominant-factor ctest cto cdetermine cwhether ca ccontract cis cprimarily cfor cthe csale cof cgoods co
, A cfinance clease cinvolves ca...? c- cCORRECT cANS✔✔lessor, ca clessee, cand ca csupplier. cThe cles
cfrom cthe csupplier cand cleases cor csubleases cthem cto cthe clessee c[UCC c2A-103(1)(g)]. cTypically
clessor cis csimply cfinancing cthe ctransaction.
The clessee cmust cperform cand ccontinue cto cmake clease cpayments ceven cif...? c- cCORRECT cAN
cturns cout cto cbe cdefective. cThe clessee cmust clook calmost centirely cto cthe csupplier cfor cany creco
Open cPrice cTerms c- cCORRECT cANS✔✔If cthe cparties chave cnot cagreed con ca cprice, cthe ccourt
cprice cat cthe ctime cfor cdelivery" c[UCC c2-305(1)]. cIf ceither cthe cbuyer cor cthe cseller cis cto cdetermi
cbe cdecided cin cgood cfaith c[UCC c2-305(2)].
Perez cand cMerrick center cinto ca ccontract cfor cthe csale cof cgoods cand cagree cthat cPerez cwill cdet
crefuses cto cspecify cthe cprice. cMerrick ccan...? c- cCORRECT cANS✔✔either ctreat cthe ccontract cas
creasonable cprice c[UCC c2-305(3)].
Open cPayment cTerm c- cCORRECT cANS✔✔When cthe cparties cdo cnot cspecify cpayment cterms, c
cand cplace cat cwhich cthe cbuyer cis cto creceive cthe cgoods c[UCC c2-310(a)]. cThe cbuyer ccan ctende
ccommercially cnormal cor cacceptable cmeans, csuch cas ca ccheck cor ccredit ccard. cIf cthe cseller cdem
chowever, cthe cbuyer cmust cbe cgiven ca creasonable ctime cto cobtain cit c[UCC c2-511(2)].
Open cDelivery cTerm c- cCORRECT cANS✔✔When cno cdelivery cterms care cspecified, cthe cbuyer cn
cseller's cplace cof cbusiness c[UCC c2-308(a)]. cIf cthe cseller chas cno cplace cof cbusiness, cthe cseller'
cgoods care clocated cin csome cother cplace cand cboth cparties cknow cit, cdelivery cis cmade cthere. cIf
cdelivery cis cnot cclearly cspecified cin cthe csales ccontract, cthen cthe ccourt cwill cinfer ca c"reasonable
c2-309(1)].
Duration cof cOngoing cContract c- cCORRECT cANS✔✔A csingle ccontract cmight cspecify csuccessiv
cindicate chow clong cthe cparties care crequired cto cdeal cwith ceach cother. cIn cthis csituation, ceither cp
congoing ccontractual crelationship. cNevertheless, cprinciples cof cgood cfaith cand csound ccommercia
cnotification cbefore ctermination cso cas cto cgive cthe cother cparty csufficient ctime cto cseek ca csubstit
309(2), c(3)].
Options/Cooperations cwith cregard cto cPerformance c- cCORRECT cANS✔✔When cthe ccontract cco
cgoods cbut cdoes cnot cspecify cthe cshipping carrangements, cthe cseller chas cthe cright cto cmake cthe
cmust cmake cthe carrangements cin cgood cfaith, cusing ccommercial creasonableness cin cthe csituatio
When ca csales ccontract comits cterms crelating cto cthe cassortment cof cgoods, cthe cbuyer ccan cspec
Open cQuantity cTerms c- cCORRECT cANS✔✔Normally, cas cmentioned cearlier, cif cthe cparties cdo c
ccontract cis cformed.
The cUCC crecognizes ctwo cexceptions cto cthis crule cin crequirements cand coutput ccontracts c[UCC
Requirements cContract c- cCORRECT cANS✔✔An cagreement cin cwhich ca cbuyer cagrees cto cpurch
csell call cor cup cto ca cstated camount cof cwhat cthe cbuyer cneeds cor crequires.
Output cContract c- cCORRECT cANS✔✔An cagreement cin cwhich ca cseller cagrees cto csell cand ca cb
cto ca cstated camount cof cwhat cthe cseller cproduces.
Under cregular ccontract cprinciples, can coffer ccan cbe...? c- cCORRECT cANS✔✔revoked cat cany ctim
cwhen ctheres can coption ccontract cor cfirm coffer cmade cby ca cmerchant.
Option cContract c- cCORRECT cANS✔✔when cthe cofferee cpays cconsideration cfor cthe cofferor's cir
coffer copen cfor ca cstated cperiod.
