Business Law 2, Test 2 Practice
Questions, BUL 3320 Chapter 42
(Real Property and Landlord-Tenant
Law), Quiz 5 Business Law & The
Legal Environment Q&A
A merchant is a person who, by occupation, holds himself or herself out as having
________ and skill unique to the practices or goods involved in the transaction. This
broad definition may include banks or universities as merchants. - ANSWER-
Knowledge
A person who employs a merchant as a broker, agent, or other intermediary has the
________ of merchant in that transaction. - ANSWER-Status
When merchants are involved in commercial sales transactions, they are held to
certain standards because of their presumed commercial expertise. When
nonmerchant buyers or sellers are involved: - ANSWER-they are held to less
demanding standards than merchants.
Lease agreement - ANSWER-In regard to the lease of goods, an agreement in which
one person (the lessor) agrees to transfer the right to the possession and use the
property to another person (the lessee) in exchange for rental payments.
Lessor - ANSWER-One who acquires the right to the possession and use of goods
under a lease.
Lessee - ANSWER-One who transfers the right to the possession and use of goods
under a lease.
Nello wants to purchase a large tent for his catering business. He convinces the
owner of Ajax Supplies, an outdoor equipment store, to buy the tent from the tent's
manufacturer and then lease it to him. They have created a _________ . -
ANSWER-Financial lease
Three Elements of a Consumer Lease: - ANSWER-A. A lessor who regularly
engages in the business of leasing or selling.
B. A lessee (except an organization) who leases the goods "primarily for a personal,
family, or household purpose."
C. Total lease payments that are less than $25,000.
, The UCC states that a sales or lease contract will not fail for indefiniteness even if
one or more terms are left open as long as both of the following are true. -
ANSWER-A. The parties intended to make a contract.
B. There is a reasonably certain basis for the court to grant an appropriate remedy
Three of the most common open terms for which the UCC provides numerous
provisions to fill the gaps in a contract: - ANSWER-Open price term, open payment
term, and open delivery term.
Under the UCC, a contract that contains open terms will be: - ANSWER-valid if the
parties intended to form a contract and there is a good basis for a court to grant a
remedy.
Ed offers to sell to Nicole an antique chest of drawers worth more than $2,000.
Nicole agrees to buy the chest and signs a contract for the purpose, but the price of
the chest is left out of the contract. Ed and Nicole have: - ANSWER-A valid contract
as long as the court can determine a reasonable price.
Requirements contract - ANSWER-An agreement in which a buyer agrees to
purchase and the seller agrees to sell all or up to a stated amount of what the buyer
needs or requires.
Output contract - ANSWER-An agreement in which a seller agrees to sell and a
buyer agrees to buy all or up to a stated amount of what the seller produces.
Seasonably - ANSWER-Within a specified time period if no period is specified, within
a reasonable time.
Firm offer - ANSWER-An offer (by a merchant) that is irrevocable without
consideration for a period of time (not longer than three months). A firm offer by a
merchant must be in writing and must be signed by the offeror.
Output and requirements contracts are basically the same thing. - ANSWER-False
Fully integrated contract - ANSWER-When a contract completely sets forth all the
terms and conditions agreed to by the parties and is intended as a final statement of
their agreement.
Course of dealing - ANSWER-Prior conduct between parties to a contract that
establishes a common basis for their understanding.
Usage of trade - ANSWER-Any practice or method of dealing having such regularity
of observance in a place, vocation, or trade as to justify an expectation that will be
observed with respect the transaction in question.
Course of performance - ANSWER-The conduct that occurs under the terms of a
particular agreement; such conduct indicates what the parties to an agreement
intended it to mean.
Questions, BUL 3320 Chapter 42
(Real Property and Landlord-Tenant
Law), Quiz 5 Business Law & The
Legal Environment Q&A
A merchant is a person who, by occupation, holds himself or herself out as having
________ and skill unique to the practices or goods involved in the transaction. This
broad definition may include banks or universities as merchants. - ANSWER-
Knowledge
A person who employs a merchant as a broker, agent, or other intermediary has the
________ of merchant in that transaction. - ANSWER-Status
When merchants are involved in commercial sales transactions, they are held to
certain standards because of their presumed commercial expertise. When
nonmerchant buyers or sellers are involved: - ANSWER-they are held to less
demanding standards than merchants.
Lease agreement - ANSWER-In regard to the lease of goods, an agreement in which
one person (the lessor) agrees to transfer the right to the possession and use the
property to another person (the lessee) in exchange for rental payments.
Lessor - ANSWER-One who acquires the right to the possession and use of goods
under a lease.
Lessee - ANSWER-One who transfers the right to the possession and use of goods
under a lease.
Nello wants to purchase a large tent for his catering business. He convinces the
owner of Ajax Supplies, an outdoor equipment store, to buy the tent from the tent's
manufacturer and then lease it to him. They have created a _________ . -
ANSWER-Financial lease
Three Elements of a Consumer Lease: - ANSWER-A. A lessor who regularly
engages in the business of leasing or selling.
B. A lessee (except an organization) who leases the goods "primarily for a personal,
family, or household purpose."
C. Total lease payments that are less than $25,000.
, The UCC states that a sales or lease contract will not fail for indefiniteness even if
one or more terms are left open as long as both of the following are true. -
ANSWER-A. The parties intended to make a contract.
B. There is a reasonably certain basis for the court to grant an appropriate remedy
Three of the most common open terms for which the UCC provides numerous
provisions to fill the gaps in a contract: - ANSWER-Open price term, open payment
term, and open delivery term.
Under the UCC, a contract that contains open terms will be: - ANSWER-valid if the
parties intended to form a contract and there is a good basis for a court to grant a
remedy.
Ed offers to sell to Nicole an antique chest of drawers worth more than $2,000.
Nicole agrees to buy the chest and signs a contract for the purpose, but the price of
the chest is left out of the contract. Ed and Nicole have: - ANSWER-A valid contract
as long as the court can determine a reasonable price.
Requirements contract - ANSWER-An agreement in which a buyer agrees to
purchase and the seller agrees to sell all or up to a stated amount of what the buyer
needs or requires.
Output contract - ANSWER-An agreement in which a seller agrees to sell and a
buyer agrees to buy all or up to a stated amount of what the seller produces.
Seasonably - ANSWER-Within a specified time period if no period is specified, within
a reasonable time.
Firm offer - ANSWER-An offer (by a merchant) that is irrevocable without
consideration for a period of time (not longer than three months). A firm offer by a
merchant must be in writing and must be signed by the offeror.
Output and requirements contracts are basically the same thing. - ANSWER-False
Fully integrated contract - ANSWER-When a contract completely sets forth all the
terms and conditions agreed to by the parties and is intended as a final statement of
their agreement.
Course of dealing - ANSWER-Prior conduct between parties to a contract that
establishes a common basis for their understanding.
Usage of trade - ANSWER-Any practice or method of dealing having such regularity
of observance in a place, vocation, or trade as to justify an expectation that will be
observed with respect the transaction in question.
Course of performance - ANSWER-The conduct that occurs under the terms of a
particular agreement; such conduct indicates what the parties to an agreement
intended it to mean.
