Multiple Choice Questions
1. For a contract governed by the UCC sales article, which one of the following statements is correct?
(a) Merchants and non-merchants are treated alike.
(b) The contract may involve the sale of any type of personal property.
(c) The obligations of the parties to the contract must be performed in good faith.
(d) The contract must involve the sale of goods for a price $500 or more.
Answer: C.
2. Which one of the following transactions is not governed by Article 2 of the UCC?
(a) Purchasing an automobile for $35,000
(b) Leasing an automobile worth $35,000
(c) Purchasing a stereo worth $501
(d) Purchasing a stereo worth $499
Answer: B.
3. Fred assembles computers in his garage and sells them. He makes an agreement with Alpha Company under which Alpha will deliver 100 keyboards. The agreement does not specify when payment is due. Which of the following is true?
(a) Fred has no obligation to pay, because there was no "meeting of the minds" and no contract was formed
(b) Fred must pay within 10 days of making the agreement.
(c) Fred must pay within 10 days of accepting the keyboards.
(d) Fred must pay within a commercially reasonable time.
Answer: D.
4. Under the UCC Statute of Frauds, a contract must be signed by the ________________ to count as being "in writing”. Also, the _____________ of the goods must be written.
(a) plaintiff; price
(b) plaintiff; quantity
(c) defendant; price
(d) defendant; quantity
Answer: D.
5. Assume that a contract is modified. New consideration must be present for the modification to be binding if the deal is governed by:
(a) The common law
(b) The UCC
(c) Both A and B
(d) Neither A nor B
Answer: A.