MGT 225-business Law- Ucc Quiz (25)

26 Questions | Total Attempts: 101

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MGT 225-business Law- Ucc Quiz (25)


Questions and Answers
  • 1. 
    Uniform Commercial Code (UCC) Section 2-105 defines __________ as "all (tangible) things...which are movable at the time of identification to the contract for sale."
    • A. 

      Goods

    • B. 

      Services

    • C. 

      Fixtures

    • D. 

      A and B

  • 2. 
    _________ are governed by Article 2 of the Uniform Commercial Code (UCC) , while Article 2(A) governs __________ contracts.
    • A. 

      Lease; sales

    • B. 

      Sales; lease

    • C. 

      Service; sale of goods

    • D. 

      Sale of goods; service

  • 3. 
    Contracts for the sale of goods must be in writing if they are valued at __________ or more under the rules of the UCC.
    • A. 

      $50

    • B. 

      $500

    • C. 

      $5000

    • D. 

      None of the above

  • 4. 
    Sam offers to sell all of the chocolate nut brownies that he makes to Beth, who needs them to sell in her specialty foods store, Sam and Beth have created: 
    • A. 

      A requirements contract.

    • B. 

      An output contract.

    • C. 

      A void contract.

    • D. 

      An invalid open quantity contract.

  • 5. 
    In cases in which a tangible good is mixed with something intangible (example: a service,) most states employ some variation of the __________ test in order to resolve contract issues and disputes.                                                                         
    • A. 

      User-friendly

    • B. 

      Predominant-purpose

    • C. 

      Substantial performance

    • D. 

      Commercial impracticability Commercial impracticability

  • 6. 
    All of the following factors, except which of the following, is an indication of "merchant" status?
    • A. 

      The party typically deals in the kinds of goods involved in the sales contract

    • B. 

      The party is a casual seller

    • C. 

      The party, by occupation, represents him/herself as having knowledge and skill unique to the practices or goods involved in the transaction

    • D. 

      The party in question has employed a broker, agent, or other intermediary

  • 7. 
    Under the UCC, a contract involving which of the following goods is an exception to the statute of frauds writing requirement?
    • A. 

      Specifically manufactured goods

    • B. 

      Generically manufactured goods

    • C. 

      Non-specifically manufactured goods

    • D. 

      Traditional goods

  • 8. 
    Under the Uniform Commercial Code (UCC), sellers and lessors are obligated to transfer and deliver __________ goods.
    • A. 

      Conditional

    • B. 

      Collaborative

    • C. 

      Conforming

    • D. 

      Custom

  • 9. 
    What would the effect of open terms on a contract covered by the UCC be?  
    • A. 

      The contract will be void because of the open terms.

    • B. 

      The contract will be valid if it involves the sale of land.

    • C. 

      The contract will be valid if the parties intended to form a contract and there is a reasonable basis for a court to find a remedy

    • D. 

      The contract will be valid as long as the parties expressed some interest in negotiating.

  • 10. 
                    __________ refers to the history of dealings between the parties involved in the present contract.                                                                                                     
    • A. 

      Course of performance

    • B. 

      Usage of trade

    • C. 

      Empirical accord

    • D. 

      Accord and satisfaction

  • 11. 
    Under the UCC, the seller can presume acceptance if the buyer fails to __________ the goods within a reasonable time.                                                                                                                              
    • A. 

      Revoke

    • B. 

      Rehabilitate

    • C. 

      Reject

    • D. 

      Remonstrate

  • 12. 
    __________ is defined by the UCC as any practice that members of an industry expect to be part of their dealings.                                                                                                                                     
    • A. 

      Usage of trade

    • B. 

      Course of dealings

    • C. 

      Commercial reasonableness

    • D. 

      Commercial practicality

  • 13. 
    A substitute for cash, or a __________, is a written document containing the signature of the creator that makes an unconditional promise or order to pay a sum certain at either a time certain or on demand.                                                                                                                 
    • A. 

      Contract

    • B. 

      Promissory estoppel

    • C. 

      Negotiable instrument

    • D. 

      Negotiable estoppels

  • 14. 
    What are the four specific types of negotiable instruments recognized by the UCC ?                              
    • A. 

      Notes, certificates of deposit, drafts, and checks

    • B. 

      Notes, certificates of withdrawal, drafts, and checks

    • C. 

      Notes, depository receipts, drafts, and checks

    • D. 

      Notes, certificates of withdrawal, depository receipts, and checks

  • 15. 
                    The Uniform Commercial Code (UCC) Section 3-108(a) defines an instrument "payable on __________" as one that "(i) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder; or (ii) does not state any time of payment".                                 
    • A. 

      Presentment

    • B. 

      Date

    • C. 

      Tender

    • D. 

      Demand

  • 16. 
    Under the UCC, types of checks include all but which of the following?                               
    • A. 

      Cashier's checks

    • B. 

      Traveler's checks

    • C. 

      Certified checks

    • D. 

      Promissory checks

  • 17. 
    Payment on  __________ instruments can be made only at a specific future time, which Uniform Commercial Code (UCC) Section 3-108(b) says must be easily determined from the document itself.                               
    • A. 

      Time

    • B. 

      Qualified

    • C. 

      Conditional

    • D. 

      Demand

  • 18. 
    Which of the following is not a requirement for negotiability?                                
    • A. 

      The instrument is in writing

    • B. 

      The instrument is executed by a merchant

    • C. 

      The instrument has an unconditional promise or order to pay

    • D. 

      The instrument is signed by the creator of the instrument

  • 19. 
    Negotiable instruments must order or promise that payment be made in:               
    • A. 

      Goods of the type specified in the subject contract

    • B. 

      Bearer bonds

    • C. 

      A national currency

    • D. 

      U.S. dollars only

  • 20. 
    Under the UCC, which of the following is not a requirement for negotiability?                                                                                                       
    • A. 

      The amount to be paid is a sum certain in money

    • B. 

      The amount to be paid includes a fixed rate of interest

    • C. 

      Payment is to be made either on demand or at a fixed future time

    • D. 

      The document must contain the words of negotiability "to the order of" or, in the alternative, words indicating that it is a bearer instrument

  • 21. 
    A negotiable instrument that indicates no specific name of the payee, is known as a(n) ___________ instrument.                                                        
    • A. 

      Designated

    • B. 

      Unqualified

    • C. 

      Order

    • D. 

      Bearer

  • 22. 
    The Uniform Commercial Code (UCC) attempts to provide which of the following:
    • A. 

      Guidelines for making common law contracts that deal with the sale of land.

    • B. 

      A framework for all international contracts dealing with the sale of securities.

    • C. 

      A consistent and integrated framework of rules to deal with all aspects of commercial sales transactions

    • D. 

      A consistent body of rules for dealing with criminal violations of the law that involve either securities or government bonds.

  • 23. 
    If you lease an automobile from an automobile dealer, this contract is covered by:
    • A. 

      Article 2 of the UCC.

    • B. 

      Article 2A of the UCC.

    • C. 

      Article 6 of the UCC.

    • D. 

      The common law, because it involves an intangible good.

  • 24. 
    Suppose Sue offers to sell her sofa to her friend Brian. Sue does not sell furniture for a living. If, after Sue offers the sofa to Brian for $750, Brian says, “I’ll take it and I want you to throw in the coffee table along with it,” under the UCC, what kind of contract do Sue and Brian have?  
    • A. 

      They have no contract because of the mirror image rule.

    • B. 

      They have a contract for the sofa and coffee table

    • C. 

      They have a contract for the sofa only.

    • D. 

      They have no contract.

  • 25. 
    If Smith sells Burns copper that he removed from land that he owns in Colorado, this contract:  
    • A. 

      Will be covered by Article 2 of the UCC.

    • B. 

      Will be covered by Article 2A of the UCC.

    • C. 

      Will be covered by Article 3 of the UCC.

    • D. 

      Will be covered by the common law.

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