1) What is the definition of “goods” under Article 2 of the UCC?

a. ”Goods” are defined as tangible things that are immovable at the time of their identi- fication to the contract. b. ”Goods” are defined as fixtures. c. ”Goods” are defined as intangible things that are immovable at the time of their iden- tification to the contract. d. ”Goods” are defined as intangible things that are movable at the time of their identifi- cation to the contract. e.”Goods” are defined as tangible things that are movable at the time of their identifica- tion to the contract.

2) Regarding differences under Article 2 of the UCC in the treatment of merchants and nonmerchants, which is true?

a. Article 2 holds merchants to a lower duty than nonmerchants. b. Article 2 applies to merchants, but never to nonmerchants. c. Article 2 contains several provisions that either apply only to merchants or impose a greater duty on merchants. d. Article 2 does not differentiate at all between merchants and nonmerchants, and they are treated the same under all circumstances. e. None of the above is true.

3) Where a contract for the sale of goods does not mention the place of delivery for the goods, which of the following is true?

a. The seller is obligated to deliver the goods to the buyer’s place of business. b. The contract fails for failure to state a material term. c. The seller is obligated to deliver the goods at the seller’s place of business. d. Sellers without a place of business are obligated to deliver the goods at the seller’s home. e. Both C and D are true.

4) Under the UCC, if an offer is received by mail, the acceptance:

a. can be made by another means, but only if the offer so states. b. must also be made by mail. c. can be made in any commercially reasonable manner. d. is effective only once it is received by the offeror. e. can be canceled by the offeree at any time during the period of a firm offer. Unit 4 Examination 271 Business Law

5) The parol evidence rule would not allow which of the following items into evidence when interpreting a written contract?

a. Evidence of the meaning of a term in the parties’ line of business that differs from the meaning of that term in everyday language. b. Evidence based on prior conduct in similar contracts between the parties to explain the meaning of an ambiguous term in the contract. c. Evidence of a price change agreed upon after the contract was signed. d. Evidence of an oral statement regarding the contract price made when the written contract was signed that was different from the price in the written contract. e. All the above would be allowed into evidence under the parol evidence rule.

6) What is required to meet the writing requirement of the statute of frauds under the UCC?

a. In cases where both parties are merchants, a writing signed by the party to be charged or a written confirmation of an oral agreement that is sent by one party to the other and not objected to by the other party; in all other transactions, a writing signed by the party to be charged. b. In cases where at least one party is a merchant, either a writing signed by the party to be charged or a written confirmation of an oral agreement that is sent to the mer- chant and not objected to by the merchant; in transactions not involving a merchant, a writing signed by the person to be charged. c. In cases where both parties are merchants, a writing signed by the party other than the party to be charged at the end of the document. d. In all cases, a writing signed by the party to be charged. e. In all cases, a writing signed by all parties to the contract.

7) Which of the following is true relating to a “firm offer” under the UCC?

a. It must be in writing and signed by the merchant. b. It can be made only by a merchant. c. It may provide that the offer remain open for any period of time up to six months. d. A, B and C. e. A and B only.

8) Susan decides to buy new carpet for her home. She goes to Carpet City and chooses the carpet she likes. As part of the deal, Carpet City agrees to install the carpet. The carpet is installed while Susan is at work. When she returns home and sees it, Susan immediately notices problems. The carpet is not the same quality of carpet she or- dered, and the color is off. Does the UCC apply, and why or why not? Unit 4 Examination 272 Business Law

a. The UCC does not apply because the deal with Carpet City included service that is not covered by the UCC. b. The UCC does not apply because it does not apply to mixed contracts of goods and services. c. The UCC applies because it applies to service contracts as well as to contracts for the sale of goods. d. The UCC applies because the predominant part of the transaction between Susan and Carpet City was the sale of goods. e. The UCC does not apply because Susan and Carpet City did not agree in writing be- fore the carpet was installed that the UCC would apply.

9) Which of the following situations creates a sale that falls under UCC sales law rules?

a. Dr. Mackey agrees to teach at Pollak university for 1 year. b. Abc rentals rents a cement mixer to Isabel. c. Katherine makes a contract to purchase a shed that requires assembly. The contract price is for $8,000.00 which includes $400.00 for labor. d. Allison contracts to pay Mike $880.00 to have her bedroom painted. $800.00 is for labor and $80.00 is for the paint. e. All of the above are UCC sales contracts.