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Cards In This Set
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The distinction between contracts that are covered by the UCC and those that are not is
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A - Basically dependent upon whether the subject matter of the contract involves the purchase or sale of goods.
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Which of the following is excluded from the UCC's definition of goods?
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B - Investment securities.
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Regarding hte scope of Article 2 of the UCC, when a contract involves a mixed transaction, such as a sale of goods combined with the rendition of services, whihc of the following statements is true?
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B - The courts ordinarily will apply Article 2 when the contract's focus or predominant feature is the sale of goods.
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Article 2A of the Uniform Commerical Code governs leases of goods, including consumer and finance leases. Under Article 2A,
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D - The lessee's promises in a finance lease that is not a consumer lease must be performed even if the lessor breaches the contract.
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I.M. Cruck sold refrigerators door to door. Cruck called on Ms. Kalik, a welfare recipient with four small children. Convinced by the sales talk, Kalik signed a form contract that clearly stated the terms of the agreement. After adding credit charges, insurance, and tax, the total price came to more than $1,200. The retail value of hte appliance was $300. After paying $600, Ms. Kalik defaulted. Ms. Kalik then sued and prevailed on the theory of
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B - Unconscionability.
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Patch, a frequent shopper at Soon-Shop Stores, recieved a rain check for an advertised sale item after Soon-Shop's supply of the product ran out. The rain check was in writing and stated that the item would be offered to the customer at the advertised sale price for an unspecified period of time. A Soon-Shop employee signed the rain check. When Patch returend to the store one month later to purchase the item, the store refused to honor the rain check. Under UCC Article 2, will Patch win a suit to enforce the rain check?
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D - Yes, because the rain check met the requirements of a merchant's firm offer even though no effective time period was stated.
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Under UCC Article 2, and unless otherwise agreed to, the seller's obligation to the buyer is to
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B - Hold conforming goods and give the buyer whatever notification is reasonably necessary to enable the buyer to take delivery.
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Doral, Inc., contracted Ace Lumber Company to acquire a 75-day option (firm offer) to buy the lumber it needed to expand its building. Doral supplied a form contract that included the option. Ace Lumber signed at the physical end of the contract but did not sign elsewhere. The price of lumber has risen drastically and Ace wants to avoid its obligation. Which of the following is best defense?
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D - The promise of irrevocability was contained in a form supplied by Doral and was not separately signed by Ace.
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A sheep rancher agreed, in writing, to sell all the wool shorn during the shearing season to a weaver. The contract failed to establish the price and a minimum quantity of wool. After the shearing season, the rancher refused to deliver the wool. The weaver sued the rancher for breach of contract. Under UCC Article 2, will the weaver win?
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A - Yes, because this was an output contract.
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Casassa, a merchant in San Francisco, under the terms of a nonshipment contract, agrees to sell 50 cases of packaged macaroni to Paoli, a restaurant owner whose business is in San Jose. At the time of contracting for the sale, both parties are aware that these identified goods are in a warehouse in Fresno. The place for delivery is not specified in the agreement. On the basis of these facts, the place for delivery is
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C - Fresno.
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