Trisha Sandvig

February 1, 2016

1. 50 multiple choice questions2. Write down your answers on a separate sheet of paper3. Answer key located at the end of test

1. §2-501(1) Identification under Article 2 refers to :

A. Specific goods the buyer has failed to make an effective rejection of, but has had the opportunity to inspect them.

B. Conforming goods the buyer has inspected and taken physical possession of.

C. Fungible goods to which the document of title refers that are in accordance with the obligations under the contract.

D. Existing goods referred to by contract even though goods may be nonconforming and the buyer has the option to return or reject them.

2. §2-501(1)(a)(b)(c) In the absence of an explicit

agreement, which statement is NOT true regarding identification:

A. Identification occurs when the contract is made for goods already existing and identified.

B. If the contract for sale is for unborn young, identification occurs when young are born within nine months of contracting.

C. For future goods, identification occurs when goods are shipped, marked, or designated by the seller.

D. Identification occurs when crops are planted or otherwise become growing crops.

3. § 2A-103(1)(t) A merchant lessee is a lessee that is a

merchant with respect to:

A. Knowledge of the kind subject to the leaseB. Goods of the kind subject to the leaseC. Security interest of the kind subject to the leaseD. Leasehold interest of the kind subject to the lease

4. §2A-104(1)(a)(b)(c) A lease, although subject to this

Article, is also subject to any of the following EXCEPT:

A. Consumer protection statute of this StateB. Certificate of title statute of this StateC. Consumer protection statue of another StateD. Certificate of title statute of another jurisdiction

5. §1-201(b)(26) Subject to the UCC, a party is defined as

a person that has:

A. Made an agreementB. Pursued a remedyC. Engaged in a performanceD. Signed a contract

6. §§2-203, 2A-203 Which statement is correct about

affixing a seal to a contract for sale(or lease contract):

A. Affixing of a seal constitutes the writing as a sealed instrument.

B. Affixing of a seal does not constitute the writing as a sealed instrument.

C. Affixing of a seal provides evidence of an offer to buy, lease, or sell goods.

D. Affixing of a seal evidences an authentically signed writing.

7. §1-201(b)(25) A person other than an individual is called

a(an):

A. Organization B. BankC. BranchD. Holder

8. §2-106(1) A contract for sale is defined as:

A. A contract for the present sale of goods.B. A contract for the future sale of goods.C. A contract for the present sale or future sale of goods.D. A contract consisting of the passing of title from seller to

buyer.

9. §2-201(2) How long does the receiving party have to give

written objection to a writing received in confirmation of a

contract between merchants:

A. 30 days B. 15 days C. 10 days D. 7 days

10. §1-206 Whenever the UCC creates a “presumption” of a

fact, or provides that a fact is “presumed”, it means:

A. The trier of fact must prove that the nonexistence of the fact is more probable than its existence.

B. The trier of fact must find the nonexistence of the fact unless and until the evidence is introduced that supports the contrary.

C. The trier of fact must prove that the existence of the fact is more probable than its nonexistence.

D. The trier of fact must find the existence of the fact unless and until evidence is introduced that supports the contrary.

11. §2A-103(1)(n) A person who acquires the right to

possession and use of goods under a lease is known as a:

A. LesseeB. LessorC. Lessee in the ordinary course of businessD. Lessor in the ordinary course of business

12. §§2-202(a)(b), 2A-202(a)(b) Final written expression of the

parties’ terms of agreement may NOT be explained or

supplemented by:

A. Course of dealing and usage of tradeB. Evidence of a prior agreement or oral agreementC. Course of performance and usage of tradeD. Evidence of consistent additional terms

13. §2-712(1) In the event of a breach, the buyer may make (or contract

to make) any reasonable purchase of goods in substitution for those due from the seller. This is known as a(an):

A. EncumbranceB. Fixture filingC. CoverD. Remedy

14. §2A-103(1)(o) A person who in good faith and without knowledge

that the lease to him violates the ownership rights, security interest, or

leasehold interest of a 3rd party in the goods, and leases from a person in the business of selling(leasing) such goods is known as a:

A. Lessee in ordinary course of businessB. Lessor in ordinary course of businessC. Buyer in ordinary course of businessD. Seller in ordinary course of business

15. §§2-206(1)(a)(b), 2A-206(1) Unless clearly indicated by the

language/circumstances, all of the following shall be construed

as inviting acceptance in the form of a contract EXCEPT:

A. An offer to make a contract and by any reasonable medium.

B. An order to buy goods for prompt shipment with the seller’s prompt promise to ship the goods.

C. An offer to buy goods for current shipment with seller promptly or currently shipping the goods.

D. An accommodation of nonconforming goods with seller seasonably notifying buyer of the accommodation.

16. §1-201(b)(19) Free of forgery or counterfeiting is

generally referred to as:

A. Bona fideB. InsolventC. GenuineD. Good faith

17. §2A103(1)(o) A lessee in the ordinary course of business

does NOT include:

A. Leasing goods by exchange of property or on unsecured credit.

B. Acquiring goods in a transfer in bulk or as security for a money debt.

C. Receiving goods or documents of title under a pre-existing contract.

D. Leasing goods from a person in the business of selling or leasing goods of the kind.

18. §2A-103(1)(m) Leasehold interest is defined as:

A. The interest of the lessor under a lease contract.B. The interest of the lessee under a lease contract.C. The interest of the merchant under a lease contract.D. The interest of the lessor or the lessee under a lease

contract.

19. §§2-316(3)(a)(b)(c), 2A-214(3)(a)(b)(c) An implied warranty

may be modified or excluded in all of the following

circumstances EXCEPT:

A. When the buyer(lessee) after entering into the contract has examined or refused to examine the goods.

B. When language calls the buyer’s(lessee’s) attention to the exclusion of warranties.

C. When expressions like “as is” or “with all faults” are used.D. When the circumstance involves course of dealing,

course of performance, or usage of trade.

20. §1-201(b)(37) Any symbol executed or adopted with present

intention to adopt or accept a writing is referred to as:

A. GenuineB. SignedC. ConspicuousD. Entrusting

21. §§2-316(2), 2A-214(2) To exclude or modify any implied

warranty of fitness it must be:

A. In writingB. conspicuousC. In writing or conspicuousD. In writing and conspicuous

22. §1-201(b)(2) An aggrieved party is a party entitled to:

A. Pursue an actionB. Pursue a remedyC. Receive monetary damagesD. Receive an authenticated record

23. §1-105 Which statement is true regarding severability of the

UCC:

A. A UCC provision applies to a transaction to the extent it is governed by another provision of the UCC.

B. Intended as a unified coverage of its subject matter, no part of the UCC shall be deemed to be impliedly repealed by legislation if such construction can be avoided.

C. If any provision of the UCC is held invalid, the invalidity does not effect other provisions of the UCC, which can be given effect without the invalid provision.

D. Unless displaced by a particular provision of the UCC, validating and invalidating causes supplement its provisions.

24. §1-201(b)(23) Insolvent means all of the following

EXCEPT:

A. Being insolvent within the meaning of federal bankruptcy law.

B. Having ceased to pay debts in the ordinary course of business.

C. Possessing a higher debt-to-income ratio. D. Being unable to pay debts as they become due.

25. §2-327(1)(a)(b)(c) Which special incident is NOT correct

under a sale on approval of identified goods:

A. Risk of loss and the title do not pass to the buyer until acceptance.

B. Use of the goods consistent with the purpose of trial is acceptance.

C. After notification of election to return goods, the return is at the seller’s risk and expense.

D. Acceptance of any part of conforming goods is acceptance of the whole.

26. §2-327(2)(a)(b) Unless otherwise agreed, under a sale or

return:

A. The return is at the buyer’s risk and expense.B. The return is at the seller’s risk and expense.C. The option to return extends only to the whole of any

commercial unit of goods in their original condition. D. The option to return extends to any commercial unit of

goods if exercised seasonably within 10 days.

27. §2A-309(1)(a) According to Article 2A, when do goods

become fixtures:

A. When they are installed in or affixed to other goods.B. When a mortgage filing on the real estate is filed.C. When a lease for building materials are incorporated into

an improvement on land.D. When they become so related to the real estate that an

interest in them arises under real estate law.

28. §§2-612(3), 2A-510(2) An aggrieved party reinstates an

installment (installment lease) contract previously under default

by all of the following EXCEPT:

A. He seasonably notifies seller of a defect in the required documents.

B. He demands performance of future installments.C. He accepts a non-conforming installment without

seasonably notifying of cancellation.D. He brings an action only to past installments.

29. §2-312(1)(b) A warranty by the seller that goods shall be

delivered free from any lien, encumbrance, or security interest is

called a:

A. Warranty of affirmationB. Warranty of merchantabilityC. Warranty of titleD. Warranty of promise

30. §2-305(1)(b)(c) If a contract is concluded with an unsettled

price, the price is considered reasonable at the time of delivery:

A. If the price is to be agreed upon by the parties, and they fail to agree.

B. If the price is to be fixed in terms of an agreed market as recorded by a third person, and is not recorded.

C. If the price is to be fixed in terms of an agreed market as set by an agency, and is not set.

D. All the above

31. §1-201(b)(15) Means voluntary transfer of possession, with

respect to an instrument, document of title, or chattel paper:

A. SendB. DeliveryC. SaleD. Notice

32. §2A-211(2) A lessor who is a merchant warrants that the

goods delivered are free of the rightful claim of any person by

way of infringement EXCEPT in a(an):

A. Consumer leaseB. Finance leaseC. Installment leaseD. Purchase money lease

33. §§2-209(1), 2A-208(1) An agreement modifying a contract:

A. Needs no consideration to be binding.B. Needs to be in writing.C. Needs to be on a form supplied by one party and

separately signed by the other.D. Needs to satisfy the requirements of the statute of frauds.

34. §2-207(2)(a)(b)(c) Additional terms are to be viewed as additional

proposals to the contract, and will become part of the contract unless

any one of the following takes place EXCEPT when:

A. Notification of objection to them has already been given.B. The additional terms materially alter it.C. The offer expressly limits acceptance to the terms of offer.D. Stated terms are different from those offered or agreed

upon.

35. §1-305(a) The remedies provided under the UCC must be

liberally administered to the end that:

A. A claim or right may not be discharged without consideration by agreement of the aggrieved party.

B. Any obligation or right declared by the aggrieved party is enforceable by action.

C. An aggrieved party may be put in as good a position as if the other party had fully performed.

D. Consequential, special, or penal damages may be sought by an aggrieved party.

36. §1-201(b)(10) With reference to a term, a heading in capitals

equal to or greater in size than surrounding text, or in

contrasting type, font, or color is referred to as:

A. GenuineB. ConspicuousC. A writingD. An action

37. §§2-302(2), 2A-108(3) What kind of evidence will the court

allow parties to present of the contract(lease) before making a

finding of unconscionability:

A. The setting, purpose, and effect of the contract(lease).B. The purpose, basis of value, and inception of the

contract(lease).C. The bargaining power, purpose, and fairness of the

contract(lease).D. The intended effect, basis of value, and lack of

understanding of the contract(lease).

38. §1-201(b)(38) Which one of the following is Not considered a

State under the UCC:

A. District of ColumbiaB. US Virgin IslandsC. Puerto RicoD. Cayman Islands

39. §2-210(2) Unless otherwise agreed, all rights of seller or

buyer can be assigned with exceptions. Which one of the

following in NOT an exception to the assigning of rights:

A. If the assignment materially changes the duty of the other party

B. If the assignment materially increases the burden imposed by contract on the other party

C. If the assignment materially alters the demand for assurances from the other party

D. If the assignment materially impair the other party’s chance of obtaining return performance

40. §2A-105 Compliance(or noncompliance) of goods covered

by a certificate of title are governed by the law of the jurisdiction

issuing the certificate until the earlier of:

A. The expiration of the certificate and 3 months after goods are removed from the jurisdiction.

B. The expiration of the certificate or until a new certificate of title is issued by another jurisdiction.

C. The surrender of the certificate or 4 months after the goods are removed from that jurisdiction and until a new certificate is issued by another jurisdiction.

D. The surrender of the certificate and 3 months after the goods are removed from the jurisdiction.

41. §2A-103(1)(g)(i) Which statement is true concerning a finance

lease:

A. The lessor does not select, manufacture, or supply the goods.

B. The lessor does not acquire the goods in connection with the lease until the lessee receives a copy of the contract.

C. The lessor does not select, manufacture, or supply the goods before lessee’s approval of the contract.

D. The lessor does not obtain the right to possession of the goods before the lessee has signed the contract.

42. §1-201(b)(23)(A)(B)(C) Insolvent generally means:

A. Insolvent within the meaning of federal bankruptcy law or having refused to pay debts on time

B. Unable to pay debts as they come due or having ceased to pay debts in the ordinary course of business

C. Having ceased to pay debts as a result of a bona fide dispute or declaring bankruptcy under state law

D. All of the above

43. §2-311(2) Unless otherwise agreed, specifications relating to

the assortment of goods are at the option of the:

A. BuyerB. SellerC. MerchantD. Manufacturer

44. §1-201(b)(24) A medium of exchange currently authorized or

adopted by a domestic or foreign government is known as:

A. Present valueB. Fungible goodsC. DeliveryD. Money

45. §2-319(1)((a) When the delivery term is F.O.B. the place of

shipment, the seller must:

A. At his own expense and risk transport the goods to that place and tender delivery

B. Ship the goods at that place and bear the expense and risk of putting them into the possession of the carrier

C. Deliver the goods alongside the carrier or on a dock designated by the buyer at his own expense and risk

D. At his own expense and risk transport goods to the carrier and load the goods on board.

46. §1-201(b)(33) A representative is defined as:

A. A person in possession of a negotiable instrumentB. A person other than an individualC. A person empowered to act for anotherD. A person that takes by purchase

47. §2-319(3) When the delivery term is F.O.B. vessel or F.A.S.

vessel the buyer must:

A. Request from seller to furnish facilities reasonably suited to received goods for inspection

B. Obtain a negotiable bill of lading from the carrier stating the goods will be unloaded from the ship’s tackle

C. Accept tender of the delivery of goods in substitution for the required documents

D. Give the loading berth of vessel, along with the name and sail date when appropriate

48. §2-319(1)(b) When the delivery term is F.O.B. the place of

destination, the seller must:

A. At his own expense and risk deliver the goods alongside the carrier or on a dock designated by the buyer

B. Ship the goods at that place and bear the expense and risk of putting them into the possession of the carrier

C. Tender delivery of the goods in substitution for the required documents at the place of destination

D. At his own expense and risk transport the goods to that place and tender delivery there

49. §2-313(1)(c)(2) A seller creates an express warranty to a

buyer if he makes as part of the basis of the bargain:

A. The seller’s model that the whole of the goods shall conform to the model.

B. The seller’s professional opinion that the goods shall conform to his opinion.

C. The seller’s commendation that the goods shall conform to standard.

D. The seller’s affirmation of value that the goods shall conform to the affirmation of value.

50. §2-311(2) Unless otherwise agreed, specifications relating to

the shipment of goods is at the option of the:

A. Buyer B. CarrierC. SellerD. Manufacturer

Answers to follow

1. D2. B3. B4. C5. A6. B7. A8. C9. C10. D

11. A12. B13. C14. A15. D16. C17. B18. D19. A20. B

21. D22. B23. C24. C25. B26. A27. D28. A29. C30. D

31. B32. B33. A34. D35. C36. B37. A38. D39. C40. C

41. A42. B43. A44. D45. B46. C47. D48. D49. A50. C