Business Law Practice Exam With Detailed Questions And Correct Answers||Latest Exam ||Already Graded A+

Business Law Practice Exam With
Detailed Questions And Correct
Answers||Latest Exam 2026-
2027||Already Graded A+
T/F — Article 2 of the UCC governs contracts for sales of goods. -ANSWER True

T/F — A lessor is a party who acquires a right to the possession and use of goods
under a lease. -ANSWER False

T/F — Certain provisions of UCC Article 2A apply only to consumer leases. -ANSWER
True

T/F — Under the UCC, a sales or lease contract will fail for indefiniteness if one or more
terms are left open. -ANSWER False

T/F — The UCC imposes a good faith limitation on requirements contracts. -ANSWER
True

T/F — Under the UCC, an agreement modifying a contract needs no consideration to be
binding. -ANSWER True

T/F — The terms of a fully integrated contract can be contradicted only by evidence of
any prior agreements. -ANSWER False

T/F — A receipt issued by a warehouser for goods stored in a warehouse is a bill of
lading. -ANSWER False

T/F — The duties and obligations under the terms of a contract include those specified
by custom. -ANSWER True

T/F — If some of the goods delivered do not conform to a contract and the seller or
lessor has failed to cure, the buyer or lessee can make a partial acceptance. -ANSWER
True

T/F — If, before the time for contract performance, one party clearly communicates to
the other the intention not to perform, such an action is a breach of the contract. -
ANSWER True

T/F — If a buyer repudiates a contract, the seller cannot recover damages. -ANSWER
False

, T/F — If a lessee is insolvent, a lessor can stop a carrier or bailee from delivering the
goods regardless of the quantity shipped. -ANSWER True

T/F — If the parties to a sales contract state that a certain remedy is exclusive, then it is
the sole remedy. -ANSWER True

T/F — Express warranties can be found in a seller's brochure. -ANSWER True

T/F — Goods that are merchantable are fit for any purpose. -ANSWER False

T/F — A public policy underlying the imposition of strict product liability is that
consumers should be protected against unsafe products. -ANSWER True

T/F — For an instrument to be negotiable, it need not be signed. -ANSWER False

T/F — For an instrument to be negotiable, it must not contain an express promise or
order to pay. -ANSWER False

T/F — An instrument payable "with interest" must specify a particular rate to be
negotiable. -ANSWER False

T/F — Negotiation is a transfer in such form that the transferee becomes a holder. -
ANSWER True

T/F — A negotiable instrument can only be transferred by negotiation. -ANSWER False

T/F — An indorser who does not wish to be liable on an instrument can use a qualified
indorsement. -ANSWER True

T/F — The effect of a conditional indorsement on the back of an instrument is the same
as the effect of conditional language that appears on its face. -ANSWER False

T/F — An instrument payable to two persons jointly requires the indorsement of only
one of the payees for negotiation. -ANSWER False

T/F — A person who receives an instrument as a gift normally becomes an ordinary
holder. -ANSWER True

T/F — An executory promise does not constitute sufficient value to make the promisor a
holder. -ANSWER True

T/F — A holder does not take an instrument for value if he or she gives a negotiable
instrument as payment. -ANSWER False