LAW FOR ACCOUNTANTS EXAM 1
QUESTIONS AND ANSWERS 100% PASS
Which of the following is a model statute published by the National Conference of
Commissioners of Uniform State Laws?
a. The Restatement (Second) of Contracts
b. The Uniform Contracts Code
c. The Restatement of Contracts
d. The Uniform Commercial Code - ANS d. The Uniform Commercial Code
The Uniform Commercial Code (UCC), sometimes simply referred to as the Code, is a model
statute published by the National Conference of Commissioners of Uniform State Laws
(NCCUSL), a private organization.
Article 2 of the Uniform Commercial Code (UCC) governs contracts involving _____________.
a. the lease of goods
b. the provision of services
c. the sale of goods
d. commercial paper (e.g., checks and promissory notes) - ANS c. the sale of goods
The Uniform Commercial Code (UCC) is important because every state has now adopted all, or
substantially all, of the provisions of the UCC. Article 2 of the Uniform Commercial Code (UCC)
governs contracts involving the sale of goods.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Article 2A of the Uniform Commercial Code (UCC) covers _____________.
a. the provision of services
b. commercial paper
c. the sale of goods
d. the lease of goods - ANS d. the lease of goods
The Uniform Commercial Code (UCC) is important because every state has now adopted all, or
substantially all, of the provisions of the UCC. Article 2A of the Uniform Commercial Code (UCC)
covers the leasing of goods.
The underlying policy goal of Article 2 of the Uniform Commercial Code (UCC) is to promote
commercial _____________ and the _____________ of business transactions.
a. equity; standardization
b. ethics; standardization
c. fair trade; internationalization
d. efficiency; completion - ANS d. efficiency; completion
Article 2 of the Uniform Commercial Code (UCC) provides _____________ and _____________
procedures that merchants and consumers may rely upon in cases involving _____________
contingencies.
a. simple; non-standardized; foreseen
b. complex; standardized; unforeseen
c. simple; standardized; unforeseen
d. complex; non-standardized; foreseen - ANS c. simple; standardized; unforeseen
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,The Uniform Commercial Code (UCC) facilitates business transactions by providing merchants
and consumers with a standard set of _____________ for the sale of goods.
a. ADR (alternative dispute resolution) mechanisms
b. default rules
c. procedural requirements
d. contracts - ANS b. default rules
A default rule is a rule of law that is designed to _____________.
a. automatically benefit the defendant
b. automatically benefit the plaintiff
c. fill "gaps" in business contracts
d. invoke federal supremacy in the event of a breach of contract (meaning that federal contract
law will be used in the event of a contractual breach) - ANS c. fill "gaps" in business contracts
Contract law can be divided into two kinds of rules: _____________ rules and _____________
rules.
a. default; optional
b. conditional; unconditional
c. primary; secondary
d. default; mandatory - ANS d. default; mandatory
Article 2 of the Uniform Commercial Code (UCC) should be thought of primarily as a strategic
_____________ in cases where the parties have not otherwise agreed to specific terms.
a. mirror image rule
b. promissory estoppel
c. gap filler
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, d. substantial performance - ANS c. gap filler
Ambrosia enters into an employment contract to work as an analyst for Computer Technology
Services, Incorporated Which of the following is true regarding the application of law to this
agreement?
a. Article 2A of the UCC applies to this contract.
b. The UCC does not apply to this contract.
c. Article 2 of the Uniform Commercial Code (UCC) applies to this contract.
d. Article 3 of the UCC applies to this contract. - ANS b. The UCC does not apply to this
contract.
Article 2 of the Uniform Commercial Code (UCC) applies only to agreements for the sale of
goods. The UCC defines goods as property that is:
- tangible (i.e., has a physical existence)
and
- movable from place to place. Therefore, an employment contract (which involves the provision
of services) such as the one described in the subject case is not covered by the UCC.
Which of the following are covered by the Uniform Commercial Code (UCC)?
a. Both real estate contracts and employment contracts
b. Neither real estate contracts nor employment contracts
c. Real estate contracts only
d. Employment contracts only - ANS b. Neither real estate contracts nor employment
contracts
Suppose that Sam, the owner of a 2018 Chevrolet Camaro, contracts with Ace Automotive
Repair, Incorporated in Racine, Wisconsin for the sale and installation of a new engine. Per the
terms of the contract, the engine will cost $7,000, while the labor charge for the engine
installation will cost $2,000. Which of the following is true? - ANS a. Under the predominant
purpose test, Article 2 of the Uniform Commercial Code (UCC) applies to this contract.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS 100% PASS
Which of the following is a model statute published by the National Conference of
Commissioners of Uniform State Laws?
a. The Restatement (Second) of Contracts
b. The Uniform Contracts Code
c. The Restatement of Contracts
d. The Uniform Commercial Code - ANS d. The Uniform Commercial Code
The Uniform Commercial Code (UCC), sometimes simply referred to as the Code, is a model
statute published by the National Conference of Commissioners of Uniform State Laws
(NCCUSL), a private organization.
Article 2 of the Uniform Commercial Code (UCC) governs contracts involving _____________.
a. the lease of goods
b. the provision of services
c. the sale of goods
d. commercial paper (e.g., checks and promissory notes) - ANS c. the sale of goods
The Uniform Commercial Code (UCC) is important because every state has now adopted all, or
substantially all, of the provisions of the UCC. Article 2 of the Uniform Commercial Code (UCC)
governs contracts involving the sale of goods.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Article 2A of the Uniform Commercial Code (UCC) covers _____________.
a. the provision of services
b. commercial paper
c. the sale of goods
d. the lease of goods - ANS d. the lease of goods
The Uniform Commercial Code (UCC) is important because every state has now adopted all, or
substantially all, of the provisions of the UCC. Article 2A of the Uniform Commercial Code (UCC)
covers the leasing of goods.
The underlying policy goal of Article 2 of the Uniform Commercial Code (UCC) is to promote
commercial _____________ and the _____________ of business transactions.
a. equity; standardization
b. ethics; standardization
c. fair trade; internationalization
d. efficiency; completion - ANS d. efficiency; completion
Article 2 of the Uniform Commercial Code (UCC) provides _____________ and _____________
procedures that merchants and consumers may rely upon in cases involving _____________
contingencies.
a. simple; non-standardized; foreseen
b. complex; standardized; unforeseen
c. simple; standardized; unforeseen
d. complex; non-standardized; foreseen - ANS c. simple; standardized; unforeseen
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,The Uniform Commercial Code (UCC) facilitates business transactions by providing merchants
and consumers with a standard set of _____________ for the sale of goods.
a. ADR (alternative dispute resolution) mechanisms
b. default rules
c. procedural requirements
d. contracts - ANS b. default rules
A default rule is a rule of law that is designed to _____________.
a. automatically benefit the defendant
b. automatically benefit the plaintiff
c. fill "gaps" in business contracts
d. invoke federal supremacy in the event of a breach of contract (meaning that federal contract
law will be used in the event of a contractual breach) - ANS c. fill "gaps" in business contracts
Contract law can be divided into two kinds of rules: _____________ rules and _____________
rules.
a. default; optional
b. conditional; unconditional
c. primary; secondary
d. default; mandatory - ANS d. default; mandatory
Article 2 of the Uniform Commercial Code (UCC) should be thought of primarily as a strategic
_____________ in cases where the parties have not otherwise agreed to specific terms.
a. mirror image rule
b. promissory estoppel
c. gap filler
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, d. substantial performance - ANS c. gap filler
Ambrosia enters into an employment contract to work as an analyst for Computer Technology
Services, Incorporated Which of the following is true regarding the application of law to this
agreement?
a. Article 2A of the UCC applies to this contract.
b. The UCC does not apply to this contract.
c. Article 2 of the Uniform Commercial Code (UCC) applies to this contract.
d. Article 3 of the UCC applies to this contract. - ANS b. The UCC does not apply to this
contract.
Article 2 of the Uniform Commercial Code (UCC) applies only to agreements for the sale of
goods. The UCC defines goods as property that is:
- tangible (i.e., has a physical existence)
and
- movable from place to place. Therefore, an employment contract (which involves the provision
of services) such as the one described in the subject case is not covered by the UCC.
Which of the following are covered by the Uniform Commercial Code (UCC)?
a. Both real estate contracts and employment contracts
b. Neither real estate contracts nor employment contracts
c. Real estate contracts only
d. Employment contracts only - ANS b. Neither real estate contracts nor employment
contracts
Suppose that Sam, the owner of a 2018 Chevrolet Camaro, contracts with Ace Automotive
Repair, Incorporated in Racine, Wisconsin for the sale and installation of a new engine. Per the
terms of the contract, the engine will cost $7,000, while the labor charge for the engine
installation will cost $2,000. Which of the following is true? - ANS a. Under the predominant
purpose test, Article 2 of the Uniform Commercial Code (UCC) applies to this contract.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
