COMMERCIAL LAW (UCC)EXAM
QUESTIONS AND ANSWERS
UCC Article 2 -
correct answer ✅Applies to contracts for the sale of goods. (covers
a broad range of topics relating to the formation of contracts for
the sale of goods.)
"transitions in goods"
HOW DOES UCC ARTICLE 2 DIFFER FROM C.L? -
correct answer ✅(1) Firm offers are irrevocable
(2) Contract formation is done easily through words or conduct, not
requiring a matching offer and acceptance
(3) Mercantile concepts (course of dealing, usage of trade, and
course of performance) may be used to add non-express terms to
the contract
(4) The statute of frauds is easier to meet, and parol evidence
easier to admit
(5) A merchant seller automatically makes an implied warranty of
merchantability
,COMMERCIAL LAW (UCC)EXAM
QUESTIONS AND ANSWERS
(6) Article 2 provides many gap-filler terms (such as price, allocation
of risks, exclusive dealing, output contract), as opposed to declining
to write a contract for the parties
(7) Article 2 also sets out rules tailored to the sales contract
between a buyer and a seller (such as warranties, delivery, risk of
loss of the goods, remedies keyed to market prices), which may
differ from common law of contracts.
For example, a seller must make a "perfect tender" (subject to
exceptions) in order to be entitled to the price, as opposed to
substantial performance of the contract.
what is the primary source of law and has the full effect of the law?
-
correct answer ✅The UCC is the primary source of the law and has
the full effect of the law.
- court may interpret the UCC, BUT cannot amend it.
- when a contract deals with goods, the UCC governs, not common
law.
,COMMERCIAL LAW (UCC)EXAM
QUESTIONS AND ANSWERS
define contract (under UCC) -
correct answer ✅"limited to those relating to the present or future
sale of goods." (no past goods)
A contract in goods, what source of law governs? -
correct answer ✅The UCC governs. (your job is to identify when a
contract involves the sale of goods in order to decide whether the
UCC applies to the contract.)
UCC 2-106 SALE -
correct answer ✅the passing of title from the seller to the buyer
for a price.
UCC §1-304 "GOOD FAITH" -
correct answer ✅
define GOODS -
correct answer ✅means all things (including specially
manufactured goods) which are movable at the time of
identification to the contract for sale
, COMMERCIAL LAW (UCC)EXAM
QUESTIONS AND ANSWERS
Goods must be what 2 things: -
correct answer ✅1. identifiable
2. moveable
true or false: debt instruments and insurance policies are NOT
goods. -
correct answer ✅true
true or false: admission tickets are goods -
correct answer ✅false. --> the concert or game is a service, and is
the core of the sale, not the ticket.
similar to how mix of good/services like software and music use the
predominant purpose test (under UCC if predominately a sale of
good than service.)
see Audio Visual Artistry v. Tanzer.
Predominant Purpose Test -
correct answer ✅The test for inclusion or exclusion is not whether
they are mixed, but granting that they are mixed,
QUESTIONS AND ANSWERS
UCC Article 2 -
correct answer ✅Applies to contracts for the sale of goods. (covers
a broad range of topics relating to the formation of contracts for
the sale of goods.)
"transitions in goods"
HOW DOES UCC ARTICLE 2 DIFFER FROM C.L? -
correct answer ✅(1) Firm offers are irrevocable
(2) Contract formation is done easily through words or conduct, not
requiring a matching offer and acceptance
(3) Mercantile concepts (course of dealing, usage of trade, and
course of performance) may be used to add non-express terms to
the contract
(4) The statute of frauds is easier to meet, and parol evidence
easier to admit
(5) A merchant seller automatically makes an implied warranty of
merchantability
,COMMERCIAL LAW (UCC)EXAM
QUESTIONS AND ANSWERS
(6) Article 2 provides many gap-filler terms (such as price, allocation
of risks, exclusive dealing, output contract), as opposed to declining
to write a contract for the parties
(7) Article 2 also sets out rules tailored to the sales contract
between a buyer and a seller (such as warranties, delivery, risk of
loss of the goods, remedies keyed to market prices), which may
differ from common law of contracts.
For example, a seller must make a "perfect tender" (subject to
exceptions) in order to be entitled to the price, as opposed to
substantial performance of the contract.
what is the primary source of law and has the full effect of the law?
-
correct answer ✅The UCC is the primary source of the law and has
the full effect of the law.
- court may interpret the UCC, BUT cannot amend it.
- when a contract deals with goods, the UCC governs, not common
law.
,COMMERCIAL LAW (UCC)EXAM
QUESTIONS AND ANSWERS
define contract (under UCC) -
correct answer ✅"limited to those relating to the present or future
sale of goods." (no past goods)
A contract in goods, what source of law governs? -
correct answer ✅The UCC governs. (your job is to identify when a
contract involves the sale of goods in order to decide whether the
UCC applies to the contract.)
UCC 2-106 SALE -
correct answer ✅the passing of title from the seller to the buyer
for a price.
UCC §1-304 "GOOD FAITH" -
correct answer ✅
define GOODS -
correct answer ✅means all things (including specially
manufactured goods) which are movable at the time of
identification to the contract for sale
, COMMERCIAL LAW (UCC)EXAM
QUESTIONS AND ANSWERS
Goods must be what 2 things: -
correct answer ✅1. identifiable
2. moveable
true or false: debt instruments and insurance policies are NOT
goods. -
correct answer ✅true
true or false: admission tickets are goods -
correct answer ✅false. --> the concert or game is a service, and is
the core of the sale, not the ticket.
similar to how mix of good/services like software and music use the
predominant purpose test (under UCC if predominately a sale of
good than service.)
see Audio Visual Artistry v. Tanzer.
Predominant Purpose Test -
correct answer ✅The test for inclusion or exclusion is not whether
they are mixed, but granting that they are mixed,
