Commercial Law - MCQs Exam
Questions With 100% Verified Answers
1. Which of the following cases would most likely be governed by
Article 2?
A. Gately Construction provided detailed specifications for
inventory control software. Van Dyne Apps agreed to design,
develop, and test software to meet those specifications.
B. Van Dyne Apps agreed to provide inventory control software,
update the software periodically, make any adaptations necessary
to run it on Gately Construction's system, and train Gately
Construction's employees to use the software.
C. Van Dyne Apps sold Gately Construction a standard software
package, identical to the package Van Dyne Apps sold to many small
businesses.
D. All of the above. -
correct answer ✅C. Van Dyne Apps sold Gately Construction a
standard software package, identical to the package Van Dyne Apps
sold to many small businesses.
1. Incandenza liked a Marconi sedan offered at Pemulis Auto for
$14,000, but wished to keep options open. Incandenza and Pemulis
Auto signed a "Sales Contract," under which Incandenza would pay
$400 per month to Pemulis Auto to use the car. Incandenza could at
any time return the car and be obliged to make no more payments.
Incandenza may also keep the car forever, as long as he makes the
monthly payment. Does Article 2 apply to the transaction?
,Commercial Law - MCQs Exam
Questions With 100% Verified Answers
A. Yes. The contract clearly states that it is a sales contract.
B. No. The transaction is governed by UCC Article 2A, Leases.
C. Article 2 will apply until Incandenza returns the car.
D. Yes. The subject of the contract is a car, which falls into the
category of goods, not services. -
correct answer ✅B. No. The transaction is governed by UCC Article
2A, Leases.
1. Avril agreed to design and build a custom wheelchair for Mario.
The contract specified capabilities and dimensions of the chair and
provided for Avril to determine the design and build the chair. Upon
completion and delivery, Avril would be entitled to a lump-sum
payment based on her time and other specified costs. Does Article
2 apply to the transaction?
A. Yes, because Article 2 applies to specially made goods.
B. No, because the predominant purpose of the contract is services
in designing and building the chair.
C. No, because Avril is not a merchant.
D. Yes, because Avril is a merchant. -
correct answer ✅A. Yes, because Article 2 applies to specially
made goods.
,Commercial Law - MCQs Exam
Questions With 100% Verified Answers
1. Steeply runs an art gallery in Baldwinsville, New York. She signs a
contract to purchase a security system from Marathe Prevention of
Montreal, Quebec. The contract provides that it is governed by
Article 2 of the UCC. Is the contract governed by Article 2 of the
UCC or by the Convention on Contracts for the International Sale of
Goods (CISG)?
A. CISG, because the parties live in two countries that are party to
the CISG.
B. UCC Article 2, because the CISG allows the parties to choose the
law to govern their transaction.
C. Conduct in Quebec is governed by the CISG and conduct in the
United States by UCC Article 2.
D. The parties must comply with all provisions of both the UCC and
the CISG. Citizens do not choose the law. -
correct answer ✅B. UCC Article 2, because the CISG allows the
parties to choose the law to govern their transaction.
1. Van Dyne Apps sold Gately Construction some software that
would run its inventory control systems. What difference would it
make if the transaction is governed by Article 2 of the UCC, rather
than the common law of contracts?
, Commercial Law - MCQs Exam
Questions With 100% Verified Answers
A. Article 2 provides an implied warranty of merchantability, even if
Van Dyne Apps did not make any specific promises about the
software.
B. Article 2's rules on contract formation are more flexible, finding
an enforceable contract even where there is no matching offer and
acceptance.
C. Article 2's perfect tender rule may require the seller to deliver
exactly the software agreed upon to be entitled to the price.
Common law contract may only require substantial performance.
D. Article 2 will readily fill in gaps that the parties did not address,
such as price or time for performance.
E. All of the above. -
correct answer ✅E. All of the above.
1. Wilson had the highest bid on eBay, the online auction site, for a
painting, which the seller described as an original Jackson Pollock.
After some email exchanges with the seller, Wilson sent a cashier's
check, and a few days later received a suspiciously fresh painting,
although Pollock died in 1956. Unable to locate the seller, Wilson
sued eBay for breach of express warranty under Article 2 of the
UCC. Which is likely to be the best argument for eBay?
A. Fraud is legal, in order to encourage buyers to be careful.
B. Article 2 of the UCC does not apply to paintings.
Questions With 100% Verified Answers
1. Which of the following cases would most likely be governed by
Article 2?
A. Gately Construction provided detailed specifications for
inventory control software. Van Dyne Apps agreed to design,
develop, and test software to meet those specifications.
B. Van Dyne Apps agreed to provide inventory control software,
update the software periodically, make any adaptations necessary
to run it on Gately Construction's system, and train Gately
Construction's employees to use the software.
C. Van Dyne Apps sold Gately Construction a standard software
package, identical to the package Van Dyne Apps sold to many small
businesses.
D. All of the above. -
correct answer ✅C. Van Dyne Apps sold Gately Construction a
standard software package, identical to the package Van Dyne Apps
sold to many small businesses.
1. Incandenza liked a Marconi sedan offered at Pemulis Auto for
$14,000, but wished to keep options open. Incandenza and Pemulis
Auto signed a "Sales Contract," under which Incandenza would pay
$400 per month to Pemulis Auto to use the car. Incandenza could at
any time return the car and be obliged to make no more payments.
Incandenza may also keep the car forever, as long as he makes the
monthly payment. Does Article 2 apply to the transaction?
,Commercial Law - MCQs Exam
Questions With 100% Verified Answers
A. Yes. The contract clearly states that it is a sales contract.
B. No. The transaction is governed by UCC Article 2A, Leases.
C. Article 2 will apply until Incandenza returns the car.
D. Yes. The subject of the contract is a car, which falls into the
category of goods, not services. -
correct answer ✅B. No. The transaction is governed by UCC Article
2A, Leases.
1. Avril agreed to design and build a custom wheelchair for Mario.
The contract specified capabilities and dimensions of the chair and
provided for Avril to determine the design and build the chair. Upon
completion and delivery, Avril would be entitled to a lump-sum
payment based on her time and other specified costs. Does Article
2 apply to the transaction?
A. Yes, because Article 2 applies to specially made goods.
B. No, because the predominant purpose of the contract is services
in designing and building the chair.
C. No, because Avril is not a merchant.
D. Yes, because Avril is a merchant. -
correct answer ✅A. Yes, because Article 2 applies to specially
made goods.
,Commercial Law - MCQs Exam
Questions With 100% Verified Answers
1. Steeply runs an art gallery in Baldwinsville, New York. She signs a
contract to purchase a security system from Marathe Prevention of
Montreal, Quebec. The contract provides that it is governed by
Article 2 of the UCC. Is the contract governed by Article 2 of the
UCC or by the Convention on Contracts for the International Sale of
Goods (CISG)?
A. CISG, because the parties live in two countries that are party to
the CISG.
B. UCC Article 2, because the CISG allows the parties to choose the
law to govern their transaction.
C. Conduct in Quebec is governed by the CISG and conduct in the
United States by UCC Article 2.
D. The parties must comply with all provisions of both the UCC and
the CISG. Citizens do not choose the law. -
correct answer ✅B. UCC Article 2, because the CISG allows the
parties to choose the law to govern their transaction.
1. Van Dyne Apps sold Gately Construction some software that
would run its inventory control systems. What difference would it
make if the transaction is governed by Article 2 of the UCC, rather
than the common law of contracts?
, Commercial Law - MCQs Exam
Questions With 100% Verified Answers
A. Article 2 provides an implied warranty of merchantability, even if
Van Dyne Apps did not make any specific promises about the
software.
B. Article 2's rules on contract formation are more flexible, finding
an enforceable contract even where there is no matching offer and
acceptance.
C. Article 2's perfect tender rule may require the seller to deliver
exactly the software agreed upon to be entitled to the price.
Common law contract may only require substantial performance.
D. Article 2 will readily fill in gaps that the parties did not address,
such as price or time for performance.
E. All of the above. -
correct answer ✅E. All of the above.
1. Wilson had the highest bid on eBay, the online auction site, for a
painting, which the seller described as an original Jackson Pollock.
After some email exchanges with the seller, Wilson sent a cashier's
check, and a few days later received a suspiciously fresh painting,
although Pollock died in 1956. Unable to locate the seller, Wilson
sued eBay for breach of express warranty under Article 2 of the
UCC. Which is likely to be the best argument for eBay?
A. Fraud is legal, in order to encourage buyers to be careful.
B. Article 2 of the UCC does not apply to paintings.
