CMFO - Public Purchasing Verified Multiple
Choice and Conceptual Actual Emended
Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Uniform Commercial Code (UCC) - ANSWER Governs Commercial
Transactions. It has NOT been uniformly adopted in all States. Article 2
(Sales) is important in its application to most public contracts for
commercial items.
2. Purpose of the UCC - ANSWER 1. To simplify, clarify and modernize
the law governing commercial transactions
2. To permit the continued expansion of commercial practices through
custom, usage and agreement of the parties
3. To make uniform the law among the various jurisdictions
3. UCC - Sales; Statute of Frauds - ANSWER a. Contracts for goods valued
at more than $500 MUST be in writing
**** In NJ ALL contracts MUST be in WRITING
, b. A Purchase Order is an offer to purchase that
becomes a CONTRACT when accepted by the seller
c. No "formal" written document needed for an
enforceable contract. UCC requires only some written evidence of the
transaction. A Purchase order satisfies this requirement.
4. UCC Term - Battle of the Forms - ANSWER Situation when the buyer
sends out a purchase order and the seller responds with a sales
acknowledgement form, but the backs of each form do not match up and
are fundamentally different.
When there are conflicting terms, and a dispute arises, the provisions of the
UCC take over.
5. UCC Term - Mutuality of Agreement - ANSWER When the terms of one
paper materially alter the terms of the other paper, both parties must agree
6. UCC Term - Open Price - ANSWER No fixed price is given on the Purchase
Order. It is essentially a blank check. The Local Public Contracts Law does not
allow for this.
7. UCC Term - Warranty of Title - ANSWER The seller warrants that it has
the right to sell the product and that there are no encumbrances to the
title.
It is a " good title"
,8. UCC Term - Express Warranties by Affirmation N.J.S.A 12A2-313 - ANSWER
Seller affirms to the buyer that the goods shall conform to the
affirmation or promise it states
9. UCC Term - Implied Warranty - ANSWER An implied warranty of fitness
for a particular intended purpose exists when the seller is aware of the
purpose for which the buyer needs the goods in question.
A warranty of merchantability means that the goods are to be fit for ordinary
purposes intended.
A warranty of fitness means the goods are to be fit for a specific purpose
10.UCC Term - Passing of Title. When does ownership of goods transfer from
the seller to the buyer? - ANSWER - If the contract requires or
authorizes the seller to send the goods to the buyer but does not require
him to deliver them at the destination, title passes to the buyer at the time
and place of shipment.
- if the contract requires delivery at destination, the title is transferred
upon delivery at specified destination.
- if the seller is to deliver a document of title, the title passes at the
time and place where the document is delivered.
- if the goods are already identified and no documents are to be
delivered, title passes at the them and place of contracting.
, 11.UCC Term - Buyer's Right to Inspection - ANSWER Unless otherwise
agreed to by the parties, the buyer
has a right before payment or acceptance to inspect
them at any reasonable place and time and in any reasonable manner
12.UCC Term - Buyer's Remedies - ANSWER The most basic remedy for breach
of a contract is cancellation. This however does not prevent pursuing remedies
against the party in breach.
There is a 4 year statute of limitations for initiating actions for a breach.
13.UCC Term - 5 types of Buyer's Remedies - ANSWER 1. Cover : After a
breach, the buyer may "cover" by making a good faith effort to purchase
goods in substitution for those due from the seller. The buyer may recover
from the seller between the cost of the cover and the contract price along
with any damages
2. Buyer's Damages for Non Delivery or Repudiation : The measure of damages
is the difference between the market price at the time when the buyer learned
of the breach and the contract price along with damages. (Ex. Award to next
lowest bidder)
3. Incidental Damages : Payments to the buyer from the seller which resulted
from the seller's breach
4. Consequential Damages : Result from the seller's breach.
5. Replevin : A legal action by which a person attempts to recover goods
wrongfully taken. Usually used when cover is unsuccessful or cannot be used
Choice and Conceptual Actual Emended
Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Uniform Commercial Code (UCC) - ANSWER Governs Commercial
Transactions. It has NOT been uniformly adopted in all States. Article 2
(Sales) is important in its application to most public contracts for
commercial items.
2. Purpose of the UCC - ANSWER 1. To simplify, clarify and modernize
the law governing commercial transactions
2. To permit the continued expansion of commercial practices through
custom, usage and agreement of the parties
3. To make uniform the law among the various jurisdictions
3. UCC - Sales; Statute of Frauds - ANSWER a. Contracts for goods valued
at more than $500 MUST be in writing
**** In NJ ALL contracts MUST be in WRITING
, b. A Purchase Order is an offer to purchase that
becomes a CONTRACT when accepted by the seller
c. No "formal" written document needed for an
enforceable contract. UCC requires only some written evidence of the
transaction. A Purchase order satisfies this requirement.
4. UCC Term - Battle of the Forms - ANSWER Situation when the buyer
sends out a purchase order and the seller responds with a sales
acknowledgement form, but the backs of each form do not match up and
are fundamentally different.
When there are conflicting terms, and a dispute arises, the provisions of the
UCC take over.
5. UCC Term - Mutuality of Agreement - ANSWER When the terms of one
paper materially alter the terms of the other paper, both parties must agree
6. UCC Term - Open Price - ANSWER No fixed price is given on the Purchase
Order. It is essentially a blank check. The Local Public Contracts Law does not
allow for this.
7. UCC Term - Warranty of Title - ANSWER The seller warrants that it has
the right to sell the product and that there are no encumbrances to the
title.
It is a " good title"
,8. UCC Term - Express Warranties by Affirmation N.J.S.A 12A2-313 - ANSWER
Seller affirms to the buyer that the goods shall conform to the
affirmation or promise it states
9. UCC Term - Implied Warranty - ANSWER An implied warranty of fitness
for a particular intended purpose exists when the seller is aware of the
purpose for which the buyer needs the goods in question.
A warranty of merchantability means that the goods are to be fit for ordinary
purposes intended.
A warranty of fitness means the goods are to be fit for a specific purpose
10.UCC Term - Passing of Title. When does ownership of goods transfer from
the seller to the buyer? - ANSWER - If the contract requires or
authorizes the seller to send the goods to the buyer but does not require
him to deliver them at the destination, title passes to the buyer at the time
and place of shipment.
- if the contract requires delivery at destination, the title is transferred
upon delivery at specified destination.
- if the seller is to deliver a document of title, the title passes at the
time and place where the document is delivered.
- if the goods are already identified and no documents are to be
delivered, title passes at the them and place of contracting.
, 11.UCC Term - Buyer's Right to Inspection - ANSWER Unless otherwise
agreed to by the parties, the buyer
has a right before payment or acceptance to inspect
them at any reasonable place and time and in any reasonable manner
12.UCC Term - Buyer's Remedies - ANSWER The most basic remedy for breach
of a contract is cancellation. This however does not prevent pursuing remedies
against the party in breach.
There is a 4 year statute of limitations for initiating actions for a breach.
13.UCC Term - 5 types of Buyer's Remedies - ANSWER 1. Cover : After a
breach, the buyer may "cover" by making a good faith effort to purchase
goods in substitution for those due from the seller. The buyer may recover
from the seller between the cost of the cover and the contract price along
with any damages
2. Buyer's Damages for Non Delivery or Repudiation : The measure of damages
is the difference between the market price at the time when the buyer learned
of the breach and the contract price along with damages. (Ex. Award to next
lowest bidder)
3. Incidental Damages : Payments to the buyer from the seller which resulted
from the seller's breach
4. Consequential Damages : Result from the seller's breach.
5. Replevin : A legal action by which a person attempts to recover goods
wrongfully taken. Usually used when cover is unsuccessful or cannot be used
