BUSINESS LAW 2 EXAM 1 MC 2025
UPDATED QUESTIONS WITH
VERIFIED ANSWER
Which of the following is correct with respect to "finance leases"? - CORRECT
ANSWER>>>>The finance lessor functions as a source of credit.
Which of the following is not true about a consumer lease under UCC Article 2A? - CORRECT
ANSWER>>>>There is no dollar limit on the amount of a consumer lease under Article
2A.
The Code has made certain offers irrevocable without the offeree's giving any consideration for
the promise to keep the offer open. These offers are known as: - CORRECT
ANSWER>>>>firm offers
Categorizing a transaction as a lease rather than a security interest: - CORRECT
ANSWER>>>>has significant implications for the parties and for third parties.
The case of Construction Associates, Inc. v. Fargo Water Equipment Co. illustrates the doctrine
of: - CORRECT ANSWER>>>>unconscionability
Edie telephoned the office supply store and agreed to buy a dozen ink cartridges at $26 each. She
then realized what a good buy this was and called the store with a request to modify the contract
to read two dozen. What is the consequence? - CORRECT ANSWER>>>>The modified
contract is unenforceable
Which of the following is correct with regard to Article 2(a) of the Code? - CORRECT
ANSWER>>>>Article 2(a) affords special treatment for consumer leases
Mary and Remaldi Co. have dealt with each other for many years. Mary's Boutique orders 100
assorted lipsticks at $2.00 each from Remaldi Co. Remaldi sends back a confirmation letter with
an additional, nonmaterial term. There is: - CORRECT ANSWER>>>>a contract with the
additional term unless Mary objects.
The most important element in determining whether a sales contract has been made is the: -
CORRECT ANSWER>>>>intent of the parties to make a contract.
In the case of Pittsley v. Houser, the court: - CORRECT ANSWER>>>>found the
"predominant factor" test was the better, more prudent rule
Who among the following is most likely not considered a merchant according to Article 2 of the
UCC? - CORRECT ANSWER>>>>Kay who sells her 3-year-old fishing boat to her
neighbor.
, A contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but
which is otherwise valid, is enforceable in which of the following situations? - CORRECT
ANSWER>>>>all of the above
The CISG specifically excludes sales of: - CORRECT ANSWER>>>>all the above
Which of the following is true regarding unconscionability under the Code? - CORRECT
ANSWER>>>>The Code denies or limits enforcement of an unconscionable contract for
the sale of goods
Davis Co. and Ruby Creations enter an oral contract providing that Ruby will deliver three dozen
dresses to Davis at $20 per dress. The next day, Davis sent Ruby a letter signed by Davis's
purchasing agent confirming the quantity and item, but not mentioning the price. Which of the
following is true? - CORRECT ANSWER>>>>Davis is bound by the contract when its
authorized agent sends the letter, but Ruby Creations is bound by the oral contract ten
days after receiving the letter, unless it objects in writing within that time.
The Code defines __________ as "honesty in fact in the conduct or transaction concerned." -
CORRECT ANSWER>>>>good faith
A(n) __________ is a special type of lease transaction generally involving three parties instead
of two. - CORRECT ANSWER>>>>finance lease
The definition of "usage of trade" includes: - CORRECT ANSWER>>>>a practice regularly
observed and followed in a place, vocation, or trade.
Under the CISG, which of the following would not always be considered a material alteration to
an offer? - CORRECT ANSWER>>>>A change in color of goods ordered
Which of the following is not true about auctions? - CORRECT ANSWER>>>>The UCC
provides that if an auction sale is advertised or announced in explicit terms to be with
reserve, the auctioneer may not withdraw the article put up for sale unless no bid is made
within a reasonable time.
Mike inherited some antiques. Pat agrees to buy them. In the contract, Mike and Pat agree to
value the antiques at whatever the Sotheby's representative says. It is much higher than either of
them anticipated. What is the outcome? - CORRECT ANSWER>>>>Pat has to buy at the
price set by the Sotheby representative.
Shannon orally agrees to buy 500 telephone answering machines from Thomas for $25,000.
Thomas delivers 300 answering machines to Shannon, who receives and accepts them. Which of
the following is correct with regard to this transaction? - CORRECT ANSWER>>>>The
contract is enforceable to the extent of the 300 machines that have been received and
accepted
UPDATED QUESTIONS WITH
VERIFIED ANSWER
Which of the following is correct with respect to "finance leases"? - CORRECT
ANSWER>>>>The finance lessor functions as a source of credit.
Which of the following is not true about a consumer lease under UCC Article 2A? - CORRECT
ANSWER>>>>There is no dollar limit on the amount of a consumer lease under Article
2A.
The Code has made certain offers irrevocable without the offeree's giving any consideration for
the promise to keep the offer open. These offers are known as: - CORRECT
ANSWER>>>>firm offers
Categorizing a transaction as a lease rather than a security interest: - CORRECT
ANSWER>>>>has significant implications for the parties and for third parties.
The case of Construction Associates, Inc. v. Fargo Water Equipment Co. illustrates the doctrine
of: - CORRECT ANSWER>>>>unconscionability
Edie telephoned the office supply store and agreed to buy a dozen ink cartridges at $26 each. She
then realized what a good buy this was and called the store with a request to modify the contract
to read two dozen. What is the consequence? - CORRECT ANSWER>>>>The modified
contract is unenforceable
Which of the following is correct with regard to Article 2(a) of the Code? - CORRECT
ANSWER>>>>Article 2(a) affords special treatment for consumer leases
Mary and Remaldi Co. have dealt with each other for many years. Mary's Boutique orders 100
assorted lipsticks at $2.00 each from Remaldi Co. Remaldi sends back a confirmation letter with
an additional, nonmaterial term. There is: - CORRECT ANSWER>>>>a contract with the
additional term unless Mary objects.
The most important element in determining whether a sales contract has been made is the: -
CORRECT ANSWER>>>>intent of the parties to make a contract.
In the case of Pittsley v. Houser, the court: - CORRECT ANSWER>>>>found the
"predominant factor" test was the better, more prudent rule
Who among the following is most likely not considered a merchant according to Article 2 of the
UCC? - CORRECT ANSWER>>>>Kay who sells her 3-year-old fishing boat to her
neighbor.
, A contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but
which is otherwise valid, is enforceable in which of the following situations? - CORRECT
ANSWER>>>>all of the above
The CISG specifically excludes sales of: - CORRECT ANSWER>>>>all the above
Which of the following is true regarding unconscionability under the Code? - CORRECT
ANSWER>>>>The Code denies or limits enforcement of an unconscionable contract for
the sale of goods
Davis Co. and Ruby Creations enter an oral contract providing that Ruby will deliver three dozen
dresses to Davis at $20 per dress. The next day, Davis sent Ruby a letter signed by Davis's
purchasing agent confirming the quantity and item, but not mentioning the price. Which of the
following is true? - CORRECT ANSWER>>>>Davis is bound by the contract when its
authorized agent sends the letter, but Ruby Creations is bound by the oral contract ten
days after receiving the letter, unless it objects in writing within that time.
The Code defines __________ as "honesty in fact in the conduct or transaction concerned." -
CORRECT ANSWER>>>>good faith
A(n) __________ is a special type of lease transaction generally involving three parties instead
of two. - CORRECT ANSWER>>>>finance lease
The definition of "usage of trade" includes: - CORRECT ANSWER>>>>a practice regularly
observed and followed in a place, vocation, or trade.
Under the CISG, which of the following would not always be considered a material alteration to
an offer? - CORRECT ANSWER>>>>A change in color of goods ordered
Which of the following is not true about auctions? - CORRECT ANSWER>>>>The UCC
provides that if an auction sale is advertised or announced in explicit terms to be with
reserve, the auctioneer may not withdraw the article put up for sale unless no bid is made
within a reasonable time.
Mike inherited some antiques. Pat agrees to buy them. In the contract, Mike and Pat agree to
value the antiques at whatever the Sotheby's representative says. It is much higher than either of
them anticipated. What is the outcome? - CORRECT ANSWER>>>>Pat has to buy at the
price set by the Sotheby representative.
Shannon orally agrees to buy 500 telephone answering machines from Thomas for $25,000.
Thomas delivers 300 answering machines to Shannon, who receives and accepts them. Which of
the following is correct with regard to this transaction? - CORRECT ANSWER>>>>The
contract is enforceable to the extent of the 300 machines that have been received and
accepted
