SM-UCC Practice quiz

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University of Notre Dame *

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Law

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Apr 3, 2024

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Uploaded by MasterPelicanPerson1034

Question 1 points A farmer offers his apples to a wholesaler. The farmer shows the wholesaler sample apples from his farm and, in a written agreement, the wholesaler agrees to buy all the apples it will need from the farmer for a certain price. When the apples arrive, many are less crisp and not as wholesome as the ones the farmer had shown to the wholesaler. Does the wholesaler have a claim for breach of warranty? 1. Option 1 Yes, because the producer told the wholesaler the cherries would be plump and ripe. 2. Option 2 No, because the wholesaler bore the risk that the goods did not conform to the sample. 3. Option 3 Yes, because the sample created an express warranty that the goods would conform to that sample. 4. Option 4 No, because no warranty was in writing. Question 2 points A customer of Audio Visual Tech Inc. purchased an entertainment system for $32,000, including installation at $2,000. The company delivered the entertainment system but experienced difficulties in its installation. Two weeks after the unsuccessful installation, the customer told Audio Visual Tech to leave and then hired another company to install the system. 1. Option 1 The contract between Audio Visual Tech Inc. and the customer is governed by the common law of contracts because the procurement of the goods is incidental to the installation. 2. Option 2 The contract between Audio Visual Tech Inc. and the customer is governed by Article 2 because the procurement of the goods is incidental to the installation. 3. Option 3 The contract between Audio Visual Tech Inc. and the customer is not covered by Article 2 because the customer is not a merchant. 4. Option 4 4 4

The contract between Audio Visual Tech Inc. and the customer is governed by Article 2 because the installation is incidental to the procurement of the goods. Question 3 points School Services Academy purchased mass-produced, standardized software to train its teachers and requests that the IT department install the software for training. 1. Option 1 The contract between Social Services Academy and the software company is not covered by Article 2 because the customer is not a merchant. 2. Option 2 The contract between Social Services Academy and the software company is governed by the common law of contracts because the procurement of the goods is incidental to the installation. 3. Option 3 The contract between Social Services Academy and the software company is governed by Article 2 because the procurement of the goods is incidental to the installation. 4. Option 4 The contract between Social Services Academy and the software company is governed by Article 2 because the installation is incidental to the procurement of the goods. Question 4 points A borrower goes to a lender to borrow money. The lender says, “We will lend you $10,000 if you promise to pay it back with interest. In addition, you will have to turn over the title to your van to us. If you default on your payments, then we may keep the title to your van.” The borrower agrees and a contract is drawn up containing these terms. Is this an Article 2 transaction? 1. Option 1 Yes, because there is a present passing of title to the van. 2. Option 2 Yes, because there may be a future passing of title to the van. 3. Option 3 No, because there is no contract for sale. 4 4

4. Option 4 No, because a van is not a good. Question 5 points Tony showed his sister Beth his new gas grill. She asked him if he would be interested in selling his air fryer. “I’m not interested in selling it,” he replied, “but I would be happy to trade it for that cappuccino machine you said you wanted to get rid of.” Beth, said, “It’s a deal!” Did Tony and Beth enter into an Article 2 transaction? 1. Option 1 No, because neither of them is a merchant. 2. Option 2 No, because the transaction did not involve the sale of goods. 3. Option 3 Yes, because they entered into a transaction in goods. 4. Option 4 Yes, because they made the exchange in the present rather than agreeing to make it in the future. Question 6 points Dan, who is the president of Kmart, on his way home buys a TV from Walmart for his son. Is Dan a merchant for the purposes of this transaction? 1. Option 1 Yes, because Walmart is a goods merchant. 2. Option 2 Yes, because Dan is a practicing merchant. 3. Option 3 No, because Dan is not acting on behalf of Kmart. 4. Option 4 No, because a TV is a consumer goods. 4 4

Question 7 points As an incentive, a real estate broker offered 2 garage door openers with a house purchase. Desiree bought a house from the broker but the garage door openers did not work. Is she likely to be successful if she brings a claim for breach of the warranty of merchantability under § 2-314 against the real estate broker? 1. Option 1 Yes, because the real estate broker is a merchant. 2. Option 2 Yes, because the real estate broker is familiar with the practices involved in the transaction. 3. Option 3 No, because the real estate broker is not a merchant with respect to garage door openers. 4. Option 4 No, because is not a merchant. Question 8 points A firm offer is sent by a merchant seller to a buyer who is not a merchant. Does this offer qualify as a firm offer under § 2-205? The statute provides in pertinent part: An offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be held open is not revocable, for lack of consideration, during the time stated. 1. Option 1 Yes, because only the party making the offer must be a merchant 2. Option 2 Yes, because either party must be a merchant. 3. Option 3 No, because both the buyer and the seller must be merchants. 4 4

4. Option 4 No, because the party receiving the offer must be a merchant Question 9 points Mary contracted with Desmond to sell Desmond limestone from her land. She told him to go and gather the 1 ton he needed and simply Zelle her the funds. Desmond removed the limestone from the land and later discovered it was defective. He sued under the UCC. Mary made a motion to dismiss citing failure to state a claim. Who will likely win? 1. Option 1 Desmond, because the mineral is deemed a “good” as it is movable and tangible 2. Option 2 Desmond, because the severance, due to the seller’s instructions deems the transaction as an effective transfer of interest 3. Option 3 Mary, because materials to be removed from realty is a contract for a sale of goods if they are severed by the seller. 4. Option 4 Mary, because only timber and crop to be severed from land without material alteration is deemed a good. Question 10 points A book seller wrote on stationery that had her letterhead at the top, “I am offering any 20 books for $40 while my supplies last.” Without signing the letter, she sent it to her best customers. Is this a § 2-205 firm offer? 1. Option 1 Yes, and it will remain open until all the books are sold. 2. Option 2 Yes, but it will remain open for no more than three months. 4 4

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