Cengage Advantage Books Business Law Today The Essentials 9th Edition By Miller – Test Bank

Chapter 11

Sales and Leases:
Formation, Title, and Risk

N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.

N A question new to this edition of the Test Bank.
= A question modified from the previous edition of the Test Bank,
= A question included in the previous edition of the Test Bank.

TRUE/FALSE QUESTIONS

1. Article 2 of the UCC governs contracts for sales of goods.

ANSWER: T PAGE: 301 TYPE: N
NAT: AACSB Analytic AICPA Legal

2. Ordinary contract rights are an example of property that does not come under UCC Article 2.

ANSWER: T PAGE: 302 TYPE: N
NAT: AACSB Reflective AICPA Legal

3. Article 2 of the UCC governs contracts for sales of services.

ANSWER: F PAGE: 302 TYPE: N
NAT: AACSB Analytic AICPA Legal

4. A sale of “things attached” to realty is always considered a sale of goods.

ANSWER: F PAGE: 303 TYPE: N
NAT: AACSB Reflective AICPA Legal

5. The UCC imposes the same rules of conduct on all parties in all circumstances.

ANSWER: F PAGE: 305 TYPE: N
NAT: AACSB Analytic AICPA Legal

6. A consumer lease is exempted from coverage under the UCC.

ANSWER: F PAGE: 306 TYPE: N
NAT: AACSB Analytic AICPA Legal

7. A lessee is a party who transfers a right to the possession and use of goods under a lease.

ANSWER: F PAGE: 306 TYPE: N
NAT: AACSB Analytic AICPA Legal

8. A lessee is a party who acquires a right to the possession and use of goods under a lease.

ANSWER: T PAGE: 306 TYPE: N
NAT: AACSB Analytic AICPA Legal

9. Under the UCC, the validity of a contract depends on its price term.

ANSWER: F PAGE: 307 TYPE: N
NAT: AACSB Analytic AICPA Legal

10. Under the UCC, a contract for a sale of goods that includes open terms is void.

ANSWER: F PAGE: 307 TYPE: N
NAT: AACSB Reflective AICPA Legal

11. If a contract for a sale of goods does not include a price term, a reasonable price can be determined by looking at the market for the goods.

ANSWER: T PAGE: 307 TYPE: N
NAT: AACSB Reflective AICPA Legal