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| 1 | |
Newman offers at auction a gold watch with a fair market value of $10,000 but the highest bid is $1,000. Newman may legally _____. |
| | A) | not reject the high bid |
| | B) | reject the high bid |
| | C) | insist that the bidder pay at least 50% of the fair market value |
| | D) | sue the auctioneer for the $9,000 balance |
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| 2 | |
The seller's cousin Bud secretly bid $10,000 at an antique auction to raise the price. The buyer Helen bid $8,000 and ultimately $12,000 to buy the item. If there is a sale, what is the price? |
| | A) | There is no sale and no price. |
| | B) | There is a sale for $8,000. |
| | C) | There is a sale for $10,000. |
| | D) | There is a sale for $12,000. |
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| 3 | |
This transaction involves a transfer of title but no price: |
| | A) | sale |
| | B) | consignment |
| | C) | gift |
| | D) | bailment |
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| 4 | |
Under the UCC the following contracts contain an obligation of good faith: |
| | A) | those involving a merchant |
| | B) | those involving a price above $500 |
| | C) | those involving a consumer |
| | D) | every contract |
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| 5 | |
This party may make a "firm offer." |
| | A) | merchant buyer |
| | B) | merchant seller |
| | C) | merchant buyer or seller |
| | D) | any party |
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| 6 | |
Red contracts to sell Brown $300 of merchandise. Subsequently they amend the contract to include loading the merchandise onto Brown's truck. Is this modification legally binding? |
| | A) | Yes. |
| | B) | No. |
| | C) | Yes, if both Red and Brown are merchants. |
| | D) | Yes, if Brown pays extra for loading. |
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| 7 | |
The Reading Club orally orders $600 of T-shirts to be made by Shirt City containing the club name and date of National Reading Week. Is this oral agreement legally enforceable? |
| | A) | No, since the price exceeds $500. |
| | B) | Yes, since Shirt City is a merchant. |
| | C) | No, since the Reading Club is not a merchant. |
| | D) | Yes, since the T-shirts are specially manufactured goods. |
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| 8 | |
King Donut Co., orally orders a ton of flour for $550 from General Grain Co. who delivers it to King's warehouse. King's donut sales fall and King demands that General Grain rescind the contract. Is King legally entitled to rescind the agreement? |
| | A) | Yes, since it exceeded $500. |
| | B) | No, since the contract was executed. |
| | C) | No, since an implied condition of every contract is that goods be useful to the buyer. |
| | D) | Yes, since both parties are merchants. |
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| 9 | |
How much detail must be contained in a written contract for the sale of goods? |
| | A) | Subject matter and parties only. |
| | B) | Subject matter and quantity only. |
| | C) | Subject matter, quantity, and parties only. |
| | D) | Subject matter, quantity, parties, and price. |
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| 10 | |
CISG has what writing requirement of a sale of goods contract? |
| | A) | Written if above $500 in price. |
| | B) | Written if above $1,000 in price. |
| | C) | Written if above $5,000 in price. |
| | D) | It need not be written. |
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