Question

i. True or False

-Under the UCC, a contract for the sale of goods that includes open terms is void. T/F

-Oral promises of fact made during the bargaining process are not express warranties. T/F

-Warranties of title are assumed to exist in UCC transactions. T/F

ii. Multiple choice

-The requirements of a contract do not include:

a. Consideration

b. Practicality

c. Legality

d. Capacity

-Defenses against the enforcement of a contract include:

a. The lack of a party’s genuine consent

b. A desire not to perform

c. Adverse economic consequences

d. Results that do not match the expectations of one of the parties

-Risky tells WannaBe that he is thinking about selling his skis. This is:

a. A statement of future intent

b. An invitation to accept an offer

c. An offer

d. An acceptance of an offer

-Risky decides to sell his skis and sends all of his friends a text message offering his skis for sale for $500. WannaBe sends Risky a text offering him $400. Risky and WannaBe now have:   

a. No contract because Risky sent the message to all of his friends, not just WannaBe

b. A contract because there was an offer and an acceptance

c. No contract because WannaBe made a counter-offer that has not been accepted

d. A contract because there is consent and a promise of consideration

-The next day, Stony sends Risky a text message offering to give Risky his car in exchange for the skis. Risky has seen Stony’s car in Stony’s driveway and thinks the car is worth about $2,000, so he replies to Stony’s text telling him that he will accept Stony’s offer. The contract may not be an enforceable contract if:

a. Any of the above conditions

b. Stony made a mistake when he estimated the value of his car at $500

c. Stony was under the influence of drugs or alcohol when Risky accepted his offer

d. Stony is under the age of 18

-Risky exchanges his skis for Stony’s car that afternoon. When Risky attempts to drive away in the car, he discovers the car has no engine. Risky did not inspect the car before he agreed to the exchange and Stony did not tell Risky the car did or did not have an engine. This is an example of:

a. An unconscionable mistake

b. A unilateral mistake

c. A bilateral mistake

d. A fraudulent misrepresentation

-Risky decides to keep the car. He calls Ima Little Late at 24/7 Towing Company and asks her to tow the car to his house. He agrees to pay Ima $100 to tow his car. Risky tells Ima that she must deliver the car to his house before 5:00 pm that night so that he can get to work by 6:00 pm. Unfortunately, there is a power outage that disables all the traffic lights in the area. Because it is rush hour, traffic is a mess. When Ima calls Risky at 4:30 to tell him she is going to be late, Risky gets angry, calls her “stupid and irresponsible” and hangs up on her. Ima finally drops off the car at Risky’s house at 7:00 pm. Risky refuses to pay Ima the $100, so Ima sues Risky for breaching their contract. In this case, the court will most likely:

a. Decide in Ima’s favor because, when she called Risky to tell him she was going to be late, he verbally assaulted her

b. Decide in Risky’s favor because Ima did not fully perform her promise

c. Decide in Risky’s favor because it would be unconscionable to make Risky pay for services that did not meet his expectations

d. Decide in Ima’s favor because she substantially performed her contract obligation to the extent possible given the power outage

-Risky, who likes to work on cars in his leisure time, purchased a brand-new engine direct from Nothingood Manufacturing. He finally got the car running after working on it for several days. Unfortunately, he discovered that whenever the outside temperature reached 74 degrees, the car stopped running. When Risky contacted Nothingood Manufacturing, they told him the engine did not come with a warranty. Risky may be able to sue the manufacturer of his car engine for the following reason(s):

a. The car engine did not perform according to product descriptions on the box

b. The manufacturer did not provide an adequate warning regarding the temperature limitation of the engine

c. The car engine is not reasonably fit for ordinary use

d. All of these answers are correct

-Risky was finally able to get the manufacturer to replace the problem engine with a newly designed engine that worked well. He was showing off the car to his new girlfriend when he was pulled over by a police officer for speeding. The police officer ran a title report and discovered the car had been reported stolen. Risky told the police officer that Stony had traded him the car for his skis and that Risky had no idea the car had been stolen.

a. Risky may have to take matters into his own hands by visiting Stony and forcing him to pay Risky back for all the trouble he has caused Risky

b. Risky may be able to get the speeding ticket dismissed if he tells the court about all the problems he has had with the car engine.

c. Risky will have to return the car to the original owner because his title to the car is void

d. Risky will be able to keep the car because he did not know it was stolen and is a “good faith purchaser”

-When a sales contract is identified as a shipment contract rather than a destination contract, this means that the risk of loss is assumed by:

a. The buyer

b. The shipping carrier

c. All of the above

d. The seller

Answer 1

I .a. The given statement is FALSE as under the UCC,a contract for sale of good that include open term is not void, because it can include open terms.

b. The given statement is TRUE as oral promises of fact made during bargaining process are not express warranties.

c. Warranties of title is assumed to exist in ucc transactions and the given statement is TRUE because they are assumed to exist in in these transactions.

ii. The requirements of a contract include consideration, legality and capacity.

Practicality is not a requirement of a valid contract.

Answer is option (B) practicality.