Question

Multiple Choice

Choose the single choice among the 4 choices that best completes the statement or answers the question.

1. The UCC says that a lessee’s obligations under a commercial finance lease

a.are the same as under any other type of lease.

b.are irrevocable and independent from the financer’s obligations.

c.depend on the total monetary obligation owed by the lessee.

d.can be disclaimed by the lessee if done promptly.

2. A merchant’s firm offer

a.must be supported by consideration to remain open.

b.does not require consideration to remain open.

c.can be made orally and still remain open.

d.cannot remain open for more than 10 consecutive business days.

3.The UCC requires

a.at least nominal consideration to modify a contract.

b.no consideration to modify a contract.

c.adequate consideration to modify a contract.

d.that a modification of a contract be in writing.

4. A seller’s statement about the value of goods being sold is

a.an express warranty.

b.an implied warranty.

c. not an express warranty.

d. effective for 72 hours.

5.Automobile mechanical defects

a.are subect to different laws depending on the place of manufacture.

b. according to the UCC must be brought to the attention of the selling auto dealer within 90 days of purchase.

c.are subect to Lemon Laws.

d.are required by federal law to be corrected by the manufacturer in the next model of the automobile.

6. Under the Employment at Will principle

a.employees can quit for good,bad or no reason but they cannot be fired except for good cause.

b.employees can bring a wrongful discharge action against employers.

c.unemployment compensation benefits cannot be paid to fired employees if employers object.

d.employers can fire employees for good,bad or no reason.

Answer 1

1. b.are irrevocable and independent from the financer’s obligations.

2. b.does not require consideration to remain open.

Under UCC, a merchant's firm offer remains open, even without consideration, if it is made in writing and with a guarantee that the offer will remain open.

3. b.no consideration to modify a contract.

No consideration is required under UCC to modify a contract. However, modification must be in good faith.

4. c. not an express warranty

A state of fact about the quality or fitness for use of goods is an express warranty, but not if it related to the value of worth of goods.