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HW-619 Management MCQs
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1) What is the definition of “goods” under Article 2 of the UCC?
a. ”Goods” are defined as tangible things that are immovable at the time of their identification to
the contract.
b. ”Goods” are defined as fixtures.
c. ”Goods” are defined as intangible things that are immovable at the time of their identification
to the contract.
d. ”Goods” are defined as intangible things that are movable at the time of their identification to
the contract.
e. ”Goods” are defined as tangible things that are movable at the time of their identification to
the contract.
2) Regarding differences under Article 2 of the UCC in the treatment of merchants and
nonmerchants, which is true?
a. Article 2 holds merchants to a lower duty than nonmerchants.
b. Article 2 applies to merchants, but never to nonmerchants.
c. Article 2 contains several provisions that either apply only to merchants or impose a
greater duty on merchants.
d. Article 2 does not differentiate at all between merchants and nonmerchants, and they
are treated the same under all circumstances.
e. None of the above is true.
3) Where a contract for the sale of goods does not mention the place of delivery for the
goods, which of the following is true?
a. The seller is obligated to deliver the goods to the buyer’s place of business.
b. The contract fails for failure to state a material term.
c. The seller is obligated to deliver the goods at the seller’s place of business.
d. Sellers without a place of business are obligated to deliver the goods at the seller’s
home.
e. Both C and D are true.
4) Under the UCC, if an offer is received by mail, the acceptance:
a. can be made by another means, but only if the offer so states.
b. must also be made by mail.
c. can be made in any commercially reasonable manner.
d. is effective only once it is received by the offeror.
e. can be canceled by the offeree at any time during the period of a firm offer.
5) The parol evidence rule would not allow which of the following items into evidence
when interpreting a written contract?
6) What is required to meet the writing requirement of the statute of frauds under the
UCC?
7) Which of the following is true relating to a “firm offer” under the UCC?
a. It must be in writing and signed by the merchant.
b. It can be made only by a merchant.
c. It may provide that the offer remain open for any period of time up to six months.
d. A, B and C.
e. A and B only.
8) Susan decides to buy new carpet for her home. She goes to Carpet City and chooses
the carpet she likes. As part of the deal, Carpet City agrees to install the carpet. The
carpet is installed while Susan is at work. When she returns home and sees it, Susan
immediately notices problems. The carpet is not the same quality of carpet she ordered, and the
color is off. Does the UCC apply, and why or why not?
a. The UCC does not apply because the deal with Carpet City included service that is not
covered by the UCC.
b. The UCC does not apply because it does not apply to mixed contracts of goods and
services.
c. The UCC applies because it applies to service contracts as well as to contracts for the
sale of goods.
d. The UCC applies because the predominant part of the transaction between Susan and
Carpet City was the sale of goods.
e. The UCC does not apply because Susan and Carpet City did not agree in writing be-
fore the carpet was installed that the UCC would apply.
9) Which of the following situations creates a sale that falls under UCC sales law rules?
10) Seller who is located in Atlanta, Georgia contracted to sell a shipment of peaches to
the 1910 fruit gum company located in Buffalo, New York. The peaches were sold
f.o.b. Buffalo. Seller delivered the peaches to the proper carrier in Atlanta and the
peaches were destroyed during shipping. Under these facts:
a. Seller bears the risk of loss and is responsible.
b. Seller and buyer share the risk of loss.
c. This is a trick question; goods can’t be shipped f.o.b. Buffalo.
d. Buyer bears the risk of loss and is responsible.
e. Neither the seller nor the buyer bear risk of loss, the carrier bears the risk of loss.
11) Which of the following is true regarding a shipment contract?
12) When a seller breaches a contract for the sale of goods by delivering nonconforming
goods that are so nonconforming that the buyer has the right to reject them, the risk
of loss:
a. is unaffected by the seller’s breach.
b. is transferred to the buyer as a matter of law within 24 hours.
c. remains on the seller until the nonconformity is cured or the buyer accepts the non-
conforming goods.
d. remains on the seller indefinitely.
e. is transferred to the buyer upon delivery of the nonconforming goods, but is transferred back
to the seller if the buyer returns the goods.
13) Under Article 2A of the UCC, for which types of lease(s) is the risk of loss on the lessor
during the term of the lease?
a. Ordinary leases.
b. Both ordinary and finance leases.
c. Finance leases.
d. Neither ordinary nor finance leases.
e. Loss-shifting leases.
14) In Lindholm v. Brandt, when Malmberg sold Lindholm’s “Red Elvis” to Brandt, the
court found that:
15) Josh had a computer that needed repair. He took the computer to a used computer
dealer that repaired computers as well. While talking with the owner, Josh learned
that the owner also knew how to repair bicycles. Josh happened to need some re-
pairs done on his bike, so he left it at the computer shop as well. A week later, Josh
went to pick up his bike and computer. When he got to the store, the owner said he
16) Assuming that goods are nonconforming and that the nonconformity substantially
impairs their value to this buyer, which of the following additional factors must be
present for a valid revocation of the acceptance of goods?
17) Which of the following must be met in every instance in order to revoke an acceptance of
goods?
18) Which of the following is true regarding the rights of the buyer or lessee if the goods
fail to conform to the sales or lease contract in any way?
a. The buyer or lessee may accept the whole.
b. The buyer or lessee may reject the whole.
c. The buyer or lessee may accept any commercial unit and reject the rest.
d. Both A and B are true.
e. Both A, B, and C are true.
19) What is the right of the buyer or lessee to purchase or rent substitute goods if the
seller or lessor fails to make delivery of the goods called?
a. The right to recovery.
b. The right to purchase.
c. The right to cover.
d. The right to recoup.
e. The right to capture.
20) What are the rights of the aggrieved party if an anticipatory repudiation occurs?
a. The aggrieved party may await performance by the repudiating party for a commercially
reasonable time.
b. The aggrieved party must await performance for 7 days.
c. The aggrieved party may await performance for 48 hours.
d. The aggrieved party may treat the contract as breached at the time of the anticipatory
repudiation, which gives the aggrieved party an immediate cause of action.
e. Both A and D.
21) Which of the following is presumed to become part of the “basis of the bargain”?
a. Statements of “puffing”.
b. All statements of opinion by the seller.
c. All statements of fact by the seller at the time the contract is made.
d. A and C only.
e. A and B only.
22) Which of the following best describes a defect in packaging under products liability?
23) In Elsroth v. Johnson & Johnson, involving cyanide placed in Tylenol capsules causing
Diane Elsroth’s death, the court found:
a. the construction of tamperproof packaging is impossible.
b. Johnson & Johnson had not followed Food and Drug Administration guidelines appropriately
by using only three tamper resistance techniques when a minimum of four
were required.
c. liability for defective design involves the product itself but not the product packaging.
d. A and B only.
e. A and C only.
24) In Philip Morris USA v. Williams, the Supreme Court looked at the issue of punitive
damages in product liability suits and decided:
a. the Due Process Clause of the Constitution forbids the use of punitive damages to
punish a defendant for injuries to nonparties.
b. treble punitive damages are warranted in product liability cases.
c. punitive damages are not permitted in product liability suits.
d. punitive damages may not exceed 9X the compensatory damages.
e. the Equal Protection Clause of the Constitution forbids the use of punitive damages to
punish a defendant for injuries to nonparties.
25) Which of the following best describes the defense of correction of a defect?
a. The defense applies even in a situation where a user received a recall notice to correct
the defect but did not comply with the notice.
b. It applies only if the manufacturer replaces the defective product at no additional
charge to the owner.
c. The defense applies only if the particular sample of the item was repaired, thus fixing
the defect.
d. The defense applies if the user realizes there is a defect and assumes the risk.
e. The defense applies if a product is redesigned such that future production does not
contain the defect.
Answer will be sent by email as attachment.
a. ”Goods” are defined as tangible things that are immovable at the time of their identification to
the contract.
b. ”Goods” are defined as fixtures.
c. ”Goods” are defined as intangible things that are immovable at the time of their identification
to the contract.
d. ”Goods” are defined as intangible things that are movable at the time of their identification to
the contract.
e. ”Goods” are defined as tangible things that are movable at the time of their identification to
the contract.
2) Regarding differences under Article 2 of the UCC in the treatment of merchants and
nonmerchants, which is true?
a. Article 2 holds merchants to a lower duty than nonmerchants.
b. Article 2 applies to merchants, but never to nonmerchants.
c. Article 2 contains several provisions that either apply only to merchants or impose a
greater duty on merchants.
d. Article 2 does not differentiate at all between merchants and nonmerchants, and they
are treated the same under all circumstances.
e. None of the above is true.
3) Where a contract for the sale of goods does not mention the place of delivery for the
goods, which of the following is true?
a. The seller is obligated to deliver the goods to the buyer’s place of business.
b. The contract fails for failure to state a material term.
c. The seller is obligated to deliver the goods at the seller’s place of business.
d. Sellers without a place of business are obligated to deliver the goods at the seller’s
home.
e. Both C and D are true.
4) Under the UCC, if an offer is received by mail, the acceptance:
a. can be made by another means, but only if the offer so states.
b. must also be made by mail.
c. can be made in any commercially reasonable manner.
d. is effective only once it is received by the offeror.
e. can be canceled by the offeree at any time during the period of a firm offer.
5) The parol evidence rule would not allow which of the following items into evidence
when interpreting a written contract?
6) What is required to meet the writing requirement of the statute of frauds under the
UCC?
7) Which of the following is true relating to a “firm offer” under the UCC?
a. It must be in writing and signed by the merchant.
b. It can be made only by a merchant.
c. It may provide that the offer remain open for any period of time up to six months.
d. A, B and C.
e. A and B only.
8) Susan decides to buy new carpet for her home. She goes to Carpet City and chooses
the carpet she likes. As part of the deal, Carpet City agrees to install the carpet. The
carpet is installed while Susan is at work. When she returns home and sees it, Susan
immediately notices problems. The carpet is not the same quality of carpet she ordered, and the
color is off. Does the UCC apply, and why or why not?
a. The UCC does not apply because the deal with Carpet City included service that is not
covered by the UCC.
b. The UCC does not apply because it does not apply to mixed contracts of goods and
services.
c. The UCC applies because it applies to service contracts as well as to contracts for the
sale of goods.
d. The UCC applies because the predominant part of the transaction between Susan and
Carpet City was the sale of goods.
e. The UCC does not apply because Susan and Carpet City did not agree in writing be-
fore the carpet was installed that the UCC would apply.
9) Which of the following situations creates a sale that falls under UCC sales law rules?
10) Seller who is located in Atlanta, Georgia contracted to sell a shipment of peaches to
the 1910 fruit gum company located in Buffalo, New York. The peaches were sold
f.o.b. Buffalo. Seller delivered the peaches to the proper carrier in Atlanta and the
peaches were destroyed during shipping. Under these facts:
a. Seller bears the risk of loss and is responsible.
b. Seller and buyer share the risk of loss.
c. This is a trick question; goods can’t be shipped f.o.b. Buffalo.
d. Buyer bears the risk of loss and is responsible.
e. Neither the seller nor the buyer bear risk of loss, the carrier bears the risk of loss.
11) Which of the following is true regarding a shipment contract?
12) When a seller breaches a contract for the sale of goods by delivering nonconforming
goods that are so nonconforming that the buyer has the right to reject them, the risk
of loss:
a. is unaffected by the seller’s breach.
b. is transferred to the buyer as a matter of law within 24 hours.
c. remains on the seller until the nonconformity is cured or the buyer accepts the non-
conforming goods.
d. remains on the seller indefinitely.
e. is transferred to the buyer upon delivery of the nonconforming goods, but is transferred back
to the seller if the buyer returns the goods.
13) Under Article 2A of the UCC, for which types of lease(s) is the risk of loss on the lessor
during the term of the lease?
a. Ordinary leases.
b. Both ordinary and finance leases.
c. Finance leases.
d. Neither ordinary nor finance leases.
e. Loss-shifting leases.
14) In Lindholm v. Brandt, when Malmberg sold Lindholm’s “Red Elvis” to Brandt, the
court found that:
15) Josh had a computer that needed repair. He took the computer to a used computer
dealer that repaired computers as well. While talking with the owner, Josh learned
that the owner also knew how to repair bicycles. Josh happened to need some re-
pairs done on his bike, so he left it at the computer shop as well. A week later, Josh
went to pick up his bike and computer. When he got to the store, the owner said he
16) Assuming that goods are nonconforming and that the nonconformity substantially
impairs their value to this buyer, which of the following additional factors must be
present for a valid revocation of the acceptance of goods?
17) Which of the following must be met in every instance in order to revoke an acceptance of
goods?
18) Which of the following is true regarding the rights of the buyer or lessee if the goods
fail to conform to the sales or lease contract in any way?
a. The buyer or lessee may accept the whole.
b. The buyer or lessee may reject the whole.
c. The buyer or lessee may accept any commercial unit and reject the rest.
d. Both A and B are true.
e. Both A, B, and C are true.
19) What is the right of the buyer or lessee to purchase or rent substitute goods if the
seller or lessor fails to make delivery of the goods called?
a. The right to recovery.
b. The right to purchase.
c. The right to cover.
d. The right to recoup.
e. The right to capture.
20) What are the rights of the aggrieved party if an anticipatory repudiation occurs?
a. The aggrieved party may await performance by the repudiating party for a commercially
reasonable time.
b. The aggrieved party must await performance for 7 days.
c. The aggrieved party may await performance for 48 hours.
d. The aggrieved party may treat the contract as breached at the time of the anticipatory
repudiation, which gives the aggrieved party an immediate cause of action.
e. Both A and D.
21) Which of the following is presumed to become part of the “basis of the bargain”?
a. Statements of “puffing”.
b. All statements of opinion by the seller.
c. All statements of fact by the seller at the time the contract is made.
d. A and C only.
e. A and B only.
22) Which of the following best describes a defect in packaging under products liability?
23) In Elsroth v. Johnson & Johnson, involving cyanide placed in Tylenol capsules causing
Diane Elsroth’s death, the court found:
a. the construction of tamperproof packaging is impossible.
b. Johnson & Johnson had not followed Food and Drug Administration guidelines appropriately
by using only three tamper resistance techniques when a minimum of four
were required.
c. liability for defective design involves the product itself but not the product packaging.
d. A and B only.
e. A and C only.
24) In Philip Morris USA v. Williams, the Supreme Court looked at the issue of punitive
damages in product liability suits and decided:
a. the Due Process Clause of the Constitution forbids the use of punitive damages to
punish a defendant for injuries to nonparties.
b. treble punitive damages are warranted in product liability cases.
c. punitive damages are not permitted in product liability suits.
d. punitive damages may not exceed 9X the compensatory damages.
e. the Equal Protection Clause of the Constitution forbids the use of punitive damages to
punish a defendant for injuries to nonparties.
25) Which of the following best describes the defense of correction of a defect?
a. The defense applies even in a situation where a user received a recall notice to correct
the defect but did not comply with the notice.
b. It applies only if the manufacturer replaces the defective product at no additional
charge to the owner.
c. The defense applies only if the particular sample of the item was repaired, thus fixing
the defect.
d. The defense applies if the user realizes there is a defect and assumes the risk.
e. The defense applies if a product is redesigned such that future production does not
contain the defect.
Answer will be sent by email as attachment.
