The Legal Environment Of Business 8th Edition By Frank B. Cross – Test Bank

TRUE/FALSE QUESTIONS

A1. UCC Article 2 applies to sales transactions between all buyers and sellers.

ANSWER: T PAGE: 235 TYPE: N
NAT: AACSB Analytic AICPA Legal

A2. A lessee is a party who transfers a right to the possession and use of goods under a lease.

ANSWER: F PAGE: 235 TYPE: =
NAT: AACSB Analytic AICPA Legal

A3. Under the UCC, a firm offer for a sale or lease of goods made by a merchant can be revoked at any time before acceptance.

ANSWER: F PAGE: 236 TYPE: N
NAT: AACSB Analytic AICPA Legal

A4. In a contract between merchants, additional terms in the parties’ separate standard forms always automatically become part of the contract.

ANSWER: T PAGE: 238 TYPE: N
NAT: AACSB Reflective AICPA Legal

A5. All oral contracts are enforceable under the UCC.

ANSWER: F PAGE: 239 TYPE: N
NAT: AACSB Analytic AICPA Legal

A6. Under a shipment contract, the risk of loss passes to the buyer when the goods are delivered to the carrier.

ANSWER: T PAGE: 244 TYPE: +
NAT: AACSB Analytic AICPA Legal

A7. If a buyer accepts a shipment of goods and later discovers a defect, acceptance can be revoked.

ANSWER: T PAGE: 245 TYPE: N
NAT: AACSB Analytic AICPA Legal

A8. A seller has an insurable interest in goods as long as the goods are in existence.

ANSWER: F PAGE: 245 TYPE: N
NAT: AACSB Analytic AICPA Legal

A9. If goods or tender of delivery fail in any respect to conform to a contract, the buyer or lessee loses the right to accept the goods.

ANSWER: F PAGE: 247 TYPE: +
NAT: AACSB Analytic AICPA Legal

A10. If performance is commercially impractica¬ble, the perfect tender rule no longer applies.

ANSWER: T PAGE: 247 TYPE: N