Reference no: EM132264742
1. The Beckett School district contracts with the Golden Dairy for "all of the milk" Golden can produce during Beckett's current school year. The contract specifies a price, but no exact quantity of milk to be purchased is set in the contract. This contract is a(n):
a. valid requirements contract.
b. invalid contract because consideration is missing.
c. valid output contract.
d. invalid contract because no quantity is set.
2. Georgiana receives a document of title for lumber she purchased. Even though she does not yet possess the lumber, the document transfers to her both title to the lumber and risk of loss for it.
True
False
3. In what respect is a bailment legally different from a sale?
a. Title does not transfer in a bailment.
b. In both, there is a transfer of title, but in a bailment the title reverts to the bailor at the end of the bailment.
c. In a sale, the title transfer includes all rights of ownership, but in a bailment, the title transfer includes limited rights of ownership.
d. Title transfers in a bailment, but no price is involved.
4. Jacob, a merchant, promises in a signed writing to Paul, a consumer, to hold an offer to sell goods open for five months without Paul giving consideration in exchange. However, Jacob sells the goods to another consumer and Paul sues him for breach of contract. Which of the following is true of this case?
a. Jacob is bound by this offer only if a five month offer is customary for this type of good.
b. Jacob is not bound by the contract, since firm offers cannot exceed three months.
c. The UCC will not enforce this contract as a firm offer as both parties are not merchants.
d. Since Jacob is a merchant and is bound by a firm offer made to Paul, he has breached contract.
5. Dagnon Motors tells Patsy, a consumer, that Sonic Automobiles are made with metal bodies when they are in fact made of fiberglass. This would be considered a(n):
a. fraudulent misrepresentation.
b. bait-and-switch scheme.
c. sales puffery.
d. act of dunning.
6. Scott went to the store to purchase a $15 MP3 player, advertised in the paper. The salesperson was encouraged by the store not to sell that MP3 player since it created a loss for the store. Instead, the salesperson told Scott that although the MP3 player was on sale, it was an undesirable, bottom-of-the-line product, and that Scott would be much happier with an Apple iPod Nano CD player for $250. The store:
a. can be held guilty of a bait-and-switch scheme.
b. can be sued under the policy of negligence and strict liability.
c. acted in good faith when it tried to offer a better product.
d. can be held guilty of fraudulent misrepresentation.