Trisha Sandvig

January 25, 2016

1. 50 multiple choice questions2. Write down your answers on a separate sheet of paper3. Answer key located at the end of test

Good Luck!

1. §1-201(b)(35) Security interest in personal property or

fixtures includes all of the following EXCEPT a:

A. Promissory noteB. Chattel paperC. Consignor and a buyer of accountsD. Special property interest of a buyer

2. §1-103(a) The UCC must be liberally construed and

applied to promote its underlying purposes and policies, which are all of the following EXCEPT:

A. To permit the continued expansion of commercial practices through custom, usage, and agreement of parties.

B. To make the law flexible among various jurisdictions.C. To modernize the law governing commercial

transactions.D. To simplify the law governing commercial transactions.

3. §2-305(3) When a price left to be fixed otherwise than by

party agreement fails to be fixed through fault of one party, how

may the other party treat the contract?

A. As cancelled or terminatedB. As terminated or conformingC. As conforming or he may fix a reasonable price himselfD. As cancelled or he may fix a reasonable price himself

4. §1-201(b)(22) An assignment for the benefit of creditors or

other happening intended to liquidate the estate of the person

involved in referred to as a(an):

A. Recoupment or suit in equityB. Burden of establishing C. Insolvency proceedingD. Security interest

5. §2-303 Unless otherwise agreed, how is risk or burden

allocated between the parties:

A. The agreement may shift the allocation of risk, but NOT divide the risk between parties.

B. The agreement may divide the risk, but NOT shift the allocation of risk between parties.

C. The agreement may divide the risk, as well as shift the allocation of risk between parties.

D. The agreement may NEITHER divide the risk, Nor shift the allocation of risk between parties.

6. §1-101(b) Article 1 may be cited as:

A. Uniform Commercial Code – General ProvisionsB. Uniform Commercial Code – General StandardsC. Uniform Contract Code – General ProvisionsD. Uniform Contract Code – General Standards

7. §1-302(b) All of the following may NOT be disclaimed or

varied by agreement, as prescribed in the UCC, EXCEPT for?

A. Obligations of good faithB. Performance C. DiligenceD. Reasonableness

8. §2-102 Unless the context otherwise requires, the UCC

applies to what type of transactions?

A. Land and buildingsB. Security transactionsC. Professional services D. Goods

9. §2-707(1) An agent who has paid or becomes responsible for

the price of goods on behalf of his principal or another security

interest holder in goods similar to that of a seller is known as a:

A. Person in the position of a sellerB. MerchantC. RepresentativeD. Holder

10. §2-105(1) The term “Goods” does NOT include:

A. Investment securitiesB. Unborn young of animalsC. Specially manufactured goodsD. Oil & gas to be removed from realty

11. §2A-201(1)(a) A contract is not enforceable by way of action or

defense unless the total payments to be made under the lease, excluding payments for renewal or buy options, are less than:

A. $10,000B. $5,000C. $1,000D. $500

12. §2-301 The obligation of the buyer is to:

A. Accept goodsB. Transfer goodsC. Pay in accordance with contractD. Both A. and C.

13. §1-201(b)(36) Send, in connection with a writing, record,

or notice, means:

A. Any symbol executed and adopted with present intention to adopt or accept a writing.

B. Notice brought to the attention of the individual conducting the transaction for the organization.

C. Deliver for transmission by any usual means of communication with cost of transmission provided for and properly addressed.

D. Information inscribed on a tangible medium and is retrievable in perceivable form.

14. §§2-314(2), 2A-212(2) To be merchantable, goods must

meet all of the following criteria EXCEPT:

A. Be adequately contained, packaged, and labeled as agreement requires.

B. Run without any variation of kind, quality, and quantity among all units involved.

C. Pass without objection in the trade as described in the agreement.

D. Conform to any promises or affirmations of fact presented on the label.

E. Are fit for the purposes the goods are ordinarily used for.

15. §2A-212(1) If the lessor is a merchant, a warranty that the

goods will be merchantable is implied in a lease contract, with

respect to goods of that kind, EXCEPT in a:

A. Finance leaseB. Consumer leaseC. Installment lease D. Commercial lease

16. §§2-317(a)(b)(c), 2A-215(a)(b)(c) When there is a conflict of

warranties, the parties’ intention determines which warranty is

dominant. Which of the following is NOT true when determining which warranty, express or implied, is dominant:

A. A sample from an existing bulk displaces inconsistent general description language.

B. Technical specifications displace an inconsistent sample or model.

C. Implied warranties displace inconsistent express warranties, except for express warranty of fitness for a particular purpose.

D. Express warranties displace inconsistent implied warranties, except for implied warranty of fitness for a particular purpose.

17. §2-707(2) Which statement is correct regarding a “person in

the position of a seller”:

A. He may withhold delivery, recover incidental damages, but may NOT resell goods.

B. He may stop delivery, resell goods, but may NOT recover any incidental damages

C. He may only withhold or stop delivery because he is not the actual seller.

D. He may stop delivery, resell goods, and recover incidental damages.

18. §1-201(b)(21) The person in possession of a negotiable instrument

that is payable to bearer or to an identified person that is the person in possession is referred to as a:

A. RepresentativeB. HolderC. BearerD. Party

19. §2A-309(1)(c) A lease is a “purchase money lease” unless

the lessee has possession (or right to) or use of the goods:

A. Before the contract is signedB. Before the agreement is enforceableC. After the contract is signedD. After the agreement is enforceable

20. §1-201(b)(14) A defendant includes a person in the position

of defendant in which of the following:

A. Second-party claim, counterclaim, or cross-claimB. Cross-claim, burden of establishing a fact, or second-

party claimC. Third-party claim, cross-claim, or counterclaimD. Counterclaim, third-party claim, or burden of

establishing a fact

21. §1-201(b)(35) Security interest is defined as:

A. An interest in personal property or fixtures which secures pay or performance of an obligation.

B. The specialty interest of a buyer of goods on identification of those goods under Section 2-505.

C. The right of a seller or lessor of goods under Article 2 or 2A to retain or acquire possession of the goods.

D. Both A and C

22. §2-323(3) An overseas shipment means shipment by way of:

A. Ground or airB. Air or waterC. Ground or water D. Ground, air, or water

23. §2-106(1) A present sale is defined as a sale which is

accomplished by:

A. The value exchanged in the agreementB. The value stated in the contractC. The making of the agreementD. The making of the contract

24. §1-201(5) A bearer is defined as a:

A. Person in possession of a certificated security payable to the bearer or indorsed in blank.

B. Person in possession of a certificate of insurance payable to the bearer or indorsed in blank.

C. Person in possession of a “NOT NEGOTIABLE” promissory note payable to the bearer or indorsed in blank.

D. Person in possession of a mechanic’s lien payable to the bearer or indorsed in blank.

25. §2A-102 This Article applies to any transaction that creates:

A. A value exchangeB. An agreementC. A leaseD. A sale

26. §2A-301 A lease contract is effective and enforceable

according to its terms in which of the following:

A. Between the partiesB. Against creditors of the partiesC. Against purchasers of goodsD. All the above

27. §2A-506(1) An action for default under a lease contract,

including breach of warranty, must be commenced within how

long after the cause of action accrued:

A. 1 yearB. 4 yearsC. 5 yearsD. There is no time limit

28. §2A-506(1) By the original lease contract the parties may reduce

the period of limitation for default action to:

A. No less than 3 monthsB. No less than 6 monthsC. No less than 1 yearsD. No less than 2 years

29. §1-106 Unless the statutory context otherwise requires, all of

the following are true with regard to the use of singular, plural,

and gender in the UCC EXCEPT for:

A. Words in the singular number include the pluralB. Words in the plural include the singularC. Words of a gender refer to the gender referencedD. Words of any gender also refer to any other gender

30. §2-403(3) Any delivery and acquiescence in retention of

possession regardless of any condition expressed between parties to

the delivery(or acquiescence) and regardless if the procurement of goods is larcenous under criminal law is known as:

A. EntrustingB. EncumbranceC. AccessionsD. Conforming to contract

31. §2-403(4) The rights of other purchasers of goods and lien

creditors are governed by what Articles:

A. Article 2-Sales and Article 2A-LeasesB. Article 1-General Provisions and Article 2-SalesC. Article 2-Sales and Article 7-Documents of TitleD. Article 9-Secured Transactions and Article 7-Documents

of Title

32. §2A-201(1)(a)(b) Which of the following is not true regarding

a contract’s enforceability by way of action of defense:

A. There is a signed writing by the party whom enforcement is sought sufficient to indicate that a lease contract has been made between parties, including reasonable description of goods and lease term.

B. There is a writing, signed by the party’s authorized agent for the party whom enforcement is sought indicating that a lease contract has been made between parties, including reasonable description of goods and lease term.

C. The total payments to be made under contract, excluding buy(or renew) option payments, are less than $1,000.

D. The total payment to be made under contract, including payments for options to buy or renew, are less than $500.

33. §2A-201(4)(a)(b)(c) A contract that doesn’t satisfy §2A-

201(1) Statute of Frauds requirements, but is valid in other

respects, is enforceable if:

A. Goods have been received and accepted by the lessee.B. Goods are obtained for the lessee and are suitable for

lease/sale to others.C. Party seeking enforcement admits in court that a lease

contract was made.D. The lessor, after notice of repudiation is received, has

begun general manufacture of goods.

34. §1-201(b)(8) The burden of establishing a fact means:

A. The burden of persuading the trier of fact that the existence of the fact is less probable than its nonexistence.

B. The burden of persuading the trier of fact that the existence of the fact is more probable than its nonexistence.

C. The burden of persuading the trier of fact that the existence of the fact is as likely probable as its nonexistence.

D. The burden of persuading the trier of fact that the existence of the fact is more, less, or as likely as its nonexistence.

35. §1-201(b)(16) Which of the following is included as an

accepted document of title entitling the person in possession of

it to the goods it covers:

A. Bill of ladingB. Warehouse receiptC. Dock warrantD. Bill of lading, warehouse receipt, or dock warrant

36. §1-201(b)(29) A purchaser is a person that takes by all

of the following EXCEPT:

A. Sale, discount, or issueB. Gift, security interest, or pledgeC. Lease, eminent domain, or negotiationD. Mortgage, lien, or reissue

37. §2A-309(1)(b) A recording of a financial statement in the

office where a mortgage on real estate is filed covering goods

that are to become fixtures is called a:

A. Encumbrance recordingB. Mortgage recordingC. Real estate filingD. Fixture filing

38. §2A-309(1)(e) Real estate mortgages and other liens on real

estate mortgages, as well as all other rights in real estate that

are not ownership rights are referred to as a(an):

A. EncumbranceB. Leasehold interestC. Lessor’s residual interestD. Construction mortgage

39. §1-201(b)(13) Under the UCC, a creditor includes all of

the following EXCEPT:

A. A receiver in equity, a lien creditor, or a general creditorB. A trustee in a bankruptcy, a pawn broker, or a secured

creditorC. An executor of an assignor’s estate, a receiver in equity, or

representative of creditorsD. An administrator of an insolvent debtor’s estate, a general

creditor, or a secured creditor

40. §2-104(3) Any transaction with respect to which both parties

are chargeable with the knowledge or skill of merchants is

known as:

A. Between merchantsB. MerchantableC. Entrusting merchantsD. Merchant acceptance

41. §2-313(1)(a)(b)(c) Which one of the following statements

does NOT create an express warranty from seller to buyer if

made as part of the basis of the bargain:

A. An affirmation of value made by the seller that the goods shall conform to the affirmation of value.

B. An affirmation of fact or promise made by seller that the goods shall conform to the affirmation or promise.

C. A description of the goods that the goods shall conform to the description.

D. A sample that the whole of the goods shall conform to the sample.

42. §2-204(1)(2)(3) A contract for sale is still sufficient in its

formation EXCEPT when:

A. The conduct by both parties shows recognition that a contract exists.

B. The parties intended to make a contract but one or more terms are left open and there is a reasonable basis for giving an appropriate remedy.

C. The moment of the agreement’s making is unknown.D. The buyer and seller’s behavior does not indicate a

professional relationship exists.

43. §2-601(a)(b)(c) Subject to Section 2-612 and unless otherwise

agreed under sections 2-718 and 2-719, if the goods or tender of delivery fail to conform to the contract, the buyer may:

A. Accept the whole or reject the whole only.B. Reject the whole, accept the whole, or accept all

commercial units only.C. Accept the whole, accept any commercial units, or reject

all commercial units only.D. Reject the whole, accept the whole, or accept any

commercial unit or units and reject the rest only.

44. §2A-512(1)(b)(c) Excluding rapidly devaluing goods and subject to

any security interest of a lessee, if the lessor/supplier gives no

instructions within a reasonable time after notification of rejection, the lessee may NOT:

A. Store the rejected goods for lessor’s/supplier’s accountB. Sell the rejected goods for the lessor/supplierC. Return the rejected goods to the lessor/supplierD. Dispose of the rejected goods for the lessor/supplier

45. §2A-205 An offer by a merchant to lease goods to/from another

person in a signed writing giving assurance it will be held open is not

revocable during the time stated. If no reasonable time stated, the period of irrevocability may NOT exceed:

A. 1 monthB. 2 monthsC. 3 monthsD. 4 months

46. §2A-103(1)(q) A lessor’s residual interest means the

lessor’s interest in the goods after

A. Expiration of the lease contractB. Termination of the lease contractC. Cancellation of the lease contractD. Expiration, termination, or cancellation of the lease

contract.

47. §2-325(3) A letter of credit or banker’s credit in a

contract for sale means:

A. An irrevocable credit issued by a financing agency of good repute.

B. A revocable credit issued by a financing agency of good repute.

C. An irrevocable credit issued by a Surety in the ordinary course of business.

D. A revocable credit issued by a Surety in the ordinary course of business.

48. §1-205(a) whether a time for taking action required by the

UCC is reasonable depends on the:

A. Purpose, nature, and circumstances of the action B. Nature, timing, and purpose of the action C. Circumstances, severity, and timing of the actionD. Nature, severity, and circumstances of the action

49. §§1-303(e) An agreement’s express terms and any applicable

course of performance, course of dealing, or usage of trade should be

construed as consistent with each other. When that construction is unreasonable, which order of interpretation prevails:

A. Express terms, course of performance, usage of trade, course of dealing

B. Express terms, usage of trade, course of performance, course of dealing

C. Express terms, course of performance, course of dealing, usage of trade

D. Express terms, course of dealing, usage of trade, course of performance

50. §1-204 A person does NOT give value for rights if the person

acquires them:

A. In return for a binding commitment to extend credit.B. By rejecting a delivery under a preexisting purchase

contract.C. As security for a preexisting claim.D. In return for any consideration sufficient to support a

contract.

You Did It!

A+

1. D2. B3. D4. C5. C6. A7. B8. D9. A10. A

11. C12. D13. C14. B15. A16. C17. D18. B19. B20. C

21. A22. B23. D24. A25. C26. D27. B28. C29. C30. A

31. D32. D33. A34. B35. D36. C37. D38. A39. B40. A

41. A42. D43. D44. B45. C46. D47. A48. A49. C50. B