Trisha Sandvig

January 25, 2016

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

Let’s begin…

1. §2-103(1)(a) A buyer refers to:

A. A person who sells or contracts to sell goods.B. A person who buys or contracts to buy goods. C. A person who leases or contracts to lease goods.D. A person who subleases or contracts to sublease goods.

2. §1-201(b)(43) Includes printing, typewriting, or any other

intentional reduction to tangible form:

A. ConspicuousB. WritingC. RecordD. Signature

3. §2A-103(1)(j) A transfer of the right to possession and

use of goods for a term in return for consideration is a(an):

A. LeaseB. PurchaseC. AgreementD. Contract

4. §1-201(b)(40) Means a portion of an agreement that

relates to a particular matter:

A. ArticleB. WritingC. ActionD. Term

5. §2-103(1)(c) Receipt of goods is defined as:

A. Commencing to use goods.B. Conducting inspection of goods.C. Taking physical possession of goods.D. Signing for goods.

6. §§1-201(b)(17), 2A-103(1)(f) Fault includes which one of

the following:

A. BreachB. Wrongful Act C. OmissionD. All of the above mean fault

7. §2A-103(1)(e) A lease that a lessor, engaged in the leasing or selling

business, makes to a lessee who is an individual, and is undertaking the lease primarily for personal, family or household purpose is a(an):

A. Finance LeaseB. Installment LeaseC. Consumer LeaseD. Mortgage Lease

8. §1-201(b)(42) A receipt issued by a person engaged in

the business of storing goods for hire is known as a:

A. Warehouse receiptB. Document of title C. Bill of ladingD. Dock receipt

9. §§1-201(b)(20), 2-103(1)(b) The UCC generally defines

good faith as:

A. Honesty in fact and the observance of reasonable commercial standards of fair dealing.

B. When goods or conduct, including any part of performance, are in accordance with the obligations under contract.

C. A sequence of conduct between parties to a particular transaction that is fairly regarded as establishing a common basis of understanding for interpreting their expressions and conduct.

D. Any practice of dealing having such regularity of observance in a place, vocation, or trade as to justify that it will be observed to the transaction in question.

10. §2A-103(1)(r) A charge against or interest in goods to secure

payment of a debt or performance of an obligation, excluding a

security interest, refers to a:

A. LevyB. Lien C. Termination D. Cancellation

11. §1-303(b) A sequence of conduct concerning previous transactions between

parties to a particular transaction that is fairly regarded as establishing a

common basis of understanding for interpreting their expressions and conduct

is known as:

A. Course of performance B. Good faithC. Course of dealingD. Usage of trade

12. §§1-201(b)(29), 2A-103(1)(v) Taking by any voluntary

transaction creating an interest in property, such as by gift or

pledge, is known as a:

A. Property transactionB. Security interestC. Residual interestD. Purchase

13. §2A-103(1)(y) Means a contract under which a lessor

buys or leases goods to be leased:

A. Lease contractB. Installment contractC. Finance contractD. Supply contract

14. §§2-105(6), 2A-103(1)(c) A commercial unit means:

A. A parcel or single article which is the subject matter of a separate sale(lease) or delivery.

B. A parcel or single article of an undivided bulk of fungible goods sufficiently identified to be sold for purposes of sale(lease).

C. A unit of goods that can be divided into a single article, set of articles, or other known quantity for commercial usage for purposes of sale(lease).

D. A unit of goods that by commercial usage is a single whole for purposes of sale(lease), and that a division would materially impair its value or use on the market.

15. §§2-106(4), 2A-103(1)(b) Occurs when either party puts an

end to the contract/lease for breach/default by the other party:

A. CancellationB. Termination C. DishonorD. Lien

16. §1-201(b)(1) Any proceeding in which rights are determined,

such as a counterclaim or set-off, is referred to as a(an):

A. Insolvency proceedingB. RemedyC. ActionD. Burden of Establishing a fact

17. §2-326(1)(a) Which statement is correct regarding a “sale on

approval:

A. Goods are delivered primarily for resale.B. Goods are delivered primarily for use.C. Goods are delivered primarily for research.D. Goods are delivered primarily for consumption.

18. §1-201(b)(12) A contract between parties refers to:

A. The bargain made between the parties, as found in their language or by other circumstances.

B. The legal obligation made between the parties, as determined by the UCC, and supplemented by applicable laws.

C. The agreement made between the parties, as inferred from course of performance, course of dealing, or usage of trade.

D. The monetary sum exchanged or agreed to by the parties, as found in their contract language.

19. §§2-106(3), 2A-103(1)(z) When either party puts an end to the

contract(lease) otherwise than for its breach/default means:

A. CancellationB. Termination C. DishonorD. Lien

20. §§2-612(1), 2A-103(1)(i) A contract(lease) that authorizes or

requires the delivery of goods in separate lots to be separately

accepted, even though the contract/lease contains a clause “each

delivery is a separate lease” is referred to as:

A. Installment contract(lease)B. Supply contract(lease)C. Finance contract(lease)D. Mortgage contract(lease)

21. §2-325(3) A letter of credit or banker’s credit carrying the

direct obligation of the agency which does business in the

seller’s financial market is termed as:

A. Commercial creditB. Conforming creditC. Conciliatory creditD. Confirmed credit

22. §§1-201(b)(9), 2A-103(1)(a) A person who in good faith and without

knowledge that the sale violates the rights of another person(security

interest)(leasehold interest) in the goods, and from a person in the business of

selling goods of that kind is known as a:

A. Lessee in the ordinary course of businessB. Seller in the ordinary course of businessC. Buyer in the ordinary course of businessD. Lessor in the ordinary course of business

23. §§1-201(b)(3), 2A-103(1)(k) Which of the following statement

is correct with regard to an(a) agreement(lease agreement):

A. The monetary sum exchanged or agreed to by the parties(or lessor & lessee), as found in their contract language.

B. The legal obligation made between the parties(or lessor & lessee), as determined by the UCC, and supplemented by applicable laws.

C. The bargain of the parties(or lessor & lessee) as found in their language or by some other circumstances, such as course of dealing.

D. All of the above.

24. §2-326(1)(b) A “sale or return” references which of the following

delivery of goods:

A. Goods are delivered primarily for resale.B. Goods are delivered primarily for use.C. Goods are delivered primarily for research.D. Goods are delivered primarily for consumption.

25. §1-303(c) Any practice of dealing have such regularity of

observance in place, vocation, or trade as to justify an expectation that

it will be observed with regard to the transaction in question refers to:

A. Course of PerformanceB. Usage of TradeC. Course of Dealing D. Sequence of conduct

26. §§2-105(1), 2A-103(1)(h) All things which are movable at the

time of identification to the contract for sale(lease contract),

including the unborn young of animals are known as:

A. Fungible goodsB. FixturesC. Consumer goodsD. Goods

27. §2A-103(1)(w) Means a lease of goods the right to which

possession and use of was acquired by the lessor as a lessee

under an existing lease:

A. SubleaseB. Consumer leaseC. Supply leaseD. Finance lease

28. §§1-201(b)(28), 2A-103(1)(u) It is the amount as of a date

certain of one or more sums payable in the future, discounted to

the date certain by use of a party specified interest rate:

A. Future value B. Discount rateC. Present value D. Concession rate

29. §2-103(1)(d) A seller is a person who:

A. Buys or contracts to buy goods. B. Sells or contracts to sell goods.C. Leases or contracts to lease goods.D. Consumes or contracts to consume goods.

30. §2-104(1) A person who deals in goods of the kind or otherwise by

his occupation holds himself out as having knowledge or skill particular

to the practices or goods involved in the transaction is labeled a:

A. Merchant B. InvestorC. Buyer D. Seller

31. §§2-105(5), 2A-103(1)(s) A lot is a:

A. A parcel or single article which is the subject matter of a separate sale(lease) or delivery whether or not sufficient to perform the contract(lease).

B. A parcel or single article of an undivided bulk of fungible goods sufficiently identified to be sold for purposes of sale(lease).

C. A unit of goods that can be divided into a single article, set of articles, or other known quantity for commercial usage for purposes of sale(lease).

D. A unit of goods that by commercial usage is a single whole for purposes of sale(lease), and that a division would materially impair its value or use.

32. §1-201(b)(32) Any remedial right to which an aggrieved

party is entitled is known as a/an:

A. EncumbranceB. AccountC. ActionD. Remedy

33. §1-201(b)(27) All of the following are examples of a

“Person” EXCEPT for a(an):

A. Business trustB. Shell companyC. Government subdivisionD. Individual

34. §1-303(a) Means a sequence of conduct between parties to a transaction that

exists if 1) the parties agreement to the transaction involves repeated occasions for

performance by a party; and 2) the other party, with knowledge of the performance and

opportunity to object to it, accepts(or acquiesces in) the performance without objection:

A. Course of dealingB. Usage of tradeC. Course of performanceD. Usage of practice

35. §2-104(2) A financing agency refers to all of the following

EXCEPT:

A. Who is a bank or other person that makes advances against goods or documents of title in the ordinary course of business.

B. Who acts as a guarantor or secondary obligor against seller’s delivery in the ordinary course of business.

C. Who makes advances against seller’s draft or takes it for collection whether or not accompanied by documents of title.

D. Who by arrangement with either seller/buyer intervenes to make or collect payment due under contract in the ordinary course of business.

36. §2A-310(1) When goods are installed in or affixed to

other goods they become:

A. Commercial goodsB. Fungible goodsC. FixturesD. Accessions

37. §2-106(1) A sale consists of:

A. The passing of title from seller to buyer for a price.B. The passing of title from lessee to lessor for a price.C. The passing of title from franchisee to franchisor for a

price.D. All of the above refer to a sale.

38. §1-201(b)(41) An unauthorized signature is a signature

made without:

A. Actual authority B. Implied authorityC. Apparent authorityD. Actual, implied, or apparent authority.

39. §2-105(2) Goods which are not both existing and

identified are called:

A. Present goodsB. Consumer goodsC. Future goodsD. Goods

40. §1-201(b)(39) a surety includes a:

A. Bearer of a negotiable instrumentB. Guarantor or other secondary obligorC. Receiver in equity or executorD. Banker’s credit or letter of credit

41. §2A-103(1)(p) A person who transfers the right to

possession and use of goods under a lease is known as:

A. LesseeB. Merchant lesseeC. SupplierD. Lessor

42. §2A-103(1)(x) How is supplier defined under the UCC:

A. Under an installment lease, a person from whom a lessee buys or leases goods to be leased.

B. Under an installment lease, a person from whom a lessor buys or leases goods to be leased.

C. Under a finance lease, a person from whom a lessee buys or leases goods to be leased.

D. Under a finance lease, a person from whom a lessor buys or leases goods to be leased.

43. §1-201(b)(6) A document evidencing the receipt of goods for

shipment issued by a person engaged in transporting or

forwarding of goods is known as a:

A. Dock receiptB. Bill of ladingC. Chattel paperD. Document of title

44. §2A-309(1)(d) A mortgage that secures an obligation

incurred for a capital improvement project on land, including the

acquisition price of the land is labeled a:

A. Consumer mortgageB. Construction mortgageC. Commercial mortgageD. Capital mortgage

45. §1-201(b)(11) A consumer is an individual that enters

into a transaction primarily for:

A. Personal or household purposesB. Business or resale purposesC. Family or resale purposesD. Personal or business purposes

46. §1-201(b)(31) Retrievable information that is inscribed on a

tangible medium or stored in another medium is called a:

A. DraftB. AccountC. RecordD. Filing

47. §1-201(b)(4) A bank is a person engaged in the

business of banking, including all the following EXCEPT a:

A. Pawn broker B. Credit unionC. Trust companyD. Savings and loan association

48. §1-201(b)(18) Like or equivalent goods by unit, nature,

or usage of trade are called:

A. Merchantable goodsB. Conforming goodsC. Fungible goodsD. Consumer goods

49. §2A-1031(l) The total obligation that results from the lease

agreement affected by this Article and other applicable laws is a:

A. Contract for saleB. Finance leaseC. Leasehold interestD. Lease contract

50. §§2-106(2), 2A-103(1)(d) Goods or performance that are in

accordance with the obligations under the contract(lease) are

labeled as:

A. SpecificB. ConformingC. GenuineD. Fungible

Answers to follow

1. B2. B3. A4. D5. C6. D7. C8. A9. A10. B

11. C12. D13. D14. D15. A16. C17. B18. B19. B20. A

21. D22. C23. C24. A25. B26. D27. A28. C29. B30. A

31. A32. D33. B34. C35. B36. D37. A38. D39. C40. B

41. D42. D43. B44. B45. A46. C47. A48. C49. D50. B