8.         If a sales contract requires or authorizes the seller to ship goods by carrier, when does the risk of loss pass to the buyer if the contract does not require delivery at a particular destination?

A.  At the time the goods are properly delivered to the carrier.

B.  At the time the carrier tenders the goods to the buyer.

C.  At the time the contract is initially entered into.

D.  Not until the buyer has received the goods and had a chance to inspect them.

10.      Which of the following is governed by Article 2 of the UCC?

            A.  A contract for sale of a commercial building.

            B.  A contract for sale of office supplies.

            C.  An employment contract.

            D.  A life insurance contract.

13.      When the seller provides the buyer with a document enabling them to pick up goods held at an independent warehouse, the risk of loss passes to the buyer

            A.  when the goods are picked up by the buyer.

            B.  when the contract of sale is signed.

            C.  when the buyer receives the document entitling it to pick up the goods.

            D.  when the buyer pays for the goods.

16.      Under the UCC, if only one party is a merchant, an acceptance containing additional terms

A.  automatically becomes part of the contract unless the offeror objects within ten days.

B.  is considered a proposal for additions to the contract.

C.  is a counteroffer.

D.  has no effect and the contract is accepted without the new terms.

20.      Which of the following is the essential consideration under the Uniform Electronic Transactions Act for determining the validity of an electronic signature?

            A.  Whether the person intended the process or mark provided to act as a signature and whether it can be attributed to that person.

            B.  Whether an actual signature, as opposed to some sort of unacceptable click-type agreement is involved.

C.  Whether an actual written type signature appears as opposed to an unacceptable typed name.

D.  Whether an actual written or typed signature appears as opposed to some sort of facsimile.

28.      Chris sold Valerie a home containing a wood stove which could not be removed from the home without causing substantial damage.  Shortly after the sale, Valerie sustained significant smoke damage due to a malfunction of the stove.  She told Chris that she was going to sue him under the UCC.  Chris told her that was not possible.  Which of the following is true?

            A.  Chris is correct because the stove would likely be a fixture not covered by the UCC.

            B.  Valerie is correct because the stove would likely be a fixture covered by the UCC.

C.  Valerie is correct because the stove would not be considered a fixture and would, therefore, be covered by the UCC.

D.  Valerie is correct because the sale of the home would be covered under the UCC along with anything  else sold with the home.

29.      Ricardo develops a new type of software and asks you how he should go about making money through distribution of it.  He has been told that he should sell the software as opposed to issuing licenses for its use.  What should you tell him?

          A.  That by selling, rather than by licensing, a software vendor can avoid the doctrine of first sale,   which allows a lawful owner to sell or otherwise dispose of the copy.

            B.  That by licensing, rather than by selling, a software vendor can avoid the doctrine of first sale,  which allows a lawful owner to sell or otherwise dispose of the copy.

            C.  That selling is the only reasonable alternative because computer programs are not copyrightable.

            D.  That licensing is the only reasonable alternative because computer programs are not copyrightable.

30.      In a state that had adopted the Uniform Electronic Transactions Act, Kiera and Ben entered into a contract whereby Ben would clean Kiera's house once a week for eighteen months for $75 per week.  The transaction was done electronically, and both Kiera and Ben signed through the use of an electronic signature.  Unfortunately, problems resulted when Ben failed to show up as scheduled.  Ben told Kiera that the contract was not good because his signature was made electronically.  Kiera told him that he was wrong and that he needs to get up to date with the modern age.  Which of the following is correct regarding the dispute?

            A.  Ben is correct because electronic signatures are not recognized as valid under any circumstances.

            B.  Ben is correct only if Kiera's name was typed as opposed to being shown in handwriting-style (cursive) form.

            C.  Kiera is correct that the signature is sufficient only if she can show that she and Ben had previously engaged in electronic transactions.

            D.  Kiera is correct that her electronic signature is sufficient.

31.      Polly sold Jason a used car for $1,000.  Their contract provided that the engine in the car was in good shape, a true statement as far as Polly knew.  Unfortunately, the day after Jason purchased the car, it broke down and was discovered to have significant engine problems.  Jason told Polly that he wanted a refund.  Polly told him that he was not entitled to a refund because she did not lie and that as far as she knew, there was nothing wrong with the car.  Which of the following is true?

            A.  Jason is entitled to a refund because of a breach of an express warranty.

            B.  Jason is entitled to a refund because of a breach of the implied warranty of fitness for a particular purpose.

            C.  Jason is entitled to a refund only if he can obtain evidence that Polly lied.

            D.  Jason is not entitled to a refund under any circumstances because the vehicle was used.  

32.      Renee owns a small restaurant that sells hamburgers as one of its main attractions.  She puts up a sign that says "Best Burgers in the County".  Peter does an exhaustive investigation of all restaurants in the county and asks his friends to do the same.  They all determine that actually a restaurant run by their friend Sam has the best burgers in the county.  Peter tells Renee that unless she takes down her sign, he is going to sue her for breach of warranty and false advertising.  Renee tells him that he has no cause of action.  Who is correct?

            A.  Peter is correct so long as he and his friends can convince the jurors in a lawsuit that Sam has the best burgers.

            B.  Peter is correct only if he can establish that Renee was aware that Sam's burgers actually taste better before she put up the sign.

            C.  Peter is incorrect because Renee was engaged in "spoofing".

            D.  Peter is incorrect because Renee was engaged in "puffing".