Trisha Sandvig

January 25, 2016

1. 50 multiple choice questions
2. Write down your answers on a separate sheet of paper
3. 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 note
B. Chattel paper
C. Consignor and a buyer of accounts
D. 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 terminated
B. As terminated or conforming
C. As conforming or he may fix a reasonable price himself
D. 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 equity

B. Burden of establishing
C. Insolvency proceeding
D. 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 Provisions

B. Uniform Commercial Code – General Standards
C. Uniform Contract Code – General Provisions
D. 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 faith

B. Performance
C. Diligence
D. Reasonableness
8. §2-102 Unless the context otherwise requires, the UCC
applies to what type of transactions?

A. Land and buildings

B. Security transactions
C. 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 seller

B. Merchant
C. Representative
D. Holder
10. §2-105(1) The term “Goods” does NOT include:

A. Investment securities
B. Unborn young of animals
C. Specially manufactured goods
D. 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. $10,000
B. $5,000
C. $1,000
D. $500
12. §2-301 The obligation of the buyer is to:

A. Accept goods
B. Transfer goods
C. Pay in accordance with contract
D. 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 lease
B. Consumer lease
C. 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. Representative
B. Holder
C. Bearer
D. 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 signed

B. Before the agreement is enforceable
C. After the contract is signed
D. 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-claim

B. Cross-claim, burden of establishing a fact, or second-
party claim
C. Third-party claim, cross-claim, or counterclaim
D. 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 air
B. Air or water
C. 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 agreement

B. The value stated in the contract
C. The making of the agreement
D. 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 exchange
B. An agreement
C. A lease
D. A sale
26. §2A-301 A lease contract is effective and enforceable
according to its terms in which of the following:

A. Between the parties

B. Against creditors of the parties
C. Against purchasers of goods
D. 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 year
B. 4 years
C. 5 years
D. 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 months

B. No less than 6 months
C. No less than 1 years
D. 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 plural

B. Words in the plural include the singular
C. Words of a gender refer to the gender referenced
D. 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. Entrusting
B. Encumbrance
C. Accessions
D. 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-Leases

B. Article 1-General Provisions and Article 2-Sales
C. Article 2-Sales and Article 7-Documents of Title
D. 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 lading
B. Warehouse receipt
C. Dock warrant
D. 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 issue

B. Gift, security interest, or pledge
C. Lease, eminent domain, or negotiation
D. 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 recording
B. Mortgage recording
C. Real estate filing
D. 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. Encumbrance
B. Leasehold interest
C. Lessor’s residual interest
D. 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 creditor

B. A trustee in a bankruptcy, a pawn broker, or a secured
creditor
C. An executor of an assignor’s estate, a receiver in equity, or
representative of creditors
D. 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 merchants
B. Merchantable
C. Entrusting merchants
D. 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 account

B. Sell the rejected goods for the lessor/supplier
C. Return the rejected goods to the lessor/supplier
D. 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 month
B. 2 months
C. 3 months
D. 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 contract

B. Termination of the lease contract
C. Cancellation of the lease contract
D. 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 action
D. 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. D 11. C 21. A 31. D 41. A
2. B 12. D 22. B 32. D 42. D
3. D 13. C 23. D 33. A 43. D
4. C 14. B 24. A 34. B 44. B
5. C 15. A 25. C 35. D 45. C
6. A 16. C 26. D 36. C 46. D
7. B 17. D 27. B 37. D 47. A
8. D 18. B 28. C 38. A 48. A
9. A 19. B 29. C 39. B 49. C
10. A 20. C 30. A 40. A 50. B