BL 13-2: Special Rules for Sales Contracts

Who is considered a merchant under the UCC?

• Someone who buys goods for personal use

• Someone who deals regularly in the type of goods being exchanged

• Someone who sells goods occasionally

• Someone who sells goods without a license

What is required for a sales contract for goods valued at $500 or more to be enforceable in court?

• A handshake

• A witness to the agreement

• A writing signed by the party being sued

• A verbal agreement

What happens if both parties in a sales contract are merchants and a new term is added?

• The new term is automatically rejected

• The new term is automatically accepted if not objected to within a reasonable time

• The contract is voided

• The new term is ignored

What is a casual seller?

• Someone who sells goods regularly

• Someone who sells goods occasionally

• Someone who sells goods at a discount

• Someone who sells goods without a license

Under the UCC, how can a buyer accept goods?

• By ignoring the goods

• By acting inconsistently with the seller’s ownership

• By returning the goods

• By refusing to inspect the goods

What is required for an oral contract to be enforceable when goods are specially made?

• The goods are suitable for sale to others

• The seller has not begun manufacturing

• The seller has substantially begun to manufacture them

• The buyer has not paid

What is the effect of a written confirmation of an oral contract between merchants?

• It requires a new contract to be written

• It voids the contract

• It is ignored

• It binds both parties unless objected to within ten days

What is the role of the Statute of Frauds in sales contracts?

• It requires all contracts to be verbal

• It makes all oral contracts unenforceable

• It requires certain contracts to be evidenced by a writing

• It allows any contract to be enforced without evidence

What happens if a buyer pays for goods and the seller accepts payment?

• The goods must be returned

• The contract is ignored

• The oral contract is enforceable in full

• The contract is voided

What must be included in the writing to satisfy the Statute of Frauds?

• The number or quantity of goods

• The time and manner of performance

• The price of the goods

• The packaging instructions