Question

21. Under the Uniform Commercial Code (UCC), an express warranty may be created by a Seller showing a sample of a particular item to a Buyer, and the Buyer relying on that sample to make a purchase decision. T/F

22. Which one of the following warranties only applies if the Seller is a Merchant?

a. Express warranties

b. Implied warranty of fitness for a particular purpose

c. Implied warranty of merchantability

d. Implied warranty of good title

e. None of the above  

23. Hui is a student at M College. She has two laptop computers, and decides she only needs one. She puts an advertisement out on one of the Laney College bulletin boards, offering to sell one of the laptops for half of what she bought it for - just $1,000, and indicating that the price would be good until 5 pm on March 1, 2019. Dan sees the ad, and calls Hui at noon on March 1, and tells Hui that he wants to buy Hui's computer, at the price shown on the bulletin board. Hui tells Dan that Hui has changed her mind – she is not going to sell it at the $1,000 after all - Hui wants $1,300 now. Dan threatens to take Hui to court - claiming that this situation is covered by the "firm offer rule." Is Hui's advertisement covered by the firm offer rule of the UC? This is the first time Hui has ever tried to sell a computer.
a. yes - because the ad was in writing         

b. yes - because Hui qualifies as a merchant
c. no - because the ad was in writing

d. no - because Hui qualifies as a merchant

e. no - because Hui is not a merchant

24. On Saturday, Serena writes a check for $500 to Sam, to buy Sam’s I-Phone. Sam’s bank has already closed, and he won’t be able to deposit the check until Monday, but he needs cash for a date that night. Sam calls around to his friends for help – offering to sell Serena’s check in exchange for cash. Finally, Philip, a friend-of-a-friend offers to pay Sam $400 for the check. Sam is not happy about the price, but he is desperate for cash, so he accepts the $400, and endorses the check over to Philip. When Philip takes the check to Serena’s bank on Monday, to cash it, how much will he get for it?
a. the $400 he paid to Sam. Serena’s bank will send the other $100 to Sam.

b. the full $500 that Serena wrote the check for. Sam will have a good legal claim for $100 from Sam.

c. the full $500 that Serena wrote the check for. Sam has no rights to any of this.

25. We would classify an automobile as what kind of property?
a. tangible real property

b. tangible personal property

c. intangible personal property

Answer 1

21.

Correct answer is True

Under the Uniform Commercial Code (UCC), an express warranty may be created by a Seller showing a sample of a particular item to a Buyer, and the Buyer relying on that sample to make a purchase decision.

22.

Correct answer is c. Implied warranty of merchantability

Implied warranty of merchantability only applies if the Seller is a Merchant

23.

Correct answer is e. no - because Hui is not a merchant

The firm offer demands that parties involved in the contract must be Merchants as Merchants are more aware with the process of buying and selling than an average person. As Hui is not a merchant and is selling for the first time, this Hui's advertisement does not get covered by the firm offer rule of the UCC

24.

Correct answer is c. the full $500 that Serena wrote the check for. Sam has no rights to any of this.

Philip will get the full $500 that Serena wrote the check for as the check is endorsed over to Philip by Sam and hence Sam No longer possess any right on the check

25. Correct answer is b.tangible personal property

tangible personal property refers to the properties which can be touched