Question

38.    Under the UCC, “usage of trade” includes

a. a sequence of previous conduct between the parties that may fairly be regarded as establishing a common basis of understanding for interpreting their expressions and agreement.

b. a practice regularly observed and followed in a place, vocation, or trade.

c. separation rules that apply to transactions between merchants.

d. the rules established by the applicable trade association.

e. how a product is typically use in the trade.

39.    Under the UCC, the most important element in determining whether a sales contract has been made (formed) is the

a. language of the contract.

b. fact that the terms of the offer and acceptance are exactly alike.

c. number of open terms.

d. intent of the parties to make a contract.

e. consideration given.

40.    Under Article 2 a(n)______ is an offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be held open for the time stated or if no time is stated for a reasonable time.

a. option

b. firm offer

c. variant acceptance

d. auction

e. open offer

41.    A sole proprietorship comes into existence when

a. a person in business hires at least one employee.

b. two or more persons join together to work at a business.

c. a charter is received from the secretary of state.

d. a person begins to do business for herself.

e. when a federal tax identification number is issued for the business.

42.    In a sole proprietorship, the owner is

a. the business.

b. a corporation.

c. a partner.

d. a partnership.

e. a co-owner.

Answer 1

38. b.a practice regularly observed and followed in a place, vocation or trade.

Usage of trade under UCC is defined to be a trade, practice or method of dealing having such regularity of obeservance in a place, vocation or trade so that it will observed with respect to a transaction.

39.d.intent of the parties to make a contract.

the most important element in determining whether a sales contract has been made is intent of parties to make a contract.

40.b. firm offer.

A firm offer is an offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be held open for the time stated or if no time is stated for a reasonable time.

41.d. a person begins to do business for her self.

A sole proprietor ship comes into existence when a person begins to do business for her self.

42.a. the business.

In a sole proprietorship the owner is the business.

There is no distinction between the owner and the business.