NYLE NY Commercial Transactions & UCC 1 — Questions and Answers
Question 1: Under UCC Article 2 as adopted in New York, a contract for the sale of goods must be in writing if the price is at least how much?
- $250
- $500 (Correct answer)
- $1,000
- $5,000
Correct answer: $500
UCC 2-201, as adopted in New York, requires a writing for contracts for the sale of goods priced at $500 or more to be enforceable under the statute of frauds.
Question 2: Under New York's adoption of UCC 2-314, to whom does the implied warranty of merchantability apply?
- All sellers of goods
- Only retailers, not wholesalers
- Only merchants who regularly deal in goods of that kind (Correct answer)
- Any seller who makes an express warranty
Correct answer: Only merchants who regularly deal in goods of that kind
The implied warranty of merchantability under UCC 2-314 applies only to merchants — sellers who regularly deal in goods of the kind sold.
Question 3: Under UCC Article 2's 'perfect tender rule,' a buyer may reject goods if:
- The nonconformity is material and substantially impairs the value of the contract
- The goods or tender of delivery fail in any respect to conform to the contract (Correct answer)
- The seller cannot cure the defect within a reasonable time
- The defect was discoverable upon reasonable inspection
Correct answer: The goods or tender of delivery fail in any respect to conform to the contract
Under the perfect tender rule (UCC 2-601), a buyer may reject goods if the goods or the tender of delivery fails in any respect to conform to the contract.
Question 4: Under UCC Article 2, in a shipment contract, when does risk of loss pass to the buyer?
- When the seller delivers the goods to the buyer's address
- When the buyer takes physical possession
- When the seller delivers the goods to the carrier (Correct answer)
- When the buyer inspects and accepts the goods
Correct answer: When the seller delivers the goods to the carrier
In a shipment contract, risk of loss passes to the buyer when the seller duly delivers the goods to the carrier and makes a reasonable contract for their transportation.
Question 5: Under UCC 2-207, when a definite acceptance contains additional terms, which doctrine governs whether those terms become part of the contract between merchants?
- The mirror image rule
- The battle of the forms (Correct answer)
- The parol evidence rule
- The doctrine of implied warranty
Correct answer: The battle of the forms
UCC 2-207 codifies the 'battle of the forms,' allowing a contract to form even when acceptance contains additional terms, with those terms becoming part of the contract between merchants unless they materially alter it or are objected to.
Question 6: Under New York's adoption of UCC Article 2, the statute of limitations for an action for breach of a sales contract is how many years from accrual?
- 2 years
- 3 years
- 4 years (Correct answer)
- 6 years
Correct answer: 4 years
UCC 2-725, as adopted in New York, provides a four-year statute of limitations for breach of a contract for the sale of goods, accruing at the time of breach.
NYLE NY Commercial Transactions & UCC 1
Under UCC Article 2 as adopted in New York, a contract for the sale of goods must be in writing if the price is at least how much?