UCC Open-Term Provisions Quiz

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What are the acceptable means of payment that the buyer can use in a commercial transaction?

Credit card only
Cash only
Cash or credit card (correct)
Bank transfer

If the seller insists on cash payment, what must be provided to the buyer?

A reasonable time to obtain cash (correct)
An ATM machine
A cash loan
A bank account

Where does the buyer normally take delivery if no delivery terms are specified?

Court's office
Buyer's residence
Seller's residence
Buyer's place of business (correct)

When no quantity is specified in a contract, what is the usual outcome according to the text?

No contract is formed (A) Signup and view all the answers

Under the UCC, what are the two exceptions to the rule when quantity is omitted in a contract?

Requirements Contract and Output Contract (C) Signup and view all the answers

When no time or date for delivery is specified, who imposes a reasonable time for delivery?

Court (B) Signup and view all the answers

What happens if the quantity of goods is an open term in a contract?

The parties must expressly state the quantity of goods. (B) Signup and view all the answers

In case of an open price in a contract, what does the court do if the buyer or seller was supposed to set the price?

The court determines a reasonable price at the time of delivery. (D) Signup and view all the answers

What can happen if payment terms are omitted in a contract according to the UCC?

Payment is due at the time and place where the buyer receives the goods. (C) Signup and view all the answers

If a party fails to set the price in a contract, what rights does the other party have?

The right to set a reasonable price. (C) Signup and view all the answers

What is one possible consequence of having too many open terms in a contract?

Potential legal intervention declaring no contract formation. (D) Signup and view all the answers

What must a party do if assigned the responsibility to set the price in a contract?

Set the price in good faith. (A) Signup and view all the answers

According to the UCC, when do its provisions come into play in a sales contract?

When parties fail to establish any terms in their contract. (A) Signup and view all the answers

In a sales contract, what is the significance of the phrase 'Unless the parties agree otherwise' often used in UCC provisions?

It allows parties to deviate from the default UCC rules by mutual agreement. (D) Signup and view all the answers

Under the UCC, when can a sales contract with open terms be considered valid?

When there is a reasonably certain basis for granting an appropriate remedy. (C) Signup and view all the answers

How does the UCC differ from common law regarding the formation of a binding contract?

UCC allows for an undetermined moment of contract making. (C) Signup and view all the answers

Which statement best describes the role of 'open terms' in a sales contract under general contract law and the UCC?

'Open terms' are permissible under the UCC if certain conditions are met. (C) Signup and view all the answers

What is a key distinction between common law and UCC regarding the formation of sales contracts?

UCC allows for contracts even with undetermined moments of making. (B) Signup and view all the answers