NALA Contracts and Commercial Law 2

Question 1

Under UCC Article 2, which of the following best describes a 'firm offer' made by a merchant?

Accepted Answer

A signed written offer by a merchant that is irrevocable for up to 90 days without consideration

Answer

An offer that can be revoked any time before acceptance

Answer

An offer that requires consideration to remain open

Answer

An offer that automatically becomes a contract if not rejected within 30 days

Question 2

Which doctrine allows a court to refuse enforcement of a contract clause that is both procedurally and substantively unfair to one party?

Accepted Answer

Unconscionability

Answer

Frustration of purpose

Answer

Promissory estoppel

Answer

Economic duress

Question 3

A contract for the sale of goods worth $750 is oral. Under the UCC Statute of Frauds, this contract is:

Accepted Answer

Unenforceable because it exceeds the $500 threshold under original UCC

Answer

Enforceable because it is below the $1,000 threshold

Answer

Unenforceable because all goods contracts require writing

Answer

Enforceable only if the buyer has already paid

Question 4

In a contract for services with an incidental goods component, which body of law typically governs?

Accepted Answer

Common law, because the predominant purpose is services

Answer

UCC Article 2 if any goods are involved

Answer

Federal contract law exclusively

Answer

UCC Article 9 as a secured transaction

Question 5

Which of the following is an example of a bilateral contract?

Accepted Answer

An exchange of promises where both parties commit to future performance

Answer

A reward posted for the return of a lost dog

Answer

A promise to pay $500 if someone walks across a bridge

Answer

A unilateral promise supported by past consideration

Question 6

Under common law, when does the 'battle of the forms' arise?

Accepted Answer

When offeree's acceptance contains additional or different terms from the offer

Answer

When a court must choose between two competing written contracts

Answer

When both parties use identical standard forms

Answer

When a contract is partially oral and partially written

Question 7

An agreement not to compete (non-compete clause) in an employment contract is generally enforceable only if it:

Accepted Answer

Is reasonable in scope, duration, and geographic area

Answer

Is unlimited in time and geography to protect business interests

Answer

Is signed by an attorney for both parties

Answer

Covers all future employers in the same industry