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

UCC 2-205 provides that a signed written offer by a merchant is irrevocable for the time stated, or a reasonable time, not to exceed 90 days, even without consideration.

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

Unconscionability under UCC 2-302 and common law allows courts to refuse enforcement of contracts or clauses that are oppressively one-sided and resulted from unfair bargaining processes.

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

Original UCC 2-201 requires a writing for sales of goods for $500 or more; the contract here exceeds that threshold and is therefore unenforceable without a writing absent an exception.

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

Courts apply the predominant purpose test: if the contract is mainly for services with goods incidentally involved, common law governs rather than UCC Article 2.

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 bilateral contract is formed by the mutual exchange of promises, where each party's promise serves as consideration for the other's promise.

(NALA) National Association of Legal Assistants Certification Practice Test

(NALA) National Association of Legal Assistants Certification Practice Test

NALA Contracts and Commercial Law 2