NJ Bar Contracts and Commercial Law 3

Question 1

Under NJ's Uniform Commercial Code, the implied warranty of merchantability arises automatically in a sale by whom?

Accepted Answer

A merchant who deals in goods of that kind

Answer

UCC 2-314 imposes an implied warranty of merchantability only when the seller is a merchant who deals in goods of the kind sold.

Question 2

A contract modification under common law requires what, whereas a UCC contract modification requires only good faith?

Accepted Answer

New consideration

Answer

Common law requires new consideration to support a contract modification, while the UCC dispenses with this requirement for good-faith modifications.

Question 3

An assignment of contract rights generally does not require which element?

Accepted Answer

Obligor's consent (unless contract prohibits or assignment materially changes duty)

Answer

Most contract rights can be assigned without the obligor's consent unless prohibited by the contract, law, or a material change in duty results.

Question 4

The statute of limitations for a written contract claim in New Jersey is generally how many years?

Accepted Answer

6 years

Answer

New Jersey's statute of limitations for a written contract action is six years under N.J.S.A. 2A:14-1.

Question 5

Under the doctrine of frustration of purpose, a contract is discharged when a supervening event does what to the contract's main purpose?

Accepted Answer

Substantially destroys the purpose known to both parties

Answer

Frustration of purpose discharges a party when an unforeseen event substantially destroys the primary purpose of the contract known to both parties.

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