NYLE NY Commercial Transactions & UCC 4

Question 1

A merchant signs a written offer to sell 200 chairs stating it will remain open for six months, with no consideration given. How long is the offer irrevocable under NY UCC 2-205?

Accepted Answer

Three months

Answer

A merchant's signed firm offer is irrevocable without consideration for the stated period, but that period cannot exceed three months.

Question 2

Under the UCC as adopted in New York, a contract for the sale of goods generally must be evidenced by a signed writing when the price is at least what amount?

Accepted Answer

$500

Answer

NY UCC 2-201 keeps the $500 threshold because New York never adopted the 2003 amendments that would have raised it.

Question 3

A seller delivers nonconforming goods before the contract delivery date, and the buyer rejects them. What right does the seller have under UCC 2-508?

Accepted Answer

The right to notify the buyer and make a conforming delivery within the contract time

Answer

When the time for performance has not yet expired, a seller may seasonably notify the buyer of its intent to cure and then deliver conforming goods within the contract period.

Question 4

A merchant seller holds goods that the buyer will pick up, and no carrier is involved. When does risk of loss pass to the buyer?

Accepted Answer

When the buyer receives the goods

Answer

Under UCC 2-509(3), when the seller is a merchant, risk passes only when the buyer receives the goods.

Question 5

To disclaim the implied warranty of merchantability in a written contract, what must the seller do?

Accepted Answer

Mention 'merchantability' and make the disclaimer conspicuous

Answer

UCC 2-316(2) requires that a disclaimer of merchantability mention merchantability and, if it is written, be conspicuous.

NYLE - New York Law Exam Practice Test

NYLE - New York Law Exam Practice Test

NYLE NY Commercial Transactions & UCC 4