Managers And the Legal Environment Strategies for the 21st Century 7th Edition by Constance E. Bagley – Test Bank

Managers And the Legal Environment Strategies for the 21st Century 7th Edition by Constance E. Bagley – Test Bank

CHAPTER 8
Sales, Licensing, and E-Commerce

TRUE-FALSE QUESTIONS

1. The Uniform Computer Information Transactions Act is a federal law.

ANSWER: False
SKILL LEVEL: Technology
OBJECTIVE: AICPA: Legal

2. Many states have applied Article 2 of the UCC to software licenses either directly or by analogy.

ANSWER: True
SKILL LEVEL: Technology
OBJECTIVE: AICPA: Legal

3. The UCC treats fixtures as goods.

ANSWER: False
SKILL LEVEL: Analytic
OBJECTIVE: AICPA: Legal

4. The UCC permits a contract to be enforced if the parties intended a binding contract, even though important terms may have been left open for later agreement.

ANSWER: True
SKILL LEVEL: Analytic
OBJECTIVE: AICPA: Legal

5. The UCC does not specifically define an offer or an acceptance.

ANSWER: True
SKILL LEVEL: Analytic
OBJECTIVE: AICPA: Legal

6. The UCC has adopted the “mirror image” rule.

ANSWER: False
SKILL LEVEL: Analytic
OBJECTIVE: AICPA: Legal

7. Under the UCC, the implied warranty of merchantability guarantees that the goods are reasonably fit for the general purposes for which they are sold, and that they are properly packaged and labeled.

ANSWER: True
SKILL LEVEL: Analytic
OBJECTIVE: AICPA: Legal

8. A contract for the sale of land is governed by Article 2 of the UCC.

ANSWER: False
SKILL LEVEL: Analytic
OBJECTIVE: AICPA:Legal

9. Under the UCC, the buyer may reject any or all of the goods if the goods fail to conform to the contract.

ANSWER: True
SKILL LEVEL: Analytic
OBJECTIVE: AICPA: Legal

10. The UCC applies identical rules concerning the sales of goods to merchants and nonmerchants.

ANSWER: False
SKILL LEVEL: Analytic
OBJECTIVE: AICPA: Legal