National Contract Management Association (NCMA) Certified Commercial Contracts Manager (CCCM)-Practice Test 3

1. Trisha Sandvig
February 1, 2016

2. 1. 50 multiple choice questions
2. Write down your answers on a separate sheet of paper
3. Answer key located at the end of test

3. 1. §2-501(1) Identification under Article 2 refers to :
A. Specific goods the buyer has failed to make an effective
rejection of, but has had the opportunity to inspect them.
B. Conforming goods the buyer has inspected and taken
physical possession of.
C. Fungible goods to which the document of title refers that
are in accordance with the obligations under the
contract.
D. Existing goods referred to by contract even though goods
may be nonconforming and the buyer has the option to
return or reject them.

4. 2. §2-501(1)(a)(b)(c) In the absence of an explicit
agreement, which statement is NOT true regarding
identification:
A. Identification occurs when the contract is made for goods
already existing and identified.
B. If the contract for sale is for unborn young, identification
occurs when young are born within nine months of
contracting.
C. For future goods, identification occurs when goods are
shipped, marked, or designated by the seller.
D. Identification occurs when crops are planted or otherwise
become growing crops.

5. 3. § 2A-103(1)(t) A merchant lessee is a lessee that is a
merchant with respect to:
A. Knowledge of the kind subject to the lease
B. Goods of the kind subject to the lease
C. Security interest of the kind subject to the lease
D. Leasehold interest of the kind subject to the lease

6. 4. §2A-104(1)(a)(b)(c) A lease, although subject to this
Article, is also subject to any of the following EXCEPT:
A. Consumer protection statute of this State
B. Certificate of title statute of this State
C. Consumer protection statue of another State
D. Certificate of title statute of another jurisdiction

7. 5. §1-201(b)(26) Subject to the UCC, a party is defined as
a person that has:
A. Made an agreement
B. Pursued a remedy
C. Engaged in a performance
D. Signed a contract

8. 6. §§2-203, 2A-203 Which statement is correct about
affixing a seal to a contract for sale(or lease contract):
A. Affixing of a seal constitutes the writing as a sealed
instrument.
B. Affixing of a seal does not constitute the writing as a
sealed instrument.
C. Affixing of a seal provides evidence of an offer to buy,
lease, or sell goods.
D. Affixing of a seal evidences an authentically signed
writing.

9. 7. §1-201(b)(25) A person other than an individual is called
a(an):
A. Organization
B. Bank
C. Branch
D. Holder

10. 8. §2-106(1) A contract for sale is defined as:
A. A contract for the present sale of goods.
B. A contract for the future sale of goods.
C. A contract for the present sale or future sale of goods.
D. A contract consisting of the passing of title from seller to
buyer.

11. 9. §2-201(2) How long does the receiving party have to give
written objection to a writing received in confirmation of a
contract between merchants:
A. 30 days
B. 15 days
C. 10 days
D. 7 days

12. 10. §1-206 Whenever the UCC creates a “presumption” of a
fact, or provides that a fact is “presumed”, it means:
A. The trier of fact must prove that the nonexistence of the
fact is more probable than its existence.
B. The trier of fact must find the nonexistence of the fact
unless and until the evidence is introduced that supports
the contrary.
C. The trier of fact must prove that the existence of the fact
is more probable than its nonexistence.
D. The trier of fact must find the existence of the fact unless
and until evidence is introduced that supports the
contrary.

13. 11. §2A-103(1)(n) A person who acquires the right to
possession and use of goods under a lease is known as a:
A. Lessee
B. Lessor
C. Lessee in the ordinary course of business
D. Lessor in the ordinary course of business

14. 12. §§2-202(a)(b), 2A-202(a)(b) Final written expression of the
parties’ terms of agreement may NOT be explained or
supplemented by:
A. Course of dealing and usage of trade
B. Evidence of a prior agreement or oral agreement
C. Course of performance and usage of trade
D. Evidence of consistent additional terms

15. 13. §2-712(1) In the event of a breach, the buyer may make (or contract
to make) any reasonable purchase of goods in substitution for those
due from the seller. This is known as a(an):
A. Encumbrance
B. Fixture filing
C. Cover
D. Remedy

16. 14. §2A-103(1)(o) A person who in good faith and without knowledge
that the lease to him violates the ownership rights, security interest, or
leasehold interest of a 3rd party in the goods, and leases from a
person in the business of selling(leasing) such goods is known as a:
A. Lessee in ordinary course of business
B. Lessor in ordinary course of business
C. Buyer in ordinary course of business
D. Seller in ordinary course of business

17. 15. §§2-206(1)(a)(b), 2A-206(1) Unless clearly indicated by the
language/circumstances, all of the following shall be construed
as inviting acceptance in the form of a contract EXCEPT:
A. An offer to make a contract and by any reasonable
medium.
B. An order to buy goods for prompt shipment with the
seller’s prompt promise to ship the goods.
C. An offer to buy goods for current shipment with seller
promptly or currently shipping the goods.
D. An accommodation of nonconforming goods with seller
seasonably notifying buyer of the accommodation.

18. 16. §1-201(b)(19) Free of forgery or counterfeiting is
generally referred to as:
A. Bona fide
B. Insolvent
C. Genuine
D. Good faith

19. 17. §2A103(1)(o) A lessee in the ordinary course of business
does NOT include:
A. Leasing goods by exchange of property or on unsecured
credit.
B. Acquiring goods in a transfer in bulk or as security for a
money debt.
C. Receiving goods or documents of title under a pre-
existing contract.
D. Leasing goods from a person in the business of selling or
leasing goods of the kind.

20. 18. §2A-103(1)(m) Leasehold interest is defined as:
A. The interest of the lessor under a lease contract.
B. The interest of the lessee under a lease contract.
C. The interest of the merchant under a lease contract.
D. The interest of the lessor or the lessee under a lease
contract.

21. 19. §§2-316(3)(a)(b)(c), 2A-214(3)(a)(b)(c) An implied warranty
may be modified or excluded in all of the following
circumstances EXCEPT:
A. When the buyer(lessee) after entering into the contract
has examined or refused to examine the goods.
B. When language calls the buyer’s(lessee’s) attention to the
exclusion of warranties.
C. When expressions like “as is” or “with all faults” are used.
D. When the circumstance involves course of dealing,
course of performance, or usage of trade.

22. 20. §1-201(b)(37) Any symbol executed or adopted with present
intention to adopt or accept a writing is referred to as:
A. Genuine
B. Signed
C. Conspicuous
D. Entrusting

23. 21. §§2-316(2), 2A-214(2) To exclude or modify any implied
warranty of fitness it must be:
A. In writing
B. conspicuous
C. In writing or conspicuous
D. In writing and conspicuous

24. 22. §1-201(b)(2) An aggrieved party is a party entitled to:
A. Pursue an action
B. Pursue a remedy
C. Receive monetary damages
D. Receive an authenticated record

25. 23. §1-105 Which statement is true regarding severability of the
UCC:
A. A UCC provision applies to a transaction to the extent it
is governed by another provision of the UCC.
B. Intended as a unified coverage of its subject matter, no
part of the UCC shall be deemed to be impliedly repealed
by legislation if such construction can be avoided.
C. If any provision of the UCC is held invalid, the invalidity
does not effect other provisions of the UCC, which can be
given effect without the invalid provision.
D. Unless displaced by a particular provision of the UCC,
validating and invalidating causes supplement its
provisions.

26. 24. §1-201(b)(23) Insolvent means all of the following
EXCEPT:
A. Being insolvent within the meaning of federal
bankruptcy law.
B. Having ceased to pay debts in the ordinary course of
business.
C. Possessing a higher debt-to-income ratio.
D. Being unable to pay debts as they become due.

27. 25. §2-327(1)(a)(b)(c) Which special incident is NOT correct
under a sale on approval of identified goods:
A. Risk of loss and the title do not pass to the buyer until
acceptance.
B. Use of the goods consistent with the purpose of trial is
acceptance.
C. After notification of election to return goods, the return
is at the seller’s risk and expense.
D. Acceptance of any part of conforming goods is acceptance
of the whole.

28. 26. §2-327(2)(a)(b) Unless otherwise agreed, under a sale or
return:
A. The return is at the buyer’s risk and expense.
B. The return is at the seller’s risk and expense.
C. The option to return extends only to the whole of any
commercial unit of goods in their original condition.
D. The option to return extends to any commercial unit of
goods if exercised seasonably within 10 days.

29. 27. §2A-309(1)(a) According to Article 2A, when do goods
become fixtures:
A. When they are installed in or affixed to other goods.
B. When a mortgage filing on the real estate is filed.
C. When a lease for building materials are incorporated into
an improvement on land.
D. When they become so related to the real estate that an
interest in them arises under real estate law.

30. 28. §§2-612(3), 2A-510(2) An aggrieved party reinstates an
installment (installment lease) contract previously under default
by all of the following EXCEPT:
A. He seasonably notifies seller of a defect in the required
documents.
B. He demands performance of future installments.
C. He accepts a non-conforming installment without
seasonably notifying of cancellation.
D. He brings an action only to past installments.

31. 29. §2-312(1)(b) A warranty by the seller that goods shall be
delivered free from any lien, encumbrance, or security interest is
called a:
A. Warranty of affirmation
B. Warranty of merchantability
C. Warranty of title
D. Warranty of promise

32. 30. §2-305(1)(b)(c) If a contract is concluded with an unsettled
price, the price is considered reasonable at the time of delivery:
A. If the price is to be agreed upon by the parties, and they
fail to agree.
B. If the price is to be fixed in terms of an agreed market as
recorded by a third person, and is not recorded.
C. If the price is to be fixed in terms of an agreed market as
set by an agency, and is not set.
D. All the above

33. 31. §1-201(b)(15) Means voluntary transfer of possession, with
respect to an instrument, document of title, or chattel paper:
A. Send
B. Delivery
C. Sale
D. Notice

34. 32. §2A-211(2) A lessor who is a merchant warrants that the
goods delivered are free of the rightful claim of any person by
way of infringement EXCEPT in a(an):
A. Consumer lease
B. Finance lease
C. Installment lease
D. Purchase money lease

35. 33. §§2-209(1), 2A-208(1) An agreement modifying a contract:
A. Needs no consideration to be binding.
B. Needs to be in writing.
C. Needs to be on a form supplied by one party and
separately signed by the other.
D. Needs to satisfy the requirements of the statute of frauds.

36. 34. §2-207(2)(a)(b)(c) Additional terms are to be viewed as additional
proposals to the contract, and will become part of the contract unless
any one of the following takes place EXCEPT when:
A. Notification of objection to them has already been given.
B. The additional terms materially alter it.
C. The offer expressly limits acceptance to the terms of offer.
D. Stated terms are different from those offered or agreed
upon.

37. 35. §1-305(a) The remedies provided under the UCC must be
liberally administered to the end that:
A. A claim or right may not be discharged without
consideration by agreement of the aggrieved party.
B. Any obligation or right declared by the aggrieved party is
enforceable by action.
C. An aggrieved party may be put in as good a position as if
the other party had fully performed.
D. Consequential, special, or penal damages may be sought
by an aggrieved party.

38. 36. §1-201(b)(10) With reference to a term, a heading in capitals
equal to or greater in size than surrounding text, or in
contrasting type, font, or color is referred to as:
A. Genuine
B. Conspicuous
C. A writing
D. An action

39. 37. §§2-302(2), 2A-108(3) What kind of evidence will the court
allow parties to present of the contract(lease) before making a
finding of unconscionability:
A. The setting, purpose, and effect of the contract(lease).
B. The purpose, basis of value, and inception of the
contract(lease).
C. The bargaining power, purpose, and fairness of the
contract(lease).
D. The intended effect, basis of value, and lack of
understanding of the contract(lease).

40. 38. §1-201(b)(38) Which one of the following is Not considered a
State under the UCC:
A. District of Columbia
B. US Virgin Islands
C. Puerto Rico
D. Cayman Islands

41. 39. §2-210(2) Unless otherwise agreed, all rights of seller or
buyer can be assigned with exceptions. Which one of the
following in NOT an exception to the assigning of rights:
A. If the assignment materially changes the duty of the
other party
B. If the assignment materially increases the burden
imposed by contract on the other party
C. If the assignment materially alters the demand for
assurances from the other party
D. If the assignment materially impair the other party’s
chance of obtaining return performance

42. 40. §2A-105 Compliance(or noncompliance) of goods covered
by a certificate of title are governed by the law of the jurisdiction
issuing the certificate until the earlier of:
A. The expiration of the certificate and 3 months after goods
are removed from the jurisdiction.
B. The expiration of the certificate or until a new certificate
of title is issued by another jurisdiction.
C. The surrender of the certificate or 4 months after the
goods are removed from that jurisdiction and until a new
certificate is issued by another jurisdiction.
D. The surrender of the certificate and 3 months after the
goods are removed from the jurisdiction.

43. 41. §2A-103(1)(g)(i) Which statement is true concerning a finance
lease:
A. The lessor does not select, manufacture, or supply the
goods.
B. The lessor does not acquire the goods in connection with
the lease until the lessee receives a copy of the contract.
C. The lessor does not select, manufacture, or supply the
goods before lessee’s approval of the contract.
D. The lessor does not obtain the right to possession of the
goods before the lessee has signed the contract.

44. 42. §1-201(b)(23)(A)(B)(C) Insolvent generally means:
A. Insolvent within the meaning of federal bankruptcy law
or having refused to pay debts on time
B. Unable to pay debts as they come due or having ceased to
pay debts in the ordinary course of business
C. Having ceased to pay debts as a result of a bona fide
dispute or declaring bankruptcy under state law
D. All of the above

45. 43. §2-311(2) Unless otherwise agreed, specifications relating to
the assortment of goods are at the option of the:
A. Buyer
B. Seller
C. Merchant
D. Manufacturer

46. 44. §1-201(b)(24) A medium of exchange currently authorized or
adopted by a domestic or foreign government is known as:
A. Present value
B. Fungible goods
C. Delivery
D. Money

47. 45. §2-319(1)((a) When the delivery term is F.O.B. the place of
shipment, the seller must:
A. At his own expense and risk transport the goods to that
place and tender delivery
B. Ship the goods at that place and bear the expense and risk
of putting them into the possession of the carrier
C. Deliver the goods alongside the carrier or on a dock
designated by the buyer at his own expense and risk
D. At his own expense and risk transport goods to the carrier
and load the goods on board.

48. 46. §1-201(b)(33) A representative is defined as:
A. A person in possession of a negotiable instrument
B. A person other than an individual
C. A person empowered to act for another
D. A person that takes by purchase

49. 47. §2-319(3) When the delivery term is F.O.B. vessel or F.A.S.
vessel the buyer must:
A. Request from seller to furnish facilities reasonably suited
to received goods for inspection
B. Obtain a negotiable bill of lading from the carrier stating
the goods will be unloaded from the ship’s tackle
C. Accept tender of the delivery of goods in substitution for
the required documents
D. Give the loading berth of vessel, along with the name and
sail date when appropriate

50. 48. §2-319(1)(b) When the delivery term is F.O.B. the place of
destination, the seller must:
A. At his own expense and risk deliver the goods alongside
the carrier or on a dock designated by the buyer
B. Ship the goods at that place and bear the expense and risk
of putting them into the possession of the carrier
C. Tender delivery of the goods in substitution for the
required documents at the place of destination
D. At his own expense and risk transport the goods to that
place and tender delivery there

51. 49. §2-313(1)(c)(2) A seller creates an express warranty to a
buyer if he makes as part of the basis of the bargain:
A. The seller’s model that the whole of the goods shall
conform to the model.
B. The seller’s professional opinion that the goods shall
conform to his opinion.
C. The seller’s commendation that the goods shall conform
to standard.
D. The seller’s affirmation of value that the goods shall
conform to the affirmation of value.

52. 50. §2-311(2) Unless otherwise agreed, specifications relating to
the shipment of goods is at the option of the:
A. Buyer
B. Carrier
C. Seller
D. Manufacturer

53. Answers to follow

54. 1. D
2. B
3. B
4. C
5. A
6. B
7. A
8. C
9. C
10. D
11. A
12. B
13. C
14. A
15. D
16. C
17. B
18. D
19. A
20. B
21. D
22. B
23. C
24. C
25. B
26. A
27. D
28. A
29. C
30. D
31. B
32. B
33. A
34. D
35. C
36. B
37. A
38. D
39. C
40. C
41. A
42. B
43. A
44. D
45. B
46. C
47. D
48. D
49. A
50. C