Introductory Business Law CLEP Prep Practice Exam

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Prepare for the CLEP Business Law Exam with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you succeed. Master the content and pass your exam!

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Under the Uniform Commercial Code, what is an example of a sale of goods contract?

Proprietary software agreement
Lease of commercial real estate
Taking out a loan from a bank
Buying a new car

The correct answer is: Buying a new car

A sale of goods contract, under the Uniform Commercial Code, pertains to the sale of tangible goods. Proprietary software agreements (A) do not involve the physical transfer of goods. The lease of commercial real estate (B) generally falls under real property, not goods. Taking out a loan from a bank (C) is a financing activity that does not involve the direct sale of goods, although goods may be purchased with the loan amount. Buying a new car (D) involves the transfer of ownership of a tangible good, making it a sale of goods contract.