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IN SW Juris practice questions

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Question 1Civil Procedure

Under the Indonesian Civil Procedure Law (HIR/RBg), which court has general jurisdiction over a civil claim whose value exceeds the jurisdictional limit of the District Court (Pengadilan Negeri)?

  1. The Supreme Court (Mahkamah Agung)
  2. The High Court (Pengadilan Tinggi)
  3. The State Administrative Court (Pengadilan Tata Usaha Negara)
  4. The District Court (Pengadilan Negeri) Correct answer.

Explanation

In Indonesia, all civil disputes at first instance are heard by the District Court regardless of the monetary value of the claim; there is no monetary cap on Pengadilan Negeri jurisdiction. The High Court functions as the appellate court, and the Supreme Court hears cassation. State Administrative Courts only hear administrative disputes against government decisions.

Question 2Civil Procedure

A plaintiff files a civil lawsuit. Under HIR, what is the standard consequence if the plaintiff fails to appear at the first scheduled hearing without a valid excuse?

  1. The defendant is declared to have won by default without any judgment
  2. The case is postponed automatically to the next session
  3. The court issues a verstek judgment against the plaintiff
  4. The case is dismissed (gugur) by the court Correct answer.

Explanation

Under HIR/RBg, if the plaintiff fails to appear on the first hearing day without a valid reason, the lawsuit is declared gugur (dismissed/lapsed). A verstek judgment is entered against an absent defendant, not an absent plaintiff. Postponement requires a valid excuse or a request granted by the court.

Question 3Civil Procedure

Which principle governs the burden of proof in Indonesian civil procedure, requiring the party asserting a right to prove the facts supporting it?

  1. Ius curia novit
  2. Actori incumbit probatio Correct answer.
  3. Res judicata pro veritate habetur
  4. Auditatur et altera pars

Explanation

Actori incumbit probatio means the burden of proof lies on the party who asserts a right or fact. The plaintiff must prove the facts underlying the claim, and the defendant must prove affirmative defenses. The other maxims concern the finality of judgments, the right to be heard, and the court's knowledge of the law.

Question 4Civil Procedure

A defendant wishes to challenge the subject-matter jurisdiction of the District Court. Under Indonesian civil procedure, when should this objection normally be raised?

  1. In the statement of defense at the first opportunity before answering the merits Correct answer.
  2. At any time, including during cassation
  3. Only after the court has issued a final judgment
  4. Only in the appeal to the High Court

Explanation

An objection to the court's jurisdiction (kompetensi absolut) is generally raised in the initial defense before responding to the merits. Absolute jurisdictional defects may also be examined ex officio by the court at any stage. Waiting until appeal or cassation is not the proper procedural route for a first-instance objection.

Question 5Civil Procedure

Which document formally commences a civil action in the District Court and sets out the plaintiff's claim (posita and petitum)?

  1. The statement of claim (surat gugatan) Correct answer.
  2. The minutes of hearing (berita acara persidangan)
  3. The summons (panggilan)
  4. The power of attorney (surat kuasa)

Explanation

The surat gugatan is the pleading that initiates the civil action and contains the factual basis (posita) and the relief sought (petitum). The summons notifies the parties of the hearing, the minutes record proceedings, and a power of attorney authorizes representation.

Question 6Civil Procedure

What is the general time limit for filing an appeal (banding) against a District Court judgment to the High Court under Indonesian civil procedure?

  1. 60 days after the judgment is notified
  2. 7 days after the judgment is pronounced
  3. 30 days after the judgment is pronounced
  4. 14 days after the judgment is notified to the party Correct answer.

Explanation

The general rule is that an appeal must be filed within 14 days after the judgment is notified to the party. This period is intended to give the losing party a defined window to seek appellate review. Shorter or longer periods apply only in specific statutory contexts.

Question 7Civil Procedure

A plaintiff sues a defendant in the District Court, but the defendant resides in a different district from where the claim is filed. Which principle generally determines venue in Indonesian civil procedure?

  1. Venue is always the location where the contract was signed
  2. The plaintiff may choose any District Court in the country
  3. Venue follows the defendant's domicile (actor sequitur forum rei) Correct answer.
  4. Venue is the court nearest to the plaintiff's residence

Explanation

The general venue rule is actor sequitur forum rei, meaning the plaintiff must sue in the court of the defendant's domicile. Exceptions exist, such as for immovable property or specific statutory forums. The plaintiff does not have free choice of any court, and contract-signing location is not the default rule.

Question 8Civil Procedure

In a civil proceeding, the defendant fails to appear at the first hearing despite having been duly summoned. What is the court's proper course under HIR?

  1. Issue a verstek judgment after verifying the claim's formal requirements Correct answer.
  2. Order the plaintiff to serve a second summons and close the case
  3. Declare the lawsuit gugur
  4. Refer the matter to the High Court

Explanation

When a duly summoned defendant fails to appear, the court may enter a verstek (default) judgment after confirming that the claim is formally proper and the summons was valid. Gugur applies to the plaintiff's absence, not the defendant's. The court does not simply close the case or refer it upward.

Question 9Civil Procedure

Which of the following best describes the function of the mediation stage (mediasi) in Indonesian civil procedure before the court?

  1. It replaces the need for a written statement of claim
  2. It is an optional step that the parties may skip without any procedural consequence
  3. It is a mandatory pre-trial effort to reach a settlement, and if successful the court issues a settlement deed (akta perdamaian) Correct answer.
  4. It is conducted only after the judgment has been pronounced

Explanation

Indonesian civil procedure requires mediation before the court examines the merits, and a successful settlement is recorded in an akta perdamaian, which is enforceable like a final judgment. Mediation does not dispense with the claim, and it is not merely optional. It cannot occur after judgment.

Question 10Civil Procedure

A party wishes to introduce documentary evidence. Under Indonesian civil procedure, what is the general rule for the admissibility of private documents (akta di bawah tangan) as evidence?

  1. They are inadmissible unless notarized
  2. They are admissible, but their authenticity and evidentiary weight are subject to the court's assessment Correct answer.
  3. They must always be supported by witness testimony to be admissible
  4. They are automatically conclusive proof of their contents

Explanation

Private documents are admissible as written evidence, but unlike authentic deeds they do not carry automatic conclusive force. The court assesses their authenticity and probative value, considering objections and corroborating evidence. Notarization is not a general admissibility requirement.

Question 11Civil Procedure

What is the role of the berita acara sidang (minutes of the hearing) in Indonesian civil procedure?

  1. It is the formal record of proceedings and may serve as evidence of what transpired in court Correct answer.
  2. It replaces the judgment as the binding decision
  3. It is the private note of the presiding judge
  4. It is the document that initiates the lawsuit

Explanation

The berita acara sidang is the official record of the hearing, documenting statements, evidence presented, and procedural events. It can be used to verify what occurred at trial, particularly on appeal. It does not substitute for the judgment or initiate the action.

Question 12Civil Procedure

A defendant raises a counterclaim (gugatan rekonvensi). Which statement best describes its procedural effect in Indonesian civil procedure?

  1. It must be filed as a separate lawsuit in a different court
  2. It automatically stays the original claim until resolved
  3. It is heard and decided together with the original claim (gugatan konvensi) in the same proceeding Correct answer.
  4. It may only be filed after the original judgment becomes final

Explanation

A counterclaim is examined and adjudicated together with the original claim in the same proceeding, promoting procedural efficiency and consistency. It does not automatically stay the original claim, nor must it be filed separately. Filing after final judgment would defeat its purpose.

Question 13Civil Procedure

Which of the following is the correct description of the principle of audi et alteram partem in Indonesian civil procedure?

  1. The judge may rely solely on documentary evidence without any hearing
  2. Both parties must be given a fair opportunity to be heard before a decision is made Correct answer.
  3. The court may decide without hearing one party if the case is urgent
  4. Only the plaintiff has the right to present arguments

Explanation

Audi et alteram partem requires that both parties receive a fair opportunity to present their case before the court decides. It is a fundamental element of due process in civil litigation. The court cannot ordinarily decide against a party who has not been heard, and both sides enjoy equal procedural rights.

Question 14Civil Procedure

A plaintiff's claim is vague and does not clearly state the relief sought (petitum). What is the most likely procedural response of the Indonesian District Court?

  1. The court automatically converts the claim into a criminal matter
  2. The court may declare the claim inadmissible (tidak dapat diterima) or order clarification Correct answer.
  3. The court must grant the claim as stated
  4. The court must transfer the case to the Supreme Court

Explanation

A claim must contain a clear posita and petitum; an obscure or defective claim may be declared inadmissible or the plaintiff may be required to clarify or amend it. The court cannot grant relief that is not properly requested. Conversion to criminal proceedings or transfer to the Supreme Court is not a civil procedural response.

Question 15Civil Procedure

A judgment has become legally binding (berkekuatan hukum tetap). A party later discovers new decisive documentary evidence that could not have been obtained earlier. Which extraordinary remedy is generally available?

  1. Reconsideration (peninjauan kembali) Correct answer.
  2. Verstek
  3. Cassation (kasasi)
  4. Ordinary appeal (banding)

Explanation

Peninjauan kembali (reconsideration) is an extraordinary remedy available after a judgment is final, including where new decisive evidence (novum) is discovered. Ordinary appeal and cassation are exhausted once the judgment becomes final. Verstek is a default judgment, not a post-final remedy.

Question 16Civil Procedure

Which statement accurately reflects the evidentiary value of an authentic deed (akta otentik) compared with a private document in Indonesian civil procedure?

  1. A private document always prevails over an authentic deed
  2. An authentic deed has stronger presumptive evidentiary force unless successfully challenged Correct answer.
  3. Both have identical evidentiary weight before the court
  4. An authentic deed is inadmissible unless confirmed by two witnesses

Explanation

An authentic deed, made by an authorized official in the prescribed form, carries strong presumptive evidentiary force regarding what the official witnessed. It can still be challenged, but a private document does not automatically prevail over it. The two categories differ significantly in evidentiary weight.

Question 17Civil Procedure

A defendant in a civil case wishes to argue that the plaintiff's claim is barred because the same dispute has already been finally decided between the same parties on the same subject matter. Which doctrine applies?

  1. Actori incumbit probatio
  2. Auditatur et altera pars
  3. Ne bis in idem (res judicata) Correct answer.
  4. Ius curia novit

Explanation

Ne bis in idem, or res judicata, bars relitigation of the same claim between the same parties over the same subject matter once a final judgment exists. It protects the finality and authority of judgments. The other maxims concern burden of proof, judicial knowledge of law, and the right to be heard.

Question 18Civil Procedure

A plaintiff seeks interim relief to prevent the defendant from transferring disputed assets during litigation. Which procedural mechanism is most appropriate in Indonesian civil procedure?

  1. A provisional attachment order (conservatoir beslag) Correct answer.
  2. A verstek judgment
  3. A counterclaim
  4. A cassation petition

Explanation

Conservatoir beslag is a provisional attachment that preserves the status quo over disputed assets pending final judgment. It prevents the defendant from frustrating enforcement by disposing of the property. A verstek judgment, counterclaim, and cassation petition serve different procedural purposes.

Question 19Civil Procedure

A District Court judgment is appealed to the High Court. On appeal, the High Court decides the case. Which statement best describes the scope of the High Court's appellate review in Indonesian civil procedure?

  1. It reviews the first-instance judgment, and may affirm, amend, or reverse it based on the record and appeal grounds Correct answer.
  2. It conducts a completely new trial as if no first-instance decision existed
  3. It must remand every case to the District Court for a new trial
  4. It may only review questions of fact, never questions of law

Explanation

The High Court reviews the District Court's judgment on the basis of the appeal grounds and the record, and may affirm, amend, or reverse it. It does not conduct an entirely fresh trial in the ordinary sense, nor is it limited to facts only. Remand is not automatic.

Question 20Civil Procedure

A plaintiff files a claim that is within the absolute jurisdiction of the State Administrative Court (Pengadilan Tata Usaha Negara) but files it in the general District Court. What is the most accurate characterization of the District Court's handling of the case?

  1. The District Court has absolute jurisdiction because the plaintiff chose it
  2. The District Court lacks absolute jurisdiction and should decline to hear the case Correct answer.
  3. The District Court must transfer the case to the Supreme Court directly
  4. The District Court may hear it if the defendant does not object

Explanation

Absolute jurisdiction (kompetensi absolut) is allocated by law and cannot be conferred by the parties' choice or waiver. A general District Court lacks authority over a dispute reserved for the State Administrative Court and should decline to hear it. Party consent cannot cure an absolute jurisdictional defect.

Question 21Constitutional Law

Under the Indian Constitution, which provision empowers the Supreme Court to issue directions, orders or writs for the enforcement of Fundamental Rights?

  1. Article 32 Correct answer.
  2. Article 142
  3. Article 136
  4. Article 226

Explanation

Article 32 confers on the Supreme Court the right to issue writs such as habeas corpus, mandamus, prohibition, quo warranto and certiorari for enforcement of Fundamental Rights. It is itself a Fundamental Right and was described by Dr. Ambedkar as the heart and soul of the Constitution. Article 226 gives similar power to High Courts but is not a Fundamental Right.

Question 22Constitutional Law

The doctrine of basic structure, holding that Parliament cannot amend the Constitution so as to destroy its essential features, was definitively established in which case?

  1. Minerva Mills v. Union of India
  2. Shankari Prasad v. Union of India
  3. Golaknath v. State of Punjab
  4. Kesavananda Bharati v. State of Kerala Correct answer.

Explanation

In Kesavananda Bharati (1973) a thirteen-judge bench held that Article 368 does not permit amendments that damage the basic structure of the Constitution. The doctrine limits the amending power while upholding its breadth. Later cases applied it to strike down specific amendments.

Question 23Constitutional Law

Which Article of the Constitution abolishes untouchability and forbids its practice in any form?

  1. Article 15
  2. Article 17 Correct answer.
  3. Article 23
  4. Options

Explanation

Article 17 abolishes untouchability and forbids its practice in any form, and the Protection of Civil Rights Act operationalises this prohibition. The right is enforceable against private individuals as well as the State. Article 15 prohibits discrimination but does not itself abolish untouchability.

Question 24Constitutional Law

A state law requires all cinema halls to play a specified patriotic song before screenings. Which Fundamental Right is most directly engaged by this requirement?

  1. Article 21 right to life and personal liberty
  2. Article 29 protection of minority interests
  3. Article 19(1)(a) freedom of speech and expression Correct answer.
  4. Article 25 freedom of conscience

Explanation

Compelling exhibition of content forces expression and restricts the freedom to choose what to communicate or receive, which engages Article 19(1)(a). Restrictions must satisfy the reasonableness test under Article 19(2). Article 25 concerns religious belief and practice, not compelled patriotic display.

Question 25Constitutional Law

The power of judicial review of legislative action in India is derived principally from which source?

  1. Article 141
  2. Article 368 alone
  3. Article 144
  4. Article 13 read with Articles 32 and 226 Correct answer.

Explanation

Article 13 renders laws inconsistent with Fundamental Rights void, and Articles 32 and 226 provide the remedial machinery for review. Together they ground the courts' power to strike down unconstitutional legislation. Article 368 concerns amendment, not review of ordinary laws.

Question 26Constitutional Law

Which writ is issued to a public authority that has failed to perform a mandatory public duty?

  1. Habeas corpus
  2. Certiorari
  3. Mandamus Correct answer.
  4. Quo warranto

Explanation

Mandamus commands a person or body holding public office to perform a public duty that the law imposes and that has been left undone. It does not lie against a private individual or to enforce a discretionary choice. The other writs address detention, quashing of orders, and title to public office respectively.

Question 27Constitutional Law

A statute authorises the executive to restrict a Fundamental Right but provides no guidance on when or how the power may be exercised. On what ground is such a delegation most vulnerable?

  1. Excessive delegation amounting to abdication of legislative function Correct answer.
  2. Breach of the doctrine of territorial nexus
  3. Contravention of the preamble
  4. Violation of the doctrine of pleasure

Explanation

When a legislature confers power without policy or guidance, it may amount to excessive delegation and impermissible abdication of its essential function. Where the power touches Fundamental Rights, courts demand clearer standards. The doctrine of pleasure and territorial nexus address different constitutional questions.

Question 28Constitutional Law

The right to privacy was recognised as a Fundamental Right under Article 21 in which decision?

  1. Maneka Gandhi v. Union of India
  2. A.K. Gopalan v. State of Madras
  3. K.S. Puttaswamy v. Union of India Correct answer.
  4. Olga Tellis v. Bombay Municipal Corporation

Explanation

A nine-judge bench in K.S. Puttaswamy (2017) held that privacy is intrinsic to the right to life and personal liberty under Article 21. The Court set out tests of legality, necessity and proportionality for intrusions. Earlier cases had declined to recognise privacy as a Fundamental Right.

Question 29Constitutional Law

A state reserves 50 percent of seats in a state medical college for residents of a particular district. Which constitutional challenge is strongest?

  1. It violates the right to equality by using residence as a proxy for impermissible discrimination Correct answer.
  2. It violates Article 17 because it abolishes untouchability
  3. It violates Article 368 because it amends the Constitution
  4. It violates Article 25 because admission is a religious matter

Explanation

Residence-based classification must have a rational nexus with the object of the law and cannot be a proxy for discrimination. District-level reservation in admissions is generally suspect because it is narrower than the state interest and denies equality of opportunity. The other provisions cited do not address educational admissions in this way.

Question 30Constitutional Law

Under Article 22, which protection applies to a person arrested and detained under an ordinary criminal law?

  1. Production before a magistrate within 24 hours of arrest Correct answer.
  2. Automatic release on bail after 48 hours
  3. Trial by a jury of peers
  4. Exemption from any interrogation

Explanation

Article 22(2) requires that an arrested person be produced before the nearest magistrate within twenty-four hours of arrest, excluding travel time. Article 22(1) also secures the right to be informed of grounds and to consult a lawyer. The other propositions have no basis in Article 22.

Question 31Constitutional Law

The doctrine of colourable legislation is best understood as addressing which situation?

  1. A legislature enacting a law with extraterritorial effect
  2. A legislature delegating power to an executive body
  3. A legislature achieving indirectly what it cannot do directly Correct answer.
  4. A legislature amending the Constitution

Explanation

The doctrine asks whether a legislature has disguised a subject outside its competence behind a permissible form. If the substance of the law falls outside the legislature's field, the form does not save it. It is a question of legislative competence, not of delegation or amendment procedure.

Question 32Constitutional Law

Which of the following best describes the effect of Article 31C as it stands after the relevant judicial pronouncements?

  1. It repeals Articles 14 and 19 for all laws
  2. It converts directive principles into enforceable Fundamental Rights
  3. It bars all judicial review of economic legislation
  4. It protects laws implementing directive principles from challenge under Articles 14 and 19, subject to limits Correct answer.

Explanation

Article 31C shields laws giving effect to certain directive principles from challenge based on Articles 14 and 19. The protection is not unlimited and is subject to the basic structure doctrine. It does not repeal Fundamental Rights or convert directive principles into rights.

Question 33Constitutional Law

A law prescribes the death penalty for a category of offences but gives the sentencing court no standards to guide its choice between death and life imprisonment. Which challenge is most likely to succeed?

  1. Violation of Article 20 because it is retrospective
  2. Violation of Article 21 because the sentencing discretion is unguided and arbitrary Correct answer.
  3. Violation of Article 331 because of inadequate representation
  4. Violation of Article 30 because it affects minority institutions

Explanation

Sentencing discretion that lacks standards risks arbitrariness and offends the fair procedure component of Article 21. Courts have required reasoned, guided discretion in capital sentencing. The other Articles cited address retrospective punishment, minority educational institutions, and representation, respectively.

Question 34Constitutional Law

The doctrine of pleasure under Article 310 is subject to which constitutional limitation?

  1. Article 143 advisory jurisdiction
  2. Article 311 safeguards against dismissal or removal without inquiry Correct answer.
  3. Article 32 writ jurisdiction
  4. Article 356 President's rule

Explanation

Article 310 states that civil servants hold office during the pleasure of the President or Governor, but Article 311 imposes procedural safeguards. No dismissal or removal can occur without an inquiry in which the officer is informed of charges and given a hearing. Article 311 thus qualifies the pleasure doctrine.

Question 35Constitutional Law

Which body advises the President on appointment of judges of the Supreme Court under the current constitutional framework?

  1. The Inter-State Council
  2. The Collegium of the Supreme Court Correct answer.
  3. The Law Commission
  4. The Union Cabinet alone

Explanation

Judicial appointments are made by the President acting on the recommendation of the collegium, comprising the Chief Justice and senior judges. This practice was developed through the Second and Third Judges Cases interpreting Articles 124 and 217. The collegium is not a statutory body but its recommendations have primacy.

Question 36Constitutional Law

A person is prosecuted twice for the same offence after an acquittal. Which constitutional protection is directly engaged?

  1. Article 20(3) protection against self-incrimination
  2. Article 20(2) protection against double jeopardy Correct answer.
  3. Article 21 right to speedy trial
  4. Article 22 protection on arrest

Explanation

Article 20(2) provides that no person shall be prosecuted and punished for the same offence more than once. The protection applies to prosecution before a court or judicial tribunal and requires a prior punishment. Article 20(3) protects against compelled self-incrimination and is distinct.

Question 37Constitutional Law

In a challenge to a statute on the ground that it violates Article 14, which standard of review has the Supreme Court applied to classifications that disadvantage a suspect class?

  1. Strict scrutiny requiring a compelling state interest and narrow tailoring Correct answer.
  2. Deference without any review
  3. Rational basis review alone
  4. Proportionality review only for tax statutes

Explanation

Indian courts have increasingly applied a proportionality and strict scrutiny analysis where a classification burdens a suspect class or a Fundamental Right. The State must show a compelling interest and that the measure is narrowly tailored. Mere rationality is insufficient in such cases.

Question 38Constitutional Law

The basic structure doctrine limits the amending power under Article 368. Which feature has the Supreme Court held to form part of the basic structure?

  1. The number of judges on the Supreme Court
  2. The tenure of the Chief Election Commissioner
  3. Judicial review Correct answer.
  4. The existence of a bicameral legislature in every state

Explanation

Judicial review has been recognised as part of the basic structure because it secures the supremacy of the Constitution and enforcement of Fundamental Rights. The other listed features are matters of legislative or administrative design, not entrenched essentials. Amendments that impair judicial review are therefore vulnerable.

Question 39Constitutional Law

A state enacts a law imposing a tax on the entry of goods into a local area for consumption, use or sale, but the proceeds are not earmarked for compensating the local area. Which constitutional issue arises?

  1. Whether the levy is a valid local tax under Article 276 or an impermissible restriction on trade under Article 301 Correct answer.
  2. Whether the levy is a colourable exercise of Article 368
  3. Whether the levy violates Article 25
  4. Whether the levy breaches Article 311

Explanation

Entry taxes must be distinguished from taxes on income and from restrictions on inter-state trade under Article 301. A levy that burdens movement of goods may need to satisfy the tests for compensatory taxes. The other Articles cited concern religion, amendment and public services and are irrelevant.

Question 40Constitutional Law

Which statement correctly captures the relationship between Fundamental Rights and Directive Principles after the Kesavananda and Minerva Mills decisions?

  1. Directive Principles prevail over Fundamental Rights in all cases
  2. Directive Principles are enforceable as Fundamental Rights
  3. Fundamental Rights prevail over Directive Principles in all cases
  4. Fundamental Rights and Directive Principles are complementary and must be balanced without destroying either Correct answer.

Explanation

The Supreme Court has held that Fundamental Rights and Directive Principles form a composite scheme and must be harmonised. Neither can be used to destroy the other, and the balance is part of the basic structure. Directive Principles remain non-justiciable in themselves.

Question 41Contracts and Sales (UCC Article 2)

A buyer orders 500 custom-printed T-shirts from a seller. The seller sends a signed confirmation stating '500 shirts, $4 each, delivery May 1.' The buyer never responds. Under UCC Article 2, what is the effect of the buyer's silence?

  1. The confirmation operates as an acceptance creating a contract because the parties are merchants.
  2. The confirmation is a counteroffer that the buyer must affirmatively accept before a contract forms. Correct answer.
  3. The confirmation has no contractual effect because the buyer never signed any writing.
  4. The confirmation operates as an acceptance only if the buyer is a merchant who received a written confirmation.

Explanation

Under UCC 2-206 and the common-law offer/acceptance framework incorporated by Article 2, silence is not acceptance unless the offeree has reason to know the offeror expects assent and remains silent. A written confirmation sent after an oral agreement can satisfy the statute of frauds between merchants under 2-201(b), but here no prior agreement is stated, so the writing functions as a counteroffer.

Question 42Contracts and Sales (UCC Article 2)

A farmer agrees in a signed writing to sell 'all the corn I harvest this season' to a grain elevator. The farmer later argues the quantity term is too indefinite to enforce. How should a court rule under UCC Article 2?

  1. Void the contract because the elevator could demand an unlimited quantity.
  2. Enforce the contract only if the parties later agree on a specific bushel count.
  3. Void the contract because the quantity term is not a definite number.
  4. Enforce the contract because output and requirements terms are valid quantity terms measured by good-faith production. Correct answer.

Explanation

UCC 2-306 expressly validates output and requirements contracts, measuring quantity by the party's actual good-faith production or needs. The farmer's harvest is a permissible quantity term even though no fixed number appears. The obligation of good faith prevents an unreasonably disproportionate demand.

Question 43Contracts and Sales (UCC Article 2)

A merchant seller and a merchant buyer exchange writings that agree on the goods and price but whose forms each contain different arbitration clauses. Both parties are merchants, and the clauses materially alter the deal. Under UCC 2-207, what is the result?

  1. The different terms cancel each other out and the contract fails for lack of mutual assent.
  2. The contract forms, but the conflicting terms drop out and are supplied by UCC gap-fillers. Correct answer.
  3. The contract forms on the offeree's terms because the offeree sent the last document.
  4. The offeror's terms prevail because the offeror's form was sent first.

Explanation

Under UCC 2-207(3), where the writings of the parties do not establish a contract but their conduct does, the terms of the particular contract consist of those on which the writings agree, together with gap-fillers. Conflicting terms in the forms cancel each other and are replaced by UCC default rules. This is the knockout rule applied to merchants.

Question 44Contracts and Sales (UCC Article 2)

Which writing is sufficient to satisfy the UCC Article 2 statute of frauds against a seller?

  1. An oral agreement confirmed by a witness.
  2. A signed letter that identifies the parties but states no quantity.
  3. A signed purchase order that states the quantity but omits the price. Correct answer.
  4. An unsigned invoice delivered with the goods.

Explanation

UCC 2-201 requires a writing signed by the party to be charged that indicates a contract for sale and states a quantity. The price and other terms may be omitted and supplied by gap-fillers. Only the quantity term is essential.

Question 45Contracts and Sales (UCC Article 2)

A buyer and seller orally agree on the sale of goods worth $900. The seller delivers conforming goods, and the buyer accepts them but refuses to pay, raising the statute of frauds. What result?

  1. The buyer must pay because the goods were received and accepted, taking the case out of the statute of frauds. Correct answer.
  2. The buyer wins because oral contracts for goods are never enforceable.
  3. The buyer must pay only if the seller produces a signed writing.
  4. The buyer wins because no writing exists and the price exceeds $500.

Explanation

UCC 2-201(3)(c) provides that an oral contract is enforceable to the extent goods have been received and accepted. Payment is then owed for the accepted goods despite the absence of a writing. The statute of frauds bars enforcement of the promise, not restitution for goods accepted.

Question 46Contracts and Sales (UCC Article 2)

A seller ships goods that conform in all respects to the contract. The buyer rejects them, claiming a subjective dislike of the color. Under UCC Article 2, the rejection is:

  1. Ineffective, because rejection requires a good-faith belief that the goods fail to conform. Correct answer.
  2. Valid, because the buyer's subjective satisfaction controls.
  3. Ineffective, because only a court may determine conformity.
  4. Valid, because a buyer may reject for any reason before acceptance.

Explanation

Under UCC 2-601 and 2-602, a buyer may reject only if the goods fail to conform in some respect; rejection must be in good faith and accompanied by seasonable notice. A purely subjective dislike unrelated to the contract standard does not justify rejection. The perfect-tender rule allows rejection for any nonconformity, but there must be a nonconformity.

Question 47Contracts and Sales (UCC Article 2)

A buyer accepts a shipment of machine parts but later discovers a latent defect. Which statement best describes the buyer's obligation to give notice of the breach?

  1. The buyer has no duty to notify because acceptance waives all claims.
  2. The buyer must notify within 24 hours of discovery in all cases.
  3. The buyer may wait until the statute of limitations expires before notifying.
  4. The buyer must notify the seller within a reasonable time after discovering the breach or be barred from any remedy. Correct answer.

Explanation

UCC 2-607(3)(a) requires a buyer who has accepted goods to notify the seller of any breach within a reasonable time after discovery or be barred from any remedy. Acceptance does not waive breach claims for latent defects. The reasonable-time standard is fact-specific, not a fixed 24 hours.

Question 48Contracts and Sales (UCC Article 2)

A seller delivers goods that are nonconforming. The buyer chooses to keep them and deduct the difference in value from the price. This remedy is known as:

  1. Damages for accepted nonconforming goods Correct answer.
  2. Cover
  3. Rescission
  4. Specific performance

Explanation

Under UCC 2-714, a buyer who accepts nonconforming goods may recover damages measured by the difference between the value of the goods accepted and the value they would have had if conforming. This deduction from the price reflects that measure. Cover and specific performance are different remedies.

Question 49Contracts and Sales (UCC Article 2)

A buyer properly rejects nonconforming goods and then buys substitute goods in good faith and without unreasonable delay. To recover under UCC 2-712, the buyer may recover:

  1. The full contract price regardless of the cover purchase.
  2. The difference between the cost of cover and the contract price, plus incidental and consequential damages less expenses saved. Correct answer.
  3. Nothing, because rejection terminates all remedies.
  4. Only the cost of the cover purchase, with no offset.

Explanation

UCC 2-712 gives the buyer the difference between the cost of cover and the contract price, together with incidental and consequential damages, less expenses saved. The buyer must act in good faith and without unreasonable delay. Rejection does not eliminate the buyer's remedies.

Question 50Contracts and Sales (UCC Article 2)

A seller has delivered goods to a buyer who has not yet paid. The seller learns the buyer is insolvent. Under UCC 2-702, the seller may:

  1. Reclaim the goods only if the buyer is a merchant.
  2. Reclaim the goods if demand is made within ten days after receipt, or at any time if the buyer misrepresented solvency in writing within three months. Correct answer.
  3. Reclaim the goods at any time without limitation.
  4. Not reclaim the goods because delivery transferred title.

Explanation

UCC 2-702(2) permits a seller to reclaim goods received on credit by an insolvent buyer if demand is made within ten days of receipt. If the buyer misrepresented solvency in writing within three months before delivery, the ten-day limit does not apply. Merchant status is irrelevant to this right.