Which of the Following Contracts Is Covered by Article 2

question 20

Multiple Choice

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

• A) The sale of a house
• B) The sale of a new car
• C) An employment agreement
• D) A sale of automobile insurance

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Definitions:

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share of the company's profits through dividends.

Cumulative Nonparticipating Preferred Stock

A type of preferred stock that accumulates unpaid dividends but does not have a right to share in the company's earnings beyond the agreed rate.

Cash Dividends

Payments made by a company to its shareholders out of the company's profits in the form of cash.

Fair Market Value

It's the price at which an asset would change hands between a willing buyer and a willing seller, each having reasonable knowledge of all necessary facts.