Michigan Residential Builders License Practice Test

Under the Uniform Commercial Code, contracts for the sale of goods priced at $1,000 or more must be:

1. Oral agreements

2. Written and signed

3. Verbal but documented

4. Informal and unsigned

The correct answer is: Written and signed

Under the Uniform Commercial Code (UCC), contracts for the sale of goods priced at $1,000 or more must be written and signed. This requirement is established to provide clarity and evidence of the agreement between the parties involved, reducing the potential for misunderstandings or disputes regarding the terms of the sale. A written contract serves as a formal record of the agreement, outlining details such as the product, price, and any conditions of the sale, thus enhancing accountability. The signing of the contract is also significant as it indicates the acceptance of the terms by the parties involved, showing mutual consent. This written requirement is part of the legal framework designed to protect consumers and businesses, ensuring that significant transactions are documented appropriately to uphold the integrity and enforceability of the contract. This requirement applies specifically to sales of goods and aligns with the broader goals of the UCC, which aims to standardize business practices and simplify transactions across different jurisdictions.