contract help!?

Question

401.In which of the following is the seller a “merchant” under Article 2 of the UCC?
A.Babs, an accountant, sells her car to her nephew.
B.Ted, a veterinarian, sells his tractor to his neighbor.
C.Tek-E, a software company, contracts to sell a database program to a local non-profit.
D.none of the above.
396.If Lily takes her diamond ring to Steve’s Jewels for routine cleaning and Steve sells the ring to Evan
who is unaware that the ring is Lily’s:
A.Lily can recover the ring from Evan.
B.Lily can sue Steve for conversion, but cannot recover the ring from Evan because he was a buyer in
the ordinary course of business.
C.Lily can recover the ring under the UCC’s “entrusting rule.”
D.none of the above.
395.A seller who has voidable title:
A.may pass good title to a good faith purchaser for value.
B.may not pass good title to a good faith purchaser for value.
C.may never pass good title.
D.none of the above.

Answer 1

C
B
a

response to answer below:

A is wrong for the second question you listed. The UCC provision at issue protects purchasers of goods from sellers of that type of good in the ordinary course of business. Of course, Lily does have recourse against the negligent seller. Here's the rule:

"§ 2-403. Power to Transfer; Good Faith Purchase of Goods; 'Entrusting'....
(2) Any entrusting of possession of goods to a merchant who deals in goods of that kind gives him power to transfer all rights of the entruster to a buyer in ordinary course of business.
(3) 'Entrusting' includes any delivery and any acquiescence in retention of possession regardless of any condition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor's disposition of the goods have been such as to be larcenous under the criminal law."

However, the response below is right about A being the right answer for the third question. I read it as 'void' not voidable title. My bad. The governing provision is actually part of the same rule as above:

""§ 2-403. Power to Transfer; Good Faith Purchase of Goods; 'Entrusting'....
(1) A purchaser of goods acquires all title which his transferor had or had power to transfer except that a purchaser of a limited interest acquires rights only to the extent of the interest purchased. A person with voidable title has power to transfer a good title to a good faith purchaser for value.
That is also the rule for real property and "the idea here is that until a court declares that a voidable contract is invalid, it is indeed valid, and thus it is reasonable to suppose that a party with voidable title can pass good title to a BFP, which is indeed the law."

Answer 2

Why don't you pick up the UCC & read it. These questions are VERY simple if you just look at the various provisions of section 2 of the UCC.
1. C
2. A - though not through a contract rule
3. A

You need to look to the Restatement 2d of Property as well as the UCC.