Question 1

The seller's or lessor's general obligation is to transfer and deliver the goods to the buyer or lessee.

Accepted Answer

A) True 
 B)False  True

Question 2

Under the perfect render rule, the buyer can reject a whole shipment of nonconforming goods.

Accepted Answer

A) True 
 B)False  True

Question 3

In which of the following does a seller have the right to stop delivery of goods in transit regardless of the size of the shipment?

Accepted Answer

A) if the buyer repudiates the contract 
B) if the buyer has payments due 
C) if the seller learns of the buyer's insolvency 
D) if the seller has been ordered for specific performance 
A) if the buyer repudiates the contract 
B) if the buyer has payments due 
C) if the seller learns of the buyer's insolvency 
D) if the seller has been ordered for specific performance C

Question 4

A(n)________ can be obtained in writing from the other party if there is an indication that a contract will be breached by that party.

Accepted Answer

A) adequate assurance of performance 
B) replevy 
C) right to obtain specific performance 
D) good faith agreement 
A) adequate assurance of performance 
B) replevy 
C) right to obtain specific performance 
D) good faith agreement

Question 5

For non carrier deliveries, if the seller or lessor has no place of business, the place of delivery is the seller's or lessor's residence.

Accepted Answer

A) True 
 B)False

Question 6

Damages that will be paid upon a breach of contract, but that are established in advance are known as ________.

Accepted Answer

A) capture 
B) replevy 
C) installment damages 
D) liquidated damages 
A) capture 
B) replevy 
C) installment damages 
D) liquidated damages

Question 7

Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process.Zeitar was to pay Klint $300, 000 as per the contract.Klint decided to redesign their existing microchips and make them suitable for Zeitar.While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency.Klint cancelled the shipment before it was delivered.Klint then resold the chips to another Studio where they had to settle for $150, 000, as the chips were now only suitable for specific audio engineering processes.
-What right to remedy did Klint exercise when selling the microchips to another studio?

Accepted Answer

A) right to claim lost profits 
B) right to cover 
C) right to dispose of goods 
D) right to recover damages 
A) right to claim lost profits 
B) right to cover 
C) right to dispose of goods 
D) right to recover damages

Question 8

Which of the following would be considered as a breach of contract?

Accepted Answer

A) acceptance of nonconforming goods by a buyer 
B) nonacceptance of conforming goods by a buyer 
C) delivery of conforming goods by a seller 
D) non-delivery of goods to a buyer that has a document of title 
A) acceptance of nonconforming goods by a buyer 
B) nonacceptance of conforming goods by a buyer 
C) delivery of conforming goods by a seller 
D) non-delivery of goods to a buyer that has a document of title

Question 9

A sales contract requires the seller to send the goods to the buyer at a specifically named destination.

Accepted Answer

A) True 
 B)False

Question 10

The right to withhold delivery is available to the seller if the buyer or lessee wrongfully rejects or revokes acceptance of the goods.

Accepted Answer

A) True 
 B)False

Question 11

The right to cure rule can be invoked by the seller.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true for a buyer's right of inspection?

Accepted Answer

A) Cost of inspection is shared by the seller and buyer if goods are conforming. 
B) Cost of inspection can be recovered from the seller if goods are nonconforming. 
C) Goods can only be inspected before shipment is made by the seller. 
D) Inspection has to be performed after the goods in the contract have been accepted. 
A) Cost of inspection is shared by the seller and buyer if goods are conforming. 
B) Cost of inspection can be recovered from the seller if goods are nonconforming. 
C) Goods can only be inspected before shipment is made by the seller. 
D) Inspection has to be performed after the goods in the contract have been accepted.

Question 13

Blue Rorschach Inc.has an immediate requirement for 80 laptops and contracts with Zenzo Electronics 80 Dell laptops at $550 each.But Zenzo Electronics breaches the contract and fails to deliver the laptops.Blue Rorschach then immediately contracts Dell Computers, buys 100 laptops at $600 per laptop, and then sues Zenzo Electronics for the breach of contract.
-What legal right to remedy did Blue Rorschach exercise when contracting Dell Computers and suing Zenzo for failure of delivery of goods?

Accepted Answer

A) right to replevy goods 
B) right to cover 
C) right to recover damages for accepted nonconforming goods 
D) right to obtain specific performance 
A) right to replevy goods 
B) right to cover 
C) right to recover damages for accepted nonconforming goods 
D) right to obtain specific performance

Question 14

Which of the following is a right to remedy that a seller can claim while the goods are in possession of the buyer?

Accepted Answer

A) right to dispose of goods 
B) right to withhold delivery of goods 
C) right to stop delivery of goods in transit 
D) right to reclaim goods 
A) right to dispose of goods 
B) right to withhold delivery of goods 
C) right to stop delivery of goods in transit 
D) right to reclaim goods

Question 15

When does a buyer have the right to cancel a sales or lease contract?

Accepted Answer

If a seller or lessor fails to deliver c

Question 16

A(n)________ is a sales contract that requires the seller to deliver goods to the buyer's place of business or another specified location.

Accepted Answer

A) consignment contract 
B) option contract 
C) shipment contract 
D) destination contract 
A) consignment contract 
B) option contract 
C) shipment contract 
D) destination contract

Question 17

Goods in possession with bailees are considered to be in transit.

Accepted Answer

A) True 
 B)False

Question 18

Failure of a party to perform an obligation in a sales or lease contract is known as ________.

Accepted Answer

A) revocation 
B) breach 
C) acceptance 
D) replevin 
A) revocation 
B) breach 
C) acceptance 
D) replevin

Question 19

When is a delivery considered completed in a shipment contract?

Accepted Answer

A) when the buyer receives the shipment 
B) when the seller hands over the shipment to the carrier 
C) when the shipment reaches the destination that the buyer specified 
D) when the seller notifies the buyer of the shipment in transit 
A) when the buyer receives the shipment 
B) when the seller hands over the shipment to the carrier 
C) when the shipment reaches the destination that the buyer specified 
D) when the seller notifies the buyer of the shipment in transit

Question 20

Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process.Zeitar was to pay Klint $300, 000 as per the contract.Klint decided to redesign their existing microchips and make them suitable for Zeitar.While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency.Klint cancelled the shipment before it was delivered.Klint then resold the chips to another Studio where they had to settle for $150, 000, as the chips were now only suitable for specific audio engineering processes.
-What legal action can Klint take against Zeitar?

Accepted Answer

A) sue and recover lost profits 
B) sue to recover purchase price 
C) get a court order asking for specific performance 
D) exercise the buyer's right to cover 
A) sue and recover lost profits 
B) sue to recover purchase price 
C) get a court order asking for specific performance 
D) exercise the buyer's right to cover

Exam 20: Remedies for Breach of Sales and Lease Contracts

The seller's or lessor's general obligation is to transfer and deliver the goods to the buyer or lessee.

Under the perfect render rule, the buyer can reject a whole shipment of nonconforming goods.

In which of the following does a seller have the right to stop delivery of goods in transit regardless of the size of the shipment?

A(n)________ can be obtained in writing from the other party if there is an indication that a contract will be breached by that party.

For non carrier deliveries, if the seller or lessor has no place of business, the place of delivery is the seller's or lessor's residence.

Damages that will be paid upon a breach of contract, but that are established in advance are known as ________.

Which of the following would be considered as a breach of contract?

A sales contract requires the seller to send the goods to the buyer at a specifically named destination.

The right to withhold delivery is available to the seller if the buyer or lessee wrongfully rejects or revokes acceptance of the goods.

The right to cure rule can be invoked by the seller.

Which of the following is true for a buyer's right of inspection?

Which of the following is a right to remedy that a seller can claim while the goods are in possession of the buyer?

When does a buyer have the right to cancel a sales or lease contract?

A(n)________ is a sales contract that requires the seller to deliver goods to the buyer's place of business or another specified location.

Goods in possession with bailees are considered to be in transit.

Failure of a party to perform an obligation in a sales or lease contract is known as ________.

When is a delivery considered completed in a shipment contract?

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

Credit,Mortgages,and Debtor's Rights

Secured Transactions and E-Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

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Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

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Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

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