Question 1

An installment contract is a type of contract that requires ________.

Accepted Answer

A)  the seller to deliver the goods to the buyer's place of business destination 
B)  goods to be delivered and accepted in separate lots 
C)  the seller to send the goods to the buyer but not to a specifically named destination 
D)  goods to be delivered and accepted in one single transaction 
A)  the seller to deliver the goods to the buyer's place of business destination 
B)  goods to be delivered and accepted in separate lots 
C)  the seller to send the goods to the buyer but not to a specifically named destination 
D)  goods to be delivered and accepted in one single transaction

Question 2

Differentiate between the right to replevy goods and the right to obtain specific performance with examples.

Accepted Answer

A replevin is an action by a buyer or le

Question 3

Damages are measured as the difference between the original rent and the rent at the time the lessee learned of the breach.

Accepted Answer

A) True 
 B)False

Question 4

Ashenwaft Sandalwood is contracted by Sphinxia Perfumes to supply fresh sandalwood on a monthly basis.When the goods are delivered,Sphinxia inspects them and finds the sandalwood to be below the quality standards fixed by the contract.Sphinxia accepts the substandard sandalwood shipment and sues Ashenwaft for reasonable damages.Which of the following rights has Sphinxia exercised in this regard?

Accepted Answer

A)  right to recover damages for accepted nonconforming goods 
B)  right to recover damages for nondelivery of contracted goods 
C)  right to obtain specific performance 
D)  right to stop delivery of goods in transit 
A)  right to recover damages for accepted nonconforming goods 
B)  right to recover damages for nondelivery of contracted goods 
C)  right to obtain specific performance 
D)  right to stop delivery of goods in transit

Question 5

Mansfield Dairies entered into a contract with Aratez,Inc.,a dairy product food processing company,to provide dairy products for a period of four years.The contract included a provision for a one-year limitation period in case of breach.But with less than a year left on the contract,Mansfield Dairies stopped shipment of milk products to Aratez,Inc.Under the UCC statute of limitations,which of the following would be true with reference to Aratez,Inc.'s right to bring a lawsuit against Mansfield Dairies?

Accepted Answer

A)  The lawsuit can be filed any time within one year from the breach. 
B)  The lawsuit can be filed only after the expiration of the contract. 
C)  The lawsuit cannot be filed as there was less than a year left to complete the contract. 
D)  The lawsuit can be filed any time within four years from the breach. 
A)  The lawsuit can be filed any time within one year from the breach. 
B)  The lawsuit can be filed only after the expiration of the contract. 
C)  The lawsuit cannot be filed as there was less than a year left to complete the contract. 
D)  The lawsuit can be filed any time within four years from the breach.

Question 6

Differentiate between good faith and commercial reasonableness.Discuss the need for such terms in law.

Accepted Answer

Good faith deals with the reasons and pu

Question 7

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

Accepted Answer

A)  noncarrier 
B)  option 
C)  shipment 
D)  destination 
A)  noncarrier 
B)  option 
C)  shipment 
D)  destination

Question 8

Which of the following is a similarity between destination contracts and shipment contracts?

Accepted Answer

A)  Both are applicable for carrier cases of transactions between buyers and sellers. 
B)  Both hold that delivery occurs when the seller puts the goods in the carrier's possession. 
C)  Both hold that delivery occurs when the goods reach the buyer. 
D)  Both are applicable for noncarrier cases of transactions between buyers and sellers. 
A)  Both are applicable for carrier cases of transactions between buyers and sellers. 
B)  Both hold that delivery occurs when the seller puts the goods in the carrier's possession. 
C)  Both hold that delivery occurs when the goods reach the buyer. 
D)  Both are applicable for noncarrier cases of transactions between buyers and sellers.

Question 9

Minewell Publishers contracts with Inkhome Paper to purchase large quantities of bond paper.Minewell accepts the shipment supplied by Inkhome but fails to pay for it when the payment is due.Which of the following rights can be exercised by Inkhome Paper to reclaim their payment?

Accepted Answer

A)  right to recover the purchase price 
B)  right to replevy goods 
C)  right to obtain specific performance 
D)  right to cure 
A)  right to recover the purchase price 
B)  right to replevy goods 
C)  right to obtain specific performance 
D)  right to cure

Question 10

Blue Rorschach,Inc.has an immediate requirement for laptops with bionic sensor features.It contracts with Zenzo Computers and entrusts it with the delivery of such laptops.However,the delivered laptops lacked the bionic sensors that Blue Rorschach desired.Blue Rorschach immediately returns these laptops to Zenzo Computers.Which of the following rights to remedy has Blue Rorschach,Inc.exercised in this scenario?

Accepted Answer

A)  right to replevy goods 
B)  right to cure 
C)  right to reject nonconforming goods 
D)  right to obtain specific performance 
A)  right to replevy goods 
B)  right to cure 
C)  right to reject nonconforming goods 
D)  right to obtain specific performance

Question 11

The right to capture allows a buyer to stop goods while in transit.

Accepted Answer

A) True 
 B)False

Question 12

Greenmart Retailers contracts Wilson's Foodstuff to purchase biscuit packets in bulk.Greenmart Retailers fulfills its side of the contract by making a complete payment to Wilson's Foodstuff before the delivery.A week after the payment,Wilson's Foodstuff becomes insolvent.Which of the following rights can Greenmart Retailers exercise to recover its goods from Wilson's Foodstuff?

Accepted Answer

A)  right to capture 
B)  right to cure 
C)  right to withhold delivery 
D)  right to dispose of goods 
A)  right to capture 
B)  right to cure 
C)  right to withhold delivery 
D)  right to dispose of goods

Question 13

Which of the following is true for a lease contract wherein the goods involved are totally destroyed without the fault of either the lessor or the lessee?

Accepted Answer

A)  The lessor is legally required to reimburse the lessee for any damages. 
B)  The lessee is legally obliged to reimburse the lessor for any damages. 
C)  Both parties are excused from performing the contract. 
D)  Both parties share the damages that arise from the total destruction of the goods. 
A)  The lessor is legally required to reimburse the lessee for any damages. 
B)  The lessee is legally obliged to reimburse the lessor for any damages. 
C)  Both parties are excused from performing the contract. 
D)  Both parties share the damages that arise from the total destruction of the goods.

Question 14

The right to dispose of goods arises if the lessor has reacquired the goods after stopping them in transit.

Accepted Answer

A) True 
 B)False

Question 15

In a destination contract,delivery is completed when the shipment ________.

Accepted Answer

A)  reaches the destination specified in the contract 
B)  passes inspection by transport customs and is allowed to be transported 
C)  is handed over to the carrier by the seller before the transportation 
D)  is in transit to the destination specified in the contract 
A)  reaches the destination specified in the contract 
B)  passes inspection by transport customs and is allowed to be transported 
C)  is handed over to the carrier by the seller before the transportation 
D)  is in transit to the destination specified in the contract

Question 16

Reasonable expenses incurred in disposition of goods like stopping delivery,transportation charges,storage charges,and sales commission are called incidental charges.

Accepted Answer

A) True 
 B)False

Question 17

The term ________ refers to an action by a buyer to recover scarce goods wrongfully withheld by a seller.

Accepted Answer

A)  revocation 
B)  replevin 
C)  cancellation 
D)  capture 
A)  revocation 
B)  replevin 
C)  cancellation 
D)  capture

Question 18

________ is the right of a seller to demand the return of goods from the buyer under specified situations.

Accepted Answer

A)  Right to dispose of goods 
B)  Right to recover damages 
C)  Right to recover purchase price 
D)  Right to reclaim goods 
A)  Right to dispose of goods 
B)  Right to recover damages 
C)  Right to recover purchase price 
D)  Right to reclaim goods

Question 19

Goods are considered to be in transit when they are in possession of ________.

Accepted Answer

A)  sellers 
B)  buyers 
C)  lessors 
D)  carriers 
A)  sellers 
B)  buyers 
C)  lessors 
D)  carriers

Question 20

Noncarrier cases are covered by the Uniform Commercial Code (UCC)under two different types of contracts: shipment contract and destination contract.

Accepted Answer

A) True 
 B)False

Exam 18: Remedies for Breach of Sales and Lease Contracts

An installment contract is a type of contract that requires ________.

Differentiate between the right to replevy goods and the right to obtain specific performance with examples.

Damages are measured as the difference between the original rent and the rent at the time the lessee learned of the breach.

Differentiate between good faith and commercial reasonableness.Discuss the need for such terms in law.

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

Which of the following is a similarity between destination contracts and shipment contracts?

Minewell Publishers contracts with Inkhome Paper to purchase large quantities of bond paper.Minewell accepts the shipment supplied by Inkhome but fails to pay for it when the payment is due.Which of the following rights can be exercised by Inkhome Paper to reclaim their payment?

The right to capture allows a buyer to stop goods while in transit.

Which of the following is true for a lease contract wherein the goods involved are totally destroyed without the fault of either the lessor or the lessee?

The right to dispose of goods arises if the lessor has reacquired the goods after stopping them in transit.

In a destination contract,delivery is completed when the shipment ________.

Reasonable expenses incurred in disposition of goods like stopping delivery,transportation charges,storage charges,and sales commission are called incidental charges.

The term ________ refers to an action by a buyer to recover scarce goods wrongfully withheld by a seller.

________ is the right of a seller to demand the return of goods from the buyer under specified situations.

Goods are considered to be in transit when they are in possession of ________.

Noncarrier cases are covered by the Uniform Commercial Code (UCC)under two different types of contracts: shipment contract and destination contract.

Legal Heritage and the Digital Age

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Courts and Jurisdiction

Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

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Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

Bankruptcy and Reorganization

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Corporate Governance and the Sarbanes-Oxley Act

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