Question 1

Specific performance is usually used to obtain possession of common everyday items.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a similarity between the seller's right to withhold delivery and the right to stop delivery of goods in transit?

Accepted Answer

A)  Both prevent the good involved from reaching the buyer. 
B)  Both require a decree of specific performance to be enforced on the buyer. 
C)  Both allow the seller to exercise his or her right to replevy goods from the buyer. 
D)  Both restrict the seller from exercising his or her right to replevy goods from the buyer. 
A)  Both prevent the good involved from reaching the buyer. 
B)  Both require a decree of specific performance to be enforced on the buyer. 
C)  Both allow the seller to exercise his or her right to replevy goods from the buyer. 
D)  Both restrict the seller from exercising his or her right to replevy goods from the buyer.

Question 3

Failure of a party to perform a duty in a sales or lease contract is defined as obligation.

Accepted Answer

A) True 
 B)False

Question 4

The right to cover is the right of a lessor to lease his or her goods to an alternate lessee.

Accepted Answer

A) True 
 B)False

Question 5

If a lessee makes full payment for goods before they are received and the lessor becomes insolvent within 10 days after receiving the first payment,the lessee has ________.

Accepted Answer

A)  the right to capture 
B)  the right to cure 
C)  the right to withhold delivery 
D)  the right to reclaim goods 
A)  the right to capture 
B)  the right to cure 
C)  the right to withhold delivery 
D)  the right to reclaim goods

Question 6

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

Accepted Answer

A)  Cost of inspection is shared by the seller and buyer if goods are conforming. 
B)  The buyer pays for the inspection if the goods conform to the contact. 
C)  Inspected goods, even if found to be nonconforming, should be paid for by the buyer. 
D)  Inspection has to be performed after the goods in the contract have been paid for. 
A)  Cost of inspection is shared by the seller and buyer if goods are conforming. 
B)  The buyer pays for the inspection if the goods conform to the contact. 
C)  Inspected goods, even if found to be nonconforming, should be paid for by the buyer. 
D)  Inspection has to be performed after the goods in the contract have been paid for.

Question 7

Minewell Publishers contracts with Inkhome Paper to purchase large quantities of bond paper.Due to multiple defaults on payments by Minewell,Inkhome stops supplying the contracted monthly quota of paper to Minewell.Which of the following seller's right has Inkhome Paper exercised in the above scenario?

Accepted Answer

A)  right to dispose of goods 
B)  right to withhold delivery 
C)  right to obtain specific performance 
D)  right to cure 
A)  right to dispose of goods 
B)  right to withhold delivery 
C)  right to obtain specific performance 
D)  right to cure

Question 8

The perfect tender rule delivery allows for buyers to ________.

Accepted Answer

A)  reject goods that conform to all aspects of a contract 
B)  seek remedies against the seller for accepting the deliverance of conforming goods 
C)  reject or accept a part or whole of a shipment of nonconforming goods 
D)  seek remedies against other buyers who accept nonconforming goods from the same seller 
A)  reject goods that conform to all aspects of a contract 
B)  seek remedies against the seller for accepting the deliverance of conforming goods 
C)  reject or accept a part or whole of a shipment of nonconforming goods 
D)  seek remedies against other buyers who accept nonconforming goods from the same seller

Question 9

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

Accepted Answer

A)  right to recover the purchase price or rent 
B)  right to withhold delivery 
C)  right to reclaim goods 
D)  right to cure 
A)  right to recover the purchase price or rent 
B)  right to withhold delivery 
C)  right to reclaim goods 
D)  right to cure

Question 10

Compare the lessee's right to cancel a contract with the lessor's right to cancel a contract.

Accepted Answer

A seller or lessor has the right to canc

Question 11

A replevin is defined as an action by a lessee to recover scarce goods wrongfully withheld by a lessor.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a lessee's remedy?

Accepted Answer

A)  right to withhold delivery 
B)  right to reclaim goods 
C)  right to obtain specific performance 
D)  right to stop delivery of goods in transit 
A)  right to withhold delivery 
B)  right to reclaim goods 
C)  right to obtain specific performance 
D)  right to stop delivery of goods in transit

Question 13

Which of the following is true of the decree of specific performance?

Accepted Answer

A)  It is used by buyers to obtain possession of unique and rare goods. 
B)  It is used by sellers to cancel a contract. 
C)  It is used by buyers to stop delivery of their good in transit. 
D)  It is used by sellers to employ replevin actions on buyers. 
A)  It is used by buyers to obtain possession of unique and rare goods. 
B)  It is used by sellers to cancel a contract. 
C)  It is used by buyers to stop delivery of their good in transit. 
D)  It is used by sellers to employ replevin actions on buyers.

Question 14

Antarez Jewelers contracts RTR Mining to purchase rare polished diamonds.RTR fails to deliver the goods on the scheduled date.Antarez attempts to procure the diamonds from other sources but is unsuccessful in its pursuit due to the scarcity of polished diamonds.Which of the following rights can Antarez exercise in order to recover its goods from RTR?

Accepted Answer

A)  right to stop delivery of goods in transit 
B)  right to withhold delivery 
C)  right to replevy goods 
D)  right to cure 
A)  right to stop delivery of goods in transit 
B)  right to withhold delivery 
C)  right to replevy goods 
D)  right to cure

Question 15

The right to replevy is available to the seller if the buyer wrongfully rejects or revokes acceptance of the goods,fails to make a payment when due,or repudiates the contract.

Accepted Answer

A) True 
 B)False

Question 16

Nonconforming goods must be rejected within a reasonable time after their delivery for a successful exercise of the right to reject nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 17

Goods are considered to be in transit while they are in possession of carriers or bailees.

Accepted Answer

A) True 
 B)False

Question 18

A decree of specific performance orders the lessor to perform the contract.

Accepted Answer

A) True 
 B)False

Question 19

With regard to place of delivery,a person buying goods from the place where the goods are manufactured would be an example of a ________.

Accepted Answer

A)  noncarrier case 
B)  carrier case 
C)  shipment contract 
D)  destination contract 
A)  noncarrier case 
B)  carrier case 
C)  shipment contract 
D)  destination contract

Question 20

Replevin actions can only be claimed on goods that are unique.

Accepted Answer

A) True 
 B)False

Exam 18: Remedies for Breach of Sales and Lease Contracts

Specific performance is usually used to obtain possession of common everyday items.

Which of the following is a similarity between the seller's right to withhold delivery and the right to stop delivery of goods in transit?

Failure of a party to perform a duty in a sales or lease contract is defined as obligation.

The right to cover is the right of a lessor to lease his or her goods to an alternate lessee.

If a lessee makes full payment for goods before they are received and the lessor becomes insolvent within 10 days after receiving the first payment,the lessee has ________.

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

The perfect tender rule delivery allows for buyers to ________.

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

Compare the lessee's right to cancel a contract with the lessor's right to cancel a contract.

A replevin is defined as an action by a lessee to recover scarce goods wrongfully withheld by a lessor.

Which of the following is a lessee's remedy?

Which of the following is true of the decree of specific performance?

The right to replevy is available to the seller if the buyer wrongfully rejects or revokes acceptance of the goods,fails to make a payment when due,or repudiates the contract.

Nonconforming goods must be rejected within a reasonable time after their delivery for a successful exercise of the right to reject nonconforming goods.

Goods are considered to be in transit while they are in possession of carriers or bailees.

A decree of specific performance orders the lessor to perform the contract.

With regard to place of delivery,a person buying goods from the place where the goods are manufactured would be an example of a ________.

Replevin actions can only be claimed on goods that are unique.

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