Question 1

A buyer's basic duty under a sales contract includes the obligation to

Accepted Answer

A)  accept nonconforming goods. 
B)  insist upon delivery of the goods. 
C)  "cure." 
D)  accept conforming goods and pay for them. 
A)  accept nonconforming goods. 
B)  insist upon delivery of the goods. 
C)  "cure." 
D)  accept conforming goods and pay for them.

Question 2

Remedies for breach of contract may be included in the sales contract.

Accepted Answer

A) True 
 B)False

Question 3

Even if the seller tenders nonconforming goods, the buyer must accept them.

Accepted Answer

A) True 
 B)False

Question 4

In a breach of warranty suit, damages are the amount needed to correct the defect.

Accepted Answer

A) True 
 B)False

Question 5

An unpaid seller has the right to stop delivery of goods purchased on credit that were delivered to a carrier for shipment to the buyer whenever the

Accepted Answer

A)  buyer fails to make the required payment within the required time once the goods have been delivered to him or her. 
B)  buyer rejects the contract after receiving the goods. 
C)  seller becomes insolvent. 
D)  seller learns of the buyer's insolvency while the goods are still in transit. 
A)  buyer fails to make the required payment within the required time once the goods have been delivered to him or her. 
B)  buyer rejects the contract after receiving the goods. 
C)  seller becomes insolvent. 
D)  seller learns of the buyer's insolvency while the goods are still in transit.

Question 6

If a seller wishes to reclaim goods sold to a buyer after the buyer has received the goods, the seller must prove

Accepted Answer

A)  that the buyer received the goods on credit. 
B)  that the buyer was insolvent when the goods were received. 
C)  that he or she (the seller) demanded the return of the goods within ten days after the buyer received the goods. 
D)  all of these. 
A)  that the buyer received the goods on credit. 
B)  that the buyer was insolvent when the goods were received. 
C)  that he or she (the seller) demanded the return of the goods within ten days after the buyer received the goods. 
D)  all of these.

Question 7

Remedies for breach of sales contract under the UCC are available only to the buyer.

Accepted Answer

A) True 
 B)False

Question 8

Lemon, owner of a stationery store, accepted and paid for thirty dozen computer disks from the Zanny Stationery Company. After selling some of the disks, Lemon began to get complaints that the disks were defective. Lemon's legal remedy against the Zanny Stationery Company is

Accepted Answer

A)  none. 
B)  to resell the goods and sue Zanny for damages. 
C)  to sue Zanny for breach of warranty. 
D)  to sue Zanny for specific performance. 
A)  none. 
B)  to resell the goods and sue Zanny for damages. 
C)  to sue Zanny for breach of warranty. 
D)  to sue Zanny for specific performance.

Question 9

An injured party may sue for only one remedy for breach of a sales contract.

Accepted Answer

A) True 
 B)False

Question 10

Remedies for breach of sales contract under the UCC are intended to place the injured party in as good a position as if the contract had not been breached.

Accepted Answer

A) True 
 B)False

Question 11

The perfect tender rule under the UCC obligates the seller to tender goods that exactly meet the requirements of the contract.

Accepted Answer

A) True 
 B)False

Question 12

If some part of a shipment of goods does not conform to the contract, the

Accepted Answer

A)  seller generally must be given an opportunity to cure the defect. 
B)  buyer can immediately reject the entire shipment and automatically cancel. 
C)  buyer cannot accept the part that is conforming. 
D)  buyer must accept the shipment at a reduced price. 
A)  seller generally must be given an opportunity to cure the defect. 
B)  buyer can immediately reject the entire shipment and automatically cancel. 
C)  buyer cannot accept the part that is conforming. 
D)  buyer must accept the shipment at a reduced price.

Question 13

If a buyer breaches the sales contract, the seller may sue for

Accepted Answer

A)  the purchase price. 
B)  the market price. 
C)  punitive damages. 
D)  none of these. 
A)  the purchase price. 
B)  the market price. 
C)  punitive damages. 
D)  none of these.

Question 14

To ____________________ means to obtain substitute goods elsewhere when the seller breaches the sales contract.

Accepted Answer

The answer of To ____________________ means to obtain substitute goods...

Question 15

Paragon Paint Co. sold 100 gallons of paint on credit to Williams Hardware. Two days after giving the paint to Northern Trucking for delivery to Williams, Paragon discovered that Williams had filed for bankruptcy. What action should Paragon take?

Accepted Answer

Paragon should notify Northern

Question 16

Ronco, a retailer of toys, rejected a shipment of dolls from Jasper, a wholesaler, because they were not the original ones that were ordered. Ronco called Jasper and requested that the proper dolls be shipped. Jasper said he could not because his stock had been depleted. Ronco then went to another seller, purchased the dolls he wanted from that seller, and sued Jasper for the extra costs he (Ronco) incurred. In this case, Ronco used the remedy of

Accepted Answer

A)  specific performance. 
B)  cover. 
C)  replevin. 
D)  conformity. 
A)  specific performance. 
B)  cover. 
C)  replevin. 
D)  conformity.

Question 17

When a buyer breaches a sales contract by refusing to accept conforming goods, a common remedy of the seller is to

Accepted Answer

A)  exercise the right of replevin. 
B)  demand specific performance. 
C)  sue for nondelivery. 
D)  resell the goods. 
A)  exercise the right of replevin. 
B)  demand specific performance. 
C)  sue for nondelivery. 
D)  resell the goods.

Question 18

List two remedies available to the seller and the buyer for breaching the sales contract.

Accepted Answer

Buyer's remedies include: (a) sue for br

Question 19

If the seller breaches the sales contract, the buyer has a duty to cover.

Accepted Answer

A) True 
 B)False

Question 20

A buyer may sue for ____________________ to obtain the goods covered by the sales contract.

Accepted Answer

specific p

Exam 17: The Sales Contract: Performance, Breach, and Remedies for Breach

A buyer's basic duty under a sales contract includes the obligation to

Remedies for breach of contract may be included in the sales contract.

Even if the seller tenders nonconforming goods, the buyer must accept them.

In a breach of warranty suit, damages are the amount needed to correct the defect.

An unpaid seller has the right to stop delivery of goods purchased on credit that were delivered to a carrier for shipment to the buyer whenever the

If a seller wishes to reclaim goods sold to a buyer after the buyer has received the goods, the seller must prove

Remedies for breach of sales contract under the UCC are available only to the buyer.

Lemon, owner of a stationery store, accepted and paid for thirty dozen computer disks from the Zanny Stationery Company. After selling some of the disks, Lemon began to get complaints that the disks were defective. Lemon's legal remedy against the Zanny Stationery Company is

An injured party may sue for only one remedy for breach of a sales contract.

Remedies for breach of sales contract under the UCC are intended to place the injured party in as good a position as if the contract had not been breached.

The perfect tender rule under the UCC obligates the seller to tender goods that exactly meet the requirements of the contract.

If some part of a shipment of goods does not conform to the contract, the

If a buyer breaches the sales contract, the seller may sue for

To ____________________ means to obtain substitute goods elsewhere when the seller breaches the sales contract.

Paragon Paint Co. sold 100 gallons of paint on credit to Williams Hardware. Two days after giving the paint to Northern Trucking for delivery to Williams, Paragon discovered that Williams had filed for bankruptcy. What action should Paragon take?

When a buyer breaches a sales contract by refusing to accept conforming goods, a common remedy of the seller is to

List two remedies available to the seller and the buyer for breaching the sales contract.

If the seller breaches the sales contract, the buyer has a duty to cover.

A buyer may sue for ____________________ to obtain the goods covered by the sales contract.

Foundations of Law and the Role of Ethics in Business

The Legal System in the United States and Its Constitutional Foundation

Personal, Business, and Cyber Crimes and the American Criminal Justice System

Tort Law: Traditional Torts and Cyber Torts

Litigation and Alternatives for Settling Civil Disputes

Contract Law: a Beginning

Agreement: Offer and Acceptance

Consideration

Capacity

Legality

Memorialize Contracts in Writingstatute of Frauds

Transfer of Contract Rights and Duties

The Termination of Contracts: Discharge

The Termination of Contracts: Breach of Contract

Formation of Sales and Lease Contracts

The Sales Contract: Transfer of Title and Risk of Loss

Product Liability Law

Nature and Types of Negotiable Instruments

Issue, Transfer, Indorsement, and Discharge of Negotiable Instruments

Rights and Duties of Parties

Checks and the Banking System in the Twenty-First Century

Employer-Employee Relationship

Principal-Agent Relationship

Principal-Agent, Employer-Employee, and Third-Party Relationships

Sole Proprietorships, Partnerships, and Limited Liability Organizations

Corporations and Franchising

Government Regulation of Business

Basic Legal Concepts of Property

Renting Real Property

Buying and Selling Real Property

Nature and Types of Bailments

Wills, Intestacy, and Estate Planning

Protecting the Consumer and the Taxpayer

Protecting the Borrower

Protecting the Creditor

Property, Casualty and Automobile Insurance

Personal Insurance

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