Question 1

If no definite time for delivery is fixed by the terms of the contract, delivery:

Accepted Answer

A)  will not take place. 
B)  must begin within 10 days of the contract. 
C)  must be immediate. 
D)  and acceptance must happen within a reasonable amount of time. 
A)  will not take place. 
B)  must begin within 10 days of the contract. 
C)  must be immediate. 
D)  and acceptance must happen within a reasonable amount of time. D

Question 2

Pedro ordered a custom-made suit from Rooks & Sons to be delivered by Friday at 5 p.m. When it is delivered to his office on Friday afternoon, he is in conference with a client. His secretary hangs the suit in the office closet. When Pedro tries on the suit Saturday evening, he discovers that the pants are cuffed. He had ordered cuffless trousers, so he called Rooks & Sons on Monday and informed them that he was returning the suit. What can he do?

Accepted Answer

A)  He cannot revoke acceptance since the cuffs are not difficult to discover. 
B)  He can revoke acceptance because the cuffs substantially impair the value of the goods to him. 
C)  He can reject the goods since he had not yet accepted them prior to inspection. 
D)  He cannot reject the goods because the cuffs are curable. 
A)  He cannot revoke acceptance since the cuffs are not difficult to discover. 
B)  He can revoke acceptance because the cuffs substantially impair the value of the goods to him. 
C)  He can reject the goods since he had not yet accepted them prior to inspection. 
D)  He cannot reject the goods because the cuffs are curable. C

Question 3

Which of the following is correct with respect to the Code's approach to impossibility of performance?

Accepted Answer

A)  Ordinarily, a strike by employees of the seller will excuse performance by the seller. 
B)  Increased production costs alone will excuse performance by the seller. 
C)  Performance will be excused when it is commercially impractical as a result of one or more unforeseen supervening events that are more than mere hardship or increased cost of performance. 
D)  All of these are correct. 
A)  Ordinarily, a strike by employees of the seller will excuse performance by the seller. 
B)  Increased production costs alone will excuse performance by the seller. 
C)  Performance will be excused when it is commercially impractical as a result of one or more unforeseen supervening events that are more than mere hardship or increased cost of performance. 
D)  All of these are correct. C

Question 4

Which of the following terms would indicate a destination contract?

Accepted Answer

A)  F.O.B. city of buyer 
B)  F.O.B. city of seller 
C)  C.I.F. 
D)  F.A.S. seller's port 
A)  F.O.B. city of buyer 
B)  F.O.B. city of seller 
C)  C.I.F. 
D)  F.A.S. seller's port

Question 5

Knecht contracts to sell $20,000 of goods to Morales. Later, Morales hears from another supplier that Knecht is having financial trouble, and Morales is concerned that Knecht will not be able to fill his order. If Morales has reasonable grounds for insecurity about Knecht's contractual performance:

Accepted Answer

A)  Morales has no recourse except to wait for the contractual delivery date and, if Knecht fails to deliver, Morales can then sue for breach of contract. 
B)  Morales may demand written assurance of performance from Knecht before the contract delivery date, and Knecht must provide adequate assurance within a reasonable time not exceeding 30 days. 
C)  Morales may demand assurance of performance from Knecht, and Knecht must provide adequate assurance within ten days or the contract is repudiated. 
D)  the statement by the other supplier creates an anticipatory repudiation which allows Morales to avoid the contract. 
A)  Morales has no recourse except to wait for the contractual delivery date and, if Knecht fails to deliver, Morales can then sue for breach of contract. 
B)  Morales may demand written assurance of performance from Knecht before the contract delivery date, and Knecht must provide adequate assurance within a reasonable time not exceeding 30 days. 
C)  Morales may demand assurance of performance from Knecht, and Knecht must provide adequate assurance within ten days or the contract is repudiated. 
D)  the statement by the other supplier creates an anticipatory repudiation which allows Morales to avoid the contract.

Question 6

J & J Co. offers a "subscription" for baby toys to be delivered every two months from the birth of a child. Payment must be made within two weeks of delivery. The Markham family accepted the J & J plan when their son, Timmy, was born. When Timmy was four months old, one J & J toy arrived, smashed to pieces. Markham:

Accepted Answer

A)  can treat the whole contract as breached and refuse to pay for past installments as well as future installments. 
B)  can reject the installment and cancel the contract immediately. 
C)  can reject the installment and refuse to pay if J & J cannot cure it. 
D)  cannot reject the installment since it is part of a series. 
A)  can treat the whole contract as breached and refuse to pay for past installments as well as future installments. 
B)  can reject the installment and cancel the contract immediately. 
C)  can reject the installment and refuse to pay if J & J cannot cure it. 
D)  cannot reject the installment since it is part of a series.

Question 7

Unless the contract specifies otherwise, goods may be tendered in installments.

Accepted Answer

A) True 
 B)False

Question 8

A commercial unit may be a set of articles, such as an assortment of sizes.

Accepted Answer

A) True 
 B)False

Question 9

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years. The October shipment consisted of 100 badly defective tires. ZYX Cycle Company:

Accepted Answer

A)  can treat the whole contract as breached. 
B)  can reject the October shipment if it cannot be cured in a timely manner by Supertread. 
C)  cannot reject the October shipment since it is part of the installment series. 
D)  must sell the defective tires for whatever they can get for them and sue Supertread for the difference. 
A)  can treat the whole contract as breached. 
B)  can reject the October shipment if it cannot be cured in a timely manner by Supertread. 
C)  cannot reject the October shipment since it is part of the installment series. 
D)  must sell the defective tires for whatever they can get for them and sue Supertread for the difference.

Question 10

Mary allows the seller, Baymore Co., four weeks to repair the defects in her kitchen set. They have tried, but have not done a good job. She may revoke her acceptance as long as she:

Accepted Answer

A)  notifies Baymore of the revocation. 
B)  does not use the table and chairs. 
C)  could not discover the defects easily. 
D)  inspected the goods herself. 
A)  notifies Baymore of the revocation. 
B)  does not use the table and chairs. 
C)  could not discover the defects easily. 
D)  inspected the goods herself.

Question 11

A buyer in Atlanta enters into a sales contract with a seller in Chicago. If the contract does not mention the place for delivery of the goods, the place of delivery will be:

Accepted Answer

A)  at the seller's business or residence in Chicago. 
B)  as stated in all destination contracts. 
C)  at the buyer's business or residence in Atlanta. 
D)  irrelevant, since the contract is void. 
A)  at the seller's business or residence in Chicago. 
B)  as stated in all destination contracts. 
C)  at the buyer's business or residence in Atlanta. 
D)  irrelevant, since the contract is void.

Question 12

The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following terms indicates a shipment contract?
A) F.A.S. seller's port
B) C.I.F.
C) C.& F.
D) All of these are shipment contracts.

Accepted Answer

The answer of Which of the following terms indicates a...

Question 14

Under the CISG:

Accepted Answer

A)  the seller has no right to cure a defective delivery. 
B)  if the seller does not perform on time, the buyer may fix an additional, reasonable period of time for performance. 
C)  the seller has a limited right to cure a defective performance, but only before the date for delivery specified in the contract. 
D)  the seller may, even after the date for delivery, cure a defective performance if it can be done without unreasonable delay. The buyer cannot claim damages for delay as long as the cure was within a reasonable time. 
A)  the seller has no right to cure a defective delivery. 
B)  if the seller does not perform on time, the buyer may fix an additional, reasonable period of time for performance. 
C)  the seller has a limited right to cure a defective performance, but only before the date for delivery specified in the contract. 
D)  the seller may, even after the date for delivery, cure a defective performance if it can be done without unreasonable delay. The buyer cannot claim damages for delay as long as the cure was within a reasonable time.

Question 15

If a lease contract does not sufficiently cover the particulars of performance, Article 2A provides many gap-filler provisions.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is correct with respect to the buyer's obligation of payment?

Accepted Answer

A)  In the absence of agreement, payment is due at the time and place the buyer is to receive the goods. 
B)  Payment by check is sufficient unless the seller demands currency and allows the buyer a reasonable time in which to obtain it. 
C)  If the buyer so agrees, he must pay for the goods in advance of delivery. 
D)  All of these are correct. 
A)  In the absence of agreement, payment is due at the time and place the buyer is to receive the goods. 
B)  Payment by check is sufficient unless the seller demands currency and allows the buyer a reasonable time in which to obtain it. 
C)  If the buyer so agrees, he must pay for the goods in advance of delivery. 
D)  All of these are correct.

Question 17

In a "no arrival, no sale" contract, the seller is responsible to the buyer for the goods' failure to arrive.

Accepted Answer

A) True 
 B)False

Question 18

After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods.

Accepted Answer

A) True 
 B)False

Question 19

Tender can be made any time of the day or night when the seller feels like delivering the goods.

Accepted Answer

A) True 
 B)False

Question 20

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may:

Accepted Answer

A)  await performance for a reasonable time. 
B)  resort to any remedy for breach. 
C)  Both of these options. 
D)  None of these options. 
A)  await performance for a reasonable time. 
B)  resort to any remedy for breach. 
C)  Both of these options. 
D)  None of these options.

Exam 22: Performance

If no definite time for delivery is fixed by the terms of the contract, delivery:

Which of the following is correct with respect to the Code's approach to impossibility of performance?

Which of the following terms would indicate a destination contract?

Knecht contracts to sell $20,000 of goods to Morales. Later, Morales hears from another supplier that Knecht is having financial trouble, and Morales is concerned that Knecht will not be able to fill his order. If Morales has reasonable grounds for insecurity about Knecht's contractual performance:

Unless the contract specifies otherwise, goods may be tendered in installments.

A commercial unit may be a set of articles, such as an assortment of sizes.

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years. The October shipment consisted of 100 badly defective tires. ZYX Cycle Company:

Mary allows the seller, Baymore Co., four weeks to repair the defects in her kitchen set. They have tried, but have not done a good job. She may revoke her acceptance as long as she:

A buyer in Atlanta enters into a sales contract with a seller in Chicago. If the contract does not mention the place for delivery of the goods, the place of delivery will be:

The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract.

Which of the following terms indicates a shipment contract? A) F.A.S. seller's port B) C.I.F. C) C.& F. D) All of these are shipment contracts.

Under the CISG:

If a lease contract does not sufficiently cover the particulars of performance, Article 2A provides many gap-filler provisions.

Which of the following is correct with respect to the buyer's obligation of payment?

In a "no arrival, no sale" contract, the seller is responsible to the buyer for the goods' failure to arrive.

After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods.

Tender can be made any time of the day or night when the seller feels like delivering the goods.

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may:

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