Question 1

Under the "perfect tender rule" the buyer may reject the goods if they fail in any respect to conform to the contract.

Accepted Answer

A) True 
 B)False

Question 2

Wimble ordered 1,000 pro-quality luminescent orange tennis balls from Sports Unlimited at a cost of $800.On June 1,Sports Unlimited shipped standard white tennis balls,but Wimble rejected them.Wimble bought the same number of pro-quality luminescent orange balls from another supplier the same day for $650.In a suit against Sports Unlimited,Wimble may recover $800.

Accepted Answer

A) True 
 B)False

Question 3

The UCC includes sections that limit the perfect tender rule's effect and courts have a tendency to apply these limitations more enthusiastically than the rule itself.

Accepted Answer

A) True 
 B)False

Question 4

Matson agrees to purchase 500 wooden chairs from Woodcarvers,Inc.After Woodcarvers sets the chairs aside in its warehouse,but before the risk of loss passes to Matson,the chairs are destroyed in a fire,which was not the fault of Woodcarvers.The contract between Matson and Woodcarvers is void.

Accepted Answer

A) True 
 B)False

Question 5

Turtle World orders 200 small sea turtles from Reptile World.After the sea turtles had been identified to the contract but before the risk of loss had passed to Turtle World,the turtles were released into the ocean by a militant animal rights group who broke into Reptile World to set the animals free.Under this scenario

Accepted Answer

A) Turtle World cannot successfully sue because the contract is void. 
B) Turtle World can cover, then win a judgment against Reptile World for the difference between the contract price and the cover price, plus incidental and consequential damages, minus expenses saved. 
C) Turtle World can successfully sue for specific performance because sea turtles are everywhere. 
D) Turtle World is entitled to a judgment for compensatory damages, but not consequential damages. 
A) Turtle World cannot successfully sue because the contract is void. 
B) Turtle World can cover, then win a judgment against Reptile World for the difference between the contract price and the cover price, plus incidental and consequential damages, minus expenses saved. 
C) Turtle World can successfully sue for specific performance because sea turtles are everywhere. 
D) Turtle World is entitled to a judgment for compensatory damages, but not consequential damages.

Question 6

Master Glue Hairspray,Inc.contracts to purchase 100 umbrellas with its logo and slogan,"A spray a day keeps the rain and wind away!" specially printed on the umbrellas and its 1-800 telephone number on the umbrella handle.After the seller completes the order,Master Glue refuses to accept or pay for the umbrellas.Because of the special logo and telephone number,the seller has been unable to find a new buyer.If the seller sues Master Glue,what is the proper measure of the seller's damages?

Accepted Answer

A) Contract price minus market value of the goods at the time of delivery 
B) Contract price 
C) Lost profits 
D) Cover price minus contract price 
A) Contract price minus market value of the goods at the time of delivery 
B) Contract price 
C) Lost profits 
D) Cover price minus contract price

Question 7

If a buyer does not receive goods by the contract deadline,remedies available include all of the following EXCEPT

Accepted Answer

A) incidental and consequential damages. 
B) cover. 
C) damages for non-delivery. 
D) cure. 
A) incidental and consequential damages. 
B) cover. 
C) damages for non-delivery. 
D) cure.

Question 8

Reba orders a pair of custom-made cowboy boots,C.O.D.from Home on the Range Western Wear.When the boots arrive,Reba pays the carrier for the boots,then opens the package,only to discover that the boots are the wrong snake skin color and three sizes too big.At this point

Accepted Answer

A) Reba is entitled to inspect the goods after payment (due to the C.O.D.terms) and she can reject the boots because they are nonconforming. 
B) Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments. 
C) Home on the Range can allege that Reba did not conduct a proper inspection; therefore, Home on the Range owes Reba nothing. 
D) Reba has no recourse; she should have known to inspect the goods before paying the C.O.D. amount. 
A) Reba is entitled to inspect the goods after payment (due to the C.O.D.terms) and she can reject the boots because they are nonconforming. 
B) Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments. 
C) Home on the Range can allege that Reba did not conduct a proper inspection; therefore, Home on the Range owes Reba nothing. 
D) Reba has no recourse; she should have known to inspect the goods before paying the C.O.D. amount.

Question 9

Family Time Restaurant has a contract with Prime Meats for Prime to deliver 100 pounds of ground sirloin twice a week for the next three months.If,on one delivery,Prime brings 95 pounds of ground chuck instead of 100 pounds of ground sirloin

Accepted Answer

A) Family Time may unquestionably reject the non-conforming goods because they vary in both quantity and quality. 
B) Family Time may reject the non-conforming installment only if it substantially impairs the value of that installment and cannot be cured. 
C) Prime has no right to cure. 
D) the perfect tender rule applies. 
A) Family Time may unquestionably reject the non-conforming goods because they vary in both quantity and quality. 
B) Family Time may reject the non-conforming installment only if it substantially impairs the value of that installment and cannot be cured. 
C) Prime has no right to cure. 
D) the perfect tender rule applies.

Question 10

Under the UCC,the seller's right to correct a shipment of non-conforming goods is called

Accepted Answer

A) correction. 
B) cure. 
C) cover. 
D) consideration. 
A) correction. 
B) cure. 
C) cover. 
D) consideration.

Question 11

Identify the possible remedies for a seller when the buyer breaches a contract.

Accepted Answer

If a buyer breaches a contract,the selle

Question 12

A buyer's material breach gives the seller the right to refuse to deliver the goods.

Accepted Answer

A) True 
 B)False

Question 13

Define these terms: usage of trade,course of dealing,and course of performance and identify how they are used according to the UCC.

Accepted Answer

Usage of trade is any practice that memb

Question 14

If a contract does not provide for a time for inspection,the UCC allows inspection to take place

Accepted Answer

A) within a reasonable time. 
B) the same day as delivery. 
C) within 3 days of delivery. 
D) within 10 days of delivery. 
A) within a reasonable time. 
B) the same day as delivery. 
C) within 3 days of delivery. 
D) within 10 days of delivery.

Question 15

Bryson Hardware accepted delivery of the 50 door handles it ordered.If it later finds the handles do not conform to the contract specifications and it wants to revoke its acceptance,it may return the goods only if

Accepted Answer

A) it shows the original acceptance of the goods never occured. 
B) it shows that the defects substantially impair their value. 
C) it can prove it is commercially impracticable for it to keep the goods. 
D) the documents of title are in order. 
A) it shows the original acceptance of the goods never occured. 
B) it shows that the defects substantially impair their value. 
C) it can prove it is commercially impracticable for it to keep the goods. 
D) the documents of title are in order.

Question 16

What is the "perfect tender rule" and what restrictions? has the UCC put into place that limit the perfect tender rule's effect?

Accepted Answer

Under the perfect tender rule, the buyer

Question 17

The UCC's requirement of good faith in the performance and enforcement of every contract imposes

Accepted Answer

A) a greater duty on merchants than consumers. 
B) a greater duty on consumers than merchants. 
C) the same duty on both consumers and merchants. 
D) a greater duty on parties to a sales contract with the purchase price over $500. 
A) a greater duty on merchants than consumers. 
B) a greater duty on consumers than merchants. 
C) the same duty on both consumers and merchants. 
D) a greater duty on parties to a sales contract with the purchase price over $500.

Question 18

A buyer has an absolute right to reject non-conforming goods as long as the rejection is timely.

Accepted Answer

A) True 
 B)False

Question 19

A buyer may revoke an acceptance of goods if

Accepted Answer

A) the nonconformity does not impair the value of the goods. 
B) the buyer had a legitimate reason for the initial acceptance. 
C) the buyer knew the nonconformity could not be cured. 
D) the buyer thought they could easily cover. 
A) the nonconformity does not impair the value of the goods. 
B) the buyer had a legitimate reason for the initial acceptance. 
C) the buyer knew the nonconformity could not be cured. 
D) the buyer thought they could easily cover.

Question 20

In the Zion Temple First Pentecostal Church of Cincinnati,Ohio,Inc.v.Brighter Day Bookstore & Gifts case,the court found that,because of an error in the company's catalog,there was no right to cure a nonconformity with the sleeves of the choir robes delivered to Zion.

Accepted Answer

A) True 
 B)False

Exam 23: Performance and Remedies

Under the "perfect tender rule" the buyer may reject the goods if they fail in any respect to conform to the contract.

The UCC includes sections that limit the perfect tender rule's effect and courts have a tendency to apply these limitations more enthusiastically than the rule itself.

Matson agrees to purchase 500 wooden chairs from Woodcarvers,Inc.After Woodcarvers sets the chairs aside in its warehouse,but before the risk of loss passes to Matson,the chairs are destroyed in a fire,which was not the fault of Woodcarvers.The contract between Matson and Woodcarvers is void.

If a buyer does not receive goods by the contract deadline,remedies available include all of the following EXCEPT

Reba orders a pair of custom-made cowboy boots,C.O.D.from Home on the Range Western Wear.When the boots arrive,Reba pays the carrier for the boots,then opens the package,only to discover that the boots are the wrong snake skin color and three sizes too big.At this point

Family Time Restaurant has a contract with Prime Meats for Prime to deliver 100 pounds of ground sirloin twice a week for the next three months.If,on one delivery,Prime brings 95 pounds of ground chuck instead of 100 pounds of ground sirloin

Under the UCC,the seller's right to correct a shipment of non-conforming goods is called

Identify the possible remedies for a seller when the buyer breaches a contract.

A buyer's material breach gives the seller the right to refuse to deliver the goods.

Define these terms: usage of trade,course of dealing,and course of performance and identify how they are used according to the UCC.

If a contract does not provide for a time for inspection,the UCC allows inspection to take place

Bryson Hardware accepted delivery of the 50 door handles it ordered.If it later finds the handles do not conform to the contract specifications and it wants to revoke its acceptance,it may return the goods only if

What is the "perfect tender rule" and what restrictions? has the UCC put into place that limit the perfect tender rule's effect?

The UCC's requirement of good faith in the performance and enforcement of every contract imposes

A buyer has an absolute right to reject non-conforming goods as long as the rejection is timely.

A buyer may revoke an acceptance of goods if

In the Zion Temple First Pentecostal Church of Cincinnati,Ohio,Inc.v.Brighter Day Bookstore & Gifts case,the court found that,because of an error in the company's catalog,there was no right to cure a nonconformity with the sleeves of the choir robes delivered to Zion.

Introduction to Law

Business Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Cyberlaw and Privacy

Introduction to Contracts

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third Parties

Performance, Breach and Discharge

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants' Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: LLCs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant

Personal Property and Bailment

Planning for the Future: Estates and Insurance

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