Question 1

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

Accepted Answer

A)  If he fails to reject the goods after he has had a reasonable opportunity to inspect them. 
B)  Immediately upon delivery. 
C)  Only when he pays for them. 
D)  Only after an express acceptance. 
A)  If he fails to reject the goods after he has had a reasonable opportunity to inspect them. 
B)  Immediately upon delivery. 
C)  Only when he pays for them. 
D)  Only after an express acceptance. A

Question 2

Ryan is interested in purchasing two dozen L.E.D. signs from Superior Sign Co. If the signs are damaged:

Accepted Answer

A)  and destroyed before Ryan's offer to buy them is accepted, Superior must create new signs to replace the ones Ryan wanted. 
B)  after the contract of sale is formed and after the risk of loss passed to Ryan, then Ryan has no option but must pay the entire contract price of the signs. 
C)  without fault of either party before the risk of loss passes to Ryan and the goods were identified when the contract was made, the contract is avoided whether the signs are totally or partially destroyed. 
D)  and destroyed, Ryan has no recourse but to find another source of the signs. 
A)  and destroyed before Ryan's offer to buy them is accepted, Superior must create new signs to replace the ones Ryan wanted. 
B)  after the contract of sale is formed and after the risk of loss passed to Ryan, then Ryan has no option but must pay the entire contract price of the signs. 
C)  without fault of either party before the risk of loss passes to Ryan and the goods were identified when the contract was made, the contract is avoided whether the signs are totally or partially destroyed. 
D)  and destroyed, Ryan has no recourse but to find another source of the signs. B

Question 3

The CISG:

Accepted Answer

A)  does not follow the perfect tender rule. 
B)  provides that the seller must, in all cases, deliver the goods within a reasonable time after the conclusion of the contract. 
C)  provides that in most instances the buyer must pay the contract price before examining the goods. 
D)  provides no right of "cure." 
A)  does not follow the perfect tender rule. 
B)  provides that the seller must, in all cases, deliver the goods within a reasonable time after the conclusion of the contract. 
C)  provides that in most instances the buyer must pay the contract price before examining the goods. 
D)  provides no right of "cure." A

Question 4

Tender of delivery requires:

Accepted Answer

A)  only that the seller put and hold goods that conform to the contract at the buyer's disposition. 
B)  that the goods be made available to the buyer for at least one week if they are not perishable. 
C)  that the seller give the buyer reasonable notice of the tender. 
D)  that tender occur during the buyer's normal business hours. 
A)  only that the seller put and hold goods that conform to the contract at the buyer's disposition. 
B)  that the goods be made available to the buyer for at least one week if they are not perishable. 
C)  that the seller give the buyer reasonable notice of the tender. 
D)  that tender occur during the buyer's normal business hours.

Question 5

Under the __________, a buyer may reject goods for even the slightest defect.

Accepted Answer

A)  revocation of acceptance rule 
B)  perfect tender rule 
C)  rules for inspection 
D)  excuses for nonperformance 
A)  revocation of acceptance rule 
B)  perfect tender rule 
C)  rules for inspection 
D)  excuses for nonperformance

Question 6

Under the CISG, a party may suspend performance of his obligations if, after the conclusion of the contract, it becomes apparent that the other party will not perform a substantial part of his obligations.

Accepted Answer

A) True 
 B)False

Question 7

A merchant buyer of goods receives nonconforming goods. The merchant buyer rightfully rejects and appropriately notifies the seller, but the seller has no agent in the buyer's city. The goods are perishable and threaten to decline in value speedily. The merchant buyer has no further duty to the seller other than to await the seller's instructions.

Accepted Answer

A) True 
 B)False

Question 8

Payment of a C.O.D. shipment constitutes an acceptance of the goods.

Accepted Answer

A) True 
 B)False

Question 9

Seller, through no fault of its own, is unable to deliver the goods to buyer because the agreed type of carrier is unavailable. Explain what the Code requires.

Accepted Answer

The Code provides that when neither part

Question 10

In their contract for the sale of window shades, Lela Window Treatments, Inc. and Shane agree that Lela will have the right to replace any defective goods that are delivered to Shane. This contractual provision will not have any effect because the perfect tender rule of the UCC will control in a sale of goods transaction.

Accepted Answer

A) True 
 B)False

Question 11

In a sale of goods, the seller's tender of performance does not have to conform to the Code's perfect tender rule.

Accepted Answer

A) True 
 B)False

Question 12

If Mary allows the seller, Sellmart Co., four weeks to repair the defects in her kitchen set and they have tried but have not done a good job at it, she may revoke her acceptance if she:

Accepted Answer

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

Question 13

a. What are the obligations of the seller under a shipment contract? 
b. What are the obligations of the seller under a destination contract?

Accepted Answer

a. Under a shipment contract the seller

Question 14

Increased production costs will allow the seller to avoid a contract based upon commercial impracticability.

Accepted Answer

A) True 
 B)False

Question 15

A manifestation by the buyer of his unwillingness to become the owner of the goods is:

Accepted Answer

A)  cure. 
B)  revocation. 
C)  rejection. 
D)  tender. 
A)  cure. 
B)  revocation. 
C)  rejection. 
D)  tender.

Question 16

Bill orders a custom-made suit from Rooks to be delivered by Friday at 5 p.m. When the suit is delivered to his office on Friday afternoon, he is in conference with a client. He accepts delivery and hangs the suit in his closet. When Bill tries on the suit Saturday evening, he discovers that the pants are cuffed. He had ordered cuffless trousers. What can he do?

Accepted Answer

A)  He cannot revoke acceptance since the cuffs are not difficult to discover. 
B)  He can revoke acceptance if the cuffs substantially impair the value of the goods to him and Rooks will not remove the cuffs. 
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 if the cuffs substantially impair the value of the goods to him and Rooks will not remove the cuffs. 
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.

Question 17

Which of the following is a shipment contract?

Accepted Answer

A)  Ex-ship. 
B)  F.O.B. place of shipment. 
C)  No arrival, no sale. 
D)  Express F.O.B. 
A)  Ex-ship. 
B)  F.O.B. place of shipment. 
C)  No arrival, no sale. 
D)  Express F.O.B.

Question 18

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 pay for the defective tires, but Supertread must provide 200 tires in November. 
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 pay for the defective tires, but Supertread must provide 200 tires in November.

Question 19

In most sales, the buyer has the right to inspect the goods before he pays.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 20: Performance

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

Ryan is interested in purchasing two dozen L.E.D. signs from Superior Sign Co. If the signs are damaged:

The CISG:

Tender of delivery requires:

Under the __________, a buyer may reject goods for even the slightest defect.

Under the CISG, a party may suspend performance of his obligations if, after the conclusion of the contract, it becomes apparent that the other party will not perform a substantial part of his obligations.

Payment of a C.O.D. shipment constitutes an acceptance of the goods.

Seller, through no fault of its own, is unable to deliver the goods to buyer because the agreed type of carrier is unavailable. Explain what the Code requires.

In a sale of goods, the seller's tender of performance does not have to conform to the Code's perfect tender rule.

If Mary allows the seller, Sellmart Co., four weeks to repair the defects in her kitchen set and they have tried but have not done a good job at it, she may revoke her acceptance if she:

a. What are the obligations of the seller under a shipment contract? b. What are the obligations of the seller under a destination contract?

Increased production costs will allow the seller to avoid a contract based upon commercial impracticability.

A manifestation by the buyer of his unwillingness to become the owner of the goods is:

Which of the following is a shipment contract?

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:

In most sales, the buyer has the right to inspect the goods before he pays.

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

Introduction to Law

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