Question 1

Elegant Carpets,Inc.,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must​

Accepted Answer

A)  ​allow the buyer to reject the goods for any reason. 
B)  ​deliver the goods to a particular destination. 
C)  ​inspect the goods before shipping them. 
D)  ​place the goods into the hands of a carrier. 
A)  ​allow the buyer to reject the goods for any reason. 
B)  ​deliver the goods to a particular destination. 
C)  ​inspect the goods before shipping them. 
D)  ​place the goods into the hands of a carrier. D

Question 2

When a seller refuses to deliver goods that are unique,a buyer can obtain specific performance.

Accepted Answer

A) True 
 B)False  True

Question 3

If goods identified to a contract are destroyed through no fault of either party,both parties are excused from performance.

Accepted Answer

A) True 
 B)False  True

Question 4

Under the perfect tender rule,if tender is not perfect,the seller is obligated to try again.

Accepted Answer

A) True 
 B)False

Question 5

Unless the parties agree otherwise,the buyer or lessee has an absolute right to inspect the goods before making payment.

Accepted Answer

A) True 
 B)False

Question 6

Gold Medical Supply Company and Home & Hospice Care,Inc.,enter into a contract for a sale of health care equipment and supplies.Under either a shipment contract or a destination contract,the seller must​

Accepted Answer

A)  ​allow the buyer to reject the goods for any reason. 
B)  ​deliver the goods to a particular destination. 
C)  ​place the goods into the hands of a carrier. 
D)  ​give the buyer any necessary documents of title. 
A)  ​allow the buyer to reject the goods for any reason. 
B)  ​deliver the goods to a particular destination. 
C)  ​place the goods into the hands of a carrier. 
D)  ​give the buyer any necessary documents of title.

Question 7

Sof' Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Sof' tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may

Accepted Answer

A)  ​await performance, sue Sof', or suspend its own performance. 
B)  ​only await Sof's performance for a commercially reasonable time. 
C)  ​only sue Sof' for breach of contract. 
D)  ​only suspend its own performance. 
A)  ​await performance, sue Sof', or suspend its own performance. 
B)  ​only await Sof's performance for a commercially reasonable time. 
C)  ​only sue Sof' for breach of contract. 
D)  ​only suspend its own performance.

Question 8

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Far Vu,Inc.,which is based in Hawaii.Absent an agreement to the contrary,the place of delivery is in​

Accepted Answer

A)  ​California. 
B)  ​Delaware. 
C)  ​Florida. 
D)  ​Hawaii. 
A)  ​California. 
B)  ​Delaware. 
C)  ​Florida. 
D)  ​Hawaii.

Question 9

Until the time for performance under a contract expires,the seller has a right to cure.

Accepted Answer

A) True 
 B)False

Question 10

Owen and Pablo enter into a contract for a sale of fifty Western saddles.Pablo pays,but Owen does not deliver.Pablo can normally recover as damages the difference between

Accepted Answer

A)  ​any loss avoided and any profit gained. 
B)  ​the actual price and the hoped-for price. 
C)  ​the contract price and the market price. 
D)  ​the current prices in the parties' locations. 
A)  ​any loss avoided and any profit gained. 
B)  ​the actual price and the hoped-for price. 
C)  ​the contract price and the market price. 
D)  ​the current prices in the parties' locations.

Question 11

Pine Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of plywood.Under a destination contract,the seller must​

Accepted Answer

A)  ​allow the buyer to reject the goods for any reason. 
B)  ​deliver the goods to a particular destination. 
C)  ​inspect the goods before tendering their delivery. 
D)  ​place the goods into the hands of a carrier. 
A)  ​allow the buyer to reject the goods for any reason. 
B)  ​deliver the goods to a particular destination. 
C)  ​inspect the goods before tendering their delivery. 
D)  ​place the goods into the hands of a carrier.

Question 12

Under the UCC,a seller's tender of goods that do not conform in every way to a contract is still a valid tender.

Accepted Answer

A) True 
 B)False

Question 13

On May 1,Garage Prefabricators,Inc.,agrees to sell four portable garages to Hiway Truck Service Center.Five days later,Hiway refuses delivery and cancels the contract.Garage Prefabricators is entitled to

Accepted Answer

A)  ​force Hiway to accept the garage. 
B)  ​recover any damages from Hiway but not resell the garage. 
C)  ​resell the garage and recover any damages from Hiway. 
D)  ​resell the garage but not recover any damages from Hiway. 
A)  ​force Hiway to accept the garage. 
B)  ​recover any damages from Hiway but not resell the garage. 
C)  ​resell the garage and recover any damages from Hiway. 
D)  ​resell the garage but not recover any damages from Hiway.

Question 14

The obligation of good faith underlies every contract under the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 15

An installment contract is breached if a seller tenders any nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 16

Sally's Sweet Fruits contracts with Fruits to You,Inc.for a delivery of two hundred pounds of strawberries to be delivered by Keep Kool Trucking,a trucking company with refrigerated trucks.On the day of delivery,the refrigeration units on Keep Kool's trucks are not working.Fruits to You​

Accepted Answer

A)  ​may ship the goods to Sally's using another trucking company with refrigerated trucks. 
B)  ​must refund Sally's money and cancel the contract. 
C)  ​must wait to ship the strawberries until Keep Kool has fixed its trucks. 
D)  ​must ship the goods through a different carrier and pay Sally incidental damages. 
A)  ​may ship the goods to Sally's using another trucking company with refrigerated trucks. 
B)  ​must refund Sally's money and cancel the contract. 
C)  ​must wait to ship the strawberries until Keep Kool has fixed its trucks. 
D)  ​must ship the goods through a different carrier and pay Sally incidental damages.

Question 17

Bayou Boats,Inc.,contracts for the sale of seven swamp boats to Eventide Fishing Tours.Bayou repudiates the contract.Eventide's recovery is measured at the time

Accepted Answer

A)  ​Bayou advertised the goods. 
B)  ​Eventide ordered the goods. 
C)  ​Eventide learned of the breach. 
D)  ​Bayou knew that it would repudiate the contract. 
A)  ​Bayou advertised the goods. 
B)  ​Eventide ordered the goods. 
C)  ​Eventide learned of the breach. 
D)  ​Bayou knew that it would repudiate the contract.

Question 18

Mineral Resource Company contracts to provide several manufacturers with tin.When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts,the distributor​

Accepted Answer

A)  ​can substitute some other material for the tin. 
B)  ​is excused from the performance of its contracts. 
C)  ​is liable for breach of contract. 
D)  ​must still supply the tin needs of its customers. 
A)  ​can substitute some other material for the tin. 
B)  ​is excused from the performance of its contracts. 
C)  ​is liable for breach of contract. 
D)  ​must still supply the tin needs of its customers.

Question 19

Kim's Pony Rides orders ten saddles from Little Horse Saddles,Inc.The sales contract states that if the saddles are defective,Kim's will allow Little Horse Saddles to repair or replace them instead of rejecting the shipment.When the saddles arrive,they are defective.In this case,the perfect tender rule​

Accepted Answer

A)  ​does not apply. 
B)  ​applies to both parties. 
C)  ​applies only to Little Horse Saddles. 
D)  ​applies only to Kim's Pony Rides. 
A)  ​does not apply. 
B)  ​applies to both parties. 
C)  ​applies only to Little Horse Saddles. 
D)  ​applies only to Kim's Pony Rides.

Question 20

Commercial Leasing Corporation and Quarry Construction Company enter into a contract for a lease of three excavators.Under the perfect tender rule,Commercial Leasing must ship or tender goods to the lessee that​

Accepted Answer

A)  ​approximately conform to the contract description. 
B)  ​entirely conform to the contract description in most ways. 
C)  ​conform to the contract description in every way. 
D)  ​substantially conform to the contract description. 
A)  ​approximately conform to the contract description. 
B)  ​entirely conform to the contract description in most ways. 
C)  ​conform to the contract description in every way. 
D)  ​substantially conform to the contract description.

Exam 20: Performance and Breach

Elegant Carpets,Inc.,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must​

When a seller refuses to deliver goods that are unique,a buyer can obtain specific performance.

If goods identified to a contract are destroyed through no fault of either party,both parties are excused from performance.

Under the perfect tender rule,if tender is not perfect,the seller is obligated to try again.

Unless the parties agree otherwise,the buyer or lessee has an absolute right to inspect the goods before making payment.

Gold Medical Supply Company and Home & Hospice Care,Inc.,enter into a contract for a sale of health care equipment and supplies.Under either a shipment contract or a destination contract,the seller must​

Sof' Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Sof' tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Far Vu,Inc.,which is based in Hawaii.Absent an agreement to the contrary,the place of delivery is in​

Until the time for performance under a contract expires,the seller has a right to cure.

Owen and Pablo enter into a contract for a sale of fifty Western saddles.Pablo pays,but Owen does not deliver.Pablo can normally recover as damages the difference between

Pine Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of plywood.Under a destination contract,the seller must​

Under the UCC,a seller's tender of goods that do not conform in every way to a contract is still a valid tender.

On May 1,Garage Prefabricators,Inc.,agrees to sell four portable garages to Hiway Truck Service Center.Five days later,Hiway refuses delivery and cancels the contract.Garage Prefabricators is entitled to

The obligation of good faith underlies every contract under the Uniform Commercial Code.

An installment contract is breached if a seller tenders any nonconforming goods.

Sally's Sweet Fruits contracts with Fruits to You,Inc.for a delivery of two hundred pounds of strawberries to be delivered by Keep Kool Trucking,a trucking company with refrigerated trucks.On the day of delivery,the refrigeration units on Keep Kool's trucks are not working.Fruits to You​

Bayou Boats,Inc.,contracts for the sale of seven swamp boats to Eventide Fishing Tours.Bayou repudiates the contract.Eventide's recovery is measured at the time

Mineral Resource Company contracts to provide several manufacturers with tin.When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts,the distributor​

Commercial Leasing Corporation and Quarry Construction Company enter into a contract for a lease of three excavators.Under the perfect tender rule,Commercial Leasing must ship or tender goods to the lessee that​

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Elegant Carpets,Inc.,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must

Gold Medical Supply Company and Home & Hospice Care,Inc.,enter into a contract for a sale of health care equipment and supplies.Under either a shipment contract or a destination contract,the seller must

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Far Vu,Inc.,which is based in Hawaii.Absent an agreement to the contrary,the place of delivery is in

Pine Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of plywood.Under a destination contract,the seller must

Sally's Sweet Fruits contracts with Fruits to You,Inc.for a delivery of two hundred pounds of strawberries to be delivered by Keep Kool Trucking,a trucking company with refrigerated trucks.On the day of delivery,the refrigeration units on Keep Kool's trucks are not working.Fruits to You

Mineral Resource Company contracts to provide several manufacturers with tin.When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts,the distributor

Commercial Leasing Corporation and Quarry Construction Company enter into a contract for a lease of three excavators.Under the perfect tender rule,Commercial Leasing must ship or tender goods to the lessee that