Question 1

The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.

Accepted Answer

A) True 
 B)False

Question 2

Precision Parts,Inc.,and Quality Auto stores enter into a contract for a sale of specific auto parts.Precision Parts ships parts that do not meet the specifications.Quality Auto

Accepted Answer

A)  ​cannot reject the entire shipment. 
B)  ​can reject the entire shipment. 
C)  ​must accept the entire shipment. 
D)  ​must reject the entire shipment. 
A)  ​cannot reject the entire shipment. 
B)  ​can reject the entire shipment. 
C)  ​must accept the entire shipment. 
D)  ​must reject the entire shipment.

Question 3

Under the UCC,there are no exceptions to the perfect tender rule.

Accepted Answer

A) True 
 B)False

Question 4

In the absence of any specific agreements,the buyer or lessee must make payment after receipt of the goods.

Accepted Answer

A) True 
 B)False

Question 5

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

Accepted Answer

A) True 
 B)False

Question 6

Under the UCC,if a contract does not designate the place of delivery for the goods,and the buyer is expected to pick them up,then the place of delivery must be at a location halfway between the seller's place of business and the buyer's place of business.

Accepted Answer

A) True 
 B)False

Question 7

Fact Pattern 20-1Daily Bread Bakeries, Inc., contracts to buy all of its ingredient requirements for bread making, at a certain minimum per year, from Enriched Flour & Grain Corporation for six years. After three years, Daily Bread tells Enriched that it plans to sell its assets to Flat Bread Shops, Inc. Flat Bread refuses to assure Enriched that it will continue Daily Bread's contract.
-Refer to Fact Pattern 20-1.Flat Bread's refusal is

Accepted Answer

A)  ​a justified response based on Flat Bread's relation to the contract. 
B)  ​an assignment of Daily Bread's rights under the contract. 
C)  ​a reasonable suspension of performance under the contract. 
D)  ​a repudiation of the contract. 
A)  ​a justified response based on Flat Bread's relation to the contract. 
B)  ​an assignment of Daily Bread's rights under the contract. 
C)  ​a reasonable suspension of performance under the contract. 
D)  ​a repudiation of the contract.

Question 8

Silas Paving Co.contracts to buy some construction machinery from Massive Earthmovers,Inc.Before either party performs,Massive sells its assets to Phoenix Equipment Corp.On learning of the sale,Silas is concerned about its contract with Massive.Silas should

Accepted Answer

A)  ​demand assurances of performance from Massive. 
B)  ​consider the contract repudiated and sue Massive for breach. 
C)  ​buy the machinery from a different supplier and bill Massive for the price. 
D)  ​buy the machinery from a different supplier and bill Phoenix for the price. 
A)  ​demand assurances of performance from Massive. 
B)  ​consider the contract repudiated and sue Massive for breach. 
C)  ​buy the machinery from a different supplier and bill Massive for the price. 
D)  ​buy the machinery from a different supplier and bill Phoenix for the price.

Question 9

Fact Pattern 20-1Daily Bread Bakeries, Inc., contracts to buy all of its ingredient requirements for bread making, at a certain minimum per year, from Enriched Flour & Grain Corporation for six years. After three years, Daily Bread tells Enriched that it plans to sell its assets to Flat Bread Shops, Inc. Flat Bread refuses to assure Enriched that it will continue Daily Bread's contract.
-Refer to Fact Pattern 20-1.Enriched can

Accepted Answer

A)  ​assign its rights under the contract but cannot terminate it. 
B)  ​terminate the contract and seek damages. 
C)  ​suspend performance under the contract until Enriched is fully paid. 
D)  ​do nothing. 
A)  ​assign its rights under the contract but cannot terminate it. 
B)  ​terminate the contract and seek damages. 
C)  ​suspend performance under the contract until Enriched is fully paid. 
D)  ​do nothing.

Question 10

If a buyer repudiates a contract,the seller can bring an action to recover damages.

Accepted Answer

A) True 
 B)False

Question 11

Colby contracts in writing to sell his 2005 Dodge-brand pick-up truck to Efrem for $10,500.Colby agrees to deliver the truck on Friday,and Efrem promises to pay the $10,500 on the following Monday.On Thursday,Efrem tells Colby that he changed his mind and will not buy the truck.Over the weekend,Efrem changes his mind again and tenders $10,500 to Colby on Monday.Colby has not sold the truck to another party but refuses the tender and refuses to deliver.Efrem claims that Colby has breached their contract.Colby contends that Efrem's repudiation released him from his duty to perform under the contract.Who is correct,and why?

Accepted Answer

Efrem is correct.Colby's refusal to deli

Question 12

Noni and Myra enter into a contract for a sale of clarinets and other wind instruments.Noni delivers,but Myra does not pay.Noni 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 13

The term cure refers to the right of the buyer to reject,adjust,or replace nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 14

Oh! Wow! Markets,Inc.,rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation,but is unable to obtain instructions from the seller.Oh! Wow! Markets can

Accepted Answer

A)  ​destroy the goods. 
B)  ​cure the goods to make them conform to the contract. 
C)  ​retain the goods without paying for them. 
D)  ​reship or store the goods for the seller. 
A)  ​destroy the goods. 
B)  ​cure the goods to make them conform to the contract. 
C)  ​retain the goods without paying for them. 
D)  ​reship or store the goods for the seller.

Question 15

Fruit of the Plant,Inc.,agrees to sell a certain quantity of a high-quality grain seed to Grange Co-op.Fruit of the Plant can obtain only half of the quantity ordered,so the seller also ships a lesser quality seed in twice the amount of the remainder of the order for the same price.Grange Co-op rejects the lesser quality seed.With time for performance not yet expired,Fruit of the Plant can​

Accepted Answer

A)  ​attempt to cure the defect. 
B)  ​cancel the contract. 
C)  ​recover the purchase price plus incidental damages. 
D)  ​resell or dispose of the goods and hold Grange Co-op liable for any loss. 
A)  ​attempt to cure the defect. 
B)  ​cancel the contract. 
C)  ​recover the purchase price plus incidental damages. 
D)  ​resell or dispose of the goods and hold Grange Co-op liable for any loss.

Question 16

If a buyer wrongfully refuses to accept goods,the seller can bring an action to recover the damages sustained.

Accepted Answer

A) True 
 B)False

Question 17

The doctrine of commercial impracticability only extends to problems that are unforeseen.

Accepted Answer

A) True 
 B)False

Question 18

Loading Ramps Plus Inc.contracts to sell sixteen aluminum loading ramps to Moving Services,Inc.Loading Ramps ships the ramps,which Moving Services accepts but does not pay for.Loading Ramps can​

Accepted Answer

A)  ​sue to recover the purchase price plus incidental damages. 
B)  ​sue to recover the purchase price minus incidental damages. 
C)  ​resell the ramps to any buyer willing to reclaim them from Moving Services. 
D)  ​require Moving Services to revoke its acceptance of the ramps. 
A)  ​sue to recover the purchase price plus incidental damages. 
B)  ​sue to recover the purchase price minus incidental damages. 
C)  ​resell the ramps to any buyer willing to reclaim them from Moving Services. 
D)  ​require Moving Services to revoke its acceptance of the ramps.

Question 19

Revocation of acceptance is not effective until notice is given to the seller or lessor.

Accepted Answer

A) True 
 B)False

Question 20

Shane's Auto Parts orders twenty tires from Tough Tires,Inc.The truck delivering the tires to Shane's is in an accident and ten of the tires are damaged.Shane's Auto Parts​

Accepted Answer

A)  ​cannot reject the entire shipment. 
B)  ​must still pay for all twenty tires at the original contract price. 
C)  ​may inspect the tires and accept the shipment with a reduction in price. 
D)  ​must reject the entire shipment. 
A)  ​cannot reject the entire shipment. 
B)  ​must still pay for all twenty tires at the original contract price. 
C)  ​may inspect the tires and accept the shipment with a reduction in price. 
D)  ​must reject the entire shipment.

Exam 20: Performance and Breach

The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.

Precision Parts,Inc.,and Quality Auto stores enter into a contract for a sale of specific auto parts.Precision Parts ships parts that do not meet the specifications.Quality Auto

Under the UCC,there are no exceptions to the perfect tender rule.

In the absence of any specific agreements,the buyer or lessee must make payment after receipt of the goods.

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

Under the UCC,if a contract does not designate the place of delivery for the goods,and the buyer is expected to pick them up,then the place of delivery must be at a location halfway between the seller's place of business and the buyer's place of business.

Silas Paving Co.contracts to buy some construction machinery from Massive Earthmovers,Inc.Before either party performs,Massive sells its assets to Phoenix Equipment Corp.On learning of the sale,Silas is concerned about its contract with Massive.Silas should

If a buyer repudiates a contract,the seller can bring an action to recover damages.

Noni and Myra enter into a contract for a sale of clarinets and other wind instruments.Noni delivers,but Myra does not pay.Noni can normally recover as damages the difference between

The term cure refers to the right of the buyer to reject,adjust,or replace nonconforming goods.

Oh! Wow! Markets,Inc.,rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation,but is unable to obtain instructions from the seller.Oh! Wow! Markets can

If a buyer wrongfully refuses to accept goods,the seller can bring an action to recover the damages sustained.

The doctrine of commercial impracticability only extends to problems that are unforeseen.

Loading Ramps Plus Inc.contracts to sell sixteen aluminum loading ramps to Moving Services,Inc.Loading Ramps ships the ramps,which Moving Services accepts but does not pay for.Loading Ramps can​

Revocation of acceptance is not effective until notice is given to the seller or lessor.

Shane's Auto Parts orders twenty tires from Tough Tires,Inc.The truck delivering the tires to Shane's is in an accident and ten of the tires are damaged.Shane's Auto Parts​

Introduction to the Law and Our Legal System

Ethics in Business

The Courts and Alternative Dispute Resolution

Constitutional Law

Tort Law

Intellectual Property

Internet Law, social Media, and Privacy

Criminal Law and Cyber Crime

Introduction to Contracts

Offer and Acceptance

Consideration

Capacity

The Legality of Agreements

Voluntary Consent

Written Contracts

Third Party Rights

Contract Discharge and Remedies

Introduction to Sales and Lease Contracts

Title and Risk of Loss

Warranties and Product Liability

Consumer Protection

The Essentials of Negotiability

Transferability and Liability

Checks and Banking in the Digital Age

Agency

Employment, immigration, and Labor Law

Employment Discrimination

Sole Proprietorships, partnerships, and Limited Liability Companies

Formation and Termination of a Corporation

Management and Ownership of a Corporation

Secured Transactions

Creditors Rights and Remedies

Bankruptcy

Insurance

Personal Property and Bailments

Real Property

Landlord and Tenant Law

Wills and Trusts

Administrative Law

Antitrust Law

International Law

Filters

Loading Ramps Plus Inc.contracts to sell sixteen aluminum loading ramps to Moving Services,Inc.Loading Ramps ships the ramps,which Moving Services accepts but does not pay for.Loading Ramps can

Shane's Auto Parts orders twenty tires from Tough Tires,Inc.The truck delivering the tires to Shane's is in an accident and ten of the tires are damaged.Shane's Auto Parts