Question 1

In sales law,a warranty is an assurance by one party of the existence of a fact on which the other party can rely.

Accepted Answer

A) True 
 B)False  True

Question 2

Greg,a salesperson for Home Improvement Center,tells Irena,"This is the best floor sander I've ever seen." This statement is

Accepted Answer

A) an express warranty. 
B) an implied warranty. 
C) a warranty of title. 
D) puffery. 
A) an express warranty. 
B) an implied warranty. 
C) a warranty of title. 
D) puffery. D

Question 3

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  False

Question 4

Blanche,a salesperson for Custom Restaurant Equipment,Inc.,showsDylan,a buyer for Eat n' Dine Company,display items in Custom's showroom,stating that any purchased equipment will match the display. This statement is

Accepted Answer

A) an express warranty. 
B) an implied warranty. 
C) puffery. 
A) an express warranty. 
B) an implied warranty. 
C) puffery.

Question 5

If alessee breaches a contract,the lessor can cancel the contract.

Accepted Answer

A) True 
 B)False

Question 6

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers,but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date

Accepted Answer

A) Pleasant Valley Dairy is excused for any resulting delay. 
B) Pleasant Valley Dairy is liable for any resulting delay. 
C) the time for delivery is extended with a price adjustment for the delay. 
D) the contract is canceled. 
A) Pleasant Valley Dairy is excused for any resulting delay. 
B) Pleasant Valley Dairy is liable for any resulting delay. 
C) the time for delivery is extended with a price adjustment for the delay. 
D) the contract is canceled.

Question 7

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! Marketscan

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 8

Every sale or lease by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

If either the goods or their tender fails to conform to the contract in any respect,the buyer or lessee must reject all of the goods.

Accepted Answer

A) True 
 B)False

Question 11

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis,they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached

Accepted Answer

A) the merchant's implied duty of inspection. 
B) the implied warranty of merchantability. 
C) no duty or warranty because Beginners Run knew nothing about the defect that made the goods unsafe. 
D) no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted. 
A) the merchant's implied duty of inspection. 
B) the implied warranty of merchantability. 
C) no duty or warranty because Beginners Run knew nothing about the defect that made the goods unsafe. 
D) no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted.

Question 12

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros,Inc.,but refuses to deliver. Due to a rice shortage,Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain

Accepted Answer

A) cover. 
B) cure. 
C) tender. 
D) specific performance. 
A) cover. 
B) cure. 
C) tender. 
D) specific performance.

Question 13

Phoenix,a salesperson for Quality Fruit,Inc.,showsRobert,a buyer for Sweet Home Fruit Company,samples of peaches,stating that any ship-ment will match the samples. This statement is

Accepted Answer

A) an express warranty. 
B) a warranty of title. 
C) puffery. 
A) an express warranty. 
B) a warranty of title. 
C) puffery.

Question 14

Fuel Connector Products,Inc.,agrees to sell Go-Flo,Inc.,a certain quantity of hose couplings and fittings,but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is

Accepted Answer

A) Fuel Connector's place of business. 
B) Go-Flo's place of business. 
C) the current location of the hose couplings and fittings. 
D) the U.S. Postal Service office nearest to Go-Flo's place of business. 
A) Fuel Connector's place of business. 
B) Go-Flo's place of business. 
C) the current location of the hose couplings and fittings. 
D) the U.S. Postal Service office nearest to Go-Flo's place of business.

Question 15

A warranty of title cannot be disclaimed.

Accepted Answer

A) True 
 B)False

Question 16

Kramer goes to Lawn & Garden to tune up his mower. Martin,the service tech-ni-cian,learns that Kramer's lawn is overgrown and rocky and advises the use of a certain type of oil,plug,filter,and blade. Later,while Kramer is mowing his lawn,the mower breaks down due to the use of the items recommended by Martin. Kramer may recover from Lawn & Garden for breach of

Accepted Answer

A) an express warranty. 
B) an implied warranty of fitness for a particular purpose. 
C) an implied warranty of merchantability. 
D) a warranty of title. 
A) an express warranty. 
B) an implied warranty of fitness for a particular purpose. 
C) an implied warranty of merchantability. 
D) a warranty of title.

Question 17

Eve'sPastries & Pies contracts with Fruits 2 You,Inc.,for strawberries to be delivered by Kool Refrigerated Trucking. On the day of delivery,the refrigeration on Kool's trucks is not working. Fruits 2 You

Accepted Answer

A) may ship the strawberries to Eve's using a different carrier. 
B) must cancel the contract. 
C) must wait to ship the strawberries until Kool has fixed its trucks. 
D) must ship the goods through a different carrier and pay Eve damages. 
A) may ship the strawberries to Eve's using a different carrier. 
B) must cancel the contract. 
C) must wait to ship the strawberries until Kool has fixed its trucks. 
D) must ship the goods through a different carrier and pay Eve damages.

Question 18

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. 
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.

Question 19

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact,but may not seek damages.

Accepted Answer

A) True 
 B)False

Question 20

Statements of opinion and value usually create express warranties.

Accepted Answer

A) True 
 B)False

Exam 22: Performance and Breach of Sales and Lease Contracts

In sales law,a warranty is an assurance by one party of the existence of a fact on which the other party can rely.

Greg,a salesperson for Home Improvement Center,tells Irena,"This is the best floor sander I've ever seen." This statement is

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

Blanche,a salesperson for Custom Restaurant Equipment,Inc.,showsDylan,a buyer for Eat n' Dine Company,display items in Custom's showroom,stating that any purchased equipment will match the display. This statement is

If alessee breaches a contract,the lessor can cancel the contract.

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers,but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date

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! Marketscan

Every sale or lease by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty of merchantability.

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

If either the goods or their tender fails to conform to the contract in any respect,the buyer or lessee must reject all of the goods.

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis,they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros,Inc.,but refuses to deliver. Due to a rice shortage,Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain

Phoenix,a salesperson for Quality Fruit,Inc.,showsRobert,a buyer for Sweet Home Fruit Company,samples of peaches,stating that any ship-ment will match the samples. This statement is

Fuel Connector Products,Inc.,agrees to sell Go-Flo,Inc.,a certain quantity of hose couplings and fittings,but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is

A warranty of title cannot be disclaimed.

Eve'sPastries & Pies contracts with Fruits 2 You,Inc.,for strawberries to be delivered by Kool Refrigerated Trucking. On the day of delivery,the refrigeration on Kool's trucks is not working. Fruits 2 You

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

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact,but may not seek damages.

Statements of opinion and value usually create express warranties.

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