Question 1

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  False

Question 2

If, before the time for performance, a buyer communicates an intent not to perform, the seller can consider the buyer in breach and pursue a remedy.

Accepted Answer

A) True 
 B)False  True

Question 3

If goods in every respect conform to a contract, the buyer or lessee does not have a right to reject the goods.

Accepted Answer

A) True 
 B)False  True

Question 4

Freddi buys bike shoes from Get n' Gear Store, telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Freddi to be injured in a fall. Get n' Gear most likely breached​

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 5

Replay Sports Stores and SportsPower Products, Inc., enter into a contract for a sale of trampolines. SportsPower Products is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchant ability arises

Accepted Answer

A)  ​automatically. 
B)  ​only if the buyer asks for such a warranty. 
C)  ​only if the seller expresses such a warranty. 
D)  ​only in conjunction with lease contracts, not sales contracts. 
A)  ​automatically. 
B)  ​only if the buyer asks for such a warranty. 
C)  ​only if the seller expresses such a warranty. 
D)  ​only in conjunction with lease contracts, not sales contracts.

Question 6

A product is unmerchantable if an accident could arise in connection with the goods.

Accepted Answer

A) True 
 B)False

Question 7

Refined Mills orders "Grade A" oats from Sweet Valley Farms to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to

Accepted Answer

A)  ​Sweet Valley. 
B)  ​Town Co-op. 
C)  ​no one. 
D)  ​the appropriate state government agency. 
A)  ​Sweet Valley. 
B)  ​Town Co-op. 
C)  ​no one. 
D)  ​the appropriate state government agency.

Question 8

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 9

Express warranties can be found in a seller's brochure.

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

River Gear Company and Tours & Trips, Inc., enter into a contract on August 1 for the sale of fifty inflatable river rafts. Tours & Trips cancels the contract ten days later. River Gear is unable to sell the rafts to another buyer. River Gear can

Accepted Answer

A)  ​force Tours & Trips to accept the rafts and pay for them. 
B)  ​recover the contract price from Tours & Trips but must hold the rafts for it. 
C)  ​recover the contract price from Tours & Trips and keep the rafts. 
D)  ​recover the contract price from Tours & Trips but must destroy the rafts. 
A)  ​force Tours & Trips to accept the rafts and pay for them. 
B)  ​recover the contract price from Tours & Trips but must hold the rafts for it. 
C)  ​recover the contract price from Tours & Trips and keep the rafts. 
D)  ​recover the contract price from Tours & Trips but must destroy the rafts.

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

In most sales, sellers warrant that they have good and valid title to the goods sold.

Accepted Answer

A) True 
 B)False

Question 17

Fact Pattern 18-1
​Daily 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 18-1. 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 18

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 19

With an installment contract, a buyer or lessee can reject a single installment on any pretext.

Accepted Answer

A) True 
 B)False

Question 20

Vehicle Wholesale Company and Walt's Retail Motors enter into a contract for a sale of used cars. Vehicle Wholesale assures Walt's that it has valid title to the vehicles. Under the UCC, warranties of title arise

Accepted Answer

A)  ​automatically in most sales contracts. 
B)  ​only if the buyer asks for such a warranty. 
C)  ​only if the seller expresses such a warranty. 
D)  ​only in conjunction with lease contracts, not sales contracts. 
A)  ​automatically in most sales contracts. 
B)  ​only if the buyer asks for such a warranty. 
C)  ​only if the seller expresses such a warranty. 
D)  ​only in conjunction with lease contracts, not sales contracts.

Exam 18: Performance and Breach of Sales and Lease Contracts

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

If, before the time for performance, a buyer communicates an intent not to perform, the seller can consider the buyer in breach and pursue a remedy.

If goods in every respect conform to a contract, the buyer or lessee does not have a right to reject the goods.

Freddi buys bike shoes from Get n' Gear Store, telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Freddi to be injured in a fall. Get n' Gear most likely breached​

Replay Sports Stores and SportsPower Products, Inc., enter into a contract for a sale of trampolines. SportsPower Products is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchant ability arises

A product is unmerchantable if an accident could arise in connection with the goods.

Refined Mills orders "Grade A" oats from Sweet Valley Farms to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to

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

Express warranties can be found in a seller's brochure.

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​

River Gear Company and Tours & Trips, Inc., enter into a contract on August 1 for the sale of fifty inflatable river rafts. Tours & Trips cancels the contract ten days later. River Gear is unable to sell the rafts to another buyer. River Gear can

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

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

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

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.

In most sales, sellers warrant that they have good and valid title to the goods sold.

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

With an installment contract, a buyer or lessee can reject a single installment on any pretext.

Vehicle Wholesale Company and Walt's Retail Motors enter into a contract for a sale of used cars. Vehicle Wholesale assures Walt's that it has valid title to the vehicles. Under the UCC, warranties of title arise

The Legal Environment

Constitutional Law

Courts and Alternative Dispute Resolution

Tort Law

Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Nature and Classification

Agreement

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

International Law in a Global Economy

The Formation of Sales and Lease Contracts

Negotiable Instruments

Banking in the Digital Age

Security Interests and Creditors Rights

Bankruptcy

Agency Relationships in Business

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Private Franchises

All Forms of Partnership

Limited Liability Companies and Special Business Forms

Corporations

Investor Protection, Insider Trading, and Corporate Governance

Antitrust Law and Promoting Competition

Consumer and Environmental Law

Liability of Accountants and Other Professionals

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, Wills, and Trusts

Filters

Freddi buys bike shoes from Get n' Gear Store, telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Freddi to be injured in a fall. Get n' Gear most likely breached

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