Question 1

Liquidated damages are not permitted under the UCC.

Accepted Answer

A) True 
 B)False  False

Question 2

If a contract does not provide for a time for inspection,the UCC allows inspection to take place

Accepted Answer

A) within a reasonable time. 
B) the same day as delivery. 
C) within 3 days of delivery. 
D) within 10 days of delivery. 
A) within a reasonable time. 
B) the same day as delivery. 
C) within 3 days of delivery. 
D) within 10 days of delivery. A

Question 3

Buyer Bob breaches his contract for the sale of goods with Seller Suzie.Suzie still has possession of the goods at the time of the breach.Suzie can refuse to deliver the goods and

Accepted Answer

A) resell the goods and sue Bob for the total contract price. 
B) either resell the goods or sue,but not both. 
C) resell the goods and sue for any loss on the sale plus incidental damages less expenses saved. 
D) resell the goods and sue only for incidental damages. 
A) resell the goods and sue Bob for the total contract price. 
B) either resell the goods or sue,but not both. 
C) resell the goods and sue for any loss on the sale plus incidental damages less expenses saved. 
D) resell the goods and sue only for incidental damages. C

Question 4

What is the "perfect tender rule" and what restrictions has the UCC put into place that limit the perfect tender rule's effect?

Accepted Answer

Under the perfect tender rule,the buyer

Question 5

A court order requiring the seller to perform as promised is called

Accepted Answer

A) specific performance. 
B) cover. 
C) liquidated damages. 
D) good faith. 
A) specific performance. 
B) cover. 
C) liquidated damages. 
D) good faith.

Question 6

A buyer may revoke an acceptance of goods if

Accepted Answer

A) the nonconformity does not impair the value of the goods. 
B) the buyer had a legitimate reason for the initial acceptance. 
C) the buyer knew the nonconformity could not be cured. 
D) the buyer thought they could easily cover. 
A) the nonconformity does not impair the value of the goods. 
B) the buyer had a legitimate reason for the initial acceptance. 
C) the buyer knew the nonconformity could not be cured. 
D) the buyer thought they could easily cover.

Question 7

A seller may not make repairs or adjustments after the goods have been tendered,even if that action will bring the goods into conformity in order to "cure" nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 8

Bryson Hardware accepted delivery of the 50 door handles it ordered.If it later finds the handles do not conform to the contract specifications and it wants to revoke its acceptance,it may return the goods only if

Accepted Answer

A) it shows the original acceptance of the goods never occurred. 
B) it shows that the defects substantially impair their value. 
C) it can prove it is commercially impracticable for it to keep the goods. 
D) the documents of title are in order. 
A) it shows the original acceptance of the goods never occurred. 
B) it shows that the defects substantially impair their value. 
C) it can prove it is commercially impracticable for it to keep the goods. 
D) the documents of title are in order.

Question 9

If Chuck buys frozen cheese from Cheese,Inc. ,then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment,Chuck has accepted the shipment even if there is non-conformity.

Accepted Answer

A) True 
 B)False

Question 10

Reba orders a pair of custom-made cowboy boots,C.O.D.from Home on the Range Western Wear.When the boots arrive,Reba pays the carrier for the boots,then opens the package,only to discover that the boots are the wrong snake skin color and three sizes too big.At this point

Accepted Answer

A) Reba is entitled to inspect the goods after payment (due to the C.O.D.terms)and she can reject the boots because they are nonconforming. 
B) Reba cannot revoke the acceptance,because the wrong color and size of the boots are not substantial impairments. 
C) Home on the Range can allege that Reba did not conduct a proper inspection;therefore,Home on the Range owes Reba nothing. 
D) Reba has no recourse;she should have known to inspect the goods before paying the C.O.D.amount. 
A) Reba is entitled to inspect the goods after payment (due to the C.O.D.terms)and she can reject the boots because they are nonconforming. 
B) Reba cannot revoke the acceptance,because the wrong color and size of the boots are not substantial impairments. 
C) Home on the Range can allege that Reba did not conduct a proper inspection;therefore,Home on the Range owes Reba nothing. 
D) Reba has no recourse;she should have known to inspect the goods before paying the C.O.D.amount.

Question 11

Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each.If the first installment arrives with 5 pounds of spoilage,then Dessert World may

Accepted Answer

A) reject the installment shipment because of the perfect tender rule. 
B) not reject the installment if those in the food industry expect a small percentage of spoilage with fresh fruits or vegetables. 
C) reject the entire contract. 
D) declare a breach and "cover." 
A) reject the installment shipment because of the perfect tender rule. 
B) not reject the installment if those in the food industry expect a small percentage of spoilage with fresh fruits or vegetables. 
C) reject the entire contract. 
D) declare a breach and "cover."

Question 12

A baseball team ordered 500 wooden baseball bats from Bats,Inc. ,for delivery on June 1.On May 15,the ball team received 500 aluminum bats instead of the wooden ones.As of May 16,Bats,Inc.

Accepted Answer

A) may cure before June 1. 
B) has breached the contract and is liable for damages. 
C) has breached the contract only if the baseball team rejects the goods. 
D) may cure if the baseball team gives Bats,Inc.permission to do so. 
A) may cure before June 1. 
B) has breached the contract and is liable for damages. 
C) has breached the contract only if the baseball team rejects the goods. 
D) may cure if the baseball team gives Bats,Inc.permission to do so.

Question 13

Leonna orders five table settings of china from Elite China.Each set includes a dinner plate,cup & saucer,bowl,and dessert plate.The china is sold only in sets.When the delivery arrives,Leonna discovers that Elite China sent the wrong pattern.Leonna immediately calls Elite China and is instructed to send the shipment back.While repacking the shipment,Leonna changes her mind and decides to keep the cups and saucers.She returns everything else.Can she do this?

Accepted Answer

Probably not.If the set is seen as a com

Question 14

If applicable,course of dealing will

Accepted Answer

A) limit the buyer's right to reject for relatively routine defects. 
B) allow the seller to replace defective goods with conforming goods if time permits. 
C) permit a buyer to reject accepted goods if they substantially impair its value. 
D) allow either the buyer or the seller to void a contract. 
A) limit the buyer's right to reject for relatively routine defects. 
B) allow the seller to replace defective goods with conforming goods if time permits. 
C) permit a buyer to reject accepted goods if they substantially impair its value. 
D) allow either the buyer or the seller to void a contract.

Question 15

Wimble ordered 1,000 pro-quality luminescent orange tennis balls from Sports Unlimited at a cost of $800.On June 1,Sports Unlimited shipped standard white tennis balls,but Wimble rejected them.Wimble bought the same number of pro-quality luminescent orange balls from another supplier the same day for $650.In a suit against Sports Unlimited,Wimble may recover $800.

Accepted Answer

A) True 
 B)False

Question 16

Family Time Restaurant has a contract with Prime Meats for Prime to deliver 100 pounds of ground sirloin twice a week for the next three months.If,on one delivery,Prime brings 95 pounds of ground chuck instead of 100 pounds of ground sirloin,

Accepted Answer

A) Family Time may unquestionably reject the non-conforming goods because they vary in both quantity and quality. 
B) Family Time may reject the non-conforming installment only if it substantially impairs the value of that installment and cannot be cured. 
C) Prime has no right to cure. 
D) the perfect tender rule applies. 
A) Family Time may unquestionably reject the non-conforming goods because they vary in both quantity and quality. 
B) Family Time may reject the non-conforming installment only if it substantially impairs the value of that installment and cannot be cured. 
C) Prime has no right to cure. 
D) the perfect tender rule applies.

Question 17

The UCC includes sections that limit the perfect tender rule's effect,and courts have a tendency to apply these limitations more enthusiastically than the rule itself.

Accepted Answer

A) True 
 B)False

Question 18

Matson agrees to purchase 500 wooden chairs from Woodcarvers,Inc.After Woodcarvers sets the chairs aside in its warehouse,but before the risk of loss passes to Matson,the chairs are destroyed in a fire,which was not the fault of Woodcarvers.The contract between Matson and Woodcarvers is void.

Accepted Answer

A) True 
 B)False

Question 19

Meister Bros.shipped 250 radiator belts to fill Braybon's order.Quality control measures had been in place in Meister's factory when the belts were manufactured.When Braybon received the order one day before it was due,it notified Meister that it rejected the belts because of a variation from the contract specifications.Meister,although it believed the original belts met the contract specifications,notified Braybon that it would supply conforming goods within one week.When the conforming goods arrive in one week,

Accepted Answer

A) Braybon must accept them,but does not have to pay the full price because the contract deadline has passed. 
B) Braybon does not have to accept them because Meister Bros.only has one chance to fill the order correctly. 
C) Braybon should accept them because Meister Bros.has a right to cure even after the contract deadline under these circumstances. 
D) Braybon does not have to accept them because Meister Bros.failed to meet its UCC requirement to deal in good faith. 
A) Braybon must accept them,but does not have to pay the full price because the contract deadline has passed. 
B) Braybon does not have to accept them because Meister Bros.only has one chance to fill the order correctly. 
C) Braybon should accept them because Meister Bros.has a right to cure even after the contract deadline under these circumstances. 
D) Braybon does not have to accept them because Meister Bros.failed to meet its UCC requirement to deal in good faith.

Question 20

Identify the possible remedies for a buyer when the seller breaches a contract.

Accepted Answer

If a seller breaches a contract,the buye

Exam 23: Performance and Remedies

Liquidated damages are not permitted under the UCC.

If a contract does not provide for a time for inspection,the UCC allows inspection to take place

Buyer Bob breaches his contract for the sale of goods with Seller Suzie.Suzie still has possession of the goods at the time of the breach.Suzie can refuse to deliver the goods and

What is the "perfect tender rule" and what restrictions has the UCC put into place that limit the perfect tender rule's effect?

A court order requiring the seller to perform as promised is called

A buyer may revoke an acceptance of goods if

A seller may not make repairs or adjustments after the goods have been tendered,even if that action will bring the goods into conformity in order to "cure" nonconforming goods.

Bryson Hardware accepted delivery of the 50 door handles it ordered.If it later finds the handles do not conform to the contract specifications and it wants to revoke its acceptance,it may return the goods only if

If Chuck buys frozen cheese from Cheese,Inc. ,then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment,Chuck has accepted the shipment even if there is non-conformity.

Reba orders a pair of custom-made cowboy boots,C.O.D.from Home on the Range Western Wear.When the boots arrive,Reba pays the carrier for the boots,then opens the package,only to discover that the boots are the wrong snake skin color and three sizes too big.At this point

Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each.If the first installment arrives with 5 pounds of spoilage,then Dessert World may

A baseball team ordered 500 wooden baseball bats from Bats,Inc. ,for delivery on June 1.On May 15,the ball team received 500 aluminum bats instead of the wooden ones.As of May 16,Bats,Inc.

If applicable,course of dealing will

Family Time Restaurant has a contract with Prime Meats for Prime to deliver 100 pounds of ground sirloin twice a week for the next three months.If,on one delivery,Prime brings 95 pounds of ground chuck instead of 100 pounds of ground sirloin,

The UCC includes sections that limit the perfect tender rule's effect,and courts have a tendency to apply these limitations more enthusiastically than the rule itself.

Matson agrees to purchase 500 wooden chairs from Woodcarvers,Inc.After Woodcarvers sets the chairs aside in its warehouse,but before the risk of loss passes to Matson,the chairs are destroyed in a fire,which was not the fault of Woodcarvers.The contract between Matson and Woodcarvers is void.

Identify the possible remedies for a buyer when the seller breaches a contract.

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

Consideration

Legality

Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

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Environmental Law

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Real Property and Landlord Tenant Law

Personal Property and Bailment

Planning for the Future: Wills, Trusts and Insurance

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