Question 1

Define these terms: usage of trade,course of dealing,and course of performance and identify how they are used according to the UCC.

Accepted Answer

Usage of trade is any practice that memb

Question 2

A buyer who accepts goods but notifies the seller the goods are non-conforming

Accepted Answer

A) cannot recover any damages. 
B) can recover the difference between the goods as promised and as delivered,plus incidental and consequential damages. 
C) cannot recover incidental damages. 
D) cannot recover consequential damages. 
A) cannot recover any damages. 
B) can recover the difference between the goods as promised and as delivered,plus incidental and consequential damages. 
C) cannot recover incidental damages. 
D) cannot recover consequential damages.

Question 3

Under the "perfect tender rule" the buyer may reject the goods if they fail in any respect to conform to the contract.

Accepted Answer

A) True 
 B)False

Question 4

Neon orders one thousand 25-foot nylon ropes from Hang'em High Co.Upon inspection of the delivery,Neon learns that Hang'em sent five hundred 25-foot ropes and five hundred 20-foot ropes.Neon may

Accepted Answer

A) demand that Hang'em send 500 additional 25-foot ropes and get to keep the 20-foot ropes as well. 
B) accept the 500 conforming ropes and reject the 500 nonconforming ropes. 
C) seek an installment contract. 
D) immediately "cure" by finding a substitute product. 
A) demand that Hang'em send 500 additional 25-foot ropes and get to keep the 20-foot ropes as well. 
B) accept the 500 conforming ropes and reject the 500 nonconforming ropes. 
C) seek an installment contract. 
D) immediately "cure" by finding a substitute product.

Question 5

If a seller cures within a reasonable amount of time,the contract

Accepted Answer

A) has been performed. 
B) is breached. 
C) is void. 
D) is voidable. 
A) has been performed. 
B) is breached. 
C) is void. 
D) is voidable.

Question 6

A buyer's material breach gives the seller the right to refuse to deliver the goods.

Accepted Answer

A) True 
 B)False

Question 7

Under which circumstances has the buyer accepted goods?

Accepted Answer

A) A shipment of goods was delivered to Kamala,who immediately picked up the box from her porch and placed it on her dining-room table. 
B) Peter received a shipment of 100 toy soldiers on Monday;by the end of the week,he had already sold half of them. 
C) Goods were delivered to Lao-tzu,who told the seller that he had received them;two days later,Lao-tzu informed the seller that,upon inspection,the goods were not conforming. 
D) None of these are correct. 
A) A shipment of goods was delivered to Kamala,who immediately picked up the box from her porch and placed it on her dining-room table. 
B) Peter received a shipment of 100 toy soldiers on Monday;by the end of the week,he had already sold half of them. 
C) Goods were delivered to Lao-tzu,who told the seller that he had received them;two days later,Lao-tzu informed the seller that,upon inspection,the goods were not conforming. 
D) None of these are correct.

Question 8

Turtle World orders 200 small sea turtles from Reptile World.After the sea turtles had been identified to the contract but before the risk of loss had passed to Turtle World,the turtles were released into the ocean by a militant animal rights group who broke into Reptile World to set the animals free.Under this scenario

Accepted Answer

A) Turtle World cannot successfully sue because the contract is void. 
B) Turtle World can cover,then win a judgment against Reptile World for the difference between the contract price and the cover price,plus incidental and consequential damages,minus expenses saved. 
C) Turtle World can successfully sue for specific performance because sea turtles are everywhere. 
D) Turtle World is entitled to a judgment for compensatory damages,but not consequential damages. 
A) Turtle World cannot successfully sue because the contract is void. 
B) Turtle World can cover,then win a judgment against Reptile World for the difference between the contract price and the cover price,plus incidental and consequential damages,minus expenses saved. 
C) Turtle World can successfully sue for specific performance because sea turtles are everywhere. 
D) Turtle World is entitled to a judgment for compensatory damages,but not consequential damages.

Question 9

The UCC's requirement that contracting parties perform and enforce their deals honestly is termed

Accepted Answer

A) conformance. 
B) acceptance. 
C) good faith. 
D) reasonable action. 
A) conformance. 
B) acceptance. 
C) good faith. 
D) reasonable action.

Question 10

Which of the following statements is NOT TRUE regarding the buyer's right to cover?

Accepted Answer

A) The buyer must cover. 
B) The measure of damages in a cover is the difference between the cover price and the contract price. 
C) Cover must be done by reasonably obtaining substitute goods. 
D) Consequential damages can be recovered in addition to the cover damages. 
A) The buyer must cover. 
B) The measure of damages in a cover is the difference between the cover price and the contract price. 
C) Cover must be done by reasonably obtaining substitute goods. 
D) Consequential damages can be recovered in addition to the cover damages.

Question 11

In the Zion Temple First Pentecostal Church of Cincinnati,Ohio,Inc.v.Brighter Day Bookstore & Gifts case,the court found that,because of an error in the company's catalog,there was no right to cure a nonconformity with the sleeves of the choir robes delivered to Zion.

Accepted Answer

A) True 
 B)False

Question 12

"Course of dealing" refers to prior commercial transactions between the same parties.

Accepted Answer

A) True 
 B)False

Question 13

If a buyer does not receive goods by the contract deadline,remedies available include all of the following EXCEPT

Accepted Answer

A) incidental and consequential damages. 
B) cover. 
C) damages for non-delivery. 
D) cure. 
A) incidental and consequential damages. 
B) cover. 
C) damages for non-delivery. 
D) cure.

Question 14

Master Glue Hairspray,Inc.contracts to purchase 100 umbrellas with its logo and slogan,"A spray a day keeps the rain and wind away!" specially printed on the umbrellas and its 1-800 telephone number on the umbrella handle.After the seller completes the order,Master Glue refuses to accept or pay for the umbrellas.Because of the special logo and telephone number,the seller has been unable to find a new buyer.If the seller sues Master Glue,what is the proper measure of the seller's damages?

Accepted Answer

A) contract price minus market value of the goods at the time of delivery 
B) contract price 
C) lost profits 
D) cover price minus contract price 
A) contract price minus market value of the goods at the time of delivery 
B) contract price 
C) lost profits 
D) cover price minus contract price

Question 15

Under the doctrine of commercial impracticability,which situation would NOT excuse the seller's performance?

Accepted Answer

A) The seller forgot to include the cost of freight in a C&F contract. 
B) The seller's source of supply is no longer available because of a governmental embargo prohibiting an export from another country. 
C) The seller cannot deliver because severe flooding wiped out three-fourths of the state's produce. 
D) The seller's workforce is out on an unexpected strike. 
A) The seller forgot to include the cost of freight in a C&F contract. 
B) The seller's source of supply is no longer available because of a governmental embargo prohibiting an export from another country. 
C) The seller cannot deliver because severe flooding wiped out three-fourths of the state's produce. 
D) The seller's workforce is out on an unexpected strike.

Question 16

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

Accepted Answer

If a buyer breaches a contract,the selle

Question 17

Which is an example of a repudiation?

Accepted Answer

A) Jaime orders goods to be delivered on May 1;the company does not deliver the goods until May 15. 
B) Darlene offers to sell her car to Brian for $5,000;Brian tells Darlene he will give her $4,000 for the car. 
C) Max places an order for five custom-made shirts;two hours later,he changes his mind and notifies the shirt company that he will not pay for the shirts if they are sent. 
D) Venus orders 100 silk dresses,which she plans to resell;when the order arrives,she finds the dresses are made of cotton,so she refuses to pay for them. 
A) Jaime orders goods to be delivered on May 1;the company does not deliver the goods until May 15. 
B) Darlene offers to sell her car to Brian for $5,000;Brian tells Darlene he will give her $4,000 for the car. 
C) Max places an order for five custom-made shirts;two hours later,he changes his mind and notifies the shirt company that he will not pay for the shirts if they are sent. 
D) Venus orders 100 silk dresses,which she plans to resell;when the order arrives,she finds the dresses are made of cotton,so she refuses to pay for them.

Question 18

Under the UCC,a buyer's right to reasonably obtain substitute goods because another party has not honored a contract is called

Accepted Answer

A) breach. 
B) cure. 
C) cover. 
D) consideration. 
A) breach. 
B) cure. 
C) cover. 
D) consideration.

Question 19

A homeowner has a contract with a firewood supplier to bring a stack of hardwood at the beginning of each month from October through March.If the supplier has brought a mixture of hard and soft woods for the first three deliveries and the homeowner accepted the deliveries,the homeowner cannot reject a delivery in January just because it includes some soft wood.

Accepted Answer

A) True 
 B)False

Question 20

A buyer who accepts nonconforming goods may revoke the acceptance under limited circumstances.

Accepted Answer

A) True 
 B)False

Exam 23: Performance and Remedies

Define these terms: usage of trade,course of dealing,and course of performance and identify how they are used according to the UCC.

A buyer who accepts goods but notifies the seller the goods are non-conforming

Under the "perfect tender rule" the buyer may reject the goods if they fail in any respect to conform to the contract.

Neon orders one thousand 25-foot nylon ropes from Hang'em High Co.Upon inspection of the delivery,Neon learns that Hang'em sent five hundred 25-foot ropes and five hundred 20-foot ropes.Neon may

If a seller cures within a reasonable amount of time,the contract

A buyer's material breach gives the seller the right to refuse to deliver the goods.

Under which circumstances has the buyer accepted goods?

The UCC's requirement that contracting parties perform and enforce their deals honestly is termed

Which of the following statements is NOT TRUE regarding the buyer's right to cover?

In the Zion Temple First Pentecostal Church of Cincinnati,Ohio,Inc.v.Brighter Day Bookstore & Gifts case,the court found that,because of an error in the company's catalog,there was no right to cure a nonconformity with the sleeves of the choir robes delivered to Zion.

"Course of dealing" refers to prior commercial transactions between the same parties.

If a buyer does not receive goods by the contract deadline,remedies available include all of the following EXCEPT

Under the doctrine of commercial impracticability,which situation would NOT excuse the seller's performance?

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

Which is an example of a repudiation?

Under the UCC,a buyer's right to reasonably obtain substitute goods because another party has not honored a contract is called

A buyer who accepts nonconforming goods may revoke the acceptance under limited circumstances.

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

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant Law

Personal Property and Bailment

Planning for the Future: Wills, Trusts and Insurance

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