Question 1

General contract law uses the test of ________ for determining when a person is excused from performing contractual obligations.

Accepted Answer

A) commercial impracticability 
B) superior knowledge 
C) frustration of purpose 
D) impossibility 
A) commercial impracticability 
B) superior knowledge 
C) frustration of purpose 
D) impossibility D

Question 2

Wanda contracted to sell Mike 100 boxes of ball bearings.The contract did not specify a place of delivery.The ball bearings now reside at Wanda's place of business.Wanda refuses to ship the 100 boxes to Mike,and Mike refuses to come to Wanda's place of business to pick them up.Who is right? Why?

Accepted Answer

Wanda is right.Where the contract does not specify a place of delivery and the goods are located at the seller's business,the place of delivery is the seller's place of business.

Question 3

Under the UCC,if a buyer treats goods as if he owns them,the buyer is considered to have accepted them.

Accepted Answer

A) True 
 B)False  True

Question 4

If no agreement is made regarding the place of delivery,then the goods are to be delivered at the seller's place of business.

Accepted Answer

A) True 
 B)False

Question 5

The buyer may reject an installment delivery only if the nonconformity substantially affects the value of that delivery and cannot be corrected by the seller in a timely fashion.

Accepted Answer

A) True 
 B)False

Question 6

Anticipatory repudiation is disallowed under the UCC.

Accepted Answer

A) True 
 B)False

Question 7

If all or part of the price of goods is payable in real property,then:

Accepted Answer

A) only the transfer of goods is covered by the law of sales of goods. 
B) both the transfer of goods and the real property are covered by the law of real property. 
C) both the transfer of goods and the real property are covered by the law of sales of goods. 
D) only the transfer of the real property is covered by the law of real property. 
A) only the transfer of goods is covered by the law of sales of goods. 
B) both the transfer of goods and the real property are covered by the law of real property. 
C) both the transfer of goods and the real property are covered by the law of sales of goods. 
D) only the transfer of the real property is covered by the law of real property.

Question 8

________ is a doctrine under which a party to a contract is relieved of his or her duty to perform when that performance has become undoable because of the occurrence of an event unforeseen at the time of contracting.

Accepted Answer

A) Commercial impracticability 
B) Repudiation 
C) Frustration of purpose 
D) Impossibility 
A) Commercial impracticability 
B) Repudiation 
C) Frustration of purpose 
D) Impossibility

Question 9

UCC section 1-203 makes what form of requirement on the buyer and seller?

Accepted Answer

A) Both must act in good faith. 
B) Both must have signed the sales agreement. 
C) Both must be residents of same state. 
D) Both must have placed a security interest down on the contract. 
A) Both must act in good faith. 
B) Both must have signed the sales agreement. 
C) Both must be residents of same state. 
D) Both must have placed a security interest down on the contract.

Question 10

Jody,a consumer,ordered a computer from Dwindex Technologies.After Jody validly rejected the computer due to its nonconformity to the contract,Dwindex insisted that Jody return it.Jody refused,and instead just held the computer for Dwindex to retrieve it.Is Jody obligated to return the computer?

Accepted Answer

No.A non-merchant buyer who rejects the

Question 11

Which of the following observations is true under the UCC?

Accepted Answer

A) Consideration is not required to support a modification of a contract for the sale of goods. 
B) If there is a conflict between the express terms of the contract and trade usage,the trade usage will prevail. 
C) The buyer or the seller cannot delegate their duties to someone else under any circumstance. 
D) The UCC does not alter basic contract law when applied to performance of contracts. 
A) Consideration is not required to support a modification of a contract for the sale of goods. 
B) If there is a conflict between the express terms of the contract and trade usage,the trade usage will prevail. 
C) The buyer or the seller cannot delegate their duties to someone else under any circumstance. 
D) The UCC does not alter basic contract law when applied to performance of contracts.

Question 12

Which of the following statements about the buyer's right of inspection is false?

Accepted Answer

A) Absent an agreement to the contrary,the buyer has the right to inspect the goods before paying for them. 
B) If the buyer pays for the goods before inspecting them,he will not be deprived of remedies against the seller if the goods are nonconforming. 
C) Even if the goods are nonconforming,the buyer cannot recover inspection costs from the seller. 
D) If the goods conform to the contract,the buyer must pay the expenses of inspection. 
A) Absent an agreement to the contrary,the buyer has the right to inspect the goods before paying for them. 
B) If the buyer pays for the goods before inspecting them,he will not be deprived of remedies against the seller if the goods are nonconforming. 
C) Even if the goods are nonconforming,the buyer cannot recover inspection costs from the seller. 
D) If the goods conform to the contract,the buyer must pay the expenses of inspection.

Question 13

In most situations,the UCC uses the test of ________ for determining when a person is excused from performing contractual obligations.

Accepted Answer

A) commercial impracticability 
B) superior knowledge 
C) frustration of purpose 
D) impossibility 
A) commercial impracticability 
B) superior knowledge 
C) frustration of purpose 
D) impossibility

Question 14

If a buyer accepts a part of a commercial unit of goods,he is considered to have accepted only that part of the unit.

Accepted Answer

A) True 
 B)False

Question 15

If the goods in the possession of a bailee are not covered by a negotiable warehouse receipt,then the seller must:

Accepted Answer

A) provide a receipt to the buyer. 
B) notify the bailee that it has sold the goods to the buyer and obtain the bailee's consent to hold the goods. 
C) authorize the goods to be held for the buyer. 
D) tender the goods to the buyer. 
A) provide a receipt to the buyer. 
B) notify the bailee that it has sold the goods to the buyer and obtain the bailee's consent to hold the goods. 
C) authorize the goods to be held for the buyer. 
D) tender the goods to the buyer.

Question 16

If the seller does not make a reasonable contract for delivery or notify the buyer and a material delay or loss results,the buyer has the right to reject the shipment.

Accepted Answer

A) True 
 B)False

Question 17

Bob contracts to sell Ben 20 bales of hay at $10 per bale.A bale is the accepted commercial unit in hay transactions.Ben accepts only 9 1/5 of the 20 bales.Ben will have to pay ________.

Accepted Answer

A) $100 
B) $95 
C) $150 
D) $15 
A) $100 
B) $95 
C) $150 
D) $15

Question 18

Sam agrees to make partial deliveries of goods over three months to Winston.The first delivery was late by two weeks.Why should Winston object to this late delivery?

Accepted Answer

A) Winston may be required to pay in advance for future deliveries. 
B) Winston may waive his rights to cancel the contract if other deliveries are late. 
C) Sam may cancel the contract. 
D) Sam may be excused from performing all his contractual obligations. 
A) Winston may be required to pay in advance for future deliveries. 
B) Winston may waive his rights to cancel the contract if other deliveries are late. 
C) Sam may cancel the contract. 
D) Sam may be excused from performing all his contractual obligations.

Question 19

In which of the following situations can a buyer revoke acceptance of nonconforming goods?

Accepted Answer

A) The buyer accepted them without knowledge of the nonconformity because of the difficulty of discovering the nonconformity. 
B) The buyer accepted them with knowledge of the nonconformity,because they were the only option available in the market. 
C) The price of the goods fell in the general market. 
D) The buyer accepted the nonconforming goods because the seller could not cure the defect. 
A) The buyer accepted them without knowledge of the nonconformity because of the difficulty of discovering the nonconformity. 
B) The buyer accepted them with knowledge of the nonconformity,because they were the only option available in the market. 
C) The price of the goods fell in the general market. 
D) The buyer accepted the nonconforming goods because the seller could not cure the defect.

Question 20

The goods required for the performance of a contract are destroyed without fault of either party prior to the time that the risk of loss passed to the buyer.In this case,

Accepted Answer

A) the contract cannot be cancelled. 
B) the contract is voided. 
C) the seller will not be excused. 
D) the seller has to make good for the loss. 
A) the contract cannot be cancelled. 
B) the contract is voided. 
C) the seller will not be excused. 
D) the seller has to make good for the loss.

Exam 21: Performance of Sales Contracts

General contract law uses the test of ________ for determining when a person is excused from performing contractual obligations.

Wanda contracted to sell Mike 100 boxes of ball bearings.The contract did not specify a place of delivery.The ball bearings now reside at Wanda's place of business.Wanda refuses to ship the 100 boxes to Mike,and Mike refuses to come to Wanda's place of business to pick them up.Who is right? Why?

Under the UCC,if a buyer treats goods as if he owns them,the buyer is considered to have accepted them.

If no agreement is made regarding the place of delivery,then the goods are to be delivered at the seller's place of business.

The buyer may reject an installment delivery only if the nonconformity substantially affects the value of that delivery and cannot be corrected by the seller in a timely fashion.

Anticipatory repudiation is disallowed under the UCC.

If all or part of the price of goods is payable in real property,then:

________ is a doctrine under which a party to a contract is relieved of his or her duty to perform when that performance has become undoable because of the occurrence of an event unforeseen at the time of contracting.

UCC section 1-203 makes what form of requirement on the buyer and seller?

Jody,a consumer,ordered a computer from Dwindex Technologies.After Jody validly rejected the computer due to its nonconformity to the contract,Dwindex insisted that Jody return it.Jody refused,and instead just held the computer for Dwindex to retrieve it.Is Jody obligated to return the computer?

Which of the following observations is true under the UCC?

Which of the following statements about the buyer's right of inspection is false?

In most situations,the UCC uses the test of ________ for determining when a person is excused from performing contractual obligations.

If a buyer accepts a part of a commercial unit of goods,he is considered to have accepted only that part of the unit.

If the goods in the possession of a bailee are not covered by a negotiable warehouse receipt,then the seller must:

If the seller does not make a reasonable contract for delivery or notify the buyer and a material delay or loss results,the buyer has the right to reject the shipment.

Bob contracts to sell Ben 20 bales of hay at $10 per bale.A bale is the accepted commercial unit in hay transactions.Ben accepts only 9 1/5 of the 20 bales.Ben will have to pay ________.

Sam agrees to make partial deliveries of goods over three months to Winston.The first delivery was late by two weeks.Why should Winston object to this late delivery?

In which of the following situations can a buyer revoke acceptance of nonconforming goods?

The goods required for the performance of a contract are destroyed without fault of either party prior to the time that the risk of loss passed to the buyer.In this case,

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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