Question 1

If a contract requires the seller to merely ship the goods,which of the following is false?

Accepted Answer

A) The seller must put goods into the possession of a carrier. 
B) The seller must make a reasonable contract with the carrier to take the goods to the buyer. 
C) The seller must notify the buyer that the goods have been shipped. 
D) The seller must provide the buyer with pertinent tracking information,if available. 
A) The seller must put goods into the possession of a carrier. 
B) The seller must make a reasonable contract with the carrier to take the goods to the buyer. 
C) The seller must notify the buyer that the goods have been shipped. 
D) The seller must provide the buyer with pertinent tracking information,if available.

Question 2

The court in Weil v.Murray,the case in the text,found that the buyer accepted the painting.Which of the following is not one of the reasons the court used to reach this conclusion?

Accepted Answer

A) Murray kept the painting after a reasonable opportunity for inspection passed. 
B) Murray proposed a counteroffer,which Weil unequivocally accepted. 
C) Murray permitted the painting to be cleaned. 
D) Murray permitted the painting to be restored. 
A) Murray kept the painting after a reasonable opportunity for inspection passed. 
B) Murray proposed a counteroffer,which Weil unequivocally accepted. 
C) Murray permitted the painting to be cleaned. 
D) Murray permitted the painting to be restored.

Question 3

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

Accepted Answer

A) The buyer accepted them with knowledge of the nonconformity,because they were the only option available in the market. 
B) The buyer accepted the goods because of the seller's assurances that it would cure the defect. 
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 with knowledge of the nonconformity,because they were the only option available in the market. 
B) The buyer accepted the goods because of the seller's assurances that it would cure the defect. 
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 4

Once a buyer has accepted goods,he cannot later reject them unless at the time they were accepted,the buyer had reason to believe that the nonconformity would be cured.

Accepted Answer

A) True 
 B)False

Question 5

According to the UCC,acceptance of shipped goods happens before the buyer inspects the commercial goods.

Accepted Answer

A) True 
 B)False

Question 6

The UCC defines good faith as observance of reasonable commercial standards of fair dealing in the trade.

Accepted Answer

A) True 
 B)False

Question 7

As examined in Fitl v.Strek,the case in the text,if a buyer has a basis for rejecting a delivery of goods,the buyer must act within ________ after delivery.

Accepted Answer

A) a reasonable time 
B) 30 days 
C) 60 days 
D) 120 days 
A) a reasonable time 
B) 30 days 
C) 60 days 
D) 120 days

Question 8

Bob contracts to sell Ben 20 bales of hay.A bale is the accepted commercial unit in hay transactions.Ben accepts only 9 1/5 of the 20 bales.Under the UCC,Ben is considered to have accepted:

Accepted Answer

A) all 20 bales. 
B) 10 bales. 
C) 9 bales. 
D) nothing. 
A) all 20 bales. 
B) 10 bales. 
C) 9 bales. 
D) nothing.

Question 9

Is it possible for a party that has waived rights to a portion of the contract not yet performed to retract the waiver? Why?

Accepted Answer

A) Yes.The party will be able to immediately assert the late payments as grounds for later canceling the contract. 
B) Yes.The party can give reasonable notice to the other party that strict performance will be required. 
C) No.Once a party has waived rights to a portion of the contract,it will not be able to assert this as grounds for later canceling the contract. 
D) Yes.The contract is assumed to be made in good faith. 
A) Yes.The party will be able to immediately assert the late payments as grounds for later canceling the contract. 
B) Yes.The party can give reasonable notice to the other party that strict performance will be required. 
C) No.Once a party has waived rights to a portion of the contract,it will not be able to assert this as grounds for later canceling the contract. 
D) Yes.The contract is assumed to be made in good faith.

Question 10

A buyer who is not a merchant rejects nonconforming goods that are not perishable.She:

Accepted Answer

A) may destroy the goods. 
B) must sell the goods for the seller. 
C) must hold the goods till the seller is willing to take them back. 
D) need not return the goods to the seller. 
A) may destroy the goods. 
B) must sell the goods for the seller. 
C) must hold the goods till the seller is willing to take them back. 
D) need not return the goods to the seller.

Question 11

A(n)________ occurs when the buyer and/or the seller delegates their duties or rights to someone else.

Accepted Answer

A) major modification 
B) transfer 
C) consignment 
D) assignment 
A) major modification 
B) transfer 
C) consignment 
D) assignment

Question 12

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

Accepted Answer

A) The buyer accepted them with knowledge of the nonconformity,because they were the only option available in the market. 
B) The buyer accepted the nonconforming goods because the seller could not cure the defect. 
C) The price of the goods fell in the general market. 
D) The nonconformity substantially impaired the value of the goods. 
A) The buyer accepted them with knowledge of the nonconformity,because they were the only option available in the market. 
B) The buyer accepted the nonconforming goods because the seller could not cure the defect. 
C) The price of the goods fell in the general market. 
D) The nonconformity substantially impaired the value of the goods.

Question 13

If the seller demands cash,the seller must give the buyer a reasonable amount of time to obtain it.

Accepted Answer

A) True 
 B)False

Question 14

Explain the term usage of trade.What happens if there is a conflict between the express terms of the contract and trade usage?

Accepted Answer

In many kinds of businesses,there are cu

Question 15

Bobby goes to Sammy's Electronics to buy a CD player.In testing one model,Bobby notices that the "scan" function does not allow scanning once a CD is playing.Bobby purchases the model despite this without mentioning the defect to Sammy.Bobby takes the CD player to his office where he uses it for three months before deciding that he wants to return it.Under these circumstances:

Accepted Answer

A) Bobby has rejected the CD player. 
B) Bobby has accepted the CD player. 
C) if Bobby informs Sammy of the defect now,he can reject the CD player. 
D) a court will not consider Bobby to have accepted the CD player because it is defective. 
A) Bobby has rejected the CD player. 
B) Bobby has accepted the CD player. 
C) if Bobby informs Sammy of the defect now,he can reject the CD player. 
D) a court will not consider Bobby to have accepted the CD player because it is defective.

Question 16

A buyer makes payment for goods accepted using a check.If the bank refuses to pay the check,the buyer:

Accepted Answer

A) has still satisfied the duty to pay for the goods. 
B) must give the goods back to the seller. 
C) has the right to retain the goods. 
D) can be excused from the obligation. 
A) has still satisfied the duty to pay for the goods. 
B) must give the goods back to the seller. 
C) has the right to retain the goods. 
D) can be excused from the obligation.

Question 17

Johnny LaRue sells men's jackets to men's clothing stores,including Melonville Man.Melonville Man orders a selection of men's jackets from LaRue's catalog,asking that LaRue select an assortment of goods for the buyer.LaRue takes advantage of this opportunity to get rid of the odd-sized jackets and those in pastel colors that are no longer popular.LaRue:

Accepted Answer

A) stuck to the express terms of the sales contract. 
B) violated the good faith requirement under sales contracts. 
C) followed the usual trade practice. 
D) properly modified the contract. 
A) stuck to the express terms of the sales contract. 
B) violated the good faith requirement under sales contracts. 
C) followed the usual trade practice. 
D) properly modified the contract.

Question 18

A party can withdraw repudiation before the other party has cancelled the contract or has materially changed position by clearly indicating that the person intends to perform his obligations.

Accepted Answer

A) True 
 B)False

Question 19

The case in the text,Pittman v.Henry Moncure Motors,demonstrates that:

Accepted Answer

A) 11 years of continued use constitutes acceptance. 
B) a buyer may revoke acceptance after accepting the goods because of the seller's assurances that it would cure the defect but eventually,never cures the defect. 
C) a buyer's failure to notify a seller within a reasonable amount of time that the goods are nonconforming waives any claims it may have for breach of contract. 
D) a buyer can revoke acceptance when the nonconforming goods minimally impairs the value of the goods. 
A) 11 years of continued use constitutes acceptance. 
B) a buyer may revoke acceptance after accepting the goods because of the seller's assurances that it would cure the defect but eventually,never cures the defect. 
C) a buyer's failure to notify a seller within a reasonable amount of time that the goods are nonconforming waives any claims it may have for breach of contract. 
D) a buyer can revoke acceptance when the nonconforming goods minimally impairs the value of the goods.

Question 20

Section 2-608 of the UCC gives the buyer what right in sales contracts?

Accepted Answer

A) The right to revoke a sales contract within a reasonable period for nonconformity 
B) The right to accept fewer units from the seller in order to make the agreement profitable 
C) The right to place sales agreement on hold until new credit can be obtained 
D) The right to pay less than agreed upon price if the agreement is not profitable 
A) The right to revoke a sales contract within a reasonable period for nonconformity 
B) The right to accept fewer units from the seller in order to make the agreement profitable 
C) The right to place sales agreement on hold until new credit can be obtained 
D) The right to pay less than agreed upon price if the agreement is not profitable

Exam 21: Performance of Sales Contracts

If a contract requires the seller to merely ship the goods,which of the following is false?

The court in Weil v.Murray,the case in the text,found that the buyer accepted the painting.Which of the following is not one of the reasons the court used to reach this conclusion?

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

Once a buyer has accepted goods,he cannot later reject them unless at the time they were accepted,the buyer had reason to believe that the nonconformity would be cured.

According to the UCC,acceptance of shipped goods happens before the buyer inspects the commercial goods.

The UCC defines good faith as observance of reasonable commercial standards of fair dealing in the trade.

As examined in Fitl v.Strek,the case in the text,if a buyer has a basis for rejecting a delivery of goods,the buyer must act within ________ after delivery.

Bob contracts to sell Ben 20 bales of hay.A bale is the accepted commercial unit in hay transactions.Ben accepts only 9 1/5 of the 20 bales.Under the UCC,Ben is considered to have accepted:

Is it possible for a party that has waived rights to a portion of the contract not yet performed to retract the waiver? Why?

A buyer who is not a merchant rejects nonconforming goods that are not perishable.She:

A(n)________ occurs when the buyer and/or the seller delegates their duties or rights to someone else.

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

If the seller demands cash,the seller must give the buyer a reasonable amount of time to obtain it.

Explain the term usage of trade.What happens if there is a conflict between the express terms of the contract and trade usage?

A buyer makes payment for goods accepted using a check.If the bank refuses to pay the check,the buyer:

A party can withdraw repudiation before the other party has cancelled the contract or has materially changed position by clearly indicating that the person intends to perform his obligations.

The case in the text,Pittman v.Henry Moncure Motors,demonstrates that:

Section 2-608 of the UCC gives the buyer what right in sales contracts?

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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