Question 1

The Uniform Commercial Code uses the test of _____ to determine when a seller is excused from performing contractual obligations.

Accepted Answer

A)  wrongful rejection 
B)  commercial impracticability 
C)  proximate causes 
D)  concurrent causes 
A)  wrongful rejection 
B)  commercial impracticability 
C)  proximate causes 
D)  concurrent causes B

Question 2

Liu orders a music player from Spark Appliances and intends on using it during her upcoming vacation.She notices a button missing from its console but accepts the order because she is leaving town the next day.Liu returns from her vacation a week later,takes the music player to Spark and rejects the purchase because of the missing button.Does Liu have a right to reject the purchase? Explain what is most likely to happen in this scenario.

Accepted Answer

Acceptance of goods occurs when a buyer,after having reasonable opportunity to inspect the goods,either indicates that he will take them or fails to reject them.To reject goods,the buyer must notify the seller of the rejection and specify the defect or nonconformity.If a buyer treats the goods as if he owns them,the buyer is considered to have accepted them (2-606).In Liu's case,her use of the music player for a week would be inconsistent with its rejection and the return of ownership to the seller.

Question 3

The terms in the contract between the parties are the primary means for determining the obligations of the buyer and seller.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is true of the buyer's right of inspection?

Accepted Answer

A)  If the terms of the purchase are cash on delivery, the buyer must pay for the goods before inspection unless they are marked "Inspection Allowed." 
B)  If the terms of the purchase are cash on delivery, the buyer always has the right to inspect the goods before he pays for it. 
C)  The buyer has a right to inspect goods only if the transaction involves the purchase of perishable commodities or electronic equipment. 
D)  The buyer can reject the goods immediately after inspection but only after paying for the goods. 
A)  If the terms of the purchase are cash on delivery, the buyer must pay for the goods before inspection unless they are marked "Inspection Allowed." 
B)  If the terms of the purchase are cash on delivery, the buyer always has the right to inspect the goods before he pays for it. 
C)  The buyer has a right to inspect goods only if the transaction involves the purchase of perishable commodities or electronic equipment. 
D)  The buyer can reject the goods immediately after inspection but only after paying for the goods.

Question 5

Under the Uniform Commercial Code,the duties of either the buyer or the seller generally may be delegated to someone else.

Accepted Answer

A) True 
 B)False

Question 6

If there is a conflict between the express terms of the contract and trade usage,_____.

Accepted Answer

A)  the trade usage prevails 
B)  the express terms prevail 
C)  neither will prevail over the other 
D)  implied terms prevail 
A)  the trade usage prevails 
B)  the express terms prevail 
C)  neither will prevail over the other 
D)  implied terms prevail

Question 7

If there is no agreement for delivery in installments,then all the goods must be delivered to the buyer in a single delivery.

Accepted Answer

A) True 
 B)False

Question 8

If a contract does not require a seller to deliver the goods to a buyer's place of business but merely to ship the goods to the buyer,the seller:

Accepted Answer

A)  is required to put the goods into the possession of a carrier such as a trucking company or a railroad. 
B)  is not required to notify the buyer of the shipment as it is the duty of the carrier to bear for any material delay or loss in the process. 
C)  is required to deliver the goods personally to the buyer's place of business. 
D)  is not required to make a contract with the carrier as the seller's duty ends after he delivers the goods safely to the carrier. 
A)  is required to put the goods into the possession of a carrier such as a trucking company or a railroad. 
B)  is not required to notify the buyer of the shipment as it is the duty of the carrier to bear for any material delay or loss in the process. 
C)  is required to deliver the goods personally to the buyer's place of business. 
D)  is not required to make a contract with the carrier as the seller's duty ends after he delivers the goods safely to the carrier.

Question 9

When the buyer rejects goods that are not perishable,and the seller does not give the buyer instructions concerning the disposal of the goods,the buyer:

Accepted Answer

A)  can resell the goods but cannot keep a commission on the sale. 
B)  cannot reship the goods to the seller as it would break the contract. 
C)  cannot resell the goods. 
D)  can give the seller a reasonable time to remove the goods. 
A)  can resell the goods but cannot keep a commission on the sale. 
B)  cannot reship the goods to the seller as it would break the contract. 
C)  cannot resell the goods. 
D)  can give the seller a reasonable time to remove the goods.

Question 10

If the buyer and seller do not have an agreement for where the goods are to be delivered,the goods should be delivered at the _____.

Accepted Answer

A)  seller's place of business 
B)  seller's house, even if the seller has a place of business 
C)  buyer's house 
D)  buyer's place of work 
A)  seller's place of business 
B)  seller's house, even if the seller has a place of business 
C)  buyer's house 
D)  buyer's place of work

Question 11

The "right to cure" refers to:

Accepted Answer

A)  the seller's right to reship conforming goods within a reasonable time. 
B)  the seller's right to obtain payment from the buyer despite delivering nonconforming goods. 
C)  the exclusive right, granted by state permit, for certain businesses to reship certain types of items. 
D)  the buyer's right to persuade a seller to replace nonconforming goods. 
A)  the seller's right to reship conforming goods within a reasonable time. 
B)  the seller's right to obtain payment from the buyer despite delivering nonconforming goods. 
C)  the exclusive right, granted by state permit, for certain businesses to reship certain types of items. 
D)  the buyer's right to persuade a seller to replace nonconforming goods.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Under the Uniform Commercial Code,only the buyer can demand assurance from the other party that the contract will be performed.

Accepted Answer

A) True 
 B)False

Question 14

Winston ordered fifty 7-inch tablets from One Tech Solutions,a wholesaler.The terms of the sale were cash on delivery.When Winston received the goods,he could see without inspection that they were fifty 9-inch tablets and not what he had ordered.Under these circumstances,_____.

Accepted Answer

A)  Winston may reject the tablets without making any payment 
B)  Winston cannot reject the order because the terms of the purchase were cash on delivery 
C)  Winston must accept the order but is entitled to a discount of the purchase 
D)  Winston is entitled to receive the shipment without paying for it because of the seller's breach of contract 
A)  Winston may reject the tablets without making any payment 
B)  Winston cannot reject the order because the terms of the purchase were cash on delivery 
C)  Winston must accept the order but is entitled to a discount of the purchase 
D)  Winston is entitled to receive the shipment without paying for it because of the seller's breach of contract

Question 15

If the goods delivered by the seller do not conform to the contract,_____.

Accepted Answer

A)  the buyer can pay for the units accepted at a price lower than the price per unit provided in the contract 
B)  the buyer can accept only part of a commercial unit and reject the rest 
C)  the buyer cannot reject an installment delivery even if the nonconformity substantially affects the value of that delivery 
D)  the buyer can accept any commercial units and reject the rest 
A)  the buyer can pay for the units accepted at a price lower than the price per unit provided in the contract 
B)  the buyer can accept only part of a commercial unit and reject the rest 
C)  the buyer cannot reject an installment delivery even if the nonconformity substantially affects the value of that delivery 
D)  the buyer can accept any commercial units and reject the rest

Question 16

Once a party to a contract repudiates the contract,it is rendered void with no way to withdraw the repudiation.

Accepted Answer

A) True 
 B)False

Question 17

PC Corp.entered into a contract with KPL University (KPLU)to supply 500 PCs for use in KPLU's new computer facility.A week before the PCs were to be delivered,KPLU indicated that it would not go through with the purchase.PC Corp.immediately stopped assembling the computers for KPLU and sold the already assembled computers to another buyer.Three days later,KPLU decided to go through with the purchase and asked PC Corp.to deliver the 500 PCs on the delivery date as agreed in the contract.Is PC Corp.obligated to deliver the PCs as required by the contract? Why or why not?

Accepted Answer

No,PC Corp.is not obligated to deliver t

Question 18

Which of the following is true about the seller's duty of delivery?

Accepted Answer

A)  The contract of sale requires the seller to deliver the goods to the buyer's place of business. 
B)  If the goods are covered by a negotiable warehouse receipt, the buyer must indorse the receipt. 
C)  The buyer is required to officially notify the seller once he receives the goods. 
D)  The seller's basic obligation is to tender delivery of goods that conform to the contract with the buyer. 
A)  The contract of sale requires the seller to deliver the goods to the buyer's place of business. 
B)  If the goods are covered by a negotiable warehouse receipt, the buyer must indorse the receipt. 
C)  The buyer is required to officially notify the seller once he receives the goods. 
D)  The seller's basic obligation is to tender delivery of goods that conform to the contract with the buyer.

Question 19

Ryan owns a department store called One Stop.He made an order of eggs from his usual wholesaler.The eggs arrived,but they were too old to be sold at the store.He rejected the goods and promptly notified the wholesaler.What are Ryan's responsibilities regarding the rejection of the spoilt goods?

Accepted Answer

A)  Ryan must follow the seller's instructions that concern the disposition of the eggs. 
B)  Ryan must sell the eggs on the wholesaler's behalf but cannot retain profits or take a commission. 
C)  Ryan need not state any reasons to the wholesaler for rejecting the eggs. 
D)  Ryan must give sufficient notice to the seller who must personally come and collect the eggs. 
A)  Ryan must follow the seller's instructions that concern the disposition of the eggs. 
B)  Ryan must sell the eggs on the wholesaler's behalf but cannot retain profits or take a commission. 
C)  Ryan need not state any reasons to the wholesaler for rejecting the eggs. 
D)  Ryan must give sufficient notice to the seller who must personally come and collect the eggs.

Question 20

When a payment is tendered by check,_____.

Accepted Answer

A)  the buyer does not have the right to retain the goods and must give them back to the seller 
B)  the payment is not conditional but can be considered as final or complete 
C)  the buyer has the right to retain the goods if the bank refuses to pay the check 
D)  the duty to pay for the goods is satisfied by the buyer if the bank pays the check 
A)  the buyer does not have the right to retain the goods and must give them back to the seller 
B)  the payment is not conditional but can be considered as final or complete 
C)  the buyer has the right to retain the goods if the bank refuses to pay the check 
D)  the duty to pay for the goods is satisfied by the buyer if the bank pays the check

Exam 21: Performance of Sales Contracts

The Uniform Commercial Code uses the test of _____ to determine when a seller is excused from performing contractual obligations.

The terms in the contract between the parties are the primary means for determining the obligations of the buyer and seller.

Which of the following is true of the buyer's right of inspection?

Under the Uniform Commercial Code,the duties of either the buyer or the seller generally may be delegated to someone else.

If there is a conflict between the express terms of the contract and trade usage,_____.

If there is no agreement for delivery in installments,then all the goods must be delivered to the buyer in a single delivery.

If a contract does not require a seller to deliver the goods to a buyer's place of business but merely to ship the goods to the buyer,the seller:

When the buyer rejects goods that are not perishable,and the seller does not give the buyer instructions concerning the disposal of the goods,the buyer:

If the buyer and seller do not have an agreement for where the goods are to be delivered,the goods should be delivered at the _____.

The "right to cure" refers to:

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

Under the Uniform Commercial Code,only the buyer can demand assurance from the other party that the contract will be performed.

Winston ordered fifty 7-inch tablets from One Tech Solutions,a wholesaler.The terms of the sale were cash on delivery.When Winston received the goods,he could see without inspection that they were fifty 9-inch tablets and not what he had ordered.Under these circumstances,_____.

If the goods delivered by the seller do not conform to the contract,_____.

Once a party to a contract repudiates the contract,it is rendered void with no way to withdraw the repudiation.

Which of the following is true about the seller's duty of delivery?

Ryan owns a department store called One Stop.He made an order of eggs from his usual wholesaler.The eggs arrived,but they were too old to be sold at the store.He rejected the goods and promptly notified the wholesaler.What are Ryan's responsibilities regarding the rejection of the spoilt goods?

When a payment is tendered by check,_____.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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