Question 1

The basic duty of a seller is to deliver the goods called for by the contract.

Accepted Answer

A) True 
 B)False

Question 2

Kanbar Novelties is a wholesaler of costumes and costume accessories in the U.S.Gwen's Barrow is retail store in Iowa that sells Halloween costumes.Gwen's Barrow placed an order for 75 ninja swords,made of glass,from Kanbar Novelties.Kanbar placed the swords in cardboard boxes and shipped them by railroad,without wrapping them in protective material.Moreover,Kanbar failed to indicate that the box contained fragile goods.As a result,there was no care taken to ensure that the box was handled safely.The box was placed under other heavier goods which crushed the glass swords in the box.Kanbar claimed that its obligations ended with the delivery to the carrier and that the risk of loss was on Gwen's Barrow.What argument would you make in favor of Gwen's Barrow?

Accepted Answer

The seller,in the absence of instruction

Question 3

Can a buyer reject goods for nonconformity in contracts that call for delivery of the goods in separate installments? If yes,under what circumstances can he reject such goods?

Accepted Answer

Yes,the buyer can reject goods for nonco

Question 4

If the goods required for the performance of a contract are destroyed without fault of either party prior to the time the risk of loss passed to the buyer,then the contract is voided.

Accepted Answer

A) True 
 B)False

Question 5

If a buyer has a basis for rejecting a delivery of goods,the buyer must act within 12 months of delivery.

Accepted Answer

A) True 
 B)False

Question 6

_____ 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.

Accepted Answer

A)  Assurance of performance 
B)  Notification of shipment 
C)  Acceptance 
D)  Improper delivery 
A)  Assurance of performance 
B)  Notification of shipment 
C)  Acceptance 
D)  Improper delivery

Question 7

Which of the following is a basic obligation or right of the buyer and seller concerning the payment for goods?

Accepted Answer

A)  The price of the goods must be paid in cash. 
B)  If there is no agreement for extending credit to the buyer, the buyer must pay for the goods on delivery. 
C)  If all or part of the price of goods is payable in real property, then both the transfer of goods and real property are covered by the law of sales of goods. 
D)  The buyer has the right to inspect the goods before payment under all circumstances. 
A)  The price of the goods must be paid in cash. 
B)  If there is no agreement for extending credit to the buyer, the buyer must pay for the goods on delivery. 
C)  If all or part of the price of goods is payable in real property, then both the transfer of goods and real property are covered by the law of sales of goods. 
D)  The buyer has the right to inspect the goods before payment under all circumstances.

Question 8

Once a party has waived rights to a portion of a contract that has not yet been performed,that party:

Accepted Answer

A)  may retract the waiver if there is a material change of position by the other party. 
B)  may retract the waiver unconditionally. 
C)  may retract the waiver by giving reasonable notice that strict performance will be required. 
D)  may retract the waiver only if the other party does not object to it. 
A)  may retract the waiver if there is a material change of position by the other party. 
B)  may retract the waiver unconditionally. 
C)  may retract the waiver by giving reasonable notice that strict performance will be required. 
D)  may retract the waiver only if the other party does not object to it.

Question 9

Acceptance of goods occurs when:

Accepted Answer

A)  a buyer indicates that he or she will take the goods. 
B)  a buyer inspects the goods. 
C)  a seller ships the goods to a buyer. 
D)  a buyer makes a payment by cash or check for the goods. 
A)  a buyer indicates that he or she will take the goods. 
B)  a buyer inspects the goods. 
C)  a seller ships the goods to a buyer. 
D)  a buyer makes a payment by cash or check for the goods.

Question 10

If a buyer becomes concerned that the seller may not be able to perform required contract obligations,the buyer:

Accepted Answer

A)  can legally make the contract without telling the other party. 
B)  can demand assurance from the seller that the contract will be performed. 
C)  will be excused from fair trade under the test of commercial impracticability. 
D)  will be excused from performance under the test of impossibility. 
A)  can legally make the contract without telling the other party. 
B)  can demand assurance from the seller that the contract will be performed. 
C)  will be excused from fair trade under the test of commercial impracticability. 
D)  will be excused from performance under the test of impossibility.

Exam 21: Performance of Sales Contracts

The basic duty of a seller is to deliver the goods called for by the contract.

Can a buyer reject goods for nonconformity in contracts that call for delivery of the goods in separate installments? If yes,under what circumstances can he reject such goods?

If the goods required for the performance of a contract are destroyed without fault of either party prior to the time the risk of loss passed to the buyer,then the contract is voided.

If a buyer has a basis for rejecting a delivery of goods,the buyer must act within 12 months of delivery.

_____ 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.

Which of the following is a basic obligation or right of the buyer and seller concerning the payment for goods?

Once a party has waived rights to a portion of a contract that has not yet been performed,that party:

Acceptance of goods occurs when:

If a buyer becomes concerned that the seller may not be able to perform required contract obligations,the buyer:

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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