Question 1

Which is true regarding a buyer's right to waive warranties?

Accepted Answer

A) A buyer may not waive warranties. 
B) A buyer may waive implied warranties,but not express warranties. 
C) A buyer may waive express warranties,but not implied warranties. 
D) A buyer may waive both implied and express warranties. 
E) A buyer may waive express warranties and the implied warranty of fitness for a particular purpose,but not the implied warranty of merchantability. 
A) A buyer may not waive warranties. 
B) A buyer may waive implied warranties,but not express warranties. 
C) A buyer may waive express warranties,but not implied warranties. 
D) A buyer may waive both implied and express warranties. 
E) A buyer may waive express warranties and the implied warranty of fitness for a particular purpose,but not the implied warranty of merchantability. D

Question 2

The Uniform Commercial Code requires good faith in the performance and enforcement of a contract,but only if the parties expressly include the good faith obligation in their agreement.

Accepted Answer

A) True 
 B)False  False

Question 3

Uniform Commercial Code Section ________ requires good faith in the performance and enforcement of every contract.

Accepted Answer

A) 1-204 
B) 2-205 
C) 3-301 
D) 3-302 
E) 1-304 
A) 1-204 
B) 2-205 
C) 3-301 
D) 3-302 
E) 1-304 E

Question 4

The Uniform Commercial Code requires that buyers are obligated to accept and pay for ________ goods in accordance with the contract.

Accepted Answer

A) substantially conforming 
B) select conforming 
C) even nonconforming 
D) preponderantly conforming 
E) conforming 
A) substantially conforming 
B) select conforming 
C) even nonconforming 
D) preponderantly conforming 
E) conforming

Question 5

What do Uniform Commercial Code Sections 2-601 and 2A-509 indicate regarding the perfect tender rule?

Accepted Answer

A) If goods or tender of delivery fails in any respect to conform to the contract,the buyer has the right to accept the goods,reject the entire shipment,or accept part and reject part. 
B) If goods or tender of delivery fails in any material respect to conform to the contract,the buyer has the right to accept the goods,reject the entire shipment,or accept part and reject part. 
C) If goods or tender of delivery fails in any respect to conform to the contract,the buyer has the right to accept all of the goods or reject the entire shipment,but not the right to accept part and reject part. 
D) If goods or tender of delivery fails in any material respect to conform to the contract,the buyer has the right to accept all of the goods or reject the entire shipment,but not the right to accept part and reject part. 
E) If goods or tender of delivery fails in any respect to conform to the contract,the buyer only has the right to accept the entire shipment and sue for damages. 
A) If goods or tender of delivery fails in any respect to conform to the contract,the buyer has the right to accept the goods,reject the entire shipment,or accept part and reject part. 
B) If goods or tender of delivery fails in any material respect to conform to the contract,the buyer has the right to accept the goods,reject the entire shipment,or accept part and reject part. 
C) If goods or tender of delivery fails in any respect to conform to the contract,the buyer has the right to accept all of the goods or reject the entire shipment,but not the right to accept part and reject part. 
D) If goods or tender of delivery fails in any material respect to conform to the contract,the buyer has the right to accept all of the goods or reject the entire shipment,but not the right to accept part and reject part. 
E) If goods or tender of delivery fails in any respect to conform to the contract,the buyer only has the right to accept the entire shipment and sue for damages.

Question 6

Belinda orders a certain type of hybrid rose for her wedding.A disease sweeps through that type of rose and the florist could only obtain the roses at great cost,if at all.Which of the following is the appropriate term for the florist's best defense?

Accepted Answer

A) Frustration of purpose 
B) Commercial impracticability 
C) Substantial performance 
D) Unforeseen circumstances 
E) Substantial impairment 
A) Frustration of purpose 
B) Commercial impracticability 
C) Substantial performance 
D) Unforeseen circumstances 
E) Substantial impairment

Question 7

Should the perfect tender rule be rejected and replaced with a concept of substantial performance?

Accepted Answer

Student responses will vary.In favor of

Question 8

Which of the following is an accurate statement regarding state choice(s)in recognizing the rights of third-party beneficiaries of warranties?

Accepted Answer

A) According to the Uniform Commercial Code,states must recognize that a seller's warranties extend to the buyer's household members and guests only. 
B) According to the Uniform Commercial Code,states must recognize that a seller's warranties extend to any reasonable and foreseeable user. 
C) According to the Uniform Commercial Code,states must recognize that a seller's warranties extend to anyone injured by the good. 
D) States are given the following three choices regarding third-party beneficiaries of warranties: a)a seller's warranties extend to the buyer's household members and guests; b)a seller's warranties extend to any reasonable and foreseeable user; or c)a seller's warranties extend to anyone injured by the good. 
E) States are given the following two choices regarding third-party beneficiaries of warranties: a)a seller's warranties extend to the buyer's household members and guests; or b)a seller's warranties extend to any reasonable and foreseeable user. 
A) According to the Uniform Commercial Code,states must recognize that a seller's warranties extend to the buyer's household members and guests only. 
B) According to the Uniform Commercial Code,states must recognize that a seller's warranties extend to any reasonable and foreseeable user. 
C) According to the Uniform Commercial Code,states must recognize that a seller's warranties extend to anyone injured by the good. 
D) States are given the following three choices regarding third-party beneficiaries of warranties: a)a seller's warranties extend to the buyer's household members and guests; b)a seller's warranties extend to any reasonable and foreseeable user; or c)a seller's warranties extend to anyone injured by the good. 
E) States are given the following two choices regarding third-party beneficiaries of warranties: a)a seller's warranties extend to the buyer's household members and guests; or b)a seller's warranties extend to any reasonable and foreseeable user.

Question 9

Express warranties cannot be created by statements found in advertisements or brochures.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following determines the obligations of sellers and buyers?

Accepted Answer

A) Terms the parties outline in agreements 
B) Custom 
C) Rules outlined by the Uniform Commercial Code 
D) Terms the parties outline in agreements,custom,and rules outlined by the Uniform Commercial Code 
E) Terms the parties outline in agreements and custom,but not rules outlined by the Uniform Commercial Code 
A) Terms the parties outline in agreements 
B) Custom 
C) Rules outlined by the Uniform Commercial Code 
D) Terms the parties outline in agreements,custom,and rules outlined by the Uniform Commercial Code 
E) Terms the parties outline in agreements and custom,but not rules outlined by the Uniform Commercial Code

Question 11

Under the Uniform Commercial Code,buyers and lessees are obligated to accept and pay for conforming goods in accordance with the contract.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the right of a buyer to substitute goods for those due under a sales agreement?

Accepted Answer

A) Consignment 
B) Subrogation 
C) Cover 
D) Revocation 
E) Reallocation 
A) Consignment 
B) Subrogation 
C) Cover 
D) Revocation 
E) Reallocation

Question 13

Which of the following is true regarding buyers or lessees who want to accept nonconforming goods and then seek monetary damages?

Accepted Answer

A) Buyers and lessees are allowed to do so in order to receive the benefit of the bargain,but they must give the seller/lessor reasonable notice of the defect. 
B) Buyers and lessees are allowed to do so in order to receive the benefit of the bargain,and there is no requirement that they give the seller/lessor prior notice of the defect. 
C) Buyers may do so in order to receive the benefit of the bargain so long as reasonable notice of the defect is given,but lessors may not. 
D) Lessors may do so in order to receive the benefit of the bargain so long as reasonable notice of the defect is given,but buyers may not. 
E) Buyers and lessors may do so,but only if the seller/lessee agrees to the retention of the nonconforming goods and does not request their return. 
A) Buyers and lessees are allowed to do so in order to receive the benefit of the bargain,but they must give the seller/lessor reasonable notice of the defect. 
B) Buyers and lessees are allowed to do so in order to receive the benefit of the bargain,and there is no requirement that they give the seller/lessor prior notice of the defect. 
C) Buyers may do so in order to receive the benefit of the bargain so long as reasonable notice of the defect is given,but lessors may not. 
D) Lessors may do so in order to receive the benefit of the bargain so long as reasonable notice of the defect is given,but buyers may not. 
E) Buyers and lessors may do so,but only if the seller/lessee agrees to the retention of the nonconforming goods and does not request their return.

Question 14

Liquidated damages are identified before a breach of contract occurs.

Accepted Answer

A) True 
 B)False

Question 15

The Uniform Commercial Code defines course of dealing as previous commercial transactions between the same parties.

Accepted Answer

A) True 
 B)False

Question 16

According to the Uniform Commercial Code,a buyer who has accepted goods may later revoke the acceptance even if the buyer cannot demonstrate that the defects substantially impair the value of the goods.

Accepted Answer

A) True 
 B)False

Question 17

In order for an implied warranty of fitness for a particular purpose to be created,the seller must be a merchant.

Accepted Answer

A) True 
 B)False

Question 18

Assuming a buyer that is insolvent has breached a contract by not paying for goods that are in transit,which of the following may occur?

Accepted Answer

A) The carrier may stop delivery regardless of the quantity shipped. 
B) The carrier may stop delivery,but only if the quantity shipped is a large shipment. 
C) The carrier may stop delivery,but only if the buyer expressly agreed in a signed writing to the remedy of stopping shipment. 
D) The carrier may stop delivery,but only if ordered to do so by a bankruptcy judge. 
E) The carrier may not stop delivery under any circumstances. 
A) The carrier may stop delivery regardless of the quantity shipped. 
B) The carrier may stop delivery,but only if the quantity shipped is a large shipment. 
C) The carrier may stop delivery,but only if the buyer expressly agreed in a signed writing to the remedy of stopping shipment. 
D) The carrier may stop delivery,but only if ordered to do so by a bankruptcy judge. 
E) The carrier may not stop delivery under any circumstances.

Question 19

According to the Uniform Commercial Code,in transit means that the seller has delivered the goods to a carrier,and the carrier has turned the goods over to the buyer.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the damages a seller or lessor may recover when a buyer or lessee is in breach and the goods are sold or leased to another party.

Accepted Answer

The seller may recover the difference be

Exam 16: Sales and Lease Contracts: Performance, Warranties, and Remedies

Which is true regarding a buyer's right to waive warranties?

The Uniform Commercial Code requires good faith in the performance and enforcement of a contract,but only if the parties expressly include the good faith obligation in their agreement.

Uniform Commercial Code Section ________ requires good faith in the performance and enforcement of every contract.

The Uniform Commercial Code requires that buyers are obligated to accept and pay for ________ goods in accordance with the contract.

What do Uniform Commercial Code Sections 2-601 and 2A-509 indicate regarding the perfect tender rule?

Belinda orders a certain type of hybrid rose for her wedding.A disease sweeps through that type of rose and the florist could only obtain the roses at great cost,if at all.Which of the following is the appropriate term for the florist's best defense?

Should the perfect tender rule be rejected and replaced with a concept of substantial performance?

Which of the following is an accurate statement regarding state choice(s)in recognizing the rights of third-party beneficiaries of warranties?

Express warranties cannot be created by statements found in advertisements or brochures.

Which of the following determines the obligations of sellers and buyers?

Under the Uniform Commercial Code,buyers and lessees are obligated to accept and pay for conforming goods in accordance with the contract.

Which of the following is the right of a buyer to substitute goods for those due under a sales agreement?

Which of the following is true regarding buyers or lessees who want to accept nonconforming goods and then seek monetary damages?

Liquidated damages are identified before a breach of contract occurs.

The Uniform Commercial Code defines course of dealing as previous commercial transactions between the same parties.

According to the Uniform Commercial Code,a buyer who has accepted goods may later revoke the acceptance even if the buyer cannot demonstrate that the defects substantially impair the value of the goods.

In order for an implied warranty of fitness for a particular purpose to be created,the seller must be a merchant.

Assuming a buyer that is insolvent has breached a contract by not paying for goods that are in transit,which of the following may occur?

According to the Uniform Commercial Code,in transit means that the seller has delivered the goods to a carrier,and the carrier has turned the goods over to the buyer.

Discuss the damages a seller or lessor may recover when a buyer or lessee is in breach and the goods are sold or leased to another party.

An Introduction to the Fundamentals of Dynamic Business Law

Business Ethics and Social Responsibility

The Uslegal System and Alternative Dispute Resolution

Administrative Law

Constitutional Law

Criminal Law and Business

Tort Law

Real, Personal, and Intellectual Property

Introduction to Contracts and Agreement

Consideration

Capacity and Legality

Reality of Assent

Contracts in Writing and Third-Party Contracts

Discharge and Remedies

Formation and Performance of Sales and Lease Contracts

Negotiable Instruments: Negotiability and Transferability

Holder in Due Course, Liability, and Defenses

Secured Transactions and Bankruptcy

Agency and Liability to Third Parties

Forms of Business Organization

Corporations: Formation and Organization

Securities Regulation

Employment and Discrimination Law

Consumer Law

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