Question 1

Which of the following would not be considered tangible?

Accepted Answer

A)  a car 
B)  oxygen 
C)  the right of ownership 
D)  the pen or pencil you are using 
A)  a car 
B)  oxygen 
C)  the right of ownership 
D)  the pen or pencil you are using C

Question 2

On February 1st,Frank's Fedora Manufacturers sends an offer to Metropolitan Outfitters by letter with all price,quality,quantity and delivery terms clearly stated,indicating that the offer will remain open until October 1st.On September 1st Metropolitan sends an acceptance of the offer to Frank's with no material alterations to any of the stated terms in the offer.The acceptance makes the contract valid and enforceable.

Accepted Answer

A) True 
 B)False  False

Question 3

Your cousin who is a CPA calls you and says that a client paid him in diamonds and he's selling them.If you purchase one of those diamonds,at the time of the sale your cousin would be considered a merchant of those diamonds.

Accepted Answer

A) True 
 B)False  False

Question 4

Your department secretary has called a local office supply company and ordered 100 reams of copy paper.The agreement is that the paper will be delivered to the department office and a check for payment will be given upon delivery.On the way to make the delivery the truck is in a crash and the paper is destroyed in a fire resulting from the accident.

Accepted Answer

A)  this is a shipment contract and the office supply company bears risk of loss 
B)  this is a shipment contract and your school bears risk of loss because the paper had been set aside and tendered 
C)  this is a destination contract and because delivery had been initiated the school bears the risk of loss 
D)  this is a destination contract and since the goods were never properly tendered, the office supply company bears the risk of loss 
A)  this is a shipment contract and the office supply company bears risk of loss 
B)  this is a shipment contract and your school bears risk of loss because the paper had been set aside and tendered 
C)  this is a destination contract and because delivery had been initiated the school bears the risk of loss 
D)  this is a destination contract and since the goods were never properly tendered, the office supply company bears the risk of loss

Question 5

If Continental Tires agreed to purchase all of the rubber that a particular Brazilian rubber plantation could produce,this would be:

Accepted Answer

A)  an output contract. 
B)  an input contract. 
C)  a requirements contract. 
D)  a necessities contract 
A)  an output contract. 
B)  an input contract. 
C)  a requirements contract. 
D)  a necessities contract

Question 6

Normally,the buyer's offer in a commercial transaction takes the form of:

Accepted Answer

A)  a personal letter. 
B)  a purchase order. 
C)  an acknowledgement form. 
D)  a phone call with the parties directly speaking with each other 
A)  a personal letter. 
B)  a purchase order. 
C)  an acknowledgement form. 
D)  a phone call with the parties directly speaking with each other

Question 7

The UCC was written,published and enacted by Congress.

Accepted Answer

A) True 
 B)False

Question 8

The UCC will permit an incomplete or slightly ambiguous contract to be enforced using each of the following criteria except:

Accepted Answer

A)  past commercial conduct. 
B)  industry standards or norms. 
C)  judicial input of any terms necessary to maintain fairness. 
D)  correspondence or verbal exchanges between the parties 
A)  past commercial conduct. 
B)  industry standards or norms. 
C)  judicial input of any terms necessary to maintain fairness. 
D)  correspondence or verbal exchanges between the parties

Question 9

In what ways does the United Nations Convention on Contracts for the International Sale of Goods differ from the UCC in terms of coverage and application?

Accepted Answer

The United Nations Convention on Contrac

Question 10

Josh's Futbol World orders 500 USA replica soccer jerseys from Victory Apparel,a sports apparel manufacturer.The jerseys are to be delivered to Josh's place of business.When the shipment arrives,Josh's discovers that they have received 500 pairs of USA replica shorts but no jerseys.Before they can notify Victory and return the shorts,a fire destroys the building along with the shipment of shorts.

Accepted Answer

A)  this was a destination contract and since the shorts were tendered to the destination, Josh's bears risk of loss until they can be returned 
B)  this was a destination contract and the shorts are nonconforming goods so Victory did not complete performance and retains risk of loss 
C)  this was a shipment contract and Josh's assumed risk of loss when Victory delivered the goods to the carrier 
D)  this was a shipment contract and Victory retains risk of loss until the goods were tendered to Josh's at Josh's establishment 
A)  this was a destination contract and since the shorts were tendered to the destination, Josh's bears risk of loss until they can be returned 
B)  this was a destination contract and the shorts are nonconforming goods so Victory did not complete performance and retains risk of loss 
C)  this was a shipment contract and Josh's assumed risk of loss when Victory delivered the goods to the carrier 
D)  this was a shipment contract and Victory retains risk of loss until the goods were tendered to Josh's at Josh's establishment

Question 11

A significant change or deviation from the terms of a contract is called a ________ change.

Accepted Answer

The answer of A significant change or deviation from the...

Question 12

Shovels R Us sends a purchase order to Acme Snow Shovel,Inc.for 500 shovels to be delivered by September 30,2010,in time for the winter season.Acme returns an acknowledgment form indicating that the shovels would be delivered on March 1,2011.The acknowledgement letter forms a valid contract.

Accepted Answer

A) True 
 B)False

Question 13

In Sons of Thunder,Inc.v.Borden,Inc.,it was alleged that Borden breached their contract with the owners of Sons of Thunder by not purchasing the required amount of clams.The court found that:

Accepted Answer

A)  because Borden urged the plaintiffs to purchase bigger boats to handle "shuck-at-sea" technology and then cancelled the "shuck-at-sea" program, buying less clams from the plaintiff and then buying from a competitor, Borden had not acted in good faith. 
B)  Borden had breached an output contract by not buying all of the plaintiff's clams and buying from competitors. 
C)  purchasing larger boats by the plaintiffs was a business decision that Borden could not be held responsible for. 
D)  Borden had breached a requirements contract by buying from competitors when the plaintiffs still had available clams to sell to them 
A)  because Borden urged the plaintiffs to purchase bigger boats to handle "shuck-at-sea" technology and then cancelled the "shuck-at-sea" program, buying less clams from the plaintiff and then buying from a competitor, Borden had not acted in good faith. 
B)  Borden had breached an output contract by not buying all of the plaintiff's clams and buying from competitors. 
C)  purchasing larger boats by the plaintiffs was a business decision that Borden could not be held responsible for. 
D)  Borden had breached a requirements contract by buying from competitors when the plaintiffs still had available clams to sell to them

Question 14

When a buyer rejects nonconforming goods and purchases the appropriate goods from a different seller,the buyer is said to be _______.

Accepted Answer

The answer of When a buyer rejects nonconforming goods and...

Question 15

The UCC permits terms to be added into a contract or filled in as gap fillers however,the contract cannot be enforceable unless the parties have agreed to and specified a price in their agreement.

Accepted Answer

A) True 
 B)False

Question 16

Abbreviations published by the International Chamber of Commerce meant to avoid confusion in international business transactions are called ________ terms.

Accepted Answer

The answer of Abbreviations published by the International Chamber of...

Question 17

If a seller has delivered nonconforming goods that have been rejected,upon notice of an intent to cure,the seller automatically then has 15 days to deliver conforming goods.

Accepted Answer

A) True 
 B)False

Question 18

Plastic Enterprises sends a purchase order to Felt Industries to buy recycled soda bottles for delivery at Steven's Point.Felt sends an acknowledgement form confirming all of the terms in the purchase order but designating delivery to be at Johnson's Point,two miles down the coast from Steven's Point.Do the parties have a contract and where will the delivery be?

Accepted Answer

The parties will most likely have an enf

Question 19

In a destination contract,the ________ bears risk of loss until the goods reach the destination.

Accepted Answer

The answer of In a destination contract,the ________ bears risk...

Question 20

Betsy is moving to New Mexico and offers to sell her television to April.April isn't sure if she can afford it and asks for a week to decide.If Betsy agrees to hold the offer open for a week and makes the promise in writing,Betsy has given April a firm offer.

Accepted Answer

A) True 
 B)False

Exam 8: Contracts for the Sale of Goods

Which of the following would not be considered tangible?

Your cousin who is a CPA calls you and says that a client paid him in diamonds and he's selling them.If you purchase one of those diamonds,at the time of the sale your cousin would be considered a merchant of those diamonds.

If Continental Tires agreed to purchase all of the rubber that a particular Brazilian rubber plantation could produce,this would be:

Normally,the buyer's offer in a commercial transaction takes the form of:

The UCC was written,published and enacted by Congress.

The UCC will permit an incomplete or slightly ambiguous contract to be enforced using each of the following criteria except:

In what ways does the United Nations Convention on Contracts for the International Sale of Goods differ from the UCC in terms of coverage and application?

A significant change or deviation from the terms of a contract is called a ________ change.

Shovels R Us sends a purchase order to Acme Snow Shovel,Inc.for 500 shovels to be delivered by September 30,2010,in time for the winter season.Acme returns an acknowledgment form indicating that the shovels would be delivered on March 1,2011.The acknowledgement letter forms a valid contract.

In Sons of Thunder,Inc.v.Borden,Inc.,it was alleged that Borden breached their contract with the owners of Sons of Thunder by not purchasing the required amount of clams.The court found that:

When a buyer rejects nonconforming goods and purchases the appropriate goods from a different seller,the buyer is said to be _______.

The UCC permits terms to be added into a contract or filled in as gap fillers however,the contract cannot be enforceable unless the parties have agreed to and specified a price in their agreement.

Abbreviations published by the International Chamber of Commerce meant to avoid confusion in international business transactions are called ________ terms.

If a seller has delivered nonconforming goods that have been rejected,upon notice of an intent to cure,the seller automatically then has 15 days to deliver conforming goods.

In a destination contract,the ________ bears risk of loss until the goods reach the destination.

Betsy is moving to New Mexico and offers to sell her television to April.April isn't sure if she can afford it and asks for a week to decide.If Betsy agrees to hold the offer open for a week and makes the promise in writing,Betsy has given April a firm offer.

Legal Foundations

Business and the Constitution

The American Judicial System,Jurisdiction,and Venue

Resolving Disputes: Litigation and Alternative Dispute Resolution Options

Business,Societal,and Ethical Contexts of Law

Overview and Formation of Contracts

Contract Performance: Conditions, Breach, and Remedies

Torts and Product Liability

Agency and Employment Relationships

Employment Regulation and Labor Law

Employment Discrimination

Choice of Business Entity, Sole Proprietorships, and Partnerships

Limited Liability Partnerships, limited Liability Companies, and Other Business Arrangements

Corporations

Regulation of Securities, corporate Governance, and Financial Markets

Administrative Law

Environmental Law

Antitrust and Regulation of Competition

Creditors Rights and Bankruptcy

Consumer Protection Law

Criminal Law and Procedure in Business

Personal Property, Real Property, and Land Use Law

Intellectual Property

International Law and Global Commerce

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