Question 1

Once the seller has tendered delivery,the buyer is obligated to accept the goods and pay for them.

Accepted Answer

A) True 
 B)False  True

Question 2

Sparkling Gem Corporation agrees to sell Jewel Outlets,Inc.(JOI),fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is

Accepted Answer

A) Sparkling's place of business. 
B) JOI's place of business. 
C) the Annual Gems and Jewels Convention in New York City. 
D) the U.S.Postal Service office nearest to JOI's place of business. 
A) Sparkling's place of business. 
B) JOI's place of business. 
C) the Annual Gems and Jewels Convention in New York City. 
D) the U.S.Postal Service office nearest to JOI's place of business. A

Question 3

If a buyer breaches a contract while the seller is still in possession of the goods,the seller can resell the goods and hold the buyer liable for any loss.

Accepted Answer

A) True 
 B)False  True

Question 4

In general,a buyer's duty to pay for tendered goods becomes absolute be?fore the buyer has had an opportunity to inspect the goods.

Accepted Answer

A) True 
 B)False

Question 5

Tender must occur at a reasonable hour and in a reasonable manner.

Accepted Answer

A) True 
 B)False

Question 6

On a lessee's insolvency,the lessor can stop delivery of the goods.

Accepted Answer

A) True 
 B)False

Question 7

Natural Foods,Inc.,orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers.Olive Grove ships "Grade B" oil,which Natural Foods accepts.To recover damages for the nonconformity,Natural Foods must give notice of the breach within a reasonable time to

Accepted Answer

A) Olive Grove only. 
B) Olive Grove,Pic 'N Pay,and the appropriate government agency. 
C) Pic 'N Pay only. 
D) the appropriate government agency only. 
A) Olive Grove only. 
B) Olive Grove,Pic 'N Pay,and the appropriate government agency. 
C) Pic 'N Pay only. 
D) the appropriate government agency only.

Question 8

Shane's Auto Parts orders twenty tires from Tough Tires,Inc.The truck delivering the tires to Shane's is in an accident and ten of the tires are damaged.Shane's Auto Parts

Accepted Answer

A) cannot reject the entire shipment. 
B) must still pay for all twenty tires at the original contract price. 
C) may inspect the tires and accept the shipment with a reduction in price. 
D) must reject the entire shipment. 
A) cannot reject the entire shipment. 
B) must still pay for all twenty tires at the original contract price. 
C) may inspect the tires and accept the shipment with a reduction in price. 
D) must reject the entire shipment.

Question 9

Under the UCC,a seller's tender of goods that do not conform in every way to a contract is still a valid tender.

Accepted Answer

A) True 
 B)False

Question 10

Screen Perfect,Inc.,and TV Stores enter into a contract for a sale of high-definition television sets.Screen Perfect ships goods that do not exactly conform to the contract in some details.TV Stores

Accepted Answer

A) cannot reject the entire shipment. 
B) can reject the entire shipment. 
C) must accept the entire shipment. 
D) must reject the entire shipment. 
A) cannot reject the entire shipment. 
B) can reject the entire shipment. 
C) must accept the entire shipment. 
D) must reject the entire shipment.

Question 11

Elegant Carpets,Inc.,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must

Accepted Answer

A) allow the buyer to reject the goods for any reason. 
B) deliver the goods to a particular destination. 
C) inspect the goods before shipping them. 
D) place the goods into the hands of a carrier. 
A) allow the buyer to reject the goods for any reason. 
B) deliver the goods to a particular destination. 
C) inspect the goods before shipping them. 
D) place the goods into the hands of a carrier.

Question 12

On January 10,Winchester Pet Supplies orders fifty small dog collars from Quality Collars,Inc.to be delivered by January 15.On January 13,Quality Collars tenders fifty large dog collars.Winchester Pet Supplies rejects the shipment.Quality Collars has

Accepted Answer

A) no right to cure. 
B) until January 15 to cure. 
C) until the end of the business day on January 13 to cure. 
D) unlimited time to cure. 
A) no right to cure. 
B) until January 15 to cure. 
C) until the end of the business day on January 13 to cure. 
D) unlimited time to cure.

Question 13

Loomis Weaving Company contracts to sell sweaters to Style Mart stores.Before the sweat?ers are delivered,Style Mart indicates that it will not be able to pay.Loomis can resell the goods

Accepted Answer

A) either after finishing the job (and identifying the goods),or after stopping the job. 
B) only after finishing the job and identifying the goods. 
C) only if Loomis immediately stops the job. 
D) under no circumstances. 
A) either after finishing the job (and identifying the goods),or after stopping the job. 
B) only after finishing the job and identifying the goods. 
C) only if Loomis immediately stops the job. 
D) under no circumstances.

Question 14

Beef Burgers,Inc.contracts to buy five hundred steers from Fattening Feedlots.Before Fattening Feedlots can deliver the steers,there is an outbreak of disease in the feedlot,and all the cattle are quarantined.In this case the perfect tender rule

Accepted Answer

A) applies to both parties. 
B) does not apply. 
C) applies only to Beef Burgers. 
D) applies only to Fattening Feedlots. 
A) applies to both parties. 
B) does not apply. 
C) applies only to Beef Burgers. 
D) applies only to Fattening Feedlots.

Question 15

Julia orders twelve violins for her music shop from Notable Notes Instrument Manufacturers.The sale is made on credit.Julia orders the violins on May 1,Notable Notes ships the violins on May 2,and Julia receives the violins on May 4.Julia sells all the violins by June 15.Julia's credit period most likely began on

Accepted Answer

A) May 1. 
B) May 2. 
C) May 4. 
D) June 15. 
A) May 1. 
B) May 2. 
C) May 4. 
D) June 15.

Question 16

Bayou Boats,Inc.,contracts for the sale of seven swamp boats to Eventide Fishing Tours.Bayou repudiates the contract.Eventide's recovery is measured at the time

Accepted Answer

A) Bayou advertised the goods. 
B) Eventide ordered the goods. 
C) Eventide learned of the breach. 
D) Bayou knew that it would repudiate the contract. 
A) Bayou advertised the goods. 
B) Eventide ordered the goods. 
C) Eventide learned of the breach. 
D) Bayou knew that it would repudiate the contract.

Question 17

Owen and Pablo enter into a contract for a sale of fifty Western saddles.Pablo pays,but Owen does not deliver.Pablo can normally recover as damages the difference between

Accepted Answer

A) any loss avoided and any profit gained. 
B) the actual price and the hoped-for price. 
C) the contract price and the market price. 
D) the current prices in the parties' locations. 
A) any loss avoided and any profit gained. 
B) the actual price and the hoped-for price. 
C) the contract price and the market price. 
D) the current prices in the parties' locations.

Question 18

Under the UCC,there are no exceptions to the perfect tender rule.

Accepted Answer

A) True 
 B)False

Question 19

Hi-Tech Company contracts to sell fiber optic cable to Internet Services,Inc.Hi-Tech may bring an action to recover the purchase price and inci?dental damages if Internet

Accepted Answer

A) accepts the cable and pays for it. 
B) accepts the cable but does not pay for it. 
C) rejects the cable. 
D) revokes acceptance of the cable. 
A) accepts the cable and pays for it. 
B) accepts the cable but does not pay for it. 
C) rejects the cable. 
D) revokes acceptance of the cable.

Question 20

In contracts involving a carrier,a seller can complete performance through a shipment contract or a destination contract.

Accepted Answer

A) True 
 B)False

Exam 20: Performance and Breach

Once the seller has tendered delivery,the buyer is obligated to accept the goods and pay for them.

Sparkling Gem Corporation agrees to sell Jewel Outlets,Inc.(JOI),fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is

If a buyer breaches a contract while the seller is still in possession of the goods,the seller can resell the goods and hold the buyer liable for any loss.

In general,a buyer's duty to pay for tendered goods becomes absolute be?fore the buyer has had an opportunity to inspect the goods.

Tender must occur at a reasonable hour and in a reasonable manner.

On a lessee's insolvency,the lessor can stop delivery of the goods.

Natural Foods,Inc.,orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers.Olive Grove ships "Grade B" oil,which Natural Foods accepts.To recover damages for the nonconformity,Natural Foods must give notice of the breach within a reasonable time to

Shane's Auto Parts orders twenty tires from Tough Tires,Inc.The truck delivering the tires to Shane's is in an accident and ten of the tires are damaged.Shane's Auto Parts

Under the UCC,a seller's tender of goods that do not conform in every way to a contract is still a valid tender.

Screen Perfect,Inc.,and TV Stores enter into a contract for a sale of high-definition television sets.Screen Perfect ships goods that do not exactly conform to the contract in some details.TV Stores

Elegant Carpets,Inc.,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must

On January 10,Winchester Pet Supplies orders fifty small dog collars from Quality Collars,Inc.to be delivered by January 15.On January 13,Quality Collars tenders fifty large dog collars.Winchester Pet Supplies rejects the shipment.Quality Collars has

Loomis Weaving Company contracts to sell sweaters to Style Mart stores.Before the sweat?ers are delivered,Style Mart indicates that it will not be able to pay.Loomis can resell the goods

Beef Burgers,Inc.contracts to buy five hundred steers from Fattening Feedlots.Before Fattening Feedlots can deliver the steers,there is an outbreak of disease in the feedlot,and all the cattle are quarantined.In this case the perfect tender rule

Bayou Boats,Inc.,contracts for the sale of seven swamp boats to Eventide Fishing Tours.Bayou repudiates the contract.Eventide's recovery is measured at the time

Owen and Pablo enter into a contract for a sale of fifty Western saddles.Pablo pays,but Owen does not deliver.Pablo can normally recover as damages the difference between

Under the UCC,there are no exceptions to the perfect tender rule.

Hi-Tech Company contracts to sell fiber optic cable to Internet Services,Inc.Hi-Tech may bring an action to recover the purchase price and inci?dental damages if Internet

In contracts involving a carrier,a seller can complete performance through a shipment contract or a destination contract.

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