Question 1

The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.

Accepted Answer

A) True 
 B)False

Question 2

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers,but their contract does not specify the address at which the goods are to be delivered.If the parties fail to specify the address before the delivery date

Accepted Answer

A) Pleasant Valley Dairy is excused for any resulting delay. 
B) Pleasant Valley Dairy is liable for any resulting delay. 
C) the time for delivery is extended with a price adjustment for the delay. 
D) the contract is canceled. 
A) Pleasant Valley Dairy is excused for any resulting delay. 
B) Pleasant Valley Dairy is liable for any resulting delay. 
C) the time for delivery is extended with a price adjustment for the delay. 
D) the contract is canceled.

Question 3

A shipment contract requires that the seller deliver the goods to a particular location.

Accepted Answer

A) True 
 B)False

Question 4

Summer Breeze,Inc.,contracts for the sale of fifty ceiling fans to Island Décor store.If Summer Breeze fails to deliver the goods,Island Décor must commence a suit for breach of contract within

Accepted Answer

A) four years. 
B) not more than one year. 
C) not less than four years. 
D) thirty days. 
A) four years. 
B) not more than one year. 
C) not less than four years. 
D) thirty days.

Question 5

Vehicle Leasing Agency (VLA) and Wander Trucking Company enter into a contract for a lease of eight cargo vans.VLA delivers eight vans,but they are not cargo-sized.Wander

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 6

If a contract specifies a certain carrier,a substitution of a different carrier for any reason breaches the contract.

Accepted Answer

A) True 
 B)False

Question 7

Sof' Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Sof' tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may

Accepted Answer

A) await performance,sue Sof',or suspend its own performance. 
B) only await Sof's performance for a commercially reasonable time. 
C) only sue Sof' for breach of contract. 
D) only suspend its own performance. 
A) await performance,sue Sof',or suspend its own performance. 
B) only await Sof's performance for a commercially reasonable time. 
C) only sue Sof' for breach of contract. 
D) only suspend its own performance.

Question 8

Unless otherwise agreed,inspection of goods can take place at any reasonable place and time and in any reasonable manner.

Accepted Answer

A) True 
 B)False

Question 9

Noni and Myra enter into a contract for a sale of clarinets and other wind instruments.Noni delivers,but Myra does not pay.Noni 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 10

If the goods or their tender fail to conform to the contract,the buyer can accept part and reject part.

Accepted Answer

A) True 
 B)False

Question 11

An installment contract is breached if a seller tenders any nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 12

An installment contract is breached if a buyer accepts any nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 13

Food Packaging,Inc.,agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company.Food can obtain only 20,000 of the 6-ounce contain?ers,but also ships 30,000 more expensive 8-ounce containers for the same price.Under these circumstances,Golden

Accepted Answer

A) cannot reject delivery,and Food cannot later replace the containers. 
B) cannot reject delivery,but Food can later replace the containers. 
C) may reject delivery,and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers. 
D) may reject delivery,but Food cannot later replace the containers. 
A) cannot reject delivery,and Food cannot later replace the containers. 
B) cannot reject delivery,but Food can later replace the containers. 
C) may reject delivery,and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers. 
D) may reject delivery,but Food cannot later replace the containers.

Question 14

Genuine Seed Company and Hillside Farmers Cooperative enter into a contract for a sale of hybrid seeds.Under the perfect tender rule,Genuine Seed must ship or tender seeds to Hillside that

Accepted Answer

A) approximately conform to all of the details of the contract. 
B) entirely conform to the contract except in one or two details. 
C) exactly conform to the contract in every detail. 
D) substantially conform to the contract in most details. 
A) approximately conform to all of the details of the contract. 
B) entirely conform to the contract except in one or two details. 
C) exactly conform to the contract in every detail. 
D) substantially conform to the contract in most details.

Question 15

An installment contract is a single contract that requires or authorizes delivery in two or more separate lots to be paid for in one payment.

Accepted Answer

A) True 
 B)False

Question 16

Craft Engineering,Inc.,contracts for a sale of technical instruments to Detail Design Company.Before the date on which performance is due,Craft notifies Detail that it will not perform.This is

Accepted Answer

A) anticipatory repudiation. 
B) perfect tender. 
C) rejection of performance. 
D) revocation of acceptance. 
A) anticipatory repudiation. 
B) perfect tender. 
C) rejection of performance. 
D) revocation of acceptance.

Question 17

A contract for a sale of a certain quantity of drum kits from Rimshot Drum Company to Musicians Warehouse specifies Urban City as the place for delivery but leaves open the particular address.Obliged to specify the address is

Accepted Answer

A) Rimshot Drum Company. 
B) Musicians Warehouse. 
C) the Urban City Chamber of Commerce. 
D) the appropriate state officer (usually the secretary of state). 
A) Rimshot Drum Company. 
B) Musicians Warehouse. 
C) the Urban City Chamber of Commerce. 
D) the appropriate state officer (usually the secretary of state).

Question 18

Levi's Toy Store orders one hundred board games from Big Board Games Warehouse.When the games are delivered,they are all missing pieces.Levi's Toy Store rejects the shipment.Big Board Games wants to cure.Big Board Games must

Accepted Answer

A) promptly notify Levi's Toy Store of the intent to cure. 
B) pay Levi's Toy store a cure fee. 
C) send a truck to pick up the nonconforming goods before the end of the business day. 
D) create a new contract with Levi's Toy Store. 
A) promptly notify Levi's Toy Store of the intent to cure. 
B) pay Levi's Toy store a cure fee. 
C) send a truck to pick up the nonconforming goods before the end of the business day. 
D) create a new contract with Levi's Toy Store.

Question 19

Kim's Pony Rides orders ten saddles from Little Horse Saddles,Inc.The sales contract states that if the saddles are defective,Kim's will allow Little Horse Saddles to repair or replace them instead of rejecting the shipment.When the saddles arrive,they are defective.In this case,the perfect tender rule

Accepted Answer

A) does not apply. 
B) applies to both parties. 
C) applies only to Little Horse Saddles. 
D) applies only to Kim's Pony Rides. 
A) does not apply. 
B) applies to both parties. 
C) applies only to Little Horse Saddles. 
D) applies only to Kim's Pony Rides.

Question 20

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Far Vu,Inc.,which is based in Hawaii.Absent an agreement to the contrary,the place of deliv?ery is in

Accepted Answer

A) California. 
B) Delaware. 
C) Florida. 
D) Hawaii. 
A) California. 
B) Delaware. 
C) Florida. 
D) Hawaii.

Exam 20: Performance and Breach

The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers,but their contract does not specify the address at which the goods are to be delivered.If the parties fail to specify the address before the delivery date

A shipment contract requires that the seller deliver the goods to a particular location.

Summer Breeze,Inc.,contracts for the sale of fifty ceiling fans to Island Décor store.If Summer Breeze fails to deliver the goods,Island Décor must commence a suit for breach of contract within

Vehicle Leasing Agency (VLA) and Wander Trucking Company enter into a contract for a lease of eight cargo vans.VLA delivers eight vans,but they are not cargo-sized.Wander

If a contract specifies a certain carrier,a substitution of a different carrier for any reason breaches the contract.

Sof' Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Sof' tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may

Unless otherwise agreed,inspection of goods can take place at any reasonable place and time and in any reasonable manner.

Noni and Myra enter into a contract for a sale of clarinets and other wind instruments.Noni delivers,but Myra does not pay.Noni can normally recover as damages the difference between

If the goods or their tender fail to conform to the contract,the buyer can accept part and reject part.

An installment contract is breached if a seller tenders any nonconforming goods.

An installment contract is breached if a buyer accepts any nonconforming goods.

Food Packaging,Inc.,agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company.Food can obtain only 20,000 of the 6-ounce contain?ers,but also ships 30,000 more expensive 8-ounce containers for the same price.Under these circumstances,Golden

Genuine Seed Company and Hillside Farmers Cooperative enter into a contract for a sale of hybrid seeds.Under the perfect tender rule,Genuine Seed must ship or tender seeds to Hillside that

An installment contract is a single contract that requires or authorizes delivery in two or more separate lots to be paid for in one payment.

Craft Engineering,Inc.,contracts for a sale of technical instruments to Detail Design Company.Before the date on which performance is due,Craft notifies Detail that it will not perform.This is

A contract for a sale of a certain quantity of drum kits from Rimshot Drum Company to Musicians Warehouse specifies Urban City as the place for delivery but leaves open the particular address.Obliged to specify the address is

Levi's Toy Store orders one hundred board games from Big Board Games Warehouse.When the games are delivered,they are all missing pieces.Levi's Toy Store rejects the shipment.Big Board Games wants to cure.Big Board Games must

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Far Vu,Inc.,which is based in Hawaii.Absent an agreement to the contrary,the place of deliv?ery is in

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