Question 1

Which of the following are the obligations of buyers and lessees?

Accepted Answer

A) Accept and pay for conforming goods in accordance with the contract. 
B) Cure defects,and accept and pay for conforming goods in accordance with the contract. 
C) Accept and pay for conforming goods in accordance with the contract,ordinarily after inspecting the goods. 
D) Inspect the goods,cure defects,and accept and pay for conforming goods in accordance with the contract. 
E) Inspect the goods and pay for conforming goods in accordance with the contract. 
A) Accept and pay for conforming goods in accordance with the contract. 
B) Cure defects,and accept and pay for conforming goods in accordance with the contract. 
C) Accept and pay for conforming goods in accordance with the contract,ordinarily after inspecting the goods. 
D) Inspect the goods,cure defects,and accept and pay for conforming goods in accordance with the contract. 
E) Inspect the goods and pay for conforming goods in accordance with the contract. C

Question 2

Once a buyer or lessee has accepted,performance is complete and a buyer or lessee cannot withdraw acceptance.

Accepted Answer

A) True 
 B)False  False

Question 3

Another term for course of performance is course of dealing.

Accepted Answer

A) True 
 B)False  False

Question 4

Which statement is true regarding the governance of the inspection process?

Accepted Answer

A) The inspection must take place at a reasonable time and place,in a reasonable way. 
B) The buyer has an absolute right to dictate the date and time of inspection,but the seller has the right to dictate the method of inspection. 
C) The seller has an absolute right to dictate the date and time of inspection,but the buyer has the right to dictate the method of inspection. 
D) The seller has an absolute right to dictate the date,time,and method of inspection. 
E) The buyer has an absolute right to dictate the date,time,and method of inspection. 
A) The inspection must take place at a reasonable time and place,in a reasonable way. 
B) The buyer has an absolute right to dictate the date and time of inspection,but the seller has the right to dictate the method of inspection. 
C) The seller has an absolute right to dictate the date and time of inspection,but the buyer has the right to dictate the method of inspection. 
D) The seller has an absolute right to dictate the date,time,and method of inspection. 
E) The buyer has an absolute right to dictate the date,time,and method of inspection.

Question 5

Under the UCC,which of the following is true if goods are identified at the time the parties entered into a contract and these goods are partially destroyed through no fault of the parties before risk passes to the buyer or lessee?

Accepted Answer

A) Unless the parties can agree on a price,the matter must be submitted to arbitration for a determination as to an appropriate price. 
B) The buyer may inspect the goods and decide whether to 1)treat the contract as void or 2)ask the seller for a reduction of the contract price and then accept the damaged goods. 
C) The seller may inspect the goods and decide whether to 1)treat the contract as void or 2)offer the buyer a reduction of the contract price for the damaged goods. 
D) Unless the parties can agree on a price,the contract is voidable at the option of the seller. 
E) The contract is void. 
A) Unless the parties can agree on a price,the matter must be submitted to arbitration for a determination as to an appropriate price. 
B) The buyer may inspect the goods and decide whether to 1)treat the contract as void or 2)ask the seller for a reduction of the contract price and then accept the damaged goods. 
C) The seller may inspect the goods and decide whether to 1)treat the contract as void or 2)offer the buyer a reduction of the contract price for the damaged goods. 
D) Unless the parties can agree on a price,the contract is voidable at the option of the seller. 
E) The contract is void.

Question 6

A common law rule known as the ________ required that the seller deliver goods in conformity with the terms of the contract,down to the last detail.

Accepted Answer

A) Perfect tender rule 
B) Regulatory rule 
C) Superior delivery rule 
D) Tender of offer regulation 
E) Certain tender rule 
A) Perfect tender rule 
B) Regulatory rule 
C) Superior delivery rule 
D) Tender of offer regulation 
E) Certain tender rule

Question 7

Which of the following is not an exception to the perfect tender rule?

Accepted Answer

A) Commercial impracticability 
B) Past dealings between the parties 
C) Norms in the industry 
D) Revocation of acceptance 
E) Exceptions outlined in the parties' agreement 
A) Commercial impracticability 
B) Past dealings between the parties 
C) Norms in the industry 
D) Revocation of acceptance 
E) Exceptions outlined in the parties' agreement

Question 8

The UCC requires that sellers and lessors tender ________ goods to the buyer or lessee.

Accepted Answer

A) Reasonable 
B) Superior 
C) Adequate 
D) Transforming 
E) Conforming 
A) Reasonable 
B) Superior 
C) Adequate 
D) Transforming 
E) Conforming

Question 9

Under the UCC,the buyer does not automatically have the right to reject the goods when the buyer alleges that goods failed to conform to contract specifications.

Accepted Answer

A) True 
 B)False

Question 10

The concept of commercial practicality governs the inspection process.

Accepted Answer

A) True 
 B)False

Question 11

Goods that conform to UCC specifications are called conforming goods.

Accepted Answer

A) True 
 B)False

Question 12

Which statement is true in regard to the efforts of the seller of the employment law pamphlets to remedy the problem with the incorrect pamphlets?

Accepted Answer

A) The seller correctly acted to remedy the problem because he had up to 20 days under the UCC to fix any problem. 
B) The seller could not act to remedy the problem because he did not have assurance from Courtney in writing that she would allow additional time in which to cure. 
C) The seller could likely exercise the right to cure once the contract time for performance had ended because the seller would have had reasonable grounds to believe that Courtney would not have objected to the tender of the correct item at the time it was tendered. 
D) The seller correctly acted to remedy the problem because he had up to 10 days under the UCC to fix any problem. 
E) The seller could not exercise the right to cure once the contract time for performance had ended because the seller did not provide prompt notice of his intent to cure and did not have reasonable grounds to believe that the nonconforming tender of environmental pamphlets would be acceptable to Courtney. 
A) The seller correctly acted to remedy the problem because he had up to 20 days under the UCC to fix any problem. 
B) The seller could not act to remedy the problem because he did not have assurance from Courtney in writing that she would allow additional time in which to cure. 
C) The seller could likely exercise the right to cure once the contract time for performance had ended because the seller would have had reasonable grounds to believe that Courtney would not have objected to the tender of the correct item at the time it was tendered. 
D) The seller correctly acted to remedy the problem because he had up to 10 days under the UCC to fix any problem. 
E) The seller could not exercise the right to cure once the contract time for performance had ended because the seller did not provide prompt notice of his intent to cure and did not have reasonable grounds to believe that the nonconforming tender of environmental pamphlets would be acceptable to Courtney.

Question 13

In reference to the case in the text DeJesus v Cat Auto Tech.Corp. ,what was the effect of the defendant's payment for goods without inspection on the day of delivery,when the delivery was approximately two weeks after the time called for by the contract?

Accepted Answer

A) The defendant did not lose any rights because under the UCC he had 7 days after delivery in which to object to late delivery. 
B) The defendant did not lose any rights because under the UCC he had 24 hours after delivery in which to object to late delivery. 
C) The defendant did not lose any rights because under the UCC he had 10 days after delivery in which to object to late delivery. 
D) The defendant effectively waived the performance provisions of the contract regarding the time for delivery. 
E) The defendant did not lose any rights because under the UCC he had 48 hours after delivery in which to object to late delivery. 
A) The defendant did not lose any rights because under the UCC he had 7 days after delivery in which to object to late delivery. 
B) The defendant did not lose any rights because under the UCC he had 24 hours after delivery in which to object to late delivery. 
C) The defendant did not lose any rights because under the UCC he had 10 days after delivery in which to object to late delivery. 
D) The defendant effectively waived the performance provisions of the contract regarding the time for delivery. 
E) The defendant did not lose any rights because under the UCC he had 48 hours after delivery in which to object to late delivery.

Question 14

Under the UCC,a delay in delivery or nondelivery,in whole or in part,is not a breach in circumstances in which performance has been made ________ because a contingency has occurred that was not contemplated when the parties reached the agreement.

Accepted Answer

A) Unreasonable 
B) Unprofitable 
C) Impracticable 
D) More difficult 
E) Less profitable 
A) Unreasonable 
B) Unprofitable 
C) Impracticable 
D) More difficult 
E) Less profitable

Question 15

Under the perfect tender rule,there is no distinction between material and immaterial contractual requirements.

Accepted Answer

A) True 
 B)False

Question 16

How does the position of the UCC compare with the common law in regard to the perfect tender rule?

Accepted Answer

A) The UCC and common law differ with the UCC requiring perfect tender and common law requiring the lesser standard of material performance. 
B) The UCC and common law differ with the UCC requiring the lesser standard of material performance and common law requiring perfect tender. 
C) They are the same. 
D) The UCC and common law differ with the UCC requiring the lesser standard of substantial performance and common law requiring perfect tender. 
E) The UCC and common law differ with the UCC requiring perfect tender and common law requiring the lesser standard of substantial performance. 
A) The UCC and common law differ with the UCC requiring perfect tender and common law requiring the lesser standard of material performance. 
B) The UCC and common law differ with the UCC requiring the lesser standard of material performance and common law requiring perfect tender. 
C) They are the same. 
D) The UCC and common law differ with the UCC requiring the lesser standard of substantial performance and common law requiring perfect tender. 
E) The UCC and common law differ with the UCC requiring perfect tender and common law requiring the lesser standard of substantial performance.

Question 17

If a buyer decides to reject goods,what kind of notice must be provided?

Accepted Answer

A) 3 days. 
B) 10 days. 
C) 5 days. 
D) Reasonable. 
E) Written. 
A) 3 days. 
B) 10 days. 
C) 5 days. 
D) Reasonable. 
E) Written.

Question 18

What did the court rule in the case of Hubbard v.UTZ Quality Foods,Inc. ,in which the buyer refused on the basis of color to accept potatoes that were the subject of an installment contract?

Accepted Answer

A) That the failure to meet the proper color standard was a substantial impairment but that it did not impair the contract. 
B) That the tendering of the potatoes was made in bad faith. 
C) That the refusal to accept the potatoes was made in bad faith. 
D) That the failure to meet the proper color standard was not a substantial impairment. 
E) That the failure to meet the proper color standard amounted to a substantial impairment of the installments,substantially impairing the whole contract. 
A) That the failure to meet the proper color standard was a substantial impairment but that it did not impair the contract. 
B) That the tendering of the potatoes was made in bad faith. 
C) That the refusal to accept the potatoes was made in bad faith. 
D) That the failure to meet the proper color standard was not a substantial impairment. 
E) That the failure to meet the proper color standard amounted to a substantial impairment of the installments,substantially impairing the whole contract.

Question 19

Under an installment contract,when does the UCC provide that a buyer/lessee may reject an installment of a particular item?

Accepted Answer

A) If the defects cannot be cured even if defects are minor. 
B) If the defects devalue the property by more than 10% and if the defects cannot be cured. 
C) If the defects substantially impair the value of the goods regardless of whether cure is possible. 
D) If the defects substantially impair the value of the goods and if the defects cannot be cured. 
E) If the defects devalue the property by more than 20% and if the defects cannot be cured. 
A) If the defects cannot be cured even if defects are minor. 
B) If the defects devalue the property by more than 10% and if the defects cannot be cured. 
C) If the defects substantially impair the value of the goods regardless of whether cure is possible. 
D) If the defects substantially impair the value of the goods and if the defects cannot be cured. 
E) If the defects devalue the property by more than 20% and if the defects cannot be cured.

Question 20

Which statement is correct regarding similarities between American and European contract law?

Accepted Answer

A) U)S.law finds guidance in the Restatements of the Law constituting soft law,not statutory enactments;and Europe has begun crafting its own version of the U.S.Restatement of Contracts. 
B) U)S.law finds guidance in the Restatements of the Law constituting soft law,not statutory enactments,but Europe has refused to consider crafting its own version of the U.S.Restatement of Contracts. 
C) U)S.law finds guidance in the Restatements of the Law constituting soft law,not statutory enactments;and Europe has disavowed the CISG choosing to follow a code similar to the U.S.Restatements of the Law. 
D) U)S.law is provided guidance through the UCC,a federal statutory enactment,but European law relies entirely on the CISG. 
E) U)S.law is provided guidance through statutory enactments known as the Restatements of the Law,but European law relies entirely on the CISG. 
A) U)S.law finds guidance in the Restatements of the Law constituting soft law,not statutory enactments;and Europe has begun crafting its own version of the U.S.Restatement of Contracts. 
B) U)S.law finds guidance in the Restatements of the Law constituting soft law,not statutory enactments,but Europe has refused to consider crafting its own version of the U.S.Restatement of Contracts. 
C) U)S.law finds guidance in the Restatements of the Law constituting soft law,not statutory enactments;and Europe has disavowed the CISG choosing to follow a code similar to the U.S.Restatements of the Law. 
D) U)S.law is provided guidance through the UCC,a federal statutory enactment,but European law relies entirely on the CISG. 
E) U)S.law is provided guidance through statutory enactments known as the Restatements of the Law,but European law relies entirely on the CISG.

Exam 23: Performance and Obligations Under Sales and Leases

Which of the following are the obligations of buyers and lessees?

Once a buyer or lessee has accepted,performance is complete and a buyer or lessee cannot withdraw acceptance.

Another term for course of performance is course of dealing.

Which statement is true regarding the governance of the inspection process?

Under the UCC,which of the following is true if goods are identified at the time the parties entered into a contract and these goods are partially destroyed through no fault of the parties before risk passes to the buyer or lessee?

A common law rule known as the ________ required that the seller deliver goods in conformity with the terms of the contract,down to the last detail.

Which of the following is not an exception to the perfect tender rule?

The UCC requires that sellers and lessors tender ________ goods to the buyer or lessee.

Under the UCC,the buyer does not automatically have the right to reject the goods when the buyer alleges that goods failed to conform to contract specifications.

The concept of commercial practicality governs the inspection process.

Goods that conform to UCC specifications are called conforming goods.

Which statement is true in regard to the efforts of the seller of the employment law pamphlets to remedy the problem with the incorrect pamphlets?

In reference to the case in the text DeJesus v Cat Auto Tech.Corp. ,what was the effect of the defendant's payment for goods without inspection on the day of delivery,when the delivery was approximately two weeks after the time called for by the contract?

Under the UCC,a delay in delivery or nondelivery,in whole or in part,is not a breach in circumstances in which performance has been made ________ because a contingency has occurred that was not contemplated when the parties reached the agreement.

Under the perfect tender rule,there is no distinction between material and immaterial contractual requirements.

How does the position of the UCC compare with the common law in regard to the perfect tender rule?

If a buyer decides to reject goods,what kind of notice must be provided?

What did the court rule in the case of Hubbard v.UTZ Quality Foods,Inc. ,in which the buyer refused on the basis of color to accept potatoes that were the subject of an installment contract?

Under an installment contract,when does the UCC provide that a buyer/lessee may reject an installment of a particular item?

Which statement is correct regarding similarities between American and European contract law?

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title,risk of Loss,and Insurable Interest

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, holder in Due Course, and Defenses

Liability, defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, officers, and Shareholders

Corporations: Mergers, consolidations, terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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