Question 1

Who created the exceptions to the perfect tender rule?

Accepted Answer

A) Federal court,but not state court 
B) Courts and the U.S.Congress 
C) Courts,the U.S.Congress,and the UCC drafters 
D) Courts and UCC drafters 
E) The U.S.Congress and UCC drafters 
A) Federal court,but not state court 
B) Courts and the U.S.Congress 
C) Courts,the U.S.Congress,and the UCC drafters 
D) Courts and UCC drafters 
E) The U.S.Congress and UCC drafters

Question 2

As a matter of law,should the perfect tender rule be rejected and replaced with the concept of substantial performance?

Accepted Answer

Student responses will vary.In favor of

Question 3

Arturo,an exotic animal dealer contracts with Benita,an importer of exotic animals,to purchase several rare lizards.After the contract is executed,the U.S.government issues a ban on the importation of lizards.When Benita fails to deliver the lizards as per the contract,Arturo tells her she is in breach of their contract.What is Benita's best defense?

Accepted Answer

A) She cannot provide conforming goods under the contract. 
B) She has the right to cure by providing lizards that are not imported. 
C) Commercial impracticability 
D) Perfect tender rule 
E) Commercial illegality 
A) She cannot provide conforming goods under the contract. 
B) She has the right to cure by providing lizards that are not imported. 
C) Commercial impracticability 
D) Perfect tender rule 
E) Commercial illegality

Question 4

There are no exceptions to the perfect tender rule.

Accepted Answer

A) True 
 B)False

Question 5

Can Toshi reject the dolls because of Yolanda's late delivery?

Accepted Answer

A) Yes,because the delivery must comply with contract specifications. 
B) Probably not,because the course of performance of this contract creates an exception to the perfect tender rule. 
C) Probably not,because the usage of trade exception is inapplicable. 
D) Yes,under the perfect tender rule,the seller must conform to the specifications of the contract. 
E) Probably not,because the course of dealings between the parties creates an exception to the perfect tender rule. 
A) Yes,because the delivery must comply with contract specifications. 
B) Probably not,because the course of performance of this contract creates an exception to the perfect tender rule. 
C) Probably not,because the usage of trade exception is inapplicable. 
D) Yes,under the perfect tender rule,the seller must conform to the specifications of the contract. 
E) Probably not,because the course of dealings between the parties creates an exception to the perfect tender rule.

Question 6

The UCC defines as previous commercial transactions between the same parties.

Accepted Answer

A) Anticipated trade dealing 
B) Usage of trade 
C) Trade norm 
D) Course of dealing 
E) Course of performance 
A) Anticipated trade dealing 
B) Usage of trade 
C) Trade norm 
D) Course of dealing 
E) Course of performance

Question 7

Which of the following is false regarding the perfect tender rule?

Accepted Answer

A) In relation to the perfect tender rule,the UCC requires that courts consider course of performance. 
B) In relation to the perfect tender rule,sometimes norms for a particular trade do not permit a buyer to reject goods with minor flaws. 
C) In relation to the perfect tender rule,the UCC requires that courts consider course of dealing. 
D) The perfect tender rule is satisfied when material elements of a contract are satisfied even if some nonmaterial elements may not be satisfied. 
E) Parties may by contractual language limit the rigidity of the perfect tender rule. 
A) In relation to the perfect tender rule,the UCC requires that courts consider course of performance. 
B) In relation to the perfect tender rule,sometimes norms for a particular trade do not permit a buyer to reject goods with minor flaws. 
C) In relation to the perfect tender rule,the UCC requires that courts consider course of dealing. 
D) The perfect tender rule is satisfied when material elements of a contract are satisfied even if some nonmaterial elements may not be satisfied. 
E) Parties may by contractual language limit the rigidity of the perfect tender rule.

Question 8

Which statement is correct regarding Solid Wood's contention that the duty of good faith is imposed on all parties equally?

Accepted Answer

A) Solid Wood is incorrect because the UCC mandated duty of good faith requires honesty in fact in regard to all transactions regardless of the parties involved. 
B) Solid Wood is incorrect because the UCC mandated duty of good faith imposes a higher duty than honesty in fact on merchants,that of reasonable commercial standards of fair dealing. 
C) Solid Wood is incorrect because the UCC mandated duty of good faith imposes a higher duty than honesty of fact in transactions involving amounts in excess of $500,that of reasonable conduct considering all circumstances. 
D) Solid Wood is incorrect because the UCC mandated duty of good faith imposes a higher duty than honesty of fact in regard to sellers,that of reasonable negotiation considering the position of buyers. 
E) Solid Wood is incorrect because the UCC imposes no duty of good faith. 
A) Solid Wood is incorrect because the UCC mandated duty of good faith requires honesty in fact in regard to all transactions regardless of the parties involved. 
B) Solid Wood is incorrect because the UCC mandated duty of good faith imposes a higher duty than honesty in fact on merchants,that of reasonable commercial standards of fair dealing. 
C) Solid Wood is incorrect because the UCC mandated duty of good faith imposes a higher duty than honesty of fact in transactions involving amounts in excess of $500,that of reasonable conduct considering all circumstances. 
D) Solid Wood is incorrect because the UCC mandated duty of good faith imposes a higher duty than honesty of fact in regard to sellers,that of reasonable negotiation considering the position of buyers. 
E) Solid Wood is incorrect because the UCC imposes no duty of good faith.

Question 9

A seller need not provide an opportunity for inspection before enforcing payment.

Accepted Answer

A) True 
 B)False

Question 10

Ming-Na orders a certain type of rose from a florist for her event.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) Commercial unreasonableness 
B) Unreasonable bride 
C) Commercial impracticability 
D) Substantial hardship 
E) Unforeseen circumstances 
A) Commercial unreasonableness 
B) Unreasonable bride 
C) Commercial impracticability 
D) Substantial hardship 
E) Unforeseen circumstances

Question 11

Which of the following did the appellate court recognize in SCM Group,U.S.A. ,Inc. ,v.Custom Designs & Manufacturing Co. ,Inc. ,the case in the text in which the plaintiff sued the defendant after the defendant refused to pay for equipment?

Accepted Answer

A) That the issue of whether a reasonable time for inspection of goods has passed is generally a question of law for the judge,not the jury,to decide. 
B) That an effective acceptance is not made unless the buyer affirmatively notifies the seller in writing that the goods were conforming. 
C) That an effective acceptance is not made unless the buyer affirmatively notifies the seller orally or in writing that the goods while not conforming were acceptable with appropriate deductions. 
D) That a failure to reject results in liability not only for the contractual price,but also for damages suffered as a result. 
E) That an effective acceptance is not made unless the buyer affirmatively notifies the seller in writing that the goods while not conforming were acceptable with appropriate deductions. 
A) That the issue of whether a reasonable time for inspection of goods has passed is generally a question of law for the judge,not the jury,to decide. 
B) That an effective acceptance is not made unless the buyer affirmatively notifies the seller in writing that the goods were conforming. 
C) That an effective acceptance is not made unless the buyer affirmatively notifies the seller orally or in writing that the goods while not conforming were acceptable with appropriate deductions. 
D) That a failure to reject results in liability not only for the contractual price,but also for damages suffered as a result. 
E) That an effective acceptance is not made unless the buyer affirmatively notifies the seller in writing that the goods while not conforming were acceptable with appropriate deductions.

Question 12

LaTisha contracted with Marco,who operates a farm in Guatemala,for the importation of some great coffee beans for her coffee shop.The contract provided that Marco would be sure the coffee arrived by September 1st,in time for an open house LaTisha had planned.LaTisha was not worried because Marco had always delivered on a timely basis in the past.Marco was busy and was late getting the beans in transit.The beans did not arrive until September 2nd.LaTisha shipped them back and refused to pay.Marco sued.What is LaTisha 's best defense?

Accepted Answer

A) She has no defense because he was only one day late,and she should pay. 
B) That Marco beans were not that good and that she decided to go with another brand. 
C) That Marco violated the perfect tender rule. 
D) That Marco failed to materially perform. 
E) That Marco failed to substantially perform. 
A) She has no defense because he was only one day late,and she should pay. 
B) That Marco beans were not that good and that she decided to go with another brand. 
C) That Marco violated the perfect tender rule. 
D) That Marco failed to materially perform. 
E) That Marco failed to substantially perform.

Question 13

Which statement is correct regarding whether a buyer and lessee may make a partial acceptance?

Accepted Answer

A) The lessee may make a partial acceptance when goods are nonconforming and the lessor has failed to cure the defects,but a buyer may not make a partial acceptance. 
B) The buyer or lessee may make a partial acceptance when goods are nonconforming and the seller or lessor has failed to cure the defects. 
C) The buyer may make a partial acceptance when goods are nonconforming and the seller has failed to cure the defects,but a lessee may not make a partial acceptance. 
D) Buyers and lessees may make partial acceptances at any time. 
E) Neither buyers nor lessees may make partial acceptances because either the whole must be accepted or rejected. 
A) The lessee may make a partial acceptance when goods are nonconforming and the lessor has failed to cure the defects,but a buyer may not make a partial acceptance. 
B) The buyer or lessee may make a partial acceptance when goods are nonconforming and the seller or lessor has failed to cure the defects. 
C) The buyer may make a partial acceptance when goods are nonconforming and the seller has failed to cure the defects,but a lessee may not make a partial acceptance. 
D) Buyers and lessees may make partial acceptances at any time. 
E) Neither buyers nor lessees may make partial acceptances because either the whole must be accepted or rejected.

Question 14

What was the result on appeal in the case in the text Alaska Pacific Trading Co.v.Eagon Forest Products Inc.in which the defendant rejected a shipment of logs,and the plaintiff/seller claimed that its late shipment was excused because the contract did not specify that time was of the essence?

Accepted Answer

A) That the seller was entitled to rely on the common law doctrine of material breach,that the seller substantially performed,and that the buyer was in breach. 
B) That by not shipping the logs in a timely manner according to the contract,the seller failed to satisfy the perfect tender rule thereby releasing the defendant buyer from its duty to accept the logs. 
C) That the seller was entitled to rely on the common law doctrine of material breach but that the seller did not substantially perform thereby releasing the buyer from contractual duties. 
D) That the seller was entitled to rely on the perfect tender rule and that the buyer materially breached the contract by refusing to accept the logs. 
E) That the seller satisfied the perfect tender rule although the logs were late and that the defendant buyer breached the contract by refusing to accept the logs. 
A) That the seller was entitled to rely on the common law doctrine of material breach,that the seller substantially performed,and that the buyer was in breach. 
B) That by not shipping the logs in a timely manner according to the contract,the seller failed to satisfy the perfect tender rule thereby releasing the defendant buyer from its duty to accept the logs. 
C) That the seller was entitled to rely on the common law doctrine of material breach but that the seller did not substantially perform thereby releasing the buyer from contractual duties. 
D) That the seller was entitled to rely on the perfect tender rule and that the buyer materially breached the contract by refusing to accept the logs. 
E) That the seller satisfied the perfect tender rule although the logs were late and that the defendant buyer breached the contract by refusing to accept the logs.

Question 15

When may a buyer revoke acceptance if a nonconformity substantially impairs the value of goods?

Accepted Answer

A) For any reason within 7 days of acceptance. 
B) Only if the buyer had a legitimate reason for the initial acceptance. 
C) For any reason within 30 days of acceptance. 
D) For any reason within 24 hours of acceptance. 
E) For any reason within 48 hours of acceptance. 
A) For any reason within 7 days of acceptance. 
B) Only if the buyer had a legitimate reason for the initial acceptance. 
C) For any reason within 30 days of acceptance. 
D) For any reason within 24 hours of acceptance. 
E) For any reason within 48 hours of acceptance.

Question 16

[New Furniture] Kristin purchased $2,000 worth of furniture from Solid Wood Furniture.Through an arrangement with Solid Wood,Kristin financed the purchase through a financing company called Let Us Help You.Twenty-nine days after the goods were delivered to her,Kristin had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay.She notified Solid Wood on that day that she was rejecting the goods.Solid Wood claimed that she did not properly reject the furniture and also that she failed to act in good faith,an obligation imposed equally on all parties to a transaction.Kristin says that she properly rejected;that,although the UCC imposes no duty of good faith,she acted in good faith;and that,in any event,she had an absolute right to return the goods.
-Which statement is true regarding the claim of Solid Wood that Kristin failed to properly reject the goods?

Accepted Answer

A) Solid Wood is correct only if Solid Wood can show that the goods were priced at reasonable market value. 
B) Solid Wood is incorrect only if Kristin can show that the goods were overpriced. 
C) Solid Wood is correct. 
D) Solid Wood is incorrect because under the UCC Kristin had 30 days in which to reject the goods. 
E) Solid Wood is incorrect only if Kristin can establish that Let Us Help You miscalculated the amount of interest she owed. 
A) Solid Wood is correct only if Solid Wood can show that the goods were priced at reasonable market value. 
B) Solid Wood is incorrect only if Kristin can show that the goods were overpriced. 
C) Solid Wood is correct. 
D) Solid Wood is incorrect because under the UCC Kristin had 30 days in which to reject the goods. 
E) Solid Wood is incorrect only if Kristin can establish that Let Us Help You miscalculated the amount of interest she owed.

Question 17

Which statement is true regarding Kristin's claim that the UCC imposes no obligation of good faith conduct?

Accepted Answer

A) Kristin is incorrect. 
B) Kristin is correct only if she can establish that Solid Wood Furniture itself failed to act in good faith. 
C) Kristin is correct in this instance because while the UCC generally imposes a duty of good faith,that duty is inapplicable in relation to third-party financing. 
D) Kristin is correct only if she can establish that the goods were overpriced resulting in the right to disregard any obligation of Solid Wood. 
E) Kristin is correct in this instance because while the UCC generally imposes a duty of good faith,that duty is inapplicable during the initial 30 days after a purchase when a buyer has the right to revoke acceptance for a good or a bad reason. 
A) Kristin is incorrect. 
B) Kristin is correct only if she can establish that Solid Wood Furniture itself failed to act in good faith. 
C) Kristin is correct in this instance because while the UCC generally imposes a duty of good faith,that duty is inapplicable in relation to third-party financing. 
D) Kristin is correct only if she can establish that the goods were overpriced resulting in the right to disregard any obligation of Solid Wood. 
E) Kristin is correct in this instance because while the UCC generally imposes a duty of good faith,that duty is inapplicable during the initial 30 days after a purchase when a buyer has the right to revoke acceptance for a good or a bad reason.

Question 18

How often is the right to inspection waived?

Accepted Answer

A) The right to inspect is frequently waived by the buyer's conduct. 
B) The right to inspect is seldom waived or held by courts to have been waived unless the buyer expressly waives the right. 
C) The right to inspect is often waived by the buyer's conduct and frequently held by courts to have been waived by the buyer's conduct. 
D) The right to inspect is often held by courts to have been waived. 
E) Buyers often expressly waive their right to inspect. 
A) The right to inspect is frequently waived by the buyer's conduct. 
B) The right to inspect is seldom waived or held by courts to have been waived unless the buyer expressly waives the right. 
C) The right to inspect is often waived by the buyer's conduct and frequently held by courts to have been waived by the buyer's conduct. 
D) The right to inspect is often held by courts to have been waived. 
E) Buyers often expressly waive their right to inspect.

Question 19

Set forth what the UCC requires in the way of good faith and the duty imposed on both nonmerchants and merchants.

Accepted Answer

The UCC requires good faith in the perfo

Question 20

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 destroyed through no fault of the parties before risk passes to the buyer or lessee?

Accepted Answer

A) The seller has 30 days in which to cure. 
B) The seller has 10 days in which to cure. 
C) The seller has 7 days in which to cure. 
D) The parties are excused from performance. 
E) The seller has 45 days in which to cure. 
A) The seller has 30 days in which to cure. 
B) The seller has 10 days in which to cure. 
C) The seller has 7 days in which to cure. 
D) The parties are excused from performance. 
E) The seller has 45 days in which to cure.

Exam 23: Performance and Obligations Under Sales and Leases

Who created the exceptions to the perfect tender rule?

As a matter of law,should the perfect tender rule be rejected and replaced with the concept of substantial performance?

There are no exceptions to the perfect tender rule.

Can Toshi reject the dolls because of Yolanda's late delivery?

The UCC defines as previous commercial transactions between the same parties.

Which of the following is false regarding the perfect tender rule?

Which statement is correct regarding Solid Wood's contention that the duty of good faith is imposed on all parties equally?

A seller need not provide an opportunity for inspection before enforcing payment.

Ming-Na orders a certain type of rose from a florist for her event.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?

Which of the following did the appellate court recognize in SCM Group,U.S.A. ,Inc. ,v.Custom Designs & Manufacturing Co. ,Inc. ,the case in the text in which the plaintiff sued the defendant after the defendant refused to pay for equipment?

Which statement is correct regarding whether a buyer and lessee may make a partial acceptance?

What was the result on appeal in the case in the text Alaska Pacific Trading Co.v.Eagon Forest Products Inc.in which the defendant rejected a shipment of logs,and the plaintiff/seller claimed that its late shipment was excused because the contract did not specify that time was of the essence?

When may a buyer revoke acceptance if a nonconformity substantially impairs the value of goods?

Which statement is true regarding Kristin's claim that the UCC imposes no obligation of good faith conduct?

How often is the right to inspection waived?

Set forth what the UCC requires in the way of good faith and the duty imposed on both nonmerchants and merchants.

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 destroyed through no fault of the parties before risk passes to the buyer or lessee?

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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