Question 1

In a destination contract, one of the duties of a seller is:

Accepted Answer

A)  to deliver the goods to a carrier. 
B)  to get the goods to the destination at the buyer's disposal. 
C)  to deliver the goods with a reasonable contract for their transportation. 
D)  to deliver them with proper documentation for the buyer. 
E)  to promptly notify the buyer of the shipment. 
A)  to deliver the goods to a carrier. 
B)  to get the goods to the destination at the buyer's disposal. 
C)  to deliver the goods with a reasonable contract for their transportation. 
D)  to deliver them with proper documentation for the buyer. 
E)  to promptly notify the buyer of the shipment. B

Question 2

Acceptance means the buyer has taken possession of the goods.

Accepted Answer

A) True 
 B)False  False

Question 3

a(n. _____ is that which calls for delivery of goods in separate lots with separate acceptance for each delivery.

Accepted Answer

A)  revocation 
B)  installment contract 
C)  common law 
D)  perfect tender 
E)  secured transaction 
A)  revocation 
B)  installment contract 
C)  common law 
D)  perfect tender 
E)  secured transaction B

Question 4

On March 7 Dubious contracted with Electric Wholesalers to supply Electric with specific automobile electrical parts. Delivery was called for on June 3. On May 2, Electric notified Dubious that it would not perform and that Dubious should look elsewhere. (Electric had received a larger and more lucra-tive contract on April 21 and its capacity was such that it could not fulfill both orders.) Dubious tele-phoned Electric: "You turkeys. I'm cancelling the contract with you and I'll get the parts elsewhere." The facts

Accepted Answer

A)  Will not prevent Electric from changing its mind and performing as contracted with Dubi-ous. 
B)  Are not sufficient to clearly establish an anticipatory repudiation. 
C)  Will permit Dubious to sue only after June 3, the latest performance date. 
D)  Will permit Dubious to sue immediately after May 2, even though the performance called for under the contract was not due until June 3. 
E)  none. 
A)  Will not prevent Electric from changing its mind and performing as contracted with Dubi-ous. 
B)  Are not sufficient to clearly establish an anticipatory repudiation. 
C)  Will permit Dubious to sue only after June 3, the latest performance date. 
D)  Will permit Dubious to sue immediately after May 2, even though the performance called for under the contract was not due until June 3. 
E)  none.

Question 5

To which of the following exceptions is the buyer's right to inspect subject to?

Accepted Answer

A)  When the buyers keeps the goods despite nonconformity 
B)  When the buyer does anything that is inconsistent with the seller's ownership 
C)  When the buyer fails to reject, after a reasonable opportunity to inspect 
D)  When the delivery is made on credit 
E)  When the payment term is C.O.D. 
A)  When the buyers keeps the goods despite nonconformity 
B)  When the buyer does anything that is inconsistent with the seller's ownership 
C)  When the buyer fails to reject, after a reasonable opportunity to inspect 
D)  When the delivery is made on credit 
E)  When the payment term is C.O.D.

Question 6

What are the different forms of a contract?

Accepted Answer

The contract may be either a shipment co

Question 7

An installment contract is one calling for delivery of goods in separate lots with separate acceptance for each delivery.

Accepted Answer

A) True 
 B)False

Question 8

Acceptance means the buyer takes the goods.

Accepted Answer

A) True 
 B)False

Question 9

The Uniform Commercial Code statute of limitations for breach of any sales contract is five years.

Accepted Answer

A) True 
 B)False

Question 10

A buyer can revoke an acceptance if the buyer reasonably thought the nonconformity would be cured and it is not within a reasonable time.

Accepted Answer

A) True 
 B)False

Question 11

Breach of one installment of an installment contract necessarily gives the non-breaching party the right to cancel the whole contract.

Accepted Answer

A) True 
 B)False

Question 12

If a buyer has accepted nonconforming goods and notified the seller of the nonconformity, the buyer can _____.

Accepted Answer

A)  replevy the goods 
B)  recover damages for the breach 
C)  recover identified goods 
D)  cancel the contract 
E)  recover damages for nondelivery 
A)  replevy the goods 
B)  recover damages for the breach 
C)  recover identified goods 
D)  cancel the contract 
E)  recover damages for nondelivery

Question 13

Dubious in Hammingbell sold a number of auto parts, FOB Hammingbell, in boxes to Dealer in Vernon Mtn.; the goods were shipped via Trucking Co. When the load arrived at Dealer's place Deal-er insisted the driver unload the boxes inside the store. The driver refused; sharp words were ex-changed, and the goods were not unloaded. Subsequently they were lost. Dubious demanded pay-ment from Dealer. Which is correct?

Accepted Answer

A)  Dubious wins because Dealer should have accepted the goods and sued Trucking Co. for breach of contract. 
B)  Dealer wins because Trucking Co. was an agent of Dubious'. 
C)  Dealer wins because Dubious acted unreasonably in contracting with Trucking Co. 
D)  Dubious wins because he made a proper delivery to Trucking Co. in Hammingbell. 
E)  None of the above. 
A)  Dubious wins because Dealer should have accepted the goods and sued Trucking Co. for breach of contract. 
B)  Dealer wins because Trucking Co. was an agent of Dubious'. 
C)  Dealer wins because Dubious acted unreasonably in contracting with Trucking Co. 
D)  Dubious wins because he made a proper delivery to Trucking Co. in Hammingbell. 
E)  None of the above.

Question 14

The Uniform Commercial Code fills the gap if the parties do not stipulate in their contract when delivery is to occur.

Accepted Answer

A) True 
 B)False

Question 15

The Uniform Commercial Code cannot fill the gap when parties have not stipulated delivery terms or if their agreement is incomplete or merely formulaic.

Accepted Answer

A) True 
 B)False

Question 16

Seller contracted to sell a classic 1937 Packard automobile to Buyer for $150,000; a day later, Seller got an offer from Purchaser to buy the car for $210,000, and Seller delivered the car to Purchaser. Buyer's best remedy now is to collect compensatory damages.

Accepted Answer

A) True 
 B)False

Question 17

Under the Code, an aggrieved party must usually make an election of remedies and not pursue others.

Accepted Answer

A) True 
 B)False

Question 18

Replevin is an action to recover possession of goods wrongfully held.

Accepted Answer

A) True 
 B)False

Question 19

Commercially reasonable expenses to which Seller is entitled as a result Buyer's bre_________ damages.

Accepted Answer

A)  general 
B)  liquidated 
C)  incidental 
D)  punitive 
E)  nominal 
A)  general 
B)  liquidated 
C)  incidental 
D)  punitive 
E)  nominal

Question 20

A buyer's remedial measures do not include recovering damages for nondelivery.

Accepted Answer

A) True 
 B)False

Exam 19: Performance and Remedies

In a destination contract, one of the duties of a seller is:

Acceptance means the buyer has taken possession of the goods.

a(n. _____ is that which calls for delivery of goods in separate lots with separate acceptance for each delivery.

To which of the following exceptions is the buyer's right to inspect subject to?

What are the different forms of a contract?

An installment contract is one calling for delivery of goods in separate lots with separate acceptance for each delivery.

Acceptance means the buyer takes the goods.

The Uniform Commercial Code statute of limitations for breach of any sales contract is five years.

A buyer can revoke an acceptance if the buyer reasonably thought the nonconformity would be cured and it is not within a reasonable time.

Breach of one installment of an installment contract necessarily gives the non-breaching party the right to cancel the whole contract.

If a buyer has accepted nonconforming goods and notified the seller of the nonconformity, the buyer can _____.

The Uniform Commercial Code fills the gap if the parties do not stipulate in their contract when delivery is to occur.

The Uniform Commercial Code cannot fill the gap when parties have not stipulated delivery terms or if their agreement is incomplete or merely formulaic.

Seller contracted to sell a classic 1937 Packard automobile to Buyer for $150,000; a day later, Seller got an offer from Purchaser to buy the car for $210,000, and Seller delivered the car to Purchaser. Buyer's best remedy now is to collect compensatory damages.

Under the Code, an aggrieved party must usually make an election of remedies and not pursue others.

Replevin is an action to recover possession of goods wrongfully held.

Commercially reasonable expenses to which Seller is entitled as a result Buyer's bre_________ damages.

A buyer's remedial measures do not include recovering damages for nondelivery.

Introduction to Law and Legal Systems

Corporate Social Responsibility and Business Ethics

Courts and the Legal Process

Constitutional Law and Us Commerce

Administrative Law

Criminal Law

Introduction to Tort Law

Introduction to Contract Law

The Agreement

Real Assent

Consideration

Legality

Form and Meaning

Third-Party Rights

Discharge of Obligations

Remedies

Introduction to Sales and Leases

Title and Risk of Loss

Products Liability

Bailments and the Storage, Shipment, and Leasing of Goods

Nature and Form of Commercial Paper

Negotiation of Commercial Paper

Holder in Due Course and Defenses

Liability and Discharge

Legal Aspects of Banking

Consumer Credit Transactions

Secured Transactions and Suretyship

Mortgages and Nonconsensual Liens

Bankruptcy

Introduction to Property: Personal Property and Fixtures

Intellectual Property

The Nature and Regulation of Real Estate and the Environment

The Transfer of Real Estate by Sale

Landlord and Tenant Law

Estate Planning: Wills, Estates, and Trusts

Insurance

Relationships Between Principal and Agent

Liability of Principal and Agent; Termination of Agency

Partnerships: General Characteristics and Formation

Partnership Operation and Termination

Hybrid Business Forms

Corporation: General Characteristics and Formation

Legal Aspects of Corporate Finance

Corporate Powers and Management

Securities Regulation

Corporate Expansion, State and Federal Regulation of Foreign Corporations, and Corporate Dissolution

Antitrust Law

Unfair Trade Practices and the Federal Trade Commission

Employment Law

International Law

Liability and Regulation of Accountants

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