Question 1

A buyer who is unable to obtain cover

Accepted Answer

A)  will be limited to the remedy of incidental damages. 
B)  will be limited to the remedy of consequential damages. 
C)  will lose the money or goods invested in the breached contract. 
D)  may be allowed the remedy of specific performance. 
A)  will be limited to the remedy of incidental damages. 
B)  will be limited to the remedy of consequential damages. 
C)  will lose the money or goods invested in the breached contract. 
D)  may be allowed the remedy of specific performance. D

Question 2

Master Glue Hairspray, Inc. contracts to purchase 100 umbrellas with its logo and slogan, "A spray a day keeps the rain and wind away!" specially printed on the umbrellas and its 1-800 telephone number on the umbrella handle. After the seller completes the order, Master Glue refuses to accept or pay for the umbrellas. Because of the special logo and telephone number, the seller has been unable to find a new buyer. If the seller sues Master Glue, what is the proper measure of the seller's damages?

Accepted Answer

A)  contract price minus market value of the goods at the time of delivery 
B)  contract price 
C)  lost profits 
D)  cover price minus contract price 
A)  contract price minus market value of the goods at the time of delivery 
B)  contract price 
C)  lost profits 
D)  cover price minus contract price B

Question 3

Turtle World orders 200 small sea turtles from Reptile World. After the sea turtles had been identified to the contract but before the risk of loss had passed to Turtle World, the turtles were released into the ocean by a militant animal rights group who broke into Reptile World to set the animals free. Under this scenario

Accepted Answer

A)  Turtle World cannot successfully sue because the contract is void. 
B)  Turtle World can cover, then win a judgment against Reptile World for the difference between the contract price and the cover price, plus incidental and consequential damages, minus expenses saved. 
C)  Turtle World can successfully sue for specific performance because sea turtles are everywhere. 
D)  Turtle World is entitled to a judgment for compensatory damages, but not consequential damages. 
A)  Turtle World cannot successfully sue because the contract is void. 
B)  Turtle World can cover, then win a judgment against Reptile World for the difference between the contract price and the cover price, plus incidental and consequential damages, minus expenses saved. 
C)  Turtle World can successfully sue for specific performance because sea turtles are everywhere. 
D)  Turtle World is entitled to a judgment for compensatory damages, but not consequential damages. A

Question 4

If Chuck buys frozen cheese from Cheese, Inc., then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment, Chuck has accepted the shipment even if there is non-conformity.

Accepted Answer

A) True 
 B)False

Question 5

Neon orders one thousand 25-foot nylon ropes from Hang'em High Co. Upon inspection of the delivery, Neon learns that Hang'em sent five hundred 25-foot ropes and five hundred 20-foot ropes. Neon may

Accepted Answer

A)  demand that Hang'em send 500 additional 25-foot ropes and get to keep the 20-foot ropes as well. 
B)  accept the 500 conforming ropes and reject the 500 nonconforming ropes. 
C)  seek an installment contract. 
D)  immediately "cure" by finding a substitute product. 
A)  demand that Hang'em send 500 additional 25-foot ropes and get to keep the 20-foot ropes as well. 
B)  accept the 500 conforming ropes and reject the 500 nonconforming ropes. 
C)  seek an installment contract. 
D)  immediately "cure" by finding a substitute product.

Question 6

Reba orders a pair of custom-made cowboy boots, C.O.D. from Home on the Range Western Wear. When the boots arrive, Reba pays the carrier for the boots, then opens the package, only to discover that the boots are the wrong snake skin color and three sizes too big. At this point

Accepted Answer

A)  Reba is entitled to inspect the goods after payment (due to the C.O.D. terms) and she can reject the boots because they are nonconforming. 
B)  Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments. 
C)  Home on the Range can allege that Reba did not conduct a proper inspection; therefore, Home on the Range owes Reba nothing. 
D)  Reba has no recourse; she should have known to inspect the goods before paying the C.O.D. amount. 
A)  Reba is entitled to inspect the goods after payment (due to the C.O.D. terms) and she can reject the boots because they are nonconforming. 
B)  Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments. 
C)  Home on the Range can allege that Reba did not conduct a proper inspection; therefore, Home on the Range owes Reba nothing. 
D)  Reba has no recourse; she should have known to inspect the goods before paying the C.O.D. amount.

Question 7

If a buyer does not receive goods by the contract deadline, remedies available include all of the following EXCEPT

Accepted Answer

A)  incidental and consequential damages. 
B)  cover. 
C)  damages for non-delivery. 
D)  cure. 
A)  incidental and consequential damages. 
B)  cover. 
C)  damages for non-delivery. 
D)  cure.

Question 8

Identify the possible remedies for a buyer when the seller breaches a contract.

Accepted Answer

If a seller breaches a contract, the buy

Question 9

Bryson Hardware accepted delivery of the 50 door handles it ordered. If it later finds the handles do not conform to the contract specifications and it wants to revoke its acceptance, it may return the goods only if

Accepted Answer

A)  it shows the original acceptance of the goods never occurred. 
B)  it shows that the defects substantially impair their value. 
C)  it can prove it is commercially impracticable for it to keep the goods. 
D)  the documents of title are in order. 
A)  it shows the original acceptance of the goods never occurred. 
B)  it shows that the defects substantially impair their value. 
C)  it can prove it is commercially impracticable for it to keep the goods. 
D)  the documents of title are in order.

Question 10

A buyer has an absolute right to reject non-conforming goods as long as the rejection is timely.

Accepted Answer

A) True 
 B)False

Question 11

A seller may not make repairs or adjustments after the goods have been tendered, even if that action will bring the goods into conformity in order to "cure" nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 12

Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each. If the first installment arrives with 5 pounds of spoilage, then Dessert World may

Accepted Answer

A)  reject the installment shipment because of the perfect tender rule. 
B)  not reject the installment if those in the food industry expect a small percentage of spoilage with fresh fruits or vegetables. 
C)  reject the entire contract. 
D)  declare a breach and "cover." 
A)  reject the installment shipment because of the perfect tender rule. 
B)  not reject the installment if those in the food industry expect a small percentage of spoilage with fresh fruits or vegetables. 
C)  reject the entire contract. 
D)  declare a breach and "cover."

Question 13

Liquidated damages are not permitted under the UCC.

Accepted Answer

A) True 
 B)False

Question 14

Meister Bros. shipped 250 radiator belts to fill Braybon's order. Quality control measures had been in place in Meister's factory when the belts were manufactured. When Braybon received the order one day before it was due, it notified Meister that it rejected the belts because of a variation from the contract specifications. Meister, although it believed the original belts met the contract specifications, notified Braybon that it would supply conforming goods within one week. When the conforming goods arrive in one week,

Accepted Answer

A)  Braybon must accept them, but does not have to pay the full price because the contract deadline has passed. 
B)  Braybon does not have to accept them because Meister Bros. only has one chance to fill the order correctly. 
C)  Braybon should accept them because Meister Bros. has a right to cure even after the contract deadline under these circumstances. 
D)  Braybon does not have to accept them because Meister Bros. failed to meet its UCC requirement to deal in good faith. 
A)  Braybon must accept them, but does not have to pay the full price because the contract deadline has passed. 
B)  Braybon does not have to accept them because Meister Bros. only has one chance to fill the order correctly. 
C)  Braybon should accept them because Meister Bros. has a right to cure even after the contract deadline under these circumstances. 
D)  Braybon does not have to accept them because Meister Bros. failed to meet its UCC requirement to deal in good faith.

Question 15

Leonna orders five table settings of china from Elite China. Each set includes a dinner plate, cup & saucer, bowl, and dessert plate. The china is sold only in sets. When the delivery arrives, Leonna discovers that Elite China sent the wrong pattern. Leonna immediately calls Elite China and is instructed to send the shipment back. While repacking the shipment, Leonna changes her mind and decides to keep the cups and saucers. She returns everything else. Can she do this?

Accepted Answer

Probably not. If the set is seen as a co

Question 16

If applicable, course of dealing will

Accepted Answer

A)  limit the buyer's right to reject for relatively routine defects. 
B)  allow the seller to replace defective goods with conforming goods if time permits. 
C)  permit a buyer to reject accepted goods if they substantially impair its value. 
D)  allow either the buyer or the seller to void a contract. 
A)  limit the buyer's right to reject for relatively routine defects. 
B)  allow the seller to replace defective goods with conforming goods if time permits. 
C)  permit a buyer to reject accepted goods if they substantially impair its value. 
D)  allow either the buyer or the seller to void a contract.

Question 17

If a contract does not provide for a time for inspection, the UCC allows inspection to take place

Accepted Answer

A)  within a reasonable time. 
B)  the same day as delivery. 
C)  within 3 days of delivery. 
D)  within 10 days of delivery. 
A)  within a reasonable time. 
B)  the same day as delivery. 
C)  within 3 days of delivery. 
D)  within 10 days of delivery.

Question 18

Which of the following statements is NOT TRUE regarding the buyer's right to cover?

Accepted Answer

A)  The buyer must cover. 
B)  The measure of damages in a cover is the difference between the cover price and the contract price. 
C)  Cover must be done by reasonably obtaining substitute goods. 
D)  Consequential damages can be recovered in addition to the cover damages. 
A)  The buyer must cover. 
B)  The measure of damages in a cover is the difference between the cover price and the contract price. 
C)  Cover must be done by reasonably obtaining substitute goods. 
D)  Consequential damages can be recovered in addition to the cover damages.

Question 19

The term tender means to physically deliver the goods to the buyer.

Accepted Answer

A) True 
 B)False

Question 20

If a seller cures within a reasonable amount of time, the contract

Accepted Answer

A)  has been performed. 
B)  is breached. 
C)  is void. 
D)  is voidable. 
A)  has been performed. 
B)  is breached. 
C)  is void. 
D)  is voidable.

Exam 23: Performance and Remedies

A buyer who is unable to obtain cover

If Chuck buys frozen cheese from Cheese, Inc., then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment, Chuck has accepted the shipment even if there is non-conformity.

Neon orders one thousand 25-foot nylon ropes from Hang'em High Co. Upon inspection of the delivery, Neon learns that Hang'em sent five hundred 25-foot ropes and five hundred 20-foot ropes. Neon may

Reba orders a pair of custom-made cowboy boots, C.O.D. from Home on the Range Western Wear. When the boots arrive, Reba pays the carrier for the boots, then opens the package, only to discover that the boots are the wrong snake skin color and three sizes too big. At this point

If a buyer does not receive goods by the contract deadline, remedies available include all of the following EXCEPT

Identify the possible remedies for a buyer when the seller breaches a contract.

Bryson Hardware accepted delivery of the 50 door handles it ordered. If it later finds the handles do not conform to the contract specifications and it wants to revoke its acceptance, it may return the goods only if

A buyer has an absolute right to reject non-conforming goods as long as the rejection is timely.

A seller may not make repairs or adjustments after the goods have been tendered, even if that action will bring the goods into conformity in order to "cure" nonconforming goods.

Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each. If the first installment arrives with 5 pounds of spoilage, then Dessert World may

Liquidated damages are not permitted under the UCC.

If applicable, course of dealing will

If a contract does not provide for a time for inspection, the UCC allows inspection to take place

Which of the following statements is NOT TRUE regarding the buyer's right to cover?

The term tender means to physically deliver the goods to the buyer.

If a seller cures within a reasonable amount of time, the contract

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