Question 1

Unless the parties agree otherwise, the buyer or lessee typically inspects goods ______ paying.

Accepted Answer

A)  Before 
B)  Immediately after 
C)  Within 24 hours after 
D)  Within 48 hours after 
E)  Within 7 days after 
A)  Before 
B)  Immediately after 
C)  Within 24 hours after 
D)  Within 48 hours after 
E)  Within 7 days after

Question 2

A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects substantially impair the value of the goods.

Accepted Answer

A) True 
 B)False

Question 3

Sometimes language in the parties' agreement limits the rigidity of the perfect tender rule.

Accepted Answer

A) True 
 B)False

Question 4

"Baseball Trophies." To recognize baseball players on his team, Bobby ordered from Bruce 10 trophies showing a baseball player swinging a bat. The trophies were to be delivered on May 1st for an award dinner to be held on May 20th. Bruce was unable to obtain trophies showing a baseball player swinging a bat, but by May 13th, he did locate some trophies with a baseball player holding a bat. The difference did not substantially impair the value of the trophies, and thinking that the trophies would be acceptable, Bruce delivered them on May 14th. Bobby glanced at the trophies, paid for them with a check, and said nothing. On May 16th Bobby looked at the trophies more closely and decided that he did not like them. He canceled payment on Bruce's check, and Bruce sued him for payment.
-Considering only the issue involving the time set for delivery, what is the likely effect of Bobby delivering the trophies after the agreed upon time?

Accepted Answer

A)  Bruce has the right to rely on the failure of Bobby to deliver the trophies in a timely manner and will likely prevail. 
B)  Bruce's payment for the trophies without inspection and after the time called for by the contract likely waived the performance provisions of the contract regarding the time for delivery. 
C)  Bruce did not waive the performance provisions of the contract regarding the time for delivery because he paid by check. 
D)  Bruce did not waive the performance provisions of the contract regarding the time for delivery only because he canceled the check before it was cashed by Bobby. 
E)  Bruce cannot rely upon the performance provisions of the contract regarding the time for delivery because he did not object within 24 hours of the delivery of the trophies and, therefore, did not meet the UCC 24-hour rule. 
A)  Bruce has the right to rely on the failure of Bobby to deliver the trophies in a timely manner and will likely prevail. 
B)  Bruce's payment for the trophies without inspection and after the time called for by the contract likely waived the performance provisions of the contract regarding the time for delivery. 
C)  Bruce did not waive the performance provisions of the contract regarding the time for delivery because he paid by check. 
D)  Bruce did not waive the performance provisions of the contract regarding the time for delivery only because he canceled the check before it was cashed by Bobby. 
E)  Bruce cannot rely upon the performance provisions of the contract regarding the time for delivery because he did not object within 24 hours of the delivery of the trophies and, therefore, did not meet the UCC 24-hour rule.

Question 5

Define "course of performance," and discuss its relationship to decisions regarding whether goods conform to contract specifications.

Accepted Answer

Course of performance refers to the hist

Question 6

Under the UCC, nondelivery is not a breach of contract in circumstances in which performance has been made impracticable because a contingency has occurred that was not contemplated when the parties reached an agreement.

Accepted Answer

A) True 
 B)False

Question 7

Under the UCC which of the following refers to the history of dealings between the parties in the particular contract at issue?

Accepted Answer

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

Question 8

"Baseball Trophies." To recognize baseball players on his team, Bobby ordered from Bruce 10 trophies showing a baseball player swinging a bat. The trophies were to be delivered on May 1st for an award dinner to be held on May 20th. Bruce was unable to obtain trophies showing a baseball player swinging a bat, but by May 13th, he did locate some trophies with a baseball player holding a bat. The difference did not substantially impair the value of the trophies, and thinking that the trophies would be acceptable, Bruce delivered them on May 14th. Bobby glanced at the trophies, paid for them with a check, and said nothing. On May 16th Bobby looked at the trophies more closely and decided that he did not like them. He canceled payment on Bruce's check, and Bruce sued him for payment.
-What is the most likely effect of Bruce's failure to cure the problem?

Accepted Answer

A)  In order to receive payment, Bruce must provide correct trophies; otherwise, he is not entitled to payment. 
B)  Bobby's actions effectively prevented Bruce form an opportunity to cure any defects and, therefore, Bobby's actions cannot be said to have effectively rejected the goods resulting in him owing Bruce. 
C)  Bobby will be required to take a 50% reduction on the price to be paid for the goods. 
D)  Bobby will be required to take a 30% reduction on the price to be paid for the goods. 
E)  Bobby will be required to take a 20% reduction on the price to be paid for the goods. 
A)  In order to receive payment, Bruce must provide correct trophies; otherwise, he is not entitled to payment. 
B)  Bobby's actions effectively prevented Bruce form an opportunity to cure any defects and, therefore, Bobby's actions cannot be said to have effectively rejected the goods resulting in him owing Bruce. 
C)  Bobby will be required to take a 50% reduction on the price to be paid for the goods. 
D)  Bobby will be required to take a 30% reduction on the price to be paid for the goods. 
E)  Bobby will be required to take a 20% reduction on the price to be paid for the goods.

Question 9

Should the perfect tender rule be rejected as a matter of law and replaced with the concept of substantial performance?

Accepted Answer

Student responses will vary. In favor of

Question 10

Good faith in relation to transactions between parties who are not merchants means ____.

Accepted Answer

A)  Honesty in fact 
B)  Honesty in law 
C)  Honesty in fact and also reasonable commercial standards of fair dealing 
D)  Honesty in law and also reasonable commercial standards of fair dealing 
E)  Honesty in fact and honesty in law 
A)  Honesty in fact 
B)  Honesty in law 
C)  Honesty in fact and also reasonable commercial standards of fair dealing 
D)  Honesty in law and also reasonable commercial standards of fair dealing 
E)  Honesty in fact and honesty in law

Question 11

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

Accepted Answer

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

Question 12

Under the UCC, buyers and lessees are obligated to accept and pay for conforming goods in accordance with the contract.

Accepted Answer

A) True 
 B)False

Question 13

Course of dealing is another term for course of performance.

Accepted Answer

A) True 
 B)False

Question 14

"New Furniture." Penny purchased $3,000 worth of furniture from Good Wood Furniture. Through an arrangement with Good Wood, Penny financed the purchase through a financing company called Let Us Help You. Twenty-nine days after the goods were delivered to her, Penny had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay. She notified Good Wood on that day that she was rejecting the goods. Good 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. Penny 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 of the following is true regarding the claim of Good Wood that Penny failed to properly reject the goods?

Accepted Answer

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

Question 15

What is the Uniform Computer Information Transactions Act; and what is an important way, discussed in the text, by which the act protects software vendors?

Accepted Answer

The Uniform Computer Information Transac

Question 16

UCC Section _____ requires good faith in the performance and enforcement of every contract.

Accepted Answer

A)  1-203 
B)  2-205 
C)  3-301 
D)  3-302 
E)  1-007 
A)  1-203 
B)  2-205 
C)  3-301 
D)  3-302 
E)  1-007

Question 17

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 18

There are no exceptions to the perfect tender rule.

Accepted Answer

A) True 
 B)False

Question 19

"Baseball Trophies." To recognize baseball players on his team, Bobby ordered from Bruce 10 trophies showing a baseball player swinging a bat. The trophies were to be delivered on May 1st for an award dinner to be held on May 20th. Bruce was unable to obtain trophies showing a baseball player swinging a bat, but by May 13th, he did locate some trophies with a baseball player holding a bat. The difference did not substantially impair the value of the trophies, and thinking that the trophies would be acceptable, Bruce delivered them on May 14th. Bobby glanced at the trophies, paid for them with a check, and said nothing. On May 16th Bobby looked at the trophies more closely and decided that he did not like them. He canceled payment on Bruce's check, and Bruce sued him for payment.
-Which of the following is the most likely result if Bruce claims he had reasonable grounds to believe the trophies were acceptable?

Accepted Answer

A)  He would be correct because Bruce's payment by check for the goods upon their delivery provided Bobby with a measure of reliance that they would be acceptable. 
B)  He would be incorrect because Bruce did not confirm in writing that the trophies were acceptable. 
C)  He would be incorrect because Bruce did not confirm orally or in writing that the trophies were acceptable. 
D)  He would be correct because of the special UCC exception for sports-related items. 
E)  He would be correct because of the special UCC exception for school-related items. 
A)  He would be correct because Bruce's payment by check for the goods upon their delivery provided Bobby with a measure of reliance that they would be acceptable. 
B)  He would be incorrect because Bruce did not confirm in writing that the trophies were acceptable. 
C)  He would be incorrect because Bruce did not confirm orally or in writing that the trophies were acceptable. 
D)  He would be correct because of the special UCC exception for sports-related items. 
E)  He would be correct because of the special UCC exception for school-related items.

Question 20

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

Accepted Answer

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

Exam 23: Performance and Obligations Under Sales and Leases

Unless the parties agree otherwise, the buyer or lessee typically inspects goods ______ paying.

A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects substantially impair the value of the goods.

Sometimes language in the parties' agreement limits the rigidity of the perfect tender rule.

Define "course of performance," and discuss its relationship to decisions regarding whether goods conform to contract specifications.

Under the UCC, nondelivery is not a breach of contract in circumstances in which performance has been made impracticable because a contingency has occurred that was not contemplated when the parties reached an agreement.

Under the UCC which of the following refers to the history of dealings between the parties in the particular contract at issue?

Should the perfect tender rule be rejected as a matter of law and replaced with the concept of substantial performance?

Good faith in relation to transactions between parties who are not merchants means ____.

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

Under the UCC, buyers and lessees are obligated to accept and pay for conforming goods in accordance with the contract.

Course of dealing is another term for course of performance.

What is the Uniform Computer Information Transactions Act; and what is an important way, discussed in the text, by which the act protects software vendors?

UCC Section _____ requires good faith in the performance and enforcement of every contract.

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

There are no exceptions to the perfect tender rule.

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

An Introduction to Dynamic Business Law

Business Ethics

The US Legal 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

Filters