Question 1

If a buyer breaches a contract,the seller can choose to simply cancel the contract.

Accepted Answer

A) True 
 B)False  True

Question 2

The doctrine of commercial impracticability only extends to problems that could have been foreseen.

Accepted Answer

A) True 
 B)False  False

Question 3

Text Publishers,Inc. ,contracts for a sale of textbooks to University Bookstores,Inc.Viable Shipping Corporation,the carrier,transports the books to Warehouse Storage Company.Text's right to stop delivery is lost when University's rights to the goods are acknowledged by

Accepted Answer

A) the appropriate government agency. 
B) the students who opt to buy the books. 
C) University Bookstores. 
D) Warehouse Storage. 
A) the appropriate government agency. 
B) the students who opt to buy the books. 
C) University Bookstores. 
D) Warehouse Storage. D

Question 4

Rugged Boats,Inc. ,and Whitewater Rafting enter into a contract for a sale of six custom-made rubber rafts.Whitewater pays for the goods,but Rugged does not deliver.Whitewater can use replevin as a remedy if

Accepted Answer

A) Rugged is lawfully withholding the goods. 
B) Whitewater cannot effectively cure the defect. 
C) Whitewater is unable to cover for the goods. 
D) the goods have not been identified to the contract. 
A) Rugged is lawfully withholding the goods. 
B) Whitewater cannot effectively cure the defect. 
C) Whitewater is unable to cover for the goods. 
D) the goods have not been identified to the contract.

Question 5

Elegant Carpets,Inc. ,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must

Accepted Answer

A) allow the buyer to reject the goods for any reason. 
B) deliver the goods to a particular destination. 
C) inspect the goods before shipping them. 
D) place the goods into the hands of a carrier. 
A) allow the buyer to reject the goods for any reason. 
B) deliver the goods to a particular destination. 
C) inspect the goods before shipping them. 
D) place the goods into the hands of a carrier.

Question 6

Design Architects,Inc. ,and Office Supply Company contract for a sale of office furniture.Design Architects,which is insolvent,breaches the contract.Office Supply can stop delivery of the goods in transit

Accepted Answer

A) only if the quantity is at least a carload. 
B) only if the quantity is at least a planeload. 
C) only if the quantity is at least a truckload. 
D) regardless of the quantity. 
A) only if the quantity is at least a carload. 
B) only if the quantity is at least a planeload. 
C) only if the quantity is at least a truckload. 
D) regardless of the quantity.

Question 7

Remedies under the UCC are cumulative.

Accepted Answer

A) True 
 B)False

Question 8

Gunmakers Pride Corporation contracts for the sale of twelve hunting rifles to Hunters Supply store.Gunmakers delivers nonconforming goods.Acceptance will be presumed unless Hunters Supply rejects the goods

Accepted Answer

A) within a reasonable time after delivery. 
B) within a reasonable time after ordering the goods. 
C) within any time,since hunting rifles are not perishable. 
D) before the last day of the current hunting season. 
A) within a reasonable time after delivery. 
B) within a reasonable time after ordering the goods. 
C) within any time,since hunting rifles are not perishable. 
D) before the last day of the current hunting season.

Question 9

Gleaming Gem Corporation agrees to sell Jewelry Outlets,Inc.(JOI),fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is

Accepted Answer

A) Gleaming's place of business. 
B) JOI's place of business. 
C) the Annual Gems and Jewels Convention. 
D) the U.S.Postal Service office nearest to JOI's place of business. 
A) Gleaming's place of business. 
B) JOI's place of business. 
C) the Annual Gems and Jewels Convention. 
D) the U.S.Postal Service office nearest to JOI's place of business.

Question 10

Natural Seed Company and Mill Valley Farmers Cooperative enter into a contract for a sale of hybrid seeds.Under the perfect tender rule,Natural must ship or tender seeds that

Accepted Answer

A) approximately conform to the contract description. 
B) entirely conform to the contract description in most ways. 
C) conform to the contract description in every way. 
D) substantially conform to the contract description. 
A) approximately conform to the contract description. 
B) entirely conform to the contract description in most ways. 
C) conform to the contract description in every way. 
D) substantially conform to the contract description.

Question 11

With an installment contract,if a buyer or lessee accepts a nonconforming installment,the contract is breached.

Accepted Answer

A) True 
 B)False

Question 12

Fact Pattern 21-B1 
First State Bank issues a letter of credit in favor of Oboe Company,an American firm,to facilitate an international sales contract to buy resources from Lapland Mining,Ltd. ,a Finnish company.
-Refer to Fact Pattern 21-B1.In this letter of credit,the ben?eficiary is

Accepted Answer

A) Lapland. 
B) Oboe. 
C) First State Bank. 
D) Finland. 
A) Lapland. 
B) Oboe. 
C) First State Bank. 
D) Finland.

Question 13

Acceptance of goods is presumed when a buyer or lessee fails to reject the goods within a reasonable time.

Accepted Answer

A) True 
 B)False

Question 14

A buyer who rightfully rejects nonconforming goods can resell the goods and keep the proceeds.

Accepted Answer

A) True 
 B)False

Question 15

If a buyer breaches a contract while the seller is still in possession of the goods,the seller can resell the goods and hold the buyer liable for any loss.

Accepted Answer

A) True 
 B)False

Question 16

Relax-o Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Relax-o tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may

Accepted Answer

A) await performance,sue Relax-o,or suspend its own performance. 
B) only await Relax-o's performance for a commercially reasonable time. 
C) only sue Relax-o for breach of contract. 
D) only suspend its own performance. 
A) await performance,sue Relax-o,or suspend its own performance. 
B) only await Relax-o's performance for a commercially reasonable time. 
C) only sue Relax-o for breach of contract. 
D) only suspend its own performance.

Question 17

Acceptance of goods precludes the buyer or lessee from revoking his or her acceptance.

Accepted Answer

A) True 
 B)False

Question 18

When a buyer has breached a sales contract,and the goods are in his or her possession,the seller can sue to recover the purchase price.

Accepted Answer

A) True 
 B)False

Question 19

A buyer who obtains substitute goods to replace goods that a seller did not deliv?er can not also recover damages from the seller.

Accepted Answer

A) True 
 B)False

Question 20

On May 1,City Auto & Truck Sales agrees to sell a car to Dino.Five days later,Dino refuses delivery and cancels the contract.City is enti?tled to

Accepted Answer

A) force Dino to accept the car. 
B) recover any damages from Dino but not resell the car. 
C) resell the car and recover any damages from Dino. 
D) resell the car but not recover any damages from Dino. 
A) force Dino to accept the car. 
B) recover any damages from Dino but not resell the car. 
C) resell the car and recover any damages from Dino. 
D) resell the car but not recover any damages from Dino.

Exam 21: A: Performance Breach of Sales Lease Contracts

If a buyer breaches a contract,the seller can choose to simply cancel the contract.

The doctrine of commercial impracticability only extends to problems that could have been foreseen.

Text Publishers,Inc. ,contracts for a sale of textbooks to University Bookstores,Inc.Viable Shipping Corporation,the carrier,transports the books to Warehouse Storage Company.Text's right to stop delivery is lost when University's rights to the goods are acknowledged by

Rugged Boats,Inc. ,and Whitewater Rafting enter into a contract for a sale of six custom-made rubber rafts.Whitewater pays for the goods,but Rugged does not deliver.Whitewater can use replevin as a remedy if

Elegant Carpets,Inc. ,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must

Design Architects,Inc. ,and Office Supply Company contract for a sale of office furniture.Design Architects,which is insolvent,breaches the contract.Office Supply can stop delivery of the goods in transit

Remedies under the UCC are cumulative.

Gunmakers Pride Corporation contracts for the sale of twelve hunting rifles to Hunters Supply store.Gunmakers delivers nonconforming goods.Acceptance will be presumed unless Hunters Supply rejects the goods

Gleaming Gem Corporation agrees to sell Jewelry Outlets,Inc.(JOI),fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is

Natural Seed Company and Mill Valley Farmers Cooperative enter into a contract for a sale of hybrid seeds.Under the perfect tender rule,Natural must ship or tender seeds that

With an installment contract,if a buyer or lessee accepts a nonconforming installment,the contract is breached.

Fact Pattern 21-B1 First State Bank issues a letter of credit in favor of Oboe Company,an American firm,to facilitate an international sales contract to buy resources from Lapland Mining,Ltd. ,a Finnish company. -Refer to Fact Pattern 21-B1.In this letter of credit,the ben?eficiary is

Acceptance of goods is presumed when a buyer or lessee fails to reject the goods within a reasonable time.

A buyer who rightfully rejects nonconforming goods can resell the goods and keep the proceeds.

If a buyer breaches a contract while the seller is still in possession of the goods,the seller can resell the goods and hold the buyer liable for any loss.

Relax-o Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Relax-o tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may

Acceptance of goods precludes the buyer or lessee from revoking his or her acceptance.

When a buyer has breached a sales contract,and the goods are in his or her possession,the seller can sue to recover the purchase price.

A buyer who obtains substitute goods to replace goods that a seller did not deliv?er can not also recover damages from the seller.

On May 1,City Auto & Truck Sales agrees to sell a car to Dino.Five days later,Dino refuses delivery and cancels the contract.City is enti?tled to

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course