Question 1

_____ of goods occurs when a buyer, after having reasonable opportunity to inspect the goods, either indicates that he will take them or fails to reject them.

Accepted Answer

A)  Assurance of performance 
B)  Notification of shipment 
C)  Acceptance 
D)  Improper delivery 
A)  Assurance of performance 
B)  Notification of shipment 
C)  Acceptance 
D)  Improper delivery

Question 2

A contract calls for a farmer to send apples growing at his farm to the fruit market every Monday, and he promptly sends fresh stock of apples every Monday as per the contract. If the fruit market does not pay cash but rather sends a check the following week, then _____.

Accepted Answer

A)  the farmer can object, but the contract can be cancelled only after six months of the contract period 
B)  the farmer cannot object under any circumstances 
C)  the farmer must object if he may want to rely on the late payment as grounds for later canceling the contract 
D)  the farmer can object only if he has not been paid by any means for the apples he delivered 
A)  the farmer can object, but the contract can be cancelled only after six months of the contract period 
B)  the farmer cannot object under any circumstances 
C)  the farmer must object if he may want to rely on the late payment as grounds for later canceling the contract 
D)  the farmer can object only if he has not been paid by any means for the apples he delivered

Question 3

The basic duty of the buyer is to accept and pay for the goods if they conform to the contract.

Accepted Answer

A) True 
 B)False

Question 4

How does "usage of trade" affect the rights and obligations of buyers and sellers in contracts for the sale of goods transactions?

Accepted Answer

In many kinds of businesses, there are c

Question 5

When the buyer rejects goods that are not perishable, and the seller does not give the buyer instructions concerning the disposal of the goods, the buyer:

Accepted Answer

A)  can resell the goods but cannot keep a commission on the sale. 
B)  cannot reship the goods to the seller as it would break the contract. 
C)  cannot resell the goods. 
D)  can give the seller a reasonable time to remove the goods. 
A)  can resell the goods but cannot keep a commission on the sale. 
B)  cannot reship the goods to the seller as it would break the contract. 
C)  cannot resell the goods. 
D)  can give the seller a reasonable time to remove the goods.

Question 6

The "right to cure" refers to the:

Accepted Answer

A)  seller's right to reship conforming goods within a reasonable time. 
B)  seller's right to obtain payment from the buyer despite delivering nonconforming goods. 
C)  exclusive right, granted by state permit, for certain businesses to reship certain types of items. 
D)  buyer's right to persuade a seller to replace nonconforming goods. 
A)  seller's right to reship conforming goods within a reasonable time. 
B)  seller's right to obtain payment from the buyer despite delivering nonconforming goods. 
C)  exclusive right, granted by state permit, for certain businesses to reship certain types of items. 
D)  buyer's right to persuade a seller to replace nonconforming goods.

Question 7

Which of the following is true about the seller's duty of delivery?

Accepted Answer

A)  The contract of sale requires the seller to deliver the goods to the buyer's place of business. 
B)  If the goods are covered by a negotiable warehouse receipt, the buyer must indorse the receipt. 
C)  The buyer is required to officially notify the seller once he receives the goods. 
D)  The seller's basic obligation is to tender delivery of goods that conform to the contract with the buyer. 
A)  The contract of sale requires the seller to deliver the goods to the buyer's place of business. 
B)  If the goods are covered by a negotiable warehouse receipt, the buyer must indorse the receipt. 
C)  The buyer is required to officially notify the seller once he receives the goods. 
D)  The seller's basic obligation is to tender delivery of goods that conform to the contract with the buyer.

Question 8

In a contract where there is no agreement between two parties for delivery in installments, all the goods _____.

Accepted Answer

A)  must be delivered at the seller's discretion 
B)  must be delivered to the buyer in a single delivery 
C)  must be delivered in the installments at the seller's discretion 
D)  must be delivered in reasonably spaced intervals 
A)  must be delivered at the seller's discretion 
B)  must be delivered to the buyer in a single delivery 
C)  must be delivered in the installments at the seller's discretion 
D)  must be delivered in reasonably spaced intervals

Question 9

Under the Uniform Commercial Code, only the buyer can demand assurance from the other party that the contract will be performed.

Accepted Answer

A) True 
 B)False

Question 10

If the shipping terms are cash on delivery, the buyer must pay for the goods after inspecting them.

Accepted Answer

A) True 
 B)False

Question 11

Normally, the buyer does not have the right to inspect the goods before she accepts or pays for them.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following terms implies that the seller must make the goods available to the buyer during reasonable hours and for a reasonable period of time so that the buyer can take possession of the goods?

Accepted Answer

A)  Tender of payment 
B)  Notification 
C)  Acceptance 
D)  Tender of delivery 
A)  Tender of payment 
B)  Notification 
C)  Acceptance 
D)  Tender of delivery

Question 13

Jayden, the owner of a cosmetic store, orders 20 bottles of body lotion and 30 bottles of face cleansing lotion. After the order is delivered, he discovers that he has received only 10 bottles of body lotion and 10 bottles of face cleansing lotion. In this scenario, Jayden:

Accepted Answer

A)  can accept all the goods and avoid payment for the face cleansing lotion. 
B)  cannot accept the nonconforming goods. 
C)  can reject or accept the entire order. 
D)  can avoid payment for the body lotion which he had not ordered but has accepted. 
A)  can accept all the goods and avoid payment for the face cleansing lotion. 
B)  cannot accept the nonconforming goods. 
C)  can reject or accept the entire order. 
D)  can avoid payment for the body lotion which he had not ordered but has accepted.

Question 14

In the case of a non-merchant, good faith means honesty in fact as well as the observance of reasonable commercial standards of fair dealing in the trade.

Accepted Answer

A) True 
 B)False

Question 15

_____ means honesty in fact in performing the duties assumed in the contract or in carrying out the transaction.

Accepted Answer

A)  Social responsibility 
B)  Good faith 
C)  "Arms-length" bargaining 
D)  Conciliation 
A)  Social responsibility 
B)  Good faith 
C)  "Arms-length" bargaining 
D)  Conciliation

Question 16

In sales contracts, the seller can exercise the right to cure even when the original time for delivery has expired, if the:

Accepted Answer

A)  buyer purchases products regularly from the seller. 
B)  seller agreed to cash on delivery (CO
D)  selling terms. 
C)  buyer accepted the commercial units in the original shipment and rejected the rest. 
D)  seller had some reason to believe the buyer would accept nonconforming goods. 
A)  buyer purchases products regularly from the seller. 
B)  seller agreed to cash on delivery (CO
D)  selling terms. 
C)  buyer accepted the commercial units in the original shipment and rejected the rest. 
D)  seller had some reason to believe the buyer would accept nonconforming goods.

Question 17

Jamal purchased a motorcycle from Getaway Automobiles, and the motorcycle's electric starter began malfunctioning after a week of the motorcycle's purchase. Jamal returned the motorcycle to the store, and the manager assured him that it was only a minor problem that could be fixed easily. In the next two months, Jamal visited the store five times for rectification of the same issue. Finally, he gave up and demanded that he get a cashback for the faulty motorcycle. Under these circumstances, which of the following is most likely to be true?

Accepted Answer

A)  Jamal is not entitled to revoke acceptance of the goods because he has used it. 
B)  Jamal is entitled to revoke acceptance because he took back the motorcycle after the seller's assurance that the nonconformity would be cured. 
C)  Jamal cannot revoke his acceptance because the value of the motorcycle is impaired by its use for over two months. 
D)  Jamal can revoke his acceptance but is not entitled to damages for breach of warranty. 
A)  Jamal is not entitled to revoke acceptance of the goods because he has used it. 
B)  Jamal is entitled to revoke acceptance because he took back the motorcycle after the seller's assurance that the nonconformity would be cured. 
C)  Jamal cannot revoke his acceptance because the value of the motorcycle is impaired by its use for over two months. 
D)  Jamal can revoke his acceptance but is not entitled to damages for breach of warranty.

Question 18

A buyer is considered to have accepted a whole commercial unit of goods if the:

Accepted Answer

A)  buyer pays for the goods before inspecting them. 
B)  buyer accepts any part of the commercial unit. 
C)  seller delivers even part of the commercial unit. 
D)  seller delivers all the goods in the commercial unit. 
A)  buyer pays for the goods before inspecting them. 
B)  buyer accepts any part of the commercial unit. 
C)  seller delivers even part of the commercial unit. 
D)  seller delivers all the goods in the commercial unit.

Question 19

The Uniform Commercial Code (UCC) uses the test of _____ to determine when a seller is excused from performing contractual obligations.

Accepted Answer

A)  wrongful rejection 
B)  commercial impracticability 
C)  proximate causes 
D)  concurrent causes 
A)  wrongful rejection 
B)  commercial impracticability 
C)  proximate causes 
D)  concurrent causes

Question 20

The Uniform Commercial Code (UCC) gives the parties great flexibility in deciding between themselves how a contract will be performed.

Accepted Answer

A) True 
 B)False

Exam 21: Performance of Sales Contracts

_____ of goods occurs when a buyer, after having reasonable opportunity to inspect the goods, either indicates that he will take them or fails to reject them.

A contract calls for a farmer to send apples growing at his farm to the fruit market every Monday, and he promptly sends fresh stock of apples every Monday as per the contract. If the fruit market does not pay cash but rather sends a check the following week, then _____.

The basic duty of the buyer is to accept and pay for the goods if they conform to the contract.

How does "usage of trade" affect the rights and obligations of buyers and sellers in contracts for the sale of goods transactions?

When the buyer rejects goods that are not perishable, and the seller does not give the buyer instructions concerning the disposal of the goods, the buyer:

The "right to cure" refers to the:

Which of the following is true about the seller's duty of delivery?

In a contract where there is no agreement between two parties for delivery in installments, all the goods _____.

Under the Uniform Commercial Code, only the buyer can demand assurance from the other party that the contract will be performed.

If the shipping terms are cash on delivery, the buyer must pay for the goods after inspecting them.

Normally, the buyer does not have the right to inspect the goods before she accepts or pays for them.

Which of the following terms implies that the seller must make the goods available to the buyer during reasonable hours and for a reasonable period of time so that the buyer can take possession of the goods?

Jayden, the owner of a cosmetic store, orders 20 bottles of body lotion and 30 bottles of face cleansing lotion. After the order is delivered, he discovers that he has received only 10 bottles of body lotion and 10 bottles of face cleansing lotion. In this scenario, Jayden:

In the case of a non-merchant, good faith means honesty in fact as well as the observance of reasonable commercial standards of fair dealing in the trade.

_____ means honesty in fact in performing the duties assumed in the contract or in carrying out the transaction.

In sales contracts, the seller can exercise the right to cure even when the original time for delivery has expired, if the:

A buyer is considered to have accepted a whole commercial unit of goods if the:

The Uniform Commercial Code (UCC) uses the test of _____ to determine when a seller is excused from performing contractual obligations.

The Uniform Commercial Code (UCC) gives the parties great flexibility in deciding between themselves how a contract will be performed.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

Filters