Question 1

Acceptance of goods occurs when a:

Accepted Answer

A)  buyer indicates that he or she will take the goods. 
B)  buyer inspects the goods. 
C)  seller ships the goods to a buyer. 
D)  buyer makes a payment by cash or check for the goods. 
A)  buyer indicates that he or she will take the goods. 
B)  buyer inspects the goods. 
C)  seller ships the goods to a buyer. 
D)  buyer makes a payment by cash or check for the goods.

Question 2

Skyline Builders and Pine Lumber had a contract, calling for Pine Lumber to deliver a certain quantity of bricks to Skyline's place of business on the first of every month for one year. Pine delivered the bricks one week late for the first six months, but Skyline did not object. When Pine delivered the bricks one week late, as usual, in the seventh month, Skyline attempted to cancel the contract because of the late delivery. Which of the following is true about this scenario?

Accepted Answer

A)  Pine will have to return the delivery fee of the first six months because it broke the contract. 
B)  Skyline does not have the legal right to modify the contract. 
C)  Pine is not in breach because the delivery was made at the intended place of business. 
D)  Skyline has waived its right to cancel the contract. 
A)  Pine will have to return the delivery fee of the first six months because it broke the contract. 
B)  Skyline does not have the legal right to modify the contract. 
C)  Pine is not in breach because the delivery was made at the intended place of business. 
D)  Skyline has waived its right to cancel the contract.

Question 3

Once a party to a contract repudiates the contract, it is rendered void with no way to withdraw the repudiation.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following holds true of revocation of acceptance by the buyer?

Accepted Answer

A)  A buyer can revoke acceptance of nonconforming goods when the nonconformity substantially impairs the value of the goods. 
B)  A buyer cannot revoke acceptance of nonconforming goods if the buyer accepted the goods because of assurances by the seller. 
C)  A buyer can revoke acceptance of nonconforming goods even after accepting goods with the knowledge of the nonconformity. 
D)  The right to revoke acceptance can be exercised any time after the buyer discovers the nonconformity. 
A)  A buyer can revoke acceptance of nonconforming goods when the nonconformity substantially impairs the value of the goods. 
B)  A buyer cannot revoke acceptance of nonconforming goods if the buyer accepted the goods because of assurances by the seller. 
C)  A buyer can revoke acceptance of nonconforming goods even after accepting goods with the knowledge of the nonconformity. 
D)  The right to revoke acceptance can be exercised any time after the buyer discovers the nonconformity.

Question 5

Which of the following is a correct statement regarding payment in a contract for the sale of goods transaction?

Accepted Answer

A)  The buyer and seller may not agree in their contract that the price of the goods is to be paid in services. 
B)  If there is no agreement for extending credit to the buyer, the buyer must pay for them on delivery. 
C)  The buyer and seller may not agree in their contract that the price of the goods is to be paid in other goods. 
D)  As a general rule, the buyer cannot inspect the goods before payment. 
A)  The buyer and seller may not agree in their contract that the price of the goods is to be paid in services. 
B)  If there is no agreement for extending credit to the buyer, the buyer must pay for them on delivery. 
C)  The buyer and seller may not agree in their contract that the price of the goods is to be paid in other goods. 
D)  As a general rule, the buyer cannot inspect the goods before payment.

Question 6

In a sales contract, in order to reject goods, the buyer must:

Accepted Answer

A)  notify the seller of the rejection and specify the defect. 
B)  specify the nonconformity to the seller after treating the goods as his own. 
C)  use the goods for at least a month and then inform the seller in writing. 
D)  make a replacement purchase of similar price goods from the seller. 
A)  notify the seller of the rejection and specify the defect. 
B)  specify the nonconformity to the seller after treating the goods as his own. 
C)  use the goods for at least a month and then inform the seller in writing. 
D)  make a replacement purchase of similar price goods from the seller.

Question 7

Normally, a buyer has the right to inspect the goods _____.

Accepted Answer

A)  after the guarantee period of the product 
B)  only after paying for the goods 
C)  before accepting the goods or paying for them 
D)  only after accepting the goods 
A)  after the guarantee period of the product 
B)  only after paying for the goods 
C)  before accepting the goods or paying for them 
D)  only after accepting the goods

Question 8

If a buyer treats the goods as if he owns them, the buyer is considered to have rejected the goods.

Accepted Answer

A) True 
 B)False

Question 9

With regard to the seller's delivery of nonconforming goods to the buyer, what is meant by the seller's right to "cure?"

Accepted Answer

If the delivery date in the contract has

Exam 21: Performance of Sales Contracts

Acceptance of goods occurs when a:

Once a party to a contract repudiates the contract, it is rendered void with no way to withdraw the repudiation.

Which of the following holds true of revocation of acceptance by the buyer?

Which of the following is a correct statement regarding payment in a contract for the sale of goods transaction?

In a sales contract, in order to reject goods, the buyer must:

Normally, a buyer has the right to inspect the goods _____.

If a buyer treats the goods as if he owns them, the buyer is considered to have rejected the goods.

With regard to the seller's delivery of nonconforming goods to the buyer, what is meant by the seller's right to "cure?"

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