Question 1

Which of the following is NOT a seller's remedy under the UCC?

Accepted Answer

A)  Specific performance. 
B)  The difference between the resale and the contract price. 
C)  The difference between the market price and the unpaid contract price. 
D)  Lost profits, if the seller is a lost volume seller. 
E)  All of these remedies are available to a seller under the UCC.

Question 2

Explain how UCC § 2-207 changed the mirror image rule.

Accepted Answer

The answer of Explain how UCC § 2-207 changed the...

Question 3

Tobias Novelties is a company that manufactures and sells various sports-related novelty items, including giant "we are number 1" foam hands. Tobias is revamping its product line-up, and wants to sell the equipment it uses to manufacture these giant foam hands. Tobias did not manufacture this equipment itself, and does not want to give any warranties when re-selling it to other users. Because the implied warranty of merchantability arises automatically, Tobias will only be able to disclaim such a warranty if it does so explicitly, conspicuously, and in writing.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is the best definition for the common law mirror image rule?

Accepted Answer

A)  No contract is formed unless the offer and acceptance are identical in every respect. 
B)  No contract is formed unless the offer and acceptance are substantially similar. 
C)  A contract is formed when the offer has the same price and quantity terms as the offer. 
D)  An acceptance is only effective if it is communicated the same way as the offer.

Question 5

Nocking Furnace Co. sold a commercial furnace to Glond Manufacturing Inc. Glond was to take delivery of the furnace from Nocking's factory. On November 12, 2007, Glond paid for the furnace in full, and Nocking provided a bill of sale to Glond stating that it had transferred title to Glond. Glond asked to delay delivery until December 1, however, so that it could prepare its building for installation of the new furnace. On November 29, 2007, Nocking's building caught on fire and the furnace was destroyed. Because title had passed to Glond on November 12, Glond must bear the risk of loss on this furnace.

Accepted Answer

A) True 
 B)False

Question 6

When you were in high school, your parents were concerned that you would start smoking so they made you an offer. If you did not smoke a cigarette until you were 16 years old, they would give you $3,000 towards a new car. You comply with the terms of the deal but when the big day arrives, your parents surprise you with a new moped instead of the cash. You cannot let your friends see you on a moped so you sue your parents for the cash. Who wins?

Accepted Answer

A)  You win because you accepted your parents offer through your performance. 
B)  Your parents win because you lacked the capacity to contract. 
C)  You win, but only if your parents do not void the contract. 
D)  Your parents win because you did not give them any consideration.

Question 7

In order to get around gift tax laws, your rich Uncle Michael agrees to sell you his house in exchange for a peppercorn. You readily agree, but Uncle Michael changes his mind and transfers ownership of the house to a trust he created for his favorite chimpanzee, Bubbles. You are mad that Bubbles has a nicer house than you do so you sue to enforce the agreement. What is the likely result?

Accepted Answer

A)  There is a contract because courts will not delve into the adequacy of the exchange. 
B)  Courts will invalidate the contract because it appears to be a sham. 
C)  You get the house because a chimpanzee does not have the capacity to contract. 
D)  There is a contract but it is void because Uncle Michael revoked the offer before your acceptance.

Question 8

Explain the contract concept of consideration.

Accepted Answer

The answer of Explain the contract concept of consideration....

Question 9

Sanford Ventilating Co. sold a fan unit, model 674, to Bishop Manufacturing Co. The contract of sale required delivery on December 10. On December 2, Sanford delivered a fan unit, model 694, to Bishop. Bishop immediately notified Sanford that the wrong fan unit had been delivered. Bishop informed Sanford that it was holding Sanford in breach of contract, and that it would pursue all remedies available to it under law. Sanford did not respond to this communication. On December 9, Bishop filed suit against Sanford for breach of contract. On December 10, Sanford delivered a fan unit, model 674, to Bishop. Bishop refused delivery, and Sanford sued for breach of contract. Who wins, and why?

Accepted Answer

The answer of Sanford Ventilating Co. sold a fan unit,...

Question 10

On July 1, Mr. Burns makes an offer to sell used well piping to a steel mill for recycling into new steel. On July 15, the steel mill mails Mr. Burns its acceptance. However, on July 17, before the acceptance reaches him, Mr. Burns revokes the offer by faxing his revocation to the mill. The acceptance never arrives. Is there a contract?

Accepted Answer

A)  No, Mr. Burns has to receive the acceptance before it will become effective. 
B)  Yes, the mailbox rule holds that a contract is created when the acceptance is dispatched. 
C)  No, the mill has the duty to assure that the offeror knows of the acceptance, even if he does not receive it. 
D)  Yes, but only if the mill gave Mr. Burns some form of consideration to keep the offer open.

Exam 9: Contracts and the Sales of Goods Law

Which of the following is NOT a seller's remedy under the UCC?

Explain how UCC § 2-207 changed the mirror image rule.

Which of the following is the best definition for the common law mirror image rule?

Explain the contract concept of consideration.