Question 1

The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.​

Accepted Answer

A) True 
 B)False

Question 2

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.​

Accepted Answer

A) True 
 B)False

Question 3

Implied warranties can arise from a "usage of trade."​

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Acceptance of goods precludes the buyer or lessee from exercising the right of rejection.​

Accepted Answer

A) True 
 B)False

Question 6

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is​

Accepted Answer

A)  ​an express warranty. 
B)  ​an implied warranty. 
C)  ​a warranty of title. 
D)  ​puffery.

Question 7

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is​

Accepted Answer

A)  ​Fuel Connector's place of business. 
B)  ​Go-Flo's place of business. 
C)  ​the current location of the hose couplings and fittings. 
D)  ​the U.S. Postal Service office nearest to Go-Flo's place of business.

Question 8

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.​

Accepted Answer

A) True 
 B)False

Question 9

If a buyer repudiates a contract, the seller can bring an action to recover damages.​

Accepted Answer

A) True 
 B)False

Question 10

Trucks & Trailers, Inc. (T&T), and United Express Service enter into a contract for a lease of vehicles. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises​

Accepted Answer

A)  ​automatically in most contracts for a lease of goods. 
B)  ​only if the lessee asks for it. 
C)  ​only if the lessor expresses such a warranty. 
D)  ​only in conjunction with sales, not lease, contracts.

Question 11

MotorCo Inc. makes and sells auto parts to retail repair services, vehicle sales outlets, and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is​

Accepted Answer

A)  ​an implied warranty of fitness for a particular purpose. 
B)  ​an implied warranty of merchantability. 
C)  ​an express warranty. 
D)  ​none of the choices.

Question 12

Under the UCC, parties to a contract can limit or exclude consequential damages.​

Accepted Answer

A) True 
 B)False

Question 13

Okay Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Okay Markets can​

Accepted Answer

A)  ​destroy the goods. 
B)  ​cure the goods to make them conform to the contract. 
C)  ​retain the goods without paying for them. 
D)  ​reship or store the goods for the seller.

Question 14

Refined Mills orders "Grade A" oats from Sweet Valley Farm to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to​

Accepted Answer

A)  ​Sweet Valley. 
B)  ​Town Co-op. 
C)  ​no one. 
D)  ​the appropriate state government agency.

Question 15

ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must​

Accepted Answer

A)  ​promptly notify ABC of the intent to cure. 
B)  ​pay a cure fee. 
C)  ​pick up the nonconforming games before the end of the business day. 
D)  ​enter into a new contract with Axel's.

Question 16

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor​

Accepted Answer

A)  ​can substitute some other material for the tin. 
B)  ​is excused from the performance of its contracts. 
C)  ​is liable for breach of contract. 
D)  ​must still supply the tin needs of its customers.

Question 17

Ken goes to a Lawn & Yard store to tune up his mower. Mort, the service technician, learns that Ken's lawn is overgrown and rocky, and advises the use of a certain type of oil, plug, filter, and blade. Later, the mower breaks down due to the use of the recommended items. Ken may recover from Lawn & Garden for breach of​

Accepted Answer

A)  ​an express warranty. 
B)  ​an implied warranty of fitness for a particular purpose. 
C)  ​an implied warranty of merchantability. 
D)  ​none of the choices.

Question 18

Grande Floors, Inc., and Home Decor Stores enter into a contract for a sale of carpeting. Grande Floors, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified​

Accepted Answer

A)  ​by clear, conspicuous language called to the buyer's attention. 
B)  ​by implied affirmations of fact relating to the goods. 
C)  ​in any way that the seller sees fit for the ordinary purpose. 
D)  ​in no way.

Question 19

Steel Buildings, Inc., agrees to sell four portable garages to Truck Service Center. Five days later, the buyer refuses delivery and cancels the contract. The seller is entitled to​

Accepted Answer

A)  ​force the buyer to accept the garages. 
B)  ​recover any damages from the buyer but not resell the garages. 
C)  ​resell the garages and recover any damages from the buyer. 
D)  ​resell the garages but not recover any damages from the buyer.

Question 20

Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when​

Accepted Answer

A)  ​the seller or lessor tenders delivery. 
B)  ​the buyer or lessee becomes aware of the breach. 
C)  ​the nonbreaching party notifies the breaching party of the breach. 
D)  ​four years have passed since the breach occurred.

Exam 16: Performance, Breach, and Warranties of Sales and Lease Contracts

The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

Implied warranties can arise from a "usage of trade."

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

Acceptance of goods precludes the buyer or lessee from exercising the right of rejection.

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.

If a buyer repudiates a contract, the seller can bring an action to recover damages.

Trucks & Trailers, Inc. (T&T) , and United Express Service enter into a contract for a lease of vehicles. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

MotorCo Inc. makes and sells auto parts to retail repair services, vehicle sales outlets, and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is

Under the UCC, parties to a contract can limit or exclude consequential damages.

Okay Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Okay Markets can

Refined Mills orders "Grade A" oats from Sweet Valley Farm to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to

ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor

Steel Buildings, Inc., agrees to sell four portable garages to Truck Service Center. Five days later, the buyer refuses delivery and cancels the contract. The seller is entitled to

Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when

Exam 16: Performance, Breach, and Warranties of Sales and Lease Contracts

The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.​

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.​

Implied warranties can arise from a "usage of trade."​

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

Acceptance of goods precludes the buyer or lessee from exercising the right of rejection.​

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is​

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is​

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.​

If a buyer repudiates a contract, the seller can bring an action to recover damages.​

Trucks & Trailers, Inc. (T&T) , and United Express Service enter into a contract for a lease of vehicles. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises​

MotorCo Inc. makes and sells auto parts to retail repair services, vehicle sales outlets, and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is​

Under the UCC, parties to a contract can limit or exclude consequential damages.​

Okay Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Okay Markets can​

Refined Mills orders "Grade A" oats from Sweet Valley Farm to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to​

ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must​

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor​

Steel Buildings, Inc., agrees to sell four portable garages to Truck Service Center. Five days later, the buyer refuses delivery and cancels the contract. The seller is entitled to​

Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when​

The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

Implied warranties can arise from a "usage of trade."

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

Acceptance of goods precludes the buyer or lessee from exercising the right of rejection.

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.

If a buyer repudiates a contract, the seller can bring an action to recover damages.

Trucks & Trailers, Inc. (T&T) , and United Express Service enter into a contract for a lease of vehicles. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

MotorCo Inc. makes and sells auto parts to retail repair services, vehicle sales outlets, and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is

Under the UCC, parties to a contract can limit or exclude consequential damages.

Okay Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Okay Markets can

Refined Mills orders "Grade A" oats from Sweet Valley Farm to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to

ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor

Steel Buildings, Inc., agrees to sell four portable garages to Truck Service Center. Five days later, the buyer refuses delivery and cancels the contract. The seller is entitled to

Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when