Question 1

Some UCC rules are different for performance of sales contracts compared with contracts formed under __________ law.

Accepted Answer

A)   private
B)   criminal
C)   common
D)   business C

Question 2

The UCC provides the parties with __________ flexibility in how they carry out their obligations.

Accepted Answer

A)   minimum
B)   minor
C)   material
D)   maximum D

Question 3

The UCC provides that if the seller reasonably believes that the nonconforming goods will be acceptable to the buyer __________ a money allowance, then the seller gets additional time to cure after the time under the contract has passed.

Accepted Answer

A)   in lieu of
B)   with or without
C)   absent
D)   in addition to B

Question 4

In a contract for the sale of goods, the goods must correspond with:

Accepted Answer

A)   The expectations of the third party
B)   The description given by a third party
C)   That recognized in the trade world wide
D)   That understood to be the description from a course of dealings with the seller

Question 5

__________ is similar to course of performance in that both refer to patterns of performance by the parties.

Accepted Answer

A)   Usage of trade
B)   Course of dealing
C)   Industry standards
D)   None of the choices are correct.

Question 6

Jackie, an orange supplier, contracted with Jimmy's Sushi for the delivery of 50 crates of grade B oranges. Every three months, Jackie regularly sends Jimmy's Sushi 50 crates of grade B oranges. Due to an oversight, Jackie sent Jimmy's Sushi 50 crates of grade A oranges. In this case,

Accepted Answer

A)   Jimmy's Sushi may reject the goods
B)   Jimmy's Sushi must reject the goods
C)   Jimmy's Sushi may accept the goods
D)   Jimmy's Sushi must accept the goods

Question 7

Absent any specific agreement between the parties to the contrary, the UCC uses a general reasonableness requirement to govern the delivery process.

Accepted Answer

A) True 
 B)False

Question 8

In Sons of Thunder v. Borden, the New Jersey Supreme Court held that a buyer breached the duty of good faith by:

Accepted Answer

A)   getting the highest price possible for goods without violating the law.
B)   charging a fair price for goods and not taking advantage of others in the industry.
C)   willfully trying to circumvent its contractual obligations to a seller that made a significant investment to carry out its obligations.
D)   observing industry standards and practices that are generally accepted throughout various industries as proper business practices.

Question 9

Merchants have the duty to act in a commercially reasonable manner with respect to any sales contract.

Accepted Answer

A) True 
 B)False

Question 10

Terminology used by the parties in commercial transactions may have more than one meaning that varies from industry to industry or __________.

Accepted Answer

A)   county to county
B)   business to business
C)   state to state
D)   region to region

Question 11

If the time for the seller's performance has not expired, the seller may cure by:

Accepted Answer

A)   giving notice of her intent to cure
B)   tendering conforming goods in replacement of the rejected goods
C)   communicating with the buyer
D)   All of the choices are correct.

Question 12

The perfect tender rule states that a seller must tender the goods in a manner that matches the contract terms in every respect.

Accepted Answer

A) True 
 B)False

Question 13

Once the time contemplated for performance has expired, the seller's right to __________ also expires.

Accepted Answer

A)   repair
B)   fix
C)   cure
D)   resend

Question 14

The right to cure may exist __________ the time period for performance has come due.

Accepted Answer

A)   before
B)   when
C)   after
D)   None of the choices are correct.

Question 15

Under the doctrine referred to as __________, the UCC obligates the seller to have or tender the goods, give the buyer appropriate notice of the tender, and take any actions necessary to allow the buyer to take delivery.

Accepted Answer

A)   tender of notice
B)   tender of shipment
C)   tender of delivery
D)   All of the choices are correct.

Question 16

Usage of trade refers to any general practice or method of performance that is specific to a particular trade or industry used to define expectations of the parties engaged in specific transactions that are common in the industry.

Accepted Answer

A) True 
 B)False

Question 17

Once the buyer has accepted the goods, the buyer must __________ for them in accordance with the contract.

Accepted Answer

A)   pay
B)   negotiate
C)   All of the choices are correct.
D)   None of the choices are correct.

Question 18

Under the perfect tender rule:

Accepted Answer

A)   the goods must be somewhat conforming.
B)   the goods must be presented to the parties.
C)   the goods must match the contract terms in every respect.
D)   the goods must match the contract terms at least in part.

Question 19

__________ refers to any general practice or method of performance that is specific to a particular trade or industry

Accepted Answer

A)   Course of dealings
B)   Course of performance
C)   Usage of trade
D)   Usage of dealings

Question 20

In Car Transportation Brokerage Company v. Blue Bird Body Co., the court held in favor of:

Accepted Answer

A)   the buyer
B)   the seller
C)   the buyer and the seller
D)   the third party vendor

Exam 15: Performance and Cure in Sales Contracts

Some UCC rules are different for performance of sales contracts compared with contracts formed under __________ law.

The UCC provides the parties with __________ flexibility in how they carry out their obligations.

The UCC provides that if the seller reasonably believes that the nonconforming goods will be acceptable to the buyer __________ a money allowance, then the seller gets additional time to cure after the time under the contract has passed.

In a contract for the sale of goods, the goods must correspond with:

__________ is similar to course of performance in that both refer to patterns of performance by the parties.

Jackie, an orange supplier, contracted with Jimmy's Sushi for the delivery of 50 crates of grade B oranges. Every three months, Jackie regularly sends Jimmy's Sushi 50 crates of grade B oranges. Due to an oversight, Jackie sent Jimmy's Sushi 50 crates of grade A oranges. In this case,

Absent any specific agreement between the parties to the contrary, the UCC uses a general reasonableness requirement to govern the delivery process.

In Sons of Thunder v. Borden, the New Jersey Supreme Court held that a buyer breached the duty of good faith by:

Merchants have the duty to act in a commercially reasonable manner with respect to any sales contract.

Terminology used by the parties in commercial transactions may have more than one meaning that varies from industry to industry or __________.

If the time for the seller's performance has not expired, the seller may cure by:

The perfect tender rule states that a seller must tender the goods in a manner that matches the contract terms in every respect.

Once the time contemplated for performance has expired, the seller's right to __________ also expires.

The right to cure may exist __________ the time period for performance has come due.

Under the doctrine referred to as __________, the UCC obligates the seller to have or tender the goods, give the buyer appropriate notice of the tender, and take any actions necessary to allow the buyer to take delivery.

Usage of trade refers to any general practice or method of performance that is specific to a particular trade or industry used to define expectations of the parties engaged in specific transactions that are common in the industry.

Once the buyer has accepted the goods, the buyer must __________ for them in accordance with the contract.

Under the perfect tender rule:

__________ refers to any general practice or method of performance that is specific to a particular trade or industry

In Car Transportation Brokerage Company v. Blue Bird Body Co., the court held in favor of: