Question 1

Course of performance refers to how the parties acted in past contracts instead of the specific contract in question.

Accepted Answer

A) True 
 B)False

Question 2

__________ have a greater duty to act in a commercially reasonable manner.

Accepted Answer

A)  Shop owners 
B)  Laypersons 
C)  Merchants 
D)  New CEOs

Question 3

Good faith is defined in the UCC as "honesty in __________ in the conduct or transaction concerned."

Accepted Answer

A)  fact 
B)  law 
C)  theory 
D)  dealing

Question 4

The buyer's primary obligation is triggered when the seller __________ delivery.

Accepted Answer

A)  begins 
B)  initiates 
C)  tenders 
D)  contemplates

Question 5

FoodCo and SupplyCo contracted for FoodCo to purchase a particular amount of silverware per month. SupplyCo purchased specialty silverware from Spain to fulfill the contract and took out a significant loan to finance the purchase. Soon thereafter, FoodCo changed management and concluded that the contract was not profitable. As a result, FoodCo began to buy only 25% of its silverware from SupplyCo, which significantly reduced the revenue produced by SupplyCo and the Spanish silverware maker. If SupplyCo sues for breach of contract, what would a judge or jury likely do? Why?

Accepted Answer

The answer of FoodCo and SupplyCo contracted for FoodCo to...

Question 6

Aubrey's Apples agrees to purchase 1,000 Grade-B apples from SupplyCo for $10 per bushel to be delivered by October 1. On September 30, FarmCo realizes it has only 800 Grade-B apples. FarmCo gives Aubrey's Apples seasonable notice and ships 800 Grade-B and 200 Grade-A apples as substitute goods. Grade-A apples are worth 20 percent more than Grade-B apples. Aubrey's Apples rejects the Grade-A apples on October 1 and sues. Who prevails? Why?

Accepted Answer

The answer of Aubrey's Apples agrees to purchase 1,000 Grade-B...

Question 7

Trade usage, course of performance, and course of dealing may be used to supplement the express terms of a contract although not admissible to

Accepted Answer

A)  contradict the implied terms of the contract 
B)  contradict the express terms of the contract 
C)  dispute the implied terms of the contract 
D)  dispute the express terms of the contract

Question 8

Jenny contracted with Joey's Doughnuts to cater dessert for her wedding. Jenny wanted a "doughnut wall" full of a variety of her favorite doughnuts for her guests. Of the 40 high quality doughnuts Joey's baked, Jenny wanted a variety of 5 doughnuts. Upon delivery of the doughnuts, Jenny was shocked to find that only 4 of the 5 varieties were baked and on display. The 5^th type of doughnut was mistakenly sold to another customer the day of the wedding. Two of the five doughnuts were her childhood favorites. Although Jenny was happy with the 4, she sued for breach of contract over the 5^th missing doughnut variety. Does Joey's have a viable defense? Why or why not?

Accepted Answer

The answer of Jenny contracted with Joey's Doughnuts to cater...

Question 9

If the seller has delivered goods and the buyer rejects them under the perfect tender rule, the seller has the right to repair or replace the rejected goods so long as the time period for performance has not started.

Accepted Answer

A) True 
 B)False

Question 10

If the seller has shipped conforming goods as agreed, the buyer has the duty to accept them and become the owner of the goods in accordance with concepts of __________.

Accepted Answer

A)  execution 
B)  discharge 
C)  possession 
D)  title

Question 11

Usage of trade means:

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)  observing industry standards and practices that may be unique to the particular industry. 
D)  observing industry standards and practices that are generally accepted throughout various industries as proper business practices.

Question 12

If the seller has delivered goods and the buyer rejects them under the perfect tender rule, the seller has the right to repair or replace the rejected goods so long as:

Accepted Answer

A)  the goods were conforming. 
B)  the time period for performance has not expired. 
C)  the parties had a prior understanding. 
D)  None of the choices are correct.

Question 13

The UCC applies the commercial impracticability rule when the delivery or nondelivery of goods has been made impracticable by the occurrence of __________ and said event directly affects a basic assumption of the contract.

Accepted Answer

A)  an anticipated event 
B)  an unanticipated event 
C)  a foreseeable event 
D)  an unforeseeable event

Question 14

The course of performance is a method to show what the __________ intended through their own actions in performing the specific contract in question.

Accepted Answer

A)  buyers only 
B)  parties 
C)  third parties 
D)  business owners

Question 15

Commercial impracticability is a __________ doctrine.

Accepted Answer

A)  good faith 
B)  remedial 
C)  open ended 
D)  narrow

Question 16

Conforming goods simply means the goods __________ in an agreement.

Accepted Answer

A)  at the highest price 
B)  for free 
C)  bargained for 
D)  at the lowest price

Question 17

In Furlong v. Alpha Chi Omega Sorority et al, 73 Ohio Misc.2d 26 (1993), Furlong (the seller).

Accepted Answer

A)  breached the implied warranty and the contract by delivering semi-conforming goods. 
B)  breached the implied warranty and the contract by delivering nonconforming goods. 
C)  breached the express warranty and the contract by delivering nonconforming goods. 
D)  breached the express warranty and the contract by delivering semi-conforming goods.

Question 18

If a contract for the sale of goods is analyzed based on the parties' course of dealing, the goods must be

Accepted Answer

A)  Of a satisfactory size and shape 
B)  Satisfactory to the buyer currently 
C)  Satisfactory to all involved in its sale 
D)  Of the same quality as found in past contracts

Question 19

What may be a method to show what the parties intended through their own actions in performing the specific contract in question?

Accepted Answer

A)  course of performance 
B)  course of dealing 
C)  usage of trade 
D)  none of the above

Question 20

Jenny contracted with Joey's Doughnuts to cater dessert for her wedding. Jenny wanted a "doughnut wall" full of a variety of her favorite doughnuts for her guests. Of the 40 high quality doughnuts Joey's baked, Jenny wanted a variety of 5 doughnuts. Upon delivery of the doughnuts, Jenny was shocked to find that only 4 of the 5 varieties were baked and on display. The 5^th type of doughnut was mistakenly sold to another customer the day of the wedding. Two of the five doughnuts were her childhood favorites. Although Jenny was happy with the 4, she sued for breach of contract over the 5^th missing doughnut variety. Does Jenny have a viable suit? Why or why not?

Accepted Answer