Question 1

Business Rental Corporation (BRC)and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,BRC must ship or tender goods to the lessee that​

Accepted Answer

A)  ​approximately conform to all of the details of the contract. 
B)  ​entirely conform to the contract except in one or two details. 
C)  ​exactly conform to the contract in every detail. 
D)  ​substantially conform to the contract in most details.

Question 2

Levi's Toy Store orders one hundred board games from Big Board Games Warehouse.When the games are delivered,they are all missing pieces.Levi's Toy Store rejects the shipment.Big Board Games wants to cure.Big Board Games must​

Accepted Answer

A)  ​promptly notify Levi's Toy Store of the intent to cure. 
B)  ​pay Levi's Toy store a cure fee. 
C)  ​send a truck to pick up the nonconforming goods before the end of the business day. 
D)  ​create a new contract with Levi's Toy Store.

Question 3

Beef Burgers,Inc.contracts to buy five hundred steers from Fattening Feedlots.Before Fattening Feedlots can deliver the steers,there is an outbreak of disease in the feedlot,and all the cattle are quarantined.In this case the perfect tender rule​

Accepted Answer

A)  ​applies to both parties. 
B)  ​does not apply. 
C)  ​applies only to Beef Burgers. 
D)  ​applies only to Fattening Feedlots.

Question 4

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 5

Tender must occur at a reasonable hour and in a reasonable manner.

Accepted Answer

A) True 
 B)False

Question 6

Screen Perfect,Inc.,and TV Stores enter into a contract for a sale of high-definition television sets.Screen Perfect ships goods that do not exactly conform to the contract in some details.TV Stores​

Accepted Answer

A)  ​cannot reject the entire shipment. 
B)  ​can reject the entire shipment. 
C)  ​must accept the entire shipment. 
D)  ​must reject the entire shipment.

Question 7

If goods in every respect conform to a contract,the buyer or lessee does not have a right to reject the goods.

Accepted Answer

A) True 
 B)False

Question 8

If,before the time for performance,a buyer communicates an intent not to perform,the seller can consider the buyer in breach and pursue a remedy.

Accepted Answer

A) True 
 B)False

Question 9

Big Eggs,Inc.agrees to supply Omelet Express with five hundred eggs.Big Eggs cannot reasonably ask Omelet Express to pick up the eggs at​

Accepted Answer

A)  ​1:00 P.M. 
B)  ​2:00 P.M. 
C)  ​3:00 P.M. 
D)  ​4:30 A.M.

Question 10

If a seller fails to deliver the goods,the buyer's damages do not include all losses resulting from this course of events.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

If either the goods or their tender fails to conform to the contract in any respect,the buyer or lessee must reject all of the goods.

Accepted Answer

A) True 
 B)False

Question 13

If a contract specifies a certain carrier,a substitution of a different carrier for any reason breaches the contract.

Accepted Answer

A) True 
 B)False

Question 14

Garden Field Farms and Haute Gourmet Restaurant,Inc.,enter into a contract for a sale of lettuce.After Garden Field ships the lettuce but before Haute Gourmet receives it,the buyer declares bankruptcy.Garden Field can stop delivery of the goods in transit​

Accepted Answer

A)  ​only if the quantity is deficient. 
B)  ​only if the quantity exceeds the contract amount. 
C)  ​only if the quantity is at least a truckload. 
D)  ​regardless of the quantity.

Question 15

A shipment contract requires a seller to ship goods by a carrier.

Accepted Answer

A) True 
 B)False

Question 16

In contracts involving a carrier,a seller can complete performance through a shipment contract or a destination contract.

Accepted Answer

A) True 
 B)False

Question 17

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact,but may not seek damages.

Accepted Answer

A) True 
 B)False

Question 18

On January 10,Winchester Pet Supplies orders fifty small dog collars from Quality Collars,Inc.to be delivered by January 15.On January 13,Quality Collars tenders fifty large dog collars.Winchester Pet Supplies rejects the shipment.Quality Collars has​

Accepted Answer

A)  ​no right to cure. 
B)  ​until January 15 to cure. 
C)  ​until the end of the business day on January 13 to cure. 
D)  ​unlimited time to cure.

Question 19

If a lessee breaches a contract,the lessor can cancel the contract.

Accepted Answer

A) True 
 B)False

Question 20

Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer,Tuner TV Store,on May 1,with payment to be made on delivery.Signal tenders delivery in its own truck.Tuner's manager notices that some of the cartons have scrape marks.Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded.Signal assures Tuner that the sets are in perfect condition.Tuner tenders Signal a check,which Signal refuses,claiming that the first delivery to new customers is always for cash.Tuner promises to pay the cash within two days.Signal leaves the sets with Tuner,which stores them in its warehouse pending its "Grand Opening Sale" on May 15.Two days later,Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair.Signal claims Tuner has accepted the sets and is in breach by not paying on delivery.Will Signal succeed on these claims? Explain.

Accepted Answer

The answer of Signal Sets Company contracts to deliver one...

Exam 20: Performance and Breach

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,BRC must ship or tender goods to the lessee that

Levi's Toy Store orders one hundred board games from Big Board Games Warehouse.When the games are delivered,they are all missing pieces.Levi's Toy Store rejects the shipment.Big Board Games wants to cure.Big Board Games must

Beef Burgers,Inc.contracts to buy five hundred steers from Fattening Feedlots.Before Fattening Feedlots can deliver the steers,there is an outbreak of disease in the feedlot,and all the cattle are quarantined.In this case the perfect tender rule

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

Tender must occur at a reasonable hour and in a reasonable manner.

Screen Perfect,Inc.,and TV Stores enter into a contract for a sale of high-definition television sets.Screen Perfect ships goods that do not exactly conform to the contract in some details.TV Stores

If goods in every respect conform to a contract,the buyer or lessee does not have a right to reject the goods.

If,before the time for performance,a buyer communicates an intent not to perform,the seller can consider the buyer in breach and pursue a remedy.

Big Eggs,Inc.agrees to supply Omelet Express with five hundred eggs.Big Eggs cannot reasonably ask Omelet Express to pick up the eggs at

If a seller fails to deliver the goods,the buyer's damages do not include all losses resulting from this course of events.

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

If either the goods or their tender fails to conform to the contract in any respect,the buyer or lessee must reject all of the goods.

If a contract specifies a certain carrier,a substitution of a different carrier for any reason breaches the contract.

Garden Field Farms and Haute Gourmet Restaurant,Inc.,enter into a contract for a sale of lettuce.After Garden Field ships the lettuce but before Haute Gourmet receives it,the buyer declares bankruptcy.Garden Field can stop delivery of the goods in transit

A shipment contract requires a seller to ship goods by a carrier.

In contracts involving a carrier,a seller can complete performance through a shipment contract or a destination contract.

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact,but may not seek damages.

On January 10,Winchester Pet Supplies orders fifty small dog collars from Quality Collars,Inc.to be delivered by January 15.On January 13,Quality Collars tenders fifty large dog collars.Winchester Pet Supplies rejects the shipment.Quality Collars has

If a lessee breaches a contract,the lessor can cancel the contract.

Exam 20: Performance and Breach

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,BRC must ship or tender goods to the lessee that​

Levi's Toy Store orders one hundred board games from Big Board Games Warehouse.When the games are delivered,they are all missing pieces.Levi's Toy Store rejects the shipment.Big Board Games wants to cure.Big Board Games must​

Beef Burgers,Inc.contracts to buy five hundred steers from Fattening Feedlots.Before Fattening Feedlots can deliver the steers,there is an outbreak of disease in the feedlot,and all the cattle are quarantined.In this case the perfect tender rule​

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​

Tender must occur at a reasonable hour and in a reasonable manner.

Screen Perfect,Inc.,and TV Stores enter into a contract for a sale of high-definition television sets.Screen Perfect ships goods that do not exactly conform to the contract in some details.TV Stores​

If goods in every respect conform to a contract,the buyer or lessee does not have a right to reject the goods.

If,before the time for performance,a buyer communicates an intent not to perform,the seller can consider the buyer in breach and pursue a remedy.

Big Eggs,Inc.agrees to supply Omelet Express with five hundred eggs.Big Eggs cannot reasonably ask Omelet Express to pick up the eggs at​

If a seller fails to deliver the goods,the buyer's damages do not include all losses resulting from this course of events.

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

If either the goods or their tender fails to conform to the contract in any respect,the buyer or lessee must reject all of the goods.

If a contract specifies a certain carrier,a substitution of a different carrier for any reason breaches the contract.

Garden Field Farms and Haute Gourmet Restaurant,Inc.,enter into a contract for a sale of lettuce.After Garden Field ships the lettuce but before Haute Gourmet receives it,the buyer declares bankruptcy.Garden Field can stop delivery of the goods in transit​

A shipment contract requires a seller to ship goods by a carrier.

In contracts involving a carrier,a seller can complete performance through a shipment contract or a destination contract.

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact,but may not seek damages.

On January 10,Winchester Pet Supplies orders fifty small dog collars from Quality Collars,Inc.to be delivered by January 15.On January 13,Quality Collars tenders fifty large dog collars.Winchester Pet Supplies rejects the shipment.Quality Collars has​

If a lessee breaches a contract,the lessor can cancel the contract.

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,BRC must ship or tender goods to the lessee that

Levi's Toy Store orders one hundred board games from Big Board Games Warehouse.When the games are delivered,they are all missing pieces.Levi's Toy Store rejects the shipment.Big Board Games wants to cure.Big Board Games must

Beef Burgers,Inc.contracts to buy five hundred steers from Fattening Feedlots.Before Fattening Feedlots can deliver the steers,there is an outbreak of disease in the feedlot,and all the cattle are quarantined.In this case the perfect tender rule

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

Screen Perfect,Inc.,and TV Stores enter into a contract for a sale of high-definition television sets.Screen Perfect ships goods that do not exactly conform to the contract in some details.TV Stores

Big Eggs,Inc.agrees to supply Omelet Express with five hundred eggs.Big Eggs cannot reasonably ask Omelet Express to pick up the eggs at

Garden Field Farms and Haute Gourmet Restaurant,Inc.,enter into a contract for a sale of lettuce.After Garden Field ships the lettuce but before Haute Gourmet receives it,the buyer declares bankruptcy.Garden Field can stop delivery of the goods in transit

On January 10,Winchester Pet Supplies orders fifty small dog collars from Quality Collars,Inc.to be delivered by January 15.On January 13,Quality Collars tenders fifty large dog collars.Winchester Pet Supplies rejects the shipment.Quality Collars has