Question 1

Under the , a buyer may reject goods for even the slightest defect.

Accepted Answer

A) revocation of acceptance rule 
B) perfect tender rule 
C) rules for inspection 
D) excuses for nonperformance 
A) revocation of acceptance rule 
B) perfect tender rule 
C) rules for inspection 
D) excuses for nonperformance

Question 2

Rightful rejection must be made within a reasonable time after the goods have been tendered or delivered.

Accepted Answer

A) True 
 B)False

Question 3

A merchant buyer of goods receives nonconforming goods.The merchant buyer rightfully rejects and appropriately notifies the seller, but the seller has no agent in the buyer's city.The goods are perishable and threaten to decline in value speedily.The merchant buyer has no further duty to the seller other than to await the seller's instructions.

Accepted Answer

A) True 
 B)False

Question 4

A contract that is FOB Dallas where the seller is in Chicago and the buyer is in Dallas is a destination contract.

Accepted Answer

A) True 
 B)False

Question 5

A buyer who sells rejected goods on behalf of the seller is entitled to reasonable expenses not to exceed five percent of the gross proceeds.

Accepted Answer

A) True 
 B)False

Question 6

The Code does not excuse performance based upon commercial impracticability.

Accepted Answer

A) True 
 B)False

Question 7

When the nonconformity or default substantially impairs the value of the installment but not the value of the entire contract, the buyer can reject the installment, even if the seller gives adequate assurance of the installment's cure.

Accepted Answer

A) True 
 B)False

Question 8

After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods.

Accepted Answer

A) True 
 B)False

Question 9

Willingness by the buyer to become the owner of the goods tendered or delivered to him by the seller is:

Accepted Answer

A) rejection. 
B) acceptance. 
C) revocation. 
D) tender. 
A) rejection. 
B) acceptance. 
C) revocation. 
D) tender.

Question 10

Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700.It is to be delivered to Bill's home on July 7. Under the perfect tender rule, which one of the following cases would be a rightful rejection of the goods?

Accepted Answer

A) Sam delivered an 18-cubic-foot, blue refrigerator on July 7, and Bill calls Sam to complain. 
B) Sam sent an 18-cubic-foot, yellow refrigerator with a dent in it on July 7.Bill refuses delivery but never bothers to call Sam. 
C) Sam sent his truck to Bill's home with the 18-cubic-foot, yellow refrigerator on July 7, but Bill was not home. 
D) Sam sent an 18-cubic-foot, yellow refrigerator without ice cube trays on July 5 and notifies Bill of the defect. 
A) Sam delivered an 18-cubic-foot, blue refrigerator on July 7, and Bill calls Sam to complain. 
B) Sam sent an 18-cubic-foot, yellow refrigerator with a dent in it on July 7.Bill refuses delivery but never bothers to call Sam. 
C) Sam sent his truck to Bill's home with the 18-cubic-foot, yellow refrigerator on July 7, but Bill was not home. 
D) Sam sent an 18-cubic-foot, yellow refrigerator without ice cube trays on July 5 and notifies Bill of the defect.

Question 11

Pedro ordered a custom-made suit from Rooks & Sons to be delivered by Friday at 5 p.m.When it is delivered to his office on Friday afternoon, he is in conference with a client.His secretary hangs the suit in the office closet.When Pedro tries on the suit Saturday evening, he discovers that the pants are cuffed.He had ordered cuffless trousers, so he called Rooks & Sons on Monday and informed them that he was returning the suit.What can he do?

Accepted Answer

A) He cannot revoke acceptance since the cuffs are not difficult to discover. 
B) He can revoke acceptance because the cuffs substantially impair the value of the goods to him. 
C) He can reject the goods since he had not yet accepted them prior to inspection. 
D) He cannot reject the goods because the cuffs are curable. 
A) He cannot revoke acceptance since the cuffs are not difficult to discover. 
B) He can revoke acceptance because the cuffs substantially impair the value of the goods to him. 
C) He can reject the goods since he had not yet accepted them prior to inspection. 
D) He cannot reject the goods because the cuffs are curable.

Question 12

Which of the following terms would indicate a destination contract?

Accepted Answer

A) F.O.B.city of buyer 
B) F.O.B.city of seller 
C) C.I.F. 
D) F.A.S.seller's port 
A) F.O.B.city of buyer 
B) F.O.B.city of seller 
C) C.I.F. 
D) F.A.S.seller's port

Question 13

If no definite time for delivery is fixed by the terms of the contract, delivery:

Accepted Answer

A) will not take place. 
B) must begin within 10 days of the contract. 
C) must be immediate. 
D) and acceptance must happen within a reasonable amount of time. 
A) will not take place. 
B) must begin within 10 days of the contract. 
C) must be immediate. 
D) and acceptance must happen within a reasonable amount of time.

Question 14

On April 1, Marco bought a sailboat from a local marina.The boat was defective and did not turn about properly.
Marco used the boat extensively all summer and the boat was no longer in the same condition as when it was bought.By the end of the summer, Marco had waived his right to revoke acceptance.

Accepted Answer

A) True 
 B)False

Question 15

Burnside Roofing contracts to sell asphalt and metal shingles to Faubush Contractors.Burnside, through no fault of its own, is unable to deliver the shingles to Faubush by rail as agreed because that type of carrier is unavailable.Explain what the UCC requires.

Accepted Answer

The UCC excuses neither the seller nor t

Question 16

Amanco is to deliver to D & R Wholesalers 50 dozen wire-rim glasses frames by October 15.On October 2, Amanco delivers 30 dozen wire-rim frames and 20 dozen plastic frames.If D & R rejects the frames:

Accepted Answer

A) Amanco has until October 15 to cure the defect if it notifies D & R of its intention to do so. 
B) D & R need not notify Amanco of its rejection of the nonconforming goods in order for the rejection to be effective since Amanco should know the goods did not meet the contract specifications. 
C) the contract is automatically voided since the goods were nonconforming. 
D) Amanco has no opportunity to cure the defect since it exhibited bad faith in not sending goods specified in the original contract. 
A) Amanco has until October 15 to cure the defect if it notifies D & R of its intention to do so. 
B) D & R need not notify Amanco of its rejection of the nonconforming goods in order for the rejection to be effective since Amanco should know the goods did not meet the contract specifications. 
C) the contract is automatically voided since the goods were nonconforming. 
D) Amanco has no opportunity to cure the defect since it exhibited bad faith in not sending goods specified in the original contract.

Question 17

Under the CISG:

Accepted Answer

A) the seller has no right to cure a defective delivery. 
B) if the seller does not perform on time, the buyer may fix an additional, reasonable period of time for performance. 
C) the seller has a limited right to cure a defective performance, but only before the date for delivery specified in the contract. 
D) the seller may, even after the date for delivery, cure a defective performance if it can be done without unreasonable delay.The buyer cannot claim damages for delay as long as the cure was within a reasonable time. 
A) the seller has no right to cure a defective delivery. 
B) if the seller does not perform on time, the buyer may fix an additional, reasonable period of time for performance. 
C) the seller has a limited right to cure a defective performance, but only before the date for delivery specified in the contract. 
D) the seller may, even after the date for delivery, cure a defective performance if it can be done without unreasonable delay.The buyer cannot claim damages for delay as long as the cure was within a reasonable time.

Question 18

In the absence of agreement, payment is due at the time and place the buyer is to receive the goods, even though the place of shipment is the place of delivery.

Accepted Answer

A) True 
 B)False

Question 19

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years.The October shipment consisted of 100 badly defective tires.ZYX Cycle Company:

Accepted Answer

A) can treat the whole contract as breached. 
B) can reject the October shipment if it cannot be cured in a timely manner by Supertread. 
C) cannot reject the October shipment since it is part of the installment series. 
D) must sell the defective tires for whatever they can get for them and sue Supertread for the difference. 
A) can treat the whole contract as breached. 
B) can reject the October shipment if it cannot be cured in a timely manner by Supertread. 
C) cannot reject the October shipment since it is part of the installment series. 
D) must sell the defective tires for whatever they can get for them and sue Supertread for the difference.

Question 20

In a contract that provides that the sale is F.O.B.Chicago, the seller must at his own expense and risk transport the goods to Chicago and there tender delivery to the buyer.

Accepted Answer

A) True 
 B)False

Exam 22: Performance

Under the , a buyer may reject goods for even the slightest defect.

Rightful rejection must be made within a reasonable time after the goods have been tendered or delivered.

A contract that is FOB Dallas where the seller is in Chicago and the buyer is in Dallas is a destination contract.

A buyer who sells rejected goods on behalf of the seller is entitled to reasonable expenses not to exceed five percent of the gross proceeds.

The Code does not excuse performance based upon commercial impracticability.

When the nonconformity or default substantially impairs the value of the installment but not the value of the entire contract, the buyer can reject the installment, even if the seller gives adequate assurance of the installment's cure.

After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods.

Willingness by the buyer to become the owner of the goods tendered or delivered to him by the seller is:

Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700.It is to be delivered to Bill's home on July 7. Under the perfect tender rule, which one of the following cases would be a rightful rejection of the goods?

Which of the following terms would indicate a destination contract?

If no definite time for delivery is fixed by the terms of the contract, delivery:

Burnside Roofing contracts to sell asphalt and metal shingles to Faubush Contractors.Burnside, through no fault of its own, is unable to deliver the shingles to Faubush by rail as agreed because that type of carrier is unavailable.Explain what the UCC requires.

Amanco is to deliver to D & R Wholesalers 50 dozen wire-rim glasses frames by October 15.On October 2, Amanco delivers 30 dozen wire-rim frames and 20 dozen plastic frames.If D & R rejects the frames:

Under the CISG:

In the absence of agreement, payment is due at the time and place the buyer is to receive the goods, even though the place of shipment is the place of delivery.

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years.The October shipment consisted of 100 badly defective tires.ZYX Cycle Company:

In a contract that provides that the sale is F.O.B.Chicago, the seller must at his own expense and risk transport the goods to Chicago and there tender delivery to the buyer.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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