Question 1

In an installment contract, the buyer may reject any nonconforming installment if the nonconformity substantially impairs the value of that installment and cannot be cured.

Accepted Answer

A) True 
 B)False

Question 2

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

Accepted Answer

A) Through a failure to reject after he has had a reasonable opportunity to inspect them 
B) Immediately upon delivery 
C) Only by conduct that shows the buyer's willingness to become owner of the goods 
D) Only after an express acceptance 
A) Through a failure to reject after he has had a reasonable opportunity to inspect them 
B) Immediately upon delivery 
C) Only by conduct that shows the buyer's willingness to become owner of the goods 
D) Only after an express acceptance

Question 3

Knecht contracts to sell $20,000 of goods to Morales.Later, Morales hears from another supplier that Knecht is having financial trouble, and Morales is concerned that Knecht will not be able to fill his order.If Morales has reasonable grounds for insecurity about Knecht's contractual performance:

Accepted Answer

A) Morales has no recourse except to wait for the contractual delivery date and, if Knecht fails to deliver, Morales can then sue for breach of contract. 
B) Morales may demand written assurance of performance from Knecht before the contract delivery date, and Knecht must provide adequate assurance within a reasonable time not exceeding 30 days. 
C) Morales may demand assurance of performance from Knecht, and Knecht must provide adequate assurance within ten days or the contract is repudiated. 
D) the statement by the other supplier creates an anticipatory repudiation which allows Morales to avoid the contract. 
A) Morales has no recourse except to wait for the contractual delivery date and, if Knecht fails to deliver, Morales can then sue for breach of contract. 
B) Morales may demand written assurance of performance from Knecht before the contract delivery date, and Knecht must provide adequate assurance within a reasonable time not exceeding 30 days. 
C) Morales may demand assurance of performance from Knecht, and Knecht must provide adequate assurance within ten days or the contract is repudiated. 
D) the statement by the other supplier creates an anticipatory repudiation which allows Morales to avoid the contract.

Question 4

The buyer's payment or tender of payment, unless otherwise agreed, is a condition to the seller's duty to tender and to complete delivery.

Accepted Answer

A) True 
 B)False

Question 5

Revocation following an acceptance of the goods gives the buyer fewer rights than he would have had if he had at first rejected the goods.

Accepted Answer

A) True 
 B)False

Question 6

If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may:

Accepted Answer

A) reject the whole. 
B) accept the whole. 
C) accept any commercial unit(s) and reject the rest. 
D) Any of these. 
A) reject the whole. 
B) accept the whole. 
C) accept any commercial unit(s) and reject the rest. 
D) Any of these.

Question 7

In a "no arrival, no sale" contract, the seller is responsible to the buyer for the goods' failure to arrive.

Accepted Answer

A) True 
 B)False

Question 8

If no place of tender is indicated by the contract, it is presumed delivery is to be made at the buyer's place of
business.

Accepted Answer

A) True 
 B)False

Question 9

Drapery Makers has signed a contract to make and sell to Hyer curtains for 20 windows by March 31.Hyer, however, delays in giving Drapery Makers the dimensions it needs to know in order to do the work.In this case, Drapery Makers:

Accepted Answer

A) may proceed to do the work when it receives the information if it performs reasonably. 
B) will get paid for their availability to perform even if they never make the curtains. 
C) has no remedies under the Code. 
D) can charge Hyer a per-day penalty for each day of the delay. 
A) may proceed to do the work when it receives the information if it performs reasonably. 
B) will get paid for their availability to perform even if they never make the curtains. 
C) has no remedies under the Code. 
D) can charge Hyer a per-day penalty for each day of the delay.

Question 10

Parker agrees to sell to Thompson 500 bushels of soybeans at $6 per bushel.Without the fault of Parker or Thompson, 200 bushels are destroyed.Thompson must take the remaining 300 bushels and pay Parker $1,800.

Accepted Answer

A) True 
 B)False

Question 11

Acceptance of any part of a commercial unit is acceptance of the entire unit.

Accepted Answer

A) True 
 B)False

Question 12

A buyer in Atlanta enters into a sales contract with a seller in Chicago.If the contract does not mention the place for delivery of the goods, the place of delivery will be:

Accepted Answer

A) at the seller's business or residence in Chicago. 
B) as stated in all destination contracts. 
C) at the buyer's business or residence in Atlanta. 
D) irrelevant, since the contract is void. 
A) at the seller's business or residence in Chicago. 
B) as stated in all destination contracts. 
C) at the buyer's business or residence in Atlanta. 
D) irrelevant, since the contract is void.

Question 13

If a buyer accepts part of a shipment and rejects part of a shipment, he must pay for the items he keeps at the contract rate.

Accepted Answer

A) True 
 B)False

Question 14

Everett is an accountant for a major accounting firm.One day at work, he is discussing his collection of rare coins with one of his co-workers.Everett tells his co-worker that he keeps his collection at home and that he has recently purchased several Chinese gold Panda coins at an exceptional price.The co-worker expresses an interest in buying two of the coins at a price of $250, and a contract is duly formed.If no place for delivery is expressed, where are the coins to be delivered?

Accepted Answer

A) At the office of the accounting firm where the parties to the contract work 
B) At Everett's home 
C) At the co-worker's home 
D) In the parking lot of the accounting firm 
A) At the office of the accounting firm where the parties to the contract work 
B) At Everett's home 
C) At the co-worker's home 
D) In the parking lot of the accounting firm

Question 15

Payment of a C.O.D.shipment constitutes an acceptance of the goods.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is correct with respect to the Code's approach to impossibility of performance?

Accepted Answer

A) Ordinarily, a strike by employees of the seller will excuse performance by the seller. 
B) Increased production costs alone will excuse performance by the seller. 
C) Performance will be excused when it is commercially impractical as a result of one or more unforeseen supervening events that are more than mere hardship or increased cost of performance. 
D) All of these are correct. 
A) Ordinarily, a strike by employees of the seller will excuse performance by the seller. 
B) Increased production costs alone will excuse performance by the seller. 
C) Performance will be excused when it is commercially impractical as a result of one or more unforeseen supervening events that are more than mere hardship or increased cost of performance. 
D) All of these are correct.

Question 17

Tender can be made any time of the day or night when the seller feels like delivering the goods.

Accepted Answer

A) True 
 B)False

Question 18

If a lease contract does not sufficiently cover the particulars of performance, Article 2A provides many gap-filler provisions.

Accepted Answer

A) True 
 B)False

Question 19

Goods are to be sent F.O.B.Buffalo, NY to Raleigh, NC by UPS.Where does tender occur?

Accepted Answer

A) Where the goods are identified 
B) Where the goods are shipped 
C) Where the goods are delivered and picked up by the buyer 
D) Where the goods are taken by the buyer 
A) Where the goods are identified 
B) Where the goods are shipped 
C) Where the goods are delivered and picked up by the buyer 
D) Where the goods are taken by the buyer

Question 20

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may:

Accepted Answer

A) await performance for a reasonable time. 
B) resort to any remedy for breach. 
C) Both of these options. 
D) None of these options. 
A) await performance for a reasonable time. 
B) resort to any remedy for breach. 
C) Both of these options. 
D) None of these options.

Exam 22: Performance

In an installment contract, the buyer may reject any nonconforming installment if the nonconformity substantially impairs the value of that installment and cannot be cured.

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

Knecht contracts to sell $20,000 of goods to Morales.Later, Morales hears from another supplier that Knecht is having financial trouble, and Morales is concerned that Knecht will not be able to fill his order.If Morales has reasonable grounds for insecurity about Knecht's contractual performance:

The buyer's payment or tender of payment, unless otherwise agreed, is a condition to the seller's duty to tender and to complete delivery.

Revocation following an acceptance of the goods gives the buyer fewer rights than he would have had if he had at first rejected the goods.

If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may:

In a "no arrival, no sale" contract, the seller is responsible to the buyer for the goods' failure to arrive.

If no place of tender is indicated by the contract, it is presumed delivery is to be made at the buyer's place of business.

Drapery Makers has signed a contract to make and sell to Hyer curtains for 20 windows by March 31.Hyer, however, delays in giving Drapery Makers the dimensions it needs to know in order to do the work.In this case, Drapery Makers:

Parker agrees to sell to Thompson 500 bushels of soybeans at $6 per bushel.Without the fault of Parker or Thompson, 200 bushels are destroyed.Thompson must take the remaining 300 bushels and pay Parker $1,800.

Acceptance of any part of a commercial unit is acceptance of the entire unit.

A buyer in Atlanta enters into a sales contract with a seller in Chicago.If the contract does not mention the place for delivery of the goods, the place of delivery will be:

If a buyer accepts part of a shipment and rejects part of a shipment, he must pay for the items he keeps at the contract rate.

Payment of a C.O.D.shipment constitutes an acceptance of the goods.

Which of the following is correct with respect to the Code's approach to impossibility of performance?

Tender can be made any time of the day or night when the seller feels like delivering the goods.

If a lease contract does not sufficiently cover the particulars of performance, Article 2A provides many gap-filler provisions.

Goods are to be sent F.O.B.Buffalo, NY to Raleigh, NC by UPS.Where does tender occur?

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may:

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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