Question 1

The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract.

Accepted Answer

A) True 
 B)False

Question 2

A manifestation by the buyer of his unwillingness to become the owner of the goods is:

Accepted Answer

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

Question 3

Bill orders a custom-made suit from Rooks to be delivered by Friday at 5 p.m. When the suit is delivered to his office on Friday afternoon, he is in conference with a client. He accepts delivery and hangs the suit in his closet. When Bill tries on the suit Saturday evening, he discovers that the pants are cuffed. He had ordered cuffless trousers. What can he do?

Accepted Answer

A)  He cannot revoke acceptance since the cuffs are not difficult to discover. 
B)  He can revoke acceptance if the cuffs substantially impair the value of the goods to him and Rooks will not remove the cuffs. 
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 if the cuffs substantially impair the value of the goods to him and Rooks will not remove the cuffs. 
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 4

A buyer is obliged to accept conforming goods and to pay for them according to the contract terms.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Whitley ordered 800 Christmas trees from North Pines Tree Farm to be delivered on November 24. When the trees arrive, the North Pines must accept tender of payment by any means or in any manner current, such as a check, in the ordinary course of business unless North Pines demands cash and allows Whitley a reasonable time within which to obtain it..

Accepted Answer

A) True 
 B)False

Question 7

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 8

The court in Furlong v. Alpha Chi Omega Sorority held that:

Accepted Answer

A)  the UCC did not apply to this situation. 
B)  the design specifications were part of the basis of the bargain and as such became an express warranty. 
C)  rejection of the goods was not rightful even though the sorority seasonably notified the seller within a reasonable time since notice was by phone. 
D)  the law required the sorority to accept Furlong's offer of compromise. 
A)  the UCC did not apply to this situation. 
B)  the design specifications were part of the basis of the bargain and as such became an express warranty. 
C)  rejection of the goods was not rightful even though the sorority seasonably notified the seller within a reasonable time since notice was by phone. 
D)  the law required the sorority to accept Furlong's offer of compromise.

Question 9

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 pay for the defective tires, but Supertread must provide 200 tires in November. 
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 pay for the defective tires, but Supertread must provide 200 tires in November.

Question 10

J & J Co. offers a "subscription" for baby toys to be delivered every two months from the birth of a child. Payment must be made within two weeks of delivery. The Markham family accepted the J & J plan when their son, Timmy, was born. When Timmy was four months old, one J & J toy arrived smashed to pieces. Markham:

Accepted Answer

A)  can treat the whole contract as breached and refuse to pay for past installments as well as future installments. 
B)  can reject the installment and cancel the contract immediately. 
C)  can reject the installment and refuse to pay for it if J & J cannot cure it. 
D)  cannot reject the installment since it is part of a series. 
A)  can treat the whole contract as breached and refuse to pay for past installments as well as future installments. 
B)  can reject the installment and cancel the contract immediately. 
C)  can reject the installment and refuse to pay for it if J & J cannot cure it. 
D)  cannot reject the installment since it is part of a series.

Question 11

A carpenter ordered 500 sheets of 1/2-inch plywood from her supplier, but received 498 sheets of 1/4-inch plywood. If she rejects these goods, she has no further obligation to her supplier regarding these nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 12

In most sales, the buyer has the right to inspect the goods before he pays.

Accepted Answer

A) True 
 B)False

Question 13

In an installment contract, if the contract is silent about payment, the Code provides that the seller may demand the price, if it can be apportioned, for each lot.

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

The buyer's rejection of nonconforming goods or tender is rightful under the perfect tender rule.

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)  A significant drop in demand for the goods will excuse the buyer's performance. 
B)  Increased production costs will excuse performance by the seller. 
C)  Performance will be excused when it is 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)  A significant drop in demand for the goods will excuse the buyer's performance. 
B)  Increased production costs will excuse performance by the seller. 
C)  Performance will be excused when it is 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

A buyer's cancellation of a contract based on the seller's anticipatory repudiation is effective:

Accepted Answer

A)  only if the buyer expressly notifies the seller of the cancellation. 
B)  if the cancellation precedes the seller's attempt to retract her repudiation. 
C)  only if bond has been obtained. 
D)  All of these are correct. 
A)  only if the buyer expressly notifies the seller of the cancellation. 
B)  if the cancellation precedes the seller's attempt to retract her repudiation. 
C)  only if bond has been obtained. 
D)  All of these are correct.

Question 18

If Mary allows the seller, Sellmart Co., four weeks to repair the defects in her kitchen set and they have tried but have not done a good job at it, she may revoke her acceptance if she:

Accepted Answer

A)  notifies Sellmart of revocation. 
B)  does not use the table and chairs. 
C)  could not discover the defects easily. 
D)  inspected the goods herself. 
A)  notifies Sellmart of revocation. 
B)  does not use the table and chairs. 
C)  could not discover the defects easily. 
D)  inspected the goods herself.

Question 19

Revocation and rejection give the buyer the same rights and duties with respect to the goods.

Accepted Answer

A) True 
 B)False

Question 20

The concept of the "right to cooperation" includes that:

Accepted Answer

A)  where one party's required cooperation is not timely, the other party is excused from any resulting delay in her own performance. 
B)  where one party's required cooperation is untimely, the other party is required to tender performance as if the first party had tendered in a timely manner. 
C)  where neither party is at fault and the agreed manner of delivery becomes impracticable, both parties are required to negotiate a new price. 
D)  None of these. 
A)  where one party's required cooperation is not timely, the other party is excused from any resulting delay in her own performance. 
B)  where one party's required cooperation is untimely, the other party is required to tender performance as if the first party had tendered in a timely manner. 
C)  where neither party is at fault and the agreed manner of delivery becomes impracticable, both parties are required to negotiate a new price. 
D)  None of these.

Exam 20: Performance

The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract.

A manifestation by the buyer of his unwillingness to become the owner of the goods is:

A buyer is obliged to accept conforming goods and to pay for them according to the contract terms.

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.

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

The court in Furlong v. Alpha Chi Omega Sorority held that:

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:

A carpenter ordered 500 sheets of 1/2-inch plywood from her supplier, but received 498 sheets of 1/4-inch plywood. If she rejects these goods, she has no further obligation to her supplier regarding these nonconforming goods.

In most sales, the buyer has the right to inspect the goods before he pays.

In an installment contract, if the contract is silent about payment, the Code provides that the seller may demand the price, if it can be apportioned, for each lot.

The buyer's rejection of nonconforming goods or tender is rightful under the perfect tender rule.

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

A buyer's cancellation of a contract based on the seller's anticipatory repudiation is effective:

If Mary allows the seller, Sellmart Co., four weeks to repair the defects in her kitchen set and they have tried but have not done a good job at it, she may revoke her acceptance if she:

Revocation and rejection give the buyer the same rights and duties with respect to the goods.

The concept of the "right to cooperation" includes that:

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