Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

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

Question 3

Game Source Stores are open to consumers. The UCC requirement of good faith imposes

Accepted Answer

A)  ​a higher duty on consumers than Game Source. 
B)  ​a higher duty on Game Source than on consumers. 
C)  ​no duty on either Game Source or consumers. 
D)  ​the same duty on Game Source and consumers. 
A)  ​a higher duty on consumers than Game Source. 
B)  ​a higher duty on Game Source than on consumers. 
C)  ​no duty on either Game Source or consumers. 
D)  ​the same duty on Game Source and consumers. B

Question 4

River Gear Company and Scenic Trips, Inc., enter into a contract on August 1 for the sale of fifty inflatable river rafts. Scenic cancels the contract ten days later. River Gear is unable to sell the rafts to another buyer. River Gear can

Accepted Answer

A)  ​force the buyer to accept the rafts and pay for them. 
B)  ​recover the contract price but must hold the rafts for the buyer. 
C)  ​recover the contract price and keep the rafts. 
D)  ​recover the contract price but must destroy the rafts. 
A)  ​force the buyer to accept the rafts and pay for them. 
B)  ​recover the contract price but must hold the rafts for the buyer. 
C)  ​recover the contract price and keep the rafts. 
D)  ​recover the contract price but must destroy the rafts.

Question 5

Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto

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. 
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 6

Until the time for performance under a contract expires, the seller has a right to cure.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC.​

Accepted Answer

A) True 
 B)False

Question 10

Revocation of acceptance is effective on notice to the seller or lessor.

Accepted Answer

A) True 
 B)False

Question 11

Under the UCC, parties to a contract can limit or exclude consequential damages.

Accepted Answer

A) True 
 B)False

Question 12

Natural Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Natural Eggs can not 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)  ​2:00 a.m. 
A)  ​1:00 p.m. 
B)  ​2:00 p.m. 
C)  ​3:00 p.m. 
D)  ​2:00 a.m.

Question 13

Unless otherwise agreed, inspection of goods can take place at any reasonable place and time and in any reasonable manner.

Accepted Answer

A) True 
 B)False

Question 14

Under the UCC, there are no exceptions to the perfect tender rule.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Banquets & Parties (B&P) contracts to buy 1,000 uninflated balloons from Gas Bags, Inc., for $1 per item. When the market price decreases to 50 cents per balloon, B&P refuses to go through with the deal. Gas Bags can recover

Accepted Answer

A)  ​$1,500. 
B)  ​$1,000. 
C)  ​$500. 
D)  ​$0. 
A)  ​$1,500. 
B)  ​$1,000. 
C)  ​$500. 
D)  ​$0.

Question 17

An installment contract is a single contract that requires or authorizes delivery in two or more separate lots to be paid for in one payment.

Accepted Answer

A) True 
 B)False

Question 18

Owen and Pablo enter into a contract for a sale of irrigation equipment. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between

Accepted Answer

A)  ​any loss avoided and any profit gained. 
B)  ​the actual price and the hoped-for price. 
C)  ​the contract price and the market price. 
D)  ​the current prices in the parties' locations. 
A)  ​any loss avoided and any profit gained. 
B)  ​the actual price and the hoped-for price. 
C)  ​the contract price and the market price. 
D)  ​the current prices in the parties' locations.

Question 19

Clear View Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Far Sight, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of delivery is in

Accepted Answer

A)  ​California. 
B)  ​Delaware. 
C)  ​Florida. 
D)  ​Hawaii. 
A)  ​California. 
B)  ​Delaware. 
C)  ​Florida. 
D)  ​Hawaii.

Question 20

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

Accepted Answer

A) True 
 B)False

Exam 22: Performance and Breach of Sales and Lease Contracts

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

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

Game Source Stores are open to consumers. The UCC requirement of good faith imposes

River Gear Company and Scenic Trips, Inc., enter into a contract on August 1 for the sale of fifty inflatable river rafts. Scenic cancels the contract ten days later. River Gear is unable to sell the rafts to another buyer. River Gear can

Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto

Until the time for performance under a contract expires, the seller has a right to cure.

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.

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

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC.​

Revocation of acceptance is effective on notice to the seller or lessor.

Under the UCC, parties to a contract can limit or exclude consequential damages.

Natural Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Natural Eggs can not reasonably ask Omelet Express to pick up the eggs at

Unless otherwise agreed, inspection of goods can take place at any reasonable place and time and in any reasonable manner.

Under the UCC, there are no exceptions to the perfect tender rule.

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

Banquets & Parties (B&P) contracts to buy 1,000 uninflated balloons from Gas Bags, Inc., for $1 per item. When the market price decreases to 50 cents per balloon, B&P refuses to go through with the deal. Gas Bags can recover

An installment contract is a single contract that requires or authorizes delivery in two or more separate lots to be paid for in one payment.

Owen and Pablo enter into a contract for a sale of irrigation equipment. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between

Clear View Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Far Sight, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of delivery is in

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Business and the Constitution

Business Ethics

Tort Law

Strict Liability and Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Writing Requirement in Our Digital World

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Warranties

International and Space Law

Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Small Businesses and Franchises

All Forms of Partnerships

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

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Investor Protection, Insider Trading, and Corporate Governance

Administrative Agencies

Consumer Law

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Professional Liability and Accountability

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance

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The Legal Environment of Business

Torts and Crimes

Contracts and E-Contracts

Domestic and International Sales and Lease Contracts

Negotiable Instruments

Creditors Rights and Bankruptcy

Agency and Employment

Business Organizations

Government Regulation

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC.