Question 1

The Code excuses performance based upon commercial impracticability.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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.

Accepted Answer

A) True 
 B)False

Question 4

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) Answers (a) and (b) are acceptable under the UCC. 
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) Answers (a) and (b) are acceptable under the UCC.

Question 5

In which of the following circumstances would the buyer or seller be permitted to treat the contract as breached and cancel?

Accepted Answer

A) Seller delivered conforming goods, but from another manufacturer because he ran out of the brand ordered. 
B) Seller delivered the goods to a truck line when railroad delivery had been specified, but the rail line was not running on a suitable schedule. 
C) Seller delivered a box of badly overripe pears that were part of an order for 12 "fruits of the month," one to be delivered during the first week of each month for a year. 
D) Seller failed to deliver Volume 3 of a set of three books after repeated requests by the buyer. 
A) Seller delivered conforming goods, but from another manufacturer because he ran out of the brand ordered. 
B) Seller delivered the goods to a truck line when railroad delivery had been specified, but the rail line was not running on a suitable schedule. 
C) Seller delivered a box of badly overripe pears that were part of an order for 12 "fruits of the month," one to be delivered during the first week of each month for a year. 
D) Seller failed to deliver Volume 3 of a set of three books after repeated requests by the buyer.

Question 6

In which of the following situations does the seller have the right to cure?

Accepted Answer

A) Where the time for performance under the contract has not yet expired. 
B) After the time for performance has expired if the seller had reasonable grounds for believing the buyer would accept a nonconforming tender with or without monetary adjustment. 
C) Where the buyer has revoked acceptance. 
D) Two of the above, (a) and (b). 
A) Where the time for performance under the contract has not yet expired. 
B) After the time for performance has expired if the seller had reasonable grounds for believing the buyer would accept a nonconforming tender with or without monetary adjustment. 
C) Where the buyer has revoked acceptance. 
D) Two of the above, (a) and (b).

Question 7

A buyer who sells rejected goods on behalf of the seller is entitled to reasonable expenses and a reasonable selling commission not to exceed ten percent of the gross proceeds.

Accepted Answer

A) True 
 B)False

Question 8

In the case of partial destruction of identified goods before risk of loss passes to the buyer, the buyer has the option to avoid the contract or to accept the goods with due allowance from the contract price for the deterioration or deficiency.

Accepted Answer

A) True 
 B)False

Question 9

Revocation of acceptance requires notice to the seller, whereas rejection does not.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

A seller has contracted to ship goods to the buyer via overland truck.The trucking company has been subject to a drivers' strike.Although the goods could be shipped via rail at a similar rate and within the agreed time, the Code will excuse the seller from its performance because delivery in the express way provided in the contract is impossible.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 the above. 
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 the above.

Question 16

Which of the following best illustrates a shipment contract?

Accepted Answer

A) C.I.F. 
B) F.O.B.place of shipment. 
C) F.A.S.seller's port. 
D) All of the above are shipment contracts. 
A) C.I.F. 
B) F.O.B.place of shipment. 
C) F.A.S.seller's port. 
D) All of the above are shipment contracts.

Question 17

Whitaker has reasonable grounds for believing Crosslin will not perform his obligations under their contract.Discuss what Whitaker might do if their contract is governed by: (a) the UCC and (b) the CISG.

Accepted Answer

(a) A contract of sale or lease of goods

Question 18

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 19

A merchant buyer who has rightfully rejected goods must follow reasonable instructions from the seller regarding disposal of the goods when the seller has no agent at the place of rejection.

Accepted Answer

A) True 
 B)False

Question 20

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 permit Bill to rightfully reject the goods?

Accepted Answer

A) Sam delivered an 18-cubic-foot, silver refrigerator on July 7, and Bill calls Sam to complain. 
B) Sam sent an 18-cubic-foot, yellow refrigerator with a small 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 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, silver refrigerator on July 7, and Bill calls Sam to complain. 
B) Sam sent an 18-cubic-foot, yellow refrigerator with a small 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 18-cubic-foot, yellow refrigerator without ice cube trays on July 5 and notifies Bill of the defect.

Exam 20: Performance

The Code excuses performance based upon commercial impracticability.

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

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.

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 which of the following circumstances would the buyer or seller be permitted to treat the contract as breached and cancel?

In which of the following situations does the seller have the right to cure?

A buyer who sells rejected goods on behalf of the seller is entitled to reasonable expenses and a reasonable selling commission not to exceed ten percent of the gross proceeds.

In the case of partial destruction of identified goods before risk of loss passes to the buyer, the buyer has the option to avoid the contract or to accept the goods with due allowance from the contract price for the deterioration or deficiency.

Revocation of acceptance requires notice to the seller, whereas rejection does not.

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.

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

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.

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

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

Which of the following best illustrates a shipment contract?

Whitaker has reasonable grounds for believing Crosslin will not perform his obligations under their contract.Discuss what Whitaker might do if their contract is governed by: (a) the UCC and (b) the CISG.

A merchant buyer who has rightfully rejected goods must follow reasonable instructions from the seller regarding disposal of the goods when the seller has no agent at the place of rejection.

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 permit Bill to rightfully reject the goods?

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

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 Wills

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