Exam 26: Obligations and Performance

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Jared agrees to purchase twelve computers from Zack Enterprises,Inc.for sale in Jared's department store.Twelve boxes from Zack Enterprises have just arrived at the department store.What are Jared's rights and responsibilities?

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Question 1

Correct Answer:

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Jared first has a right to examine,or inspect,the goods.This right extends beyond merely looking at the boxes to determine whether there is evidence of damage.Jared may remove the computers from their boxes and test each computer.If the goods are not conforming to the contract in any way,Jared may reject the shipment.If Jared does not reject a non-conforming delivery,he may have the right to revoke acceptance.In order to revoke acceptance,Jared would have to establish that the computers did not conform to the contract,the defect is such that it substantially impairs the value of the contract to him,and either the defect is such that he could not have discovered the problem prior to acceptance,or Zack Enterprises promised to correct a problem Jared was aware of and pointed out to the seller prior to acceptance.

The UCC does not specify the form that the assurance of performance is to take.

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(True/False)

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Question 2

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True

An acceptance of goods can be done either expressly or by implication.

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(True/False)

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Question 3

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True

In January,a buyer and a seller agreed on the sale of 10,000 pounds of tomatoes to be delivered on July 1.The contract stated that the seller would set the price on June 15 and that the buyer would pay the price on delivery.On June 15,the market price of tomatoes was approximately 75 cents per pound.The seller set the price at $1.50 per pound and the buyer demanded that the price be lowered. When the parties could not agree,a lawsuit developed.The key issue was whether the seller had the right to set the $1.50 price.Decide.

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Question 4

A seller's duty to deliver goods requires the seller to transport the goods to the place designated by the buyer.

(True/False)

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Question 5

When a party refuses to perform a contract when the time for performance arises,an anticipatory repudiation has occurred.

(True/False)

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Question 6

Which of the following does not constitute an acceptance?

(Multiple Choice)

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Question 7

When a contract to sell identified goods does not specify a place of delivery,but both parties know that the goods are in a place other than the seller's place of business,that other place is the place of delivery.

(True/False)

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Question 8

Unless otherwise agreed by the parties,payment by a buyer requires payment either in cash or by certified check.

(True/False)

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Question 9

If adequate assurance of performance is not given within five (5)business days from the time of the demand for assurance,the demanding party may treat the contract as repudiated.

(True/False)

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Question 10

The right to ___________ is a second chance for a seller to make a proper tender of conforming goods.

(Multiple Choice)

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Question 11

Unless otherwise agreed,the proper place for the delivery of goods is:

(Multiple Choice)

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Question 12

When a party refuses to perform a contract at the time of performance,a repudiation has occurred.

(True/False)

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Question 13

After a proper demand has been made,for assurance of performance to be adequate,it must:

(Multiple Choice)

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Question 14

The standard for rejection requires that any defect in the good be material.

(True/False)

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Question 15

Which method of payment gives the buyer credit by postponing the time for payment?

(Multiple Choice)

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Question 16

A buyer has a right to insist that all the goods be delivered at one time.

(True/False)

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Question 17

If a person upon whom the assurance is demanded does not have a good reputation or economic position,a guarantee of performance or a pledge of security may be required.

(True/False)

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Question 18

The seller's right to cure a defective tender means that the seller will be given a second chance to make a proper tender of conforming goods.

(True/False)

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Question 19

A party to a sales contract may demand at any time that the other party provide adequate assurance of performance.

(True/False)

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Question 20

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Exam 26: Obligations and Performance

Jared agrees to purchase twelve computers from Zack Enterprises,Inc.for sale in Jared's department store.Twelve boxes from Zack Enterprises have just arrived at the department store.What are Jared's rights and responsibilities?

The UCC does not specify the form that the assurance of performance is to take.

An acceptance of goods can be done either expressly or by implication.

A seller's duty to deliver goods requires the seller to transport the goods to the place designated by the buyer.

When a party refuses to perform a contract when the time for performance arises,an anticipatory repudiation has occurred.

Which of the following does not constitute an acceptance?

When a contract to sell identified goods does not specify a place of delivery,but both parties know that the goods are in a place other than the seller's place of business,that other place is the place of delivery.

Unless otherwise agreed by the parties,payment by a buyer requires payment either in cash or by certified check.

If adequate assurance of performance is not given within five (5)business days from the time of the demand for assurance,the demanding party may treat the contract as repudiated.

The right to ___________ is a second chance for a seller to make a proper tender of conforming goods.

Unless otherwise agreed,the proper place for the delivery of goods is:

When a party refuses to perform a contract at the time of performance,a repudiation has occurred.

After a proper demand has been made,for assurance of performance to be adequate,it must:

The standard for rejection requires that any defect in the good be material.

Which method of payment gives the buyer credit by postponing the time for payment?

A buyer has a right to insist that all the goods be delivered at one time.

If a person upon whom the assurance is demanded does not have a good reputation or economic position,a guarantee of performance or a pledge of security may be required.

The seller's right to cure a defective tender means that the seller will be given a second chance to make a proper tender of conforming goods.

A party to a sales contract may demand at any time that the other party provide adequate assurance of performance.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

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