Question 1

In Rochester Gas and Electric Corporation v.Delta Star,the court:

Accepted Answer

A) accepted Delta Star's claim of commercial impracticability because the price of materials skyrocketed and it was not anticipated by either party. 
B) accepted Delta Star's claim of commercial impracticability because there was a shortage of the type of materials throughout the entire industry. 
C) rejected Delta Star's claim of commercial impracticability because its performance was not burdensome under the contract. 
D) rejected Delta Star's claim of commercial impracticability because other sellers in the industry were able to perform under the same restrictions. 
A) accepted Delta Star's claim of commercial impracticability because the price of materials skyrocketed and it was not anticipated by either party. 
B) accepted Delta Star's claim of commercial impracticability because there was a shortage of the type of materials throughout the entire industry. 
C) rejected Delta Star's claim of commercial impracticability because its performance was not burdensome under the contract. 
D) rejected Delta Star's claim of commercial impracticability because other sellers in the industry were able to perform under the same restrictions.

Question 2

Under UCC section 2-612,what may the seller offer if the goods shipped were rejected due to nonconformity?

Accepted Answer

A) Replace the defective goods 
B) Seek commercial arbitration of the dispute 
C) Charge the buyer for the shipping and cost of remaking the goods 
D) Refuse to take the defective goods back 
A) Replace the defective goods 
B) Seek commercial arbitration of the dispute 
C) Charge the buyer for the shipping and cost of remaking the goods 
D) Refuse to take the defective goods back

Question 3

If the shipping terms are cash on delivery (COD),then the buyer:

Accepted Answer

A) need not pay for the goods if inspection is not allowed. 
B) must pay for the goods if it is obvious without inspection that the goods do not conform to the contract. 
C) must pay the expenses of inspection if the goods do not conform to the contract. 
D) must pay for the goods before inspecting them unless they are marked "Inspection Allowed." 
A) need not pay for the goods if inspection is not allowed. 
B) must pay for the goods if it is obvious without inspection that the goods do not conform to the contract. 
C) must pay the expenses of inspection if the goods do not conform to the contract. 
D) must pay for the goods before inspecting them unless they are marked "Inspection Allowed."

Question 4

Where the goods are to be delivered in installments,an installment delivery may be rejected only if the nonconformity substantially affects the value of that delivery and:

Accepted Answer

A) if payment is to be made as per the contract price. 
B) if the nonconformity cannot be corrected by the seller. 
C) if the buyer accepted the goods with full knowledge of the nonconformity. 
D) if payment has already been made. 
A) if payment is to be made as per the contract price. 
B) if the nonconformity cannot be corrected by the seller. 
C) if the buyer accepted the goods with full knowledge of the nonconformity. 
D) if payment has already been made.

Question 5

UCC section 2-301 outlines what basic duty of the buyer?

Accepted Answer

A) To pay a price on the goods that gives seller a profit 
B) To designate an agent in each state the buyer operates 
C) To accept and pay for conforming goods shipped by the seller 
D) To be honest to creditors regarding the sales contract 
A) To pay a price on the goods that gives seller a profit 
B) To designate an agent in each state the buyer operates 
C) To accept and pay for conforming goods shipped by the seller 
D) To be honest to creditors regarding the sales contract

Question 6

If there is a conflict between the express terms of the contract and the past course of dealing between the parties,the express terms of the contract prevail.

Accepted Answer

A) True 
 B)False

Question 7

The Uniform Commercial Code gives the contracting parties very little flexibility in deciding between themselves how they will perform a contract.

Accepted Answer

A) True 
 B)False

Question 8

If there is a conflict between the express terms of the contract and the past course of dealing between the parties,the:

Accepted Answer

A) past course of dealing between the parties will prevail. 
B) express terms of the contract prevail. 
C) contract is voided. 
D) seller is excused. 
A) past course of dealing between the parties will prevail. 
B) express terms of the contract prevail. 
C) contract is voided. 
D) seller is excused.

Question 9

The seller's obligation to tender delivery is satisfied when the seller:

Accepted Answer

A) makes the goods available at reasonable hours for a reasonable period of time. 
B) makes the goods available at reasonable hours only. 
C) makes the goods available for a reasonable time period only. 
D) notifies the buyer when to take possession of the goods. 
A) makes the goods available at reasonable hours for a reasonable period of time. 
B) makes the goods available at reasonable hours only. 
C) makes the goods available for a reasonable time period only. 
D) notifies the buyer when to take possession of the goods.

Question 10

If the parties do not agree as to whether the goods are to be delivered in a single delivery or in installments,then:

Accepted Answer

A) a single delivery must be made. 
B) the goods must be delivered in several lots or installments. 
C) the seller has the option to perform a single delivery or installments. 
D) the buyer has the option to demand a single delivery or installments. 
A) a single delivery must be made. 
B) the goods must be delivered in several lots or installments. 
C) the seller has the option to perform a single delivery or installments. 
D) the buyer has the option to demand a single delivery or installments.

Question 11

Which of the following should a buyer,who is a merchant,do if the rejected goods are perishable?

Accepted Answer

A) The buyer must make a reasonable effort to sell the goods. 
B) The buyer should store the goods for the seller. 
C) The buyer should reship them to the seller. 
D) The buyer should immediately make the payment. 
A) The buyer must make a reasonable effort to sell the goods. 
B) The buyer should store the goods for the seller. 
C) The buyer should reship them to the seller. 
D) The buyer should immediately make the payment.

Question 12

Which of the following is defined to mean "honesty in fact" in performing the duties assumed in the contract or in carrying out the transaction?

Accepted Answer

A) Course of dealing 
B) Usage of trade 
C) Caveat emptor 
D) Good faith 
A) Course of dealing 
B) Usage of trade 
C) Caveat emptor 
D) Good faith

Question 13

After entering into a contract,a buyer becomes concerned that the other party may not be able to perform his contract obligations.The buyer demands assurance from the other party that the contract will be performed.What is the maximum time period that the buyer would have to wait before considering the other party has repudiated the contract?

Accepted Answer

A) 90 days 
B) 10 days 
C) 30 days 
D) 365 days 
A) 90 days 
B) 10 days 
C) 30 days 
D) 365 days

Question 14

If the party who repudiated the contract changes his mind,the repudiation can be withdrawn:

Accepted Answer

A) before the other party has cancelled the contract. 
B) after the other party has materially changed position. 
C) at any point in time. 
D) even if the contract has been cancelled. 
A) before the other party has cancelled the contract. 
B) after the other party has materially changed position. 
C) at any point in time. 
D) even if the contract has been cancelled.

Question 15

If a buyer has a basis for rejecting a delivery of goods,the buyer:

Accepted Answer

A) should not ask the seller to reship conforming goods. 
B) will still be liable to the seller for breach of the sales contract. 
C) need not act within a specified amount of time. 
D) must give the seller notice of the rejection. 
A) should not ask the seller to reship conforming goods. 
B) will still be liable to the seller for breach of the sales contract. 
C) need not act within a specified amount of time. 
D) must give the seller notice of the rejection.

Question 16

If unforeseen conditions cause a partial inability to make delivery of the goods and thus make performance impracticable,then:

Accepted Answer

A) the seller is readily excused from making delivery. 
B) the seller can unilaterally annul the contract. 
C) the seller must allocate production in any fair and reasonable manner among his customers. 
D) the buyer is required to fully take the risk of loss. 
A) the seller is readily excused from making delivery. 
B) the seller can unilaterally annul the contract. 
C) the seller must allocate production in any fair and reasonable manner among his customers. 
D) the buyer is required to fully take the risk of loss.

Question 17

A(n)________ occurs when a party provides confidence or informs the other party positively.

Accepted Answer

A) assurance 
B) assignment 
C) delegation 
D) repudiation 
A) assurance 
B) assignment 
C) delegation 
D) repudiation

Question 18

If the goods delivered by the seller do not conform to the contract,the buyer need not pay for the units accepted at the price per unit provided in the contract.

Accepted Answer

A) True 
 B)False

Question 19

UCC section 2-301 outlines what basic duty of the seller?

Accepted Answer

A) To define all contract terms to avoid gap fillers 
B) To designate an agent for each buyer 
C) To deliver the goods called for by the contract 
D) To make a profit on sales 
A) To define all contract terms to avoid gap fillers 
B) To designate an agent for each buyer 
C) To deliver the goods called for by the contract 
D) To make a profit on sales

Question 20

If the parties do not have an agreement stating otherwise,the goods are to be delivered at the seller's business.If the seller does not have a place of business,and the goods are located at the seller's home,then delivery is to be made at:

Accepted Answer

A) the buyer's place of business. 
B) the buyer's home. 
C) the seller's home. 
D) the seller's warehouse. 
A) the buyer's place of business. 
B) the buyer's home. 
C) the seller's home. 
D) the seller's warehouse.

Exam 21: Performance of Sales Contracts

In Rochester Gas and Electric Corporation v.Delta Star,the court:

Under UCC section 2-612,what may the seller offer if the goods shipped were rejected due to nonconformity?

If the shipping terms are cash on delivery (COD),then the buyer:

Where the goods are to be delivered in installments,an installment delivery may be rejected only if the nonconformity substantially affects the value of that delivery and:

UCC section 2-301 outlines what basic duty of the buyer?

If there is a conflict between the express terms of the contract and the past course of dealing between the parties,the express terms of the contract prevail.

The Uniform Commercial Code gives the contracting parties very little flexibility in deciding between themselves how they will perform a contract.

If there is a conflict between the express terms of the contract and the past course of dealing between the parties,the:

The seller's obligation to tender delivery is satisfied when the seller:

If the parties do not agree as to whether the goods are to be delivered in a single delivery or in installments,then:

Which of the following should a buyer,who is a merchant,do if the rejected goods are perishable?

Which of the following is defined to mean "honesty in fact" in performing the duties assumed in the contract or in carrying out the transaction?

If the party who repudiated the contract changes his mind,the repudiation can be withdrawn:

If a buyer has a basis for rejecting a delivery of goods,the buyer:

If unforeseen conditions cause a partial inability to make delivery of the goods and thus make performance impracticable,then:

A(n)________ occurs when a party provides confidence or informs the other party positively.

If the goods delivered by the seller do not conform to the contract,the buyer need not pay for the units accepted at the price per unit provided in the contract.

UCC section 2-301 outlines what basic duty of the seller?

If the parties do not have an agreement stating otherwise,the goods are to be delivered at the seller's business.If the seller does not have a place of business,and the goods are located at the seller's home,then delivery is to be made at:

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