Question 1

Increased production costs will allow the seller to avoid a contract based upon commercial impracticability.

Accepted Answer

A) True 
 B)False  False

Question 2

Revocation of acceptance is effective without notice to the seller.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following terms would indicate a destination contract?

Accepted Answer

A) F.O.B. city of buyer. 
B) F.O.B. city of seller. 
C) C.I.F. 
D) F.A.S. seller's port. 
A) F.O.B. city of buyer. 
B) F.O.B. city of seller. 
C) C.I.F. 
D) F.A.S. seller's port. A

Question 4

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 5

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 the above. 
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 the above.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Tender can be made any time of the day or night,when it is most convenient for the seller to deliver the goods.

Accepted Answer

A) True 
 B)False

Question 8

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

Accepted Answer

A) If he fails to reject the goods after he has had a reasonable opportunity to inspect them. 
B) Immediately upon delivery. 
C) Only when he pays for them. 
D) Only after an express acceptance. 
A) If he fails to reject the goods after he has had a reasonable opportunity to inspect them. 
B) Immediately upon delivery. 
C) Only when he pays for them. 
D) Only after an express acceptance.

Question 9

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 10

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 11

Revocation of acceptance must be done as soon as the buyer discovers the grounds for the revocation.

Accepted Answer

A) True 
 B)False

Question 12

A buyer in Atlanta enters into a sales contract with a seller in Chicago.If the contract does not mention the place for delivery of the goods,the place of delivery will be:

Accepted Answer

A) at the seller's business or residence in Chicago. 
B) as stated in all destination contracts. 
C) at the buyer's business or residence in Atlanta. 
D) irrelevant since the contract is void. 
A) at the seller's business or residence in Chicago. 
B) as stated in all destination contracts. 
C) at the buyer's business or residence in Atlanta. 
D) irrelevant since the contract is void.

Question 13

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 14

Speedy Stop sells necessities to neighborhood shoppers until 1
a.m. every day. Dairyland delivered its order of milk products as usual around 6
a.m. while Mary, the shopkeeper, was busy with the early coffee and donut crowd. The Dairyland driver left 12 crates in the refrigerator compartment and went on to the rest of his route. At 7:30
a.m., Mary started to shelve the milk products and discovered that all 12 crates contained buttermilk rather than the usual mix of containers of whole milk, 2%, skim milk, and cream she had ordered. What is her obligation with regard to the goods?

Accepted Answer

a.Rejection is a manifestation of an unw

Question 15

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 16

If an anticipatory repudiation substantially impairs the value of the contract,the aggrieved party may:

Accepted Answer

A) await performance for a commercially reasonable time. 
B) resort to any appropriate remedy for breach. 
C) Both (a) and (b) are correct. 
D) None of the above. 
A) await performance for a commercially reasonable time. 
B) resort to any appropriate remedy for breach. 
C) Both (a) and (b) are correct. 
D) None of the above.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The perfect tender rule requires that the seller's tender of performance must conform exactly to the contract subject to:

Accepted Answer

A) installment contracts. 
B) cure by the seller. 
C) Both of the above. 
D) Neither of the above. 
A) installment contracts. 
B) cure by the seller. 
C) Both of the above. 
D) Neither of the above.

Question 19

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 20

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

Exam 20: Performance

Increased production costs will allow the seller to avoid a contract based upon commercial impracticability.

Revocation of acceptance is effective without notice to the seller.

Which of the following terms would indicate a destination contract?

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

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

Tender can be made any time of the day or night,when it is most convenient for the seller to deliver the goods.

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

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

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

Revocation of acceptance must be done as soon as the buyer discovers the grounds for the revocation.

A buyer in Atlanta enters into a sales contract with a seller in Chicago.If the contract does not mention the place for delivery of the goods,the place of delivery will be:

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

If an anticipatory repudiation substantially impairs the value of the contract,the aggrieved party may:

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

The perfect tender rule requires that the seller's tender of performance must conform exactly to the contract subject to:

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 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.

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 and 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

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International Business Law

Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

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