Question 1

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 2

Ryan is interested in purchasing two dozen L.E.D.signs from Superior Sign Co. If the signs are damaged:

Accepted Answer

A) and destroyed before Ryan's offer to buy them is accepted, Superior must create new signs to replace the ones Ryan wanted. 
B) after the contract of sale is formed and after the risk of loss passed to Ryan, then Ryan has no option but must pay the entire contract price of the signs. 
C) without fault of either party before the risk of loss passes to Ryan and the goods were identified when the contract was made, the contract is avoided whether the signs are totally or partially destroyed. 
D) All of the above. 
A) and destroyed before Ryan's offer to buy them is accepted, Superior must create new signs to replace the ones Ryan wanted. 
B) after the contract of sale is formed and after the risk of loss passed to Ryan, then Ryan has no option but must pay the entire contract price of the signs. 
C) without fault of either party before the risk of loss passes to Ryan and the goods were identified when the contract was made, the contract is avoided whether the signs are totally or partially destroyed. 
D) All of the above.

Question 3

A buyer's or lessee's right to reject nonconforming goods depends on the size or extent of the breach of the seller's or lessor's duty to tender conforming goods.

Accepted Answer

A) True 
 B)False

Question 4

Tender of delivery requires:

Accepted Answer

A) only that the seller put and hold goods that conform to the contract at the buyer's disposition. 
B) that the goods be made available to the buyer for at least one week if they are not perishable. 
C) that the seller give the buyer reasonable notice of the tender. 
D) that tender occur during the buyer's normal business hours. 
A) only that the seller put and hold goods that conform to the contract at the buyer's disposition. 
B) that the goods be made available to the buyer for at least one week if they are not perishable. 
C) that the seller give the buyer reasonable notice of the tender. 
D) that tender occur during the buyer's normal business hours.

Question 5

Acceptance of goods,which disallows any later rejection of them,is accomplished only through express words.

Accepted Answer

A) True 
 B)False

Question 6

The delivery terms "ex-ship" and "no arrival,no sale" indicate that the contract is a shipment contract.

Accepted Answer

A) True 
 B)False

Question 7

The Code does not excuse performance based upon commercial impracticability.

Accepted Answer

A) True 
 B)False

Question 8

Rejection is ineffective unless the buyer notifies the seller.

Accepted Answer

A) True 
 B)False

Question 9

The Elm Street Accounting Partnership has ordered two maroon office chairs for its waiting room from the Quality Office Supply Company.Quality sends two burgundy-red office chairs that the Elm Street partnership rejects.What,if any,rights does Quality have under the circumstances?

Accepted Answer

a.Under a shipment contract the seller i

Question 10

Under the CISG,a party may suspend performance of his obligations if,after the conclusion of the contract,it becomes apparent that the other party will not perform a substantial part of his obligations.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

A "commercial unit" is a unit of goods that by commercial usage is a single unit and that,if divided,would be materially impaired in character or value.

Accepted Answer

A) True 
 B)False

Question 14

A manifestation by the buyer of his unwillingness to become the owner of the goods is:

Accepted Answer

A) cure. 
B) revocation. 
C) rejection. 
D) tender. 
A) cure. 
B) revocation. 
C) rejection. 
D) tender.

Question 15

In an installment contract,if the contract is silent about payment,the Code provides that the seller may demand the price,if it can be apportioned,for each lot.

Accepted Answer

A) True 
 B)False

Question 16

A merchant buyer of goods receives nonconforming goods.The merchant buyer rightfully rejects and appropriately notifies the seller,but the seller has no agent in the buyer's city.The goods are perishable and threaten to decline in value speedily.The merchant buyer has no further duty to the seller other than to await the seller's instructions.

Accepted Answer

A) True 
 B)False

Question 17

Payment of a C.O.D.shipment constitutes an acceptance of the goods.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Where goods are in the possession of a bailee and are to be delivered without being moved,in most instances the seller may either tender to the buyer a document of title or obtain an acknowledgment by the bailee of the buyer's right to possess the goods.

Accepted Answer

A) True 
 B)False

Exam 20: Performance

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.

Ryan is interested in purchasing two dozen L.E.D.signs from Superior Sign Co. If the signs are damaged:

A buyer's or lessee's right to reject nonconforming goods depends on the size or extent of the breach of the seller's or lessor's duty to tender conforming goods.

Tender of delivery requires:

Acceptance of goods,which disallows any later rejection of them,is accomplished only through express words.

The delivery terms "ex-ship" and "no arrival,no sale" indicate that the contract is a shipment contract.

The Code does not excuse performance based upon commercial impracticability.

Rejection is ineffective unless the buyer notifies the seller.

The Elm Street Accounting Partnership has ordered two maroon office chairs for its waiting room from the Quality Office Supply Company.Quality sends two burgundy-red office chairs that the Elm Street partnership rejects.What,if any,rights does Quality have under the circumstances?

Under the CISG,a party may suspend performance of his obligations if,after the conclusion of the contract,it becomes apparent that the other party will not perform a substantial part of his obligations.

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.

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

A "commercial unit" is a unit of goods that by commercial usage is a single unit and that,if divided,would be materially impaired in character or value.

A manifestation by the buyer of his unwillingness to become the owner of the goods is:

In an installment contract,if the contract is silent about payment,the Code provides that the seller may demand the price,if it can be apportioned,for each lot.

Payment of a C.O.D.shipment constitutes an acceptance of the goods.

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

Where goods are in the possession of a bailee and are to be delivered without being moved,in most instances the seller may either tender to the buyer a document of title or obtain an acknowledgment by the bailee of the buyer's right to possess 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 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

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

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