Question 1

The duties and obligations under the terms of a contract include those specified by custom.

Accepted Answer

A) True 
 B)False

Question 2

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Great Vu,Inc.,which is based in Hawaii.Absent an agreement to the contrary,the place of deliv?ery is in

Accepted Answer

A) California. 
B) Delaware. 
C) Florida. 
D) Hawaii. 
A) California. 
B) Delaware. 
C) Florida. 
D) Hawaii.

Question 3

Unless the parties agree otherwise,the buyer or lessee has an absolute right to inspect the goods before making payment.

Accepted Answer

A) True 
 B)False

Question 4

The UCC's good faith provision can never be disclaimed.

Accepted Answer

A) True 
 B)False

Question 5

If the parties to a sales contract state that a certain remedy is exclusive,then it is the sole remedy.

Accepted Answer

A) True 
 B)False

Question 6

Fact Pattern 21-A1 (Questions A9-A10 apply)
Internet Cafés,Inc.,contracts to buy all of its requirements for coffee,at a minimum of 1 million pounds per year,from Java Corporation for six years.After three years,Internet tells Java that it plans to sell its assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract.
-Refer to Fact Pattern 21-A1.Java can

Accepted Answer

A) assign its rights under the contract but cannot terminate it. 
B) terminate the contract and seek damages. 
C) suspend performance under the contract until Java is fully paid. 
D) do nothing. 
A) assign its rights under the contract but cannot terminate it. 
B) terminate the contract and seek damages. 
C) suspend performance under the contract until Java is fully paid. 
D) do nothing.

Question 7

Recycle Packaging,Inc.,agrees to sell 50,000 6-ounce yogurt containers to Organic Dairy Company.Recycle can obtain only 20,000 of the 6-ounce contain?ers,but also ships 30,000 more expensive 8-ounce containers for the same price.Organic rejects the 8-ounce containers.With time for performance not yet expired,Recycle can

Accepted Answer

A) attempt to cure the defect. 
B) cancel the contract. 
C) recover the purchase price plus incidental damages. 
D) resell or dispose of the goods and hold Organic liable for any loss. 
A) attempt to cure the defect. 
B) cancel the contract. 
C) recover the purchase price plus incidental damages. 
D) resell or dispose of the goods and hold Organic liable for any loss.

Question 8

Bayou Boats,Inc.,contracts for the sale of seven swamp boats to Tidal Flats Fishing Tours.Bayou repudiates the contract.Tidal Flats's recovery of damages is measured at the time

Accepted Answer

A) Bayou advertised the goods. 
B) Tidal Flats ordered the goods. 
C) Tidal Flats learned of the breach. 
D) Bayou knew that it would repudiate the contract. 
A) Bayou advertised the goods. 
B) Tidal Flats ordered the goods. 
C) Tidal Flats learned of the breach. 
D) Bayou knew that it would repudiate the contract.

Question 9

Occurrences unforeseen by either party when a contract was made may make performance commercially impracticable,but the perfect tender rule still applies.

Accepted Answer

A) True 
 B)False

Question 10

Signal Sets Company contracts to deliver one hundred 55-inch 3D HD television sets to a new retail customer,Tuner TV Store,on May 1,with payment to be made on delivery.Signal tenders delivery in its own truck.Tuner's manager notices that some of the cartons have scrape marks.Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded.Signal assures Tuner that the sets are in perfect condition.Tuner tenders Signal a check,which Signal refuses,claiming that the first delivery to new customers is always for cash.Tuner promises to pay the cash within two days.Signal leaves the sets with Tuner,which stores them in its warehouse pending its "Grand Opening Sale" on May 15.Two days later,Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair.Signal claims Tuner has accepted the sets and is in breach by not paying on delivery.Will Signal succeed on these claims? Explain.

Accepted Answer

Signal will lose on both claims.Acceptan

Question 11

Hydraulic Leasing Corporation (HLC)and Dockside Offloading Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,HLC must ship or tender goods to the lessee that

Accepted Answer

A) approximately conform to the contract description. 
B) entirely conform to the contract description in most ways. 
C) conform to the contract description in every way. 
D) substantially conform to the contract description. 
A) approximately conform to the contract description. 
B) entirely conform to the contract description in most ways. 
C) conform to the contract description in every way. 
D) substantially conform to the contract description.

Question 12

Amble Country Stables contracts to buy 1,000 horseshoes from Burleigh Blacksmith,Inc.,for $1 per shoe.When the market price decreases to 50 cents per shoe,Amble refuses to go through with the deal.Burleigh can recover

Accepted Answer

A) $1,500. 
B) $1,000. 
C) $500. 
D) $0. 
A) $1,500. 
B) $1,000. 
C) $500. 
D) $0.

Question 13

If a buyer repudiates a contract,the seller cannot recover damages.

Accepted Answer

A) True 
 B)False

Question 14

If a lessee is insolvent,a lessor can stop a carrier or bailee from delivering the goods regardless of the quantity shipped.

Accepted Answer

A) True 
 B)False

Question 15

Field Gardens and Gourmet Restaurant,Inc.,enter into a con?tract for a sale of lettuce.When Field learns that Gourmet is insolvent,Field can stop delivery of the goods in transit

Accepted Answer

A) only if the quantity is at least a carload. 
B) only if the quantity is at least a planeload. 
C) only if the quantity is at least a truckload. 
D) regardless of the quantity. 
A) only if the quantity is at least a carload. 
B) only if the quantity is at least a planeload. 
C) only if the quantity is at least a truckload. 
D) regardless of the quantity.

Question 16

Once the time for performance under a contract has expired,the seller or lessor loses the right to cure.

Accepted Answer

A) True 
 B)False

Question 17

A buyer or lessee who has accepted nonconforming goods may keep the goods and recover for any loss resulting in the ordinary course of events.

Accepted Answer

A) True 
 B)False

Question 18

A buyer may reject a seller's goods only if they fail to conform to a mate?rial term of the contract.

Accepted Answer

A) True 
 B)False

Question 19

If a lessee breaches a contract,the lessor can choose to simply cancel the contract.

Accepted Answer

A) True 
 B)False

Question 20

Price-Cut Discount Stores are open to consumers.The UCC requirement of good faith imposes

Accepted Answer

A) a higher duty on consumers than Price-Cut. 
B) a higher duty on Price-Cut than on consumers. 
C) no duty on either Price-Cut or consumers. 
D) the same duty on Price-Cut and consumers. 
A) a higher duty on consumers than Price-Cut. 
B) a higher duty on Price-Cut than on consumers. 
C) no duty on either Price-Cut or consumers. 
D) the same duty on Price-Cut and consumers.

Exam 21: Performance Breach of Sales Lease Contracts

The duties and obligations under the terms of a contract include those specified by custom.

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Great Vu,Inc.,which is based in Hawaii.Absent an agreement to the contrary,the place of deliv?ery is in

Unless the parties agree otherwise,the buyer or lessee has an absolute right to inspect the goods before making payment.

The UCC's good faith provision can never be disclaimed.

If the parties to a sales contract state that a certain remedy is exclusive,then it is the sole remedy.

Bayou Boats,Inc.,contracts for the sale of seven swamp boats to Tidal Flats Fishing Tours.Bayou repudiates the contract.Tidal Flats's recovery of damages is measured at the time

Occurrences unforeseen by either party when a contract was made may make performance commercially impracticable,but the perfect tender rule still applies.

Hydraulic Leasing Corporation (HLC)and Dockside Offloading Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,HLC must ship or tender goods to the lessee that

Amble Country Stables contracts to buy 1,000 horseshoes from Burleigh Blacksmith,Inc.,for $1 per shoe.When the market price decreases to 50 cents per shoe,Amble refuses to go through with the deal.Burleigh can recover

If a buyer repudiates a contract,the seller cannot recover damages.

If a lessee is insolvent,a lessor can stop a carrier or bailee from delivering the goods regardless of the quantity shipped.

Field Gardens and Gourmet Restaurant,Inc.,enter into a con?tract for a sale of lettuce.When Field learns that Gourmet is insolvent,Field can stop delivery of the goods in transit

Once the time for performance under a contract has expired,the seller or lessor loses the right to cure.

A buyer or lessee who has accepted nonconforming goods may keep the goods and recover for any loss resulting in the ordinary course of events.

A buyer may reject a seller's goods only if they fail to conform to a mate?rial term of the contract.

If a lessee breaches a contract,the lessor can choose to simply cancel the contract.

Price-Cut Discount Stores are open to consumers.The UCC requirement of good faith imposes

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Ethics and Business Decision Making

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, fraud, and Voluntary Consent

The Statute of Frauds

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, risk, and Insurable Interest

Warranties and Product Liability

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability,defenses,and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Agency Liability and Termination

Employment,immigration,and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors,officers, Shareholders

Corporate Merger, consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

Legal and Ethical Considerations in Sustainability, Discovery, and Corporate Behavior

Legal and Ethical Issues in Contemporary Society

Contracts and Agreements

Legal Issues in Iowa's Video Game Labeling Statute, National Export Initiative, and Contract Law

Banking and Loan Liability

Bankruptcy and Agricultural Credit: Debts, Reporting, and Risk

Legal and Ethical Issues in Employment and Agency Relationships

Legal Issues in Business Franchising, LLC Management, Tax Collection, Director Liability, and Securities Regulations

Compliance and Ethics Issues in Business Operations

Risk Assessment, Virtual Property, Property Rights, and Building Moratoriums

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