Question 1

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  True

Question 2

If goods or tender of delivery fail in any respect to conform to a contract, the buyer or lessee loses the right to accept the goods.

Accepted Answer

A) True 
 B)False  False

Question 3

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks, Inc., but refuses to deliver. Due to a spice shortage, Roller Rinks cannot obtain pizza elsewhere. Roller Rinks's right to recover the goods from Cheesy is the right of

Accepted Answer

A)  cover. 
B)  cure. 
C)  replevin. 
D)  specific performance. 
A)  cover. 
B)  cure. 
C)  replevin. 
D)  specific performance. C

Question 4

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 5

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. Accepta

Question 6

Under the UCC, parties to a contract cannot limit or exclude consequential damages.

Accepted Answer

A) True 
 B)False

Question 7

Screen Perfect, Inc., and Vibrant View Stores enter into a contract for a sale of 3D HD TVs with certain specifications. Screen Perfect ships TVs that are not 3D but otherwise meet the specifications. Vibrant View

Accepted Answer

A)  cannot reject the entire shipment. 
B)  can reject the entire shipment. 
C)  must accept the entire shipment. 
D)  must reject the entire shipment. 
A)  cannot reject the entire shipment. 
B)  can reject the entire shipment. 
C)  must accept the entire shipment. 
D)  must reject the entire shipment.

Question 8

Nash buys a car under a warranty from Rough Ride Motors. Nash soon discovers that the car has a defect that significantly affects its value and use. In all states and the District of Columbia, Nash may have remedies under

Accepted Answer

A)  a lemon law. 
B)  a letter of credit. 
C)  Article 74 of the CISG. 
D)  the Automobile Dealers' Day in Court Act. 
A)  a lemon law. 
B)  a letter of credit. 
C)  Article 74 of the CISG. 
D)  the Automobile Dealers' Day in Court Act.

Question 9

Primo Pools Company and Aquatic Recreation, Inc., enter into a contract for a sale of prefabricated swimming pools. Under either a shipment contract or a destination contract, the seller must

Accepted Answer

A)  allow the buyer to reject the goods for any reason. 
B)  deliver the goods to a particular destination. 
C)  place the goods into the hands of a carrier. 
D)  provide the buyer with any necessary documents of title. 
A)  allow the buyer to reject the goods for any reason. 
B)  deliver the goods to a particular destination. 
C)  place the goods into the hands of a carrier. 
D)  provide the buyer with any necessary documents of title.

Question 10

Rocky and Slim enter into a contract for a sale of five rowboats. Circumstances make it difficult for Rocky to perform, and the contract is breached. Slim looks for remedies. Unlike the common law, under the UCC, remedies are

Accepted Answer

A)  cumulative. 
B)  exclusive. 
C)  limited. 
D)  unlimited. 
A)  cumulative. 
B)  exclusive. 
C)  limited. 
D)  unlimited.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

With an installment contract, a buyer or lessee cab reject an installment on any pretext.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Fact Pattern 21-A1
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. Bagel Bistros's refusal is

Accepted Answer

A)  a justified response based on Bagel Bistros's relation to the contract. 
B)  an assignment of Internet's rights under the contract. 
C)  a reasonable suspension of performance under the contract. 
D)  a repudiation of the contract. 
A)  a justified response based on Bagel Bistros's relation to the contract. 
B)  an assignment of Internet's rights under the contract. 
C)  a reasonable suspension of performance under the contract. 
D)  a repudiation of the contract.

Question 15

Nature's Foods, Inc., orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers. Olive Grove ships "Grade B" oil, which Nature's Foods accepts. To recover damages for the nonconformity, Nature's Foods must give notice of the breach within a reasonable time to

Accepted Answer

A)  Olive Grove. 
B)  Pic 'N Pay. 
C)  no one. 
D)  the appropriate government agency. 
A)  Olive Grove. 
B)  Pic 'N Pay. 
C)  no one. 
D)  the appropriate government agency.

Question 16

If some of the goods delivered do not conform to a contract and the seller or lessor has failed to cure, the buyer or lessee can make a partial acceptance.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 delivery is in

Accepted Answer

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

Question 19

Mitch and Nadine enter into a contract for a sale of seventy-six specially made motion detectors. When Nadine does not deliver within a reasonable time after the agreed delivery date, Mitch files a suit for breach. Nadine asserts the doctrine of commercial impracticability. This doctrine extends only to problems that are

Accepted Answer

A)  foreseen. 
B)  preventable. 
C)  unforeseen. 
D)  ordinarily assumed by a seller or lessor. 
A)  foreseen. 
B)  preventable. 
C)  unforeseen. 
D)  ordinarily assumed by a seller or lessor.

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

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

If goods or tender of delivery fail in any respect to conform to a contract, the buyer or lessee loses the right to accept the goods.

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks, Inc., but refuses to deliver. Due to a spice shortage, Roller Rinks cannot obtain pizza elsewhere. Roller Rinks's right to recover the goods from Cheesy is the right of

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

Under the UCC, parties to a contract cannot limit or exclude consequential damages.

Screen Perfect, Inc., and Vibrant View Stores enter into a contract for a sale of 3D HD TVs with certain specifications. Screen Perfect ships TVs that are not 3D but otherwise meet the specifications. Vibrant View

Nash buys a car under a warranty from Rough Ride Motors. Nash soon discovers that the car has a defect that significantly affects its value and use. In all states and the District of Columbia, Nash may have remedies under

Primo Pools Company and Aquatic Recreation, Inc., enter into a contract for a sale of prefabricated swimming pools. Under either a shipment contract or a destination contract, the seller must

Rocky and Slim enter into a contract for a sale of five rowboats. Circumstances make it difficult for Rocky to perform, and the contract is breached. Slim looks for remedies. Unlike the common law, under the UCC, remedies are

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

With an installment contract, a buyer or lessee cab reject an installment on any pretext.

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.

Nature's Foods, Inc., orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers. Olive Grove ships "Grade B" oil, which Nature's Foods accepts. To recover damages for the nonconformity, Nature's Foods must give notice of the breach within a reasonable time to

If some of the goods delivered do not conform to a contract and the seller or lessor has failed to cure, the buyer or lessee can make a partial acceptance.

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 delivery is in

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

for Unit One

for Unit Two

for Unit Three

for Unit Four

for Unit Five

for Unit Sex

for Unit Seven

for Unit Eighet

for Unit Nine

for Unit Ten

Filters