Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

A shipment contract requires a seller to deliver goods at a particular destination.

Accepted Answer

A) True 
 B)False

Question 4

If a buyer breaches a contract and the seller resells the goods to another party, the seller cannot hold the breaching buyer liable for any loss.

Accepted Answer

A) True 
 B)False

Question 5

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. 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 6

Field Gardens and Gourmet Restaurant, Inc., enter into a contract 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 7

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

Accepted Answer

A) True 
 B)False

Question 8

Richman Manufacturing Company contracts to sell sweaters to Sweet Sweaters store. Before the sweaters are delivered, Sweet Sweaters indicates that it will not be able to pay. Richman can

Accepted Answer

A)  force Sweet Sweaters to accept and pay for the sweaters. 
B)  require Sweet Sweaters to find a buyer for the sweaters. 
C)  resell the sweaters and recover any damages from Sweet Sweaters. 
D)  do nothing. 
A)  force Sweet Sweaters to accept and pay for the sweaters. 
B)  require Sweet Sweaters to find a buyer for the sweaters. 
C)  resell the sweaters and recover any damages from Sweet Sweaters. 
D)  do nothing.

Question 9

Owen and Pablo enter into a contract for a sale of fifty Western saddles. Owen does not deliver. Pablo can normally recover as damages the difference between

Accepted Answer

A)  any loss avoided and any profit gained. 
B)  the actual price and the hoped-for price. 
C)  the contract price and the market price. 
D)  the current prices in the parties' locations. 
A)  any loss avoided and any profit gained. 
B)  the actual price and the hoped-for price. 
C)  the contract price and the market price. 
D)  the current prices in the parties' locations.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

When a lessor refuses to deliver the goods, a lessee can obtain specific performance only if the goods are not unique.

Accepted Answer

A) True 
 B)False

Question 13

Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments. Consuelo delivers, but Gabriela does not pay. Consuelo can normally recover as damages

Accepted Answer

A)  any profit lost minus any loss avoided. 
B)  whatever amount the seller wishes to claim. 
C)  the purchase price plus incidental damages. 
D)  the market price at the place at which the seller delivered the goods. 
A)  any profit lost minus any loss avoided. 
B)  whatever amount the seller wishes to claim. 
C)  the purchase price plus incidental damages. 
D)  the market price at the place at which the seller delivered the goods.

Question 14

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle. Esau cancels the contract ten days later. Double D is unable to sell the cattle to another buyer. Double D can

Accepted Answer

A)  force Esau to accept the cattle and pay for them. 
B)  recover the contract price from Esau but must hold the cattle for him. 
C)  recover the contract price from Esau and keep the cattle. 
D)  recover the contract price from Esau but must destroy the cattle. 
A)  force Esau to accept the cattle and pay for them. 
B)  recover the contract price from Esau but must hold the cattle for him. 
C)  recover the contract price from Esau and keep the cattle. 
D)  recover the contract price from Esau but must destroy the cattle.

Question 15

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 containers, 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 16

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 17

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 18

Midstates Utility Corporation contracts with North American Energy Company to buy 50,000 gallons of heating oil. North American agrees to deliver the oil in five equal installments between October 1 and the following March 15. The winter is the warmest on record, however, and after the last agreed delivery, Midstates has accepted only 30,000 gallons of the oil. When North American tenders the rest of the oil, Midstates refuses to take it, citing the weather and claiming to be acting in good faith. Will North American succeed in a suit against Midstates for breach of contract

Accepted Answer

Yes, North American will succeed in a su

Question 19

If, before the time for contract performance, one party clearly communicates to the other the intention not to perform, such an action is a breach of the contract.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 21: Performance Breach of Sales Lease Contracts

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

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

A shipment contract requires a seller to deliver goods at a particular destination.

If a buyer breaches a contract and the seller resells the goods to another party, the seller cannot hold the breaching buyer liable for any loss.

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

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

Richman Manufacturing Company contracts to sell sweaters to Sweet Sweaters store. Before the sweaters are delivered, Sweet Sweaters indicates that it will not be able to pay. Richman can

Owen and Pablo enter into a contract for a sale of fifty Western saddles. Owen does not deliver. Pablo can normally recover as damages the difference between

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

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

When a lessor refuses to deliver the goods, a lessee can obtain specific performance only if the goods are not unique.

Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments. Consuelo delivers, but Gabriela does not pay. Consuelo can normally recover as damages

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle. Esau cancels the contract ten days later. Double D is unable to sell the cattle to another buyer. Double D can

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

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

If, before the time for contract performance, one party clearly communicates to the other the intention not to perform, such an action is a breach of the contract.

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

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

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