Question 1

The term cure refers to the right of the seller or lessor to reject,adjust,or replace defective or nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 2

In the absence of any specific agreements,the buyer or lessee must make payment prior to receipt of the goods.

Accepted Answer

A) True 
 B)False

Question 3

If a buyer wrongfully refuses to accept goods,the seller can bring an action to recover the damages sustained.

Accepted Answer

A) True 
 B)False

Question 4

If a lessor's tender of delivery fails to conform to a contract in any way,the lessee can reject the goods.

Accepted Answer

A) True 
 B)False

Question 5

If goods identified to a contract are destroyed through no fault of either party,both parties are excused from performance.

Accepted Answer

A) True 
 B)False

Question 6

Nu-Tec Company contracts to sell fiber optic cable to Online Services,Inc.Nu-Tec ships the cable,which Online accepts but does not pay for.Nu-Tec can

Accepted Answer

A) sue to recover the purchase price plus inci?dental damages. 
B) sue to recover the purchase price minus inci?dental damages. 
C) resell the cable to any buyer willing to reclaim it from Online. 
D) require Online to revoke its acceptance of the cable. 
A) sue to recover the purchase price plus inci?dental damages. 
B) sue to recover the purchase price minus inci?dental damages. 
C) resell the cable to any buyer willing to reclaim it from Online. 
D) require Online to revoke its acceptance of the cable.

Question 7

Fact Pattern 21-B1 
First State Bank issues a letter of credit in favor of Oboe Company,an American firm,to facilitate an international sales contract to buy resources from Lapland Mining,Ltd. ,a Finnish company.
-Refer to Fact Pattern 21-B1.Lapland is entitled to payment when it

Accepted Answer

A) enters into the contract with Oboe. 
B) verifies that Oboe has the money to pay for the purchase. 
C) complies with the terms and conditions of the letter of credit. 
D) asks to be paid. 
A) enters into the contract with Oboe. 
B) verifies that Oboe has the money to pay for the purchase. 
C) complies with the terms and conditions of the letter of credit. 
D) asks to be paid.

Question 8

Timber Products Corporation and Choice Lumberyards enter into a contract for a sale of plywood.Under 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) inspect the goods before tendering their delivery. 
D) place the goods into the hands of a carrier. 
A) allow the buyer to reject the goods for any reason. 
B) deliver the goods to a particular destination. 
C) inspect the goods before tendering their delivery. 
D) place the goods into the hands of a carrier.

Question 9

Vehicle Leasing Agency (VLA)and West Coast Trucking Company enter into a contract for a lease of eight cargo vans.VLA delivers eight vans,but they are not cargo-sized.West Coast

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 10

BBQ,Inc. ,makes and sells grills to Grill Mart,a retailer,which sells one of the grills to Hope,a consumer.Their contracts limit consequential damages for personal inju?ries arising from a breach of warranty.This is prima facie un?conscionable with respect to

Accepted Answer

A) BBQ. 
B) Grill Mart. 
C) Hope. 
D) none of these parties. 
A) BBQ. 
B) Grill Mart. 
C) Hope. 
D) none of these parties.

Question 11

Coverall Paints agrees to sell Grade A-1 latex outdoor paint to Dropcloth Painters to be delivered May 8.On May 7,Coverall tenders Grade B-2 paint,which Dropcloth.rejects.Two days later,Coverall tenders Grade C-3 paint with an offer of a price allowance.Coverall has

Accepted Answer

A) additional,unlimited time to cure. 
B) a reasonable,additional time to cure. 
C) one more day to cure. 
D) no more time to cure. 
A) additional,unlimited time to cure. 
B) a reasonable,additional time to cure. 
C) one more day to cure. 
D) no more time to cure.

Question 12

If a lessee wrongfully refuses to accept goods that conform to a contract,the lessor must tender substitute goods.

Accepted Answer

A) True 
 B)False

Question 13

Fact Pattern 21-B1 
First State Bank issues a letter of credit in favor of Oboe Company,an American firm,to facilitate an international sales contract to buy resources from Lapland Mining,Ltd. ,a Finnish company.
-Refer to Fact Pattern 21-B1.First State Bank is bound to

Accepted Answer

A) make sure that the parties perform the contract. 
B) verify with Oboe that the transaction has been completed. 
C) make payment when Lapland presents the proper documents. 
D) pay Lapland whenever it asks to be paid. 
A) make sure that the parties perform the contract. 
B) verify with Oboe that the transaction has been completed. 
C) make payment when Lapland presents the proper documents. 
D) pay Lapland whenever it asks to be paid.

Question 14

Theatrical Supplies Company contracts to sell to Unique Costumes,Inc. ,seven hundred plastic masks at $1 each to be delivered by October 1.Theatrical knows that Unique will use the masks to make Halloween costumes.Unique usually makes $7,000 profit from the cos?tumes' sale.Theatrical fails to deliver on October 1.Unique attempts to buy substitute masks,but must pay $1.20 for each and take delivery on October 15,cutting Unique's sales in half.Unique sues Theatrical.What is the measure of recovery?

Accepted Answer

The buyer exercised the buyer's right to

Question 15

Leather & Suede Stores,Inc. ,rejects a shipment of goods that does not conform to its contract with Genuine Cowhide Corporation,but is unable to obtain instructions from the seller.Leather & Suede can

Accepted Answer

A) destroy the goods. 
B) cure the goods to make them conform to the contract. 
C) retain the goods without paying for them. 
D) reship or store the goods for the seller. 
A) destroy the goods. 
B) cure the goods to make them conform to the contract. 
C) retain the goods without paying for them. 
D) reship or store the goods for the seller.

Question 16

Colby contracts in writing to sell his 2005 Dodge-brand pick-up truck to Efrem for $10,500.Colby agrees to deliver the truck on Friday,and Efrem promises to pay the $10,500 on the following Monday.On Thursday,Efrem tells Colby that he changed his mind and will not buy the truck.Over the weekend,Efrem changes his mind again and tenders $10,500 to Colby on Monday.Colby has not sold the truck to another party but refuses the tender and refuses to deliver.Efrem claims that Colby has breached their contract.Colby contends that Efrem's repudiation released him from his duty to perform under the contract.Who is correct,and why?

Accepted Answer

Efrem is correct.Colby's refusal to deli

Question 17

Goods that conform to a contract's description in every way are conforming goods.

Accepted Answer

A) True 
 B)False

Question 18

The parties to a sales or lease contract can vary their respective rights and obligations by contractual agreement.

Accepted Answer

A) True 
 B)False

Question 19

Raw Resources,Inc. ,sells unprocessed minerals to commercial proc?essors in Texas.With regard to the UCC's good faith requirement,Raw can

Accepted Answer

A) avoid it only by a conspicuous written disclaimer. 
B) avoid it only by oral disclaimer. 
C) avoid it with or without a disclaimer. 
D) not disclaim it. 
A) avoid it only by a conspicuous written disclaimer. 
B) avoid it only by oral disclaimer. 
C) avoid it with or without a disclaimer. 
D) not disclaim it.

Question 20

A destination contract requires or authorizes a seller to ship goods by a carrier but does not require delivery of goods at a particular destination.

Accepted Answer

A) True 
 B)False

Exam 21: A: Performance Breach of Sales Lease Contracts

The term cure refers to the right of the seller or lessor to reject,adjust,or replace defective or nonconforming goods.

In the absence of any specific agreements,the buyer or lessee must make payment prior to receipt of the goods.

If a buyer wrongfully refuses to accept goods,the seller can bring an action to recover the damages sustained.

If a lessor's tender of delivery fails to conform to a contract in any way,the lessee can reject the goods.

If goods identified to a contract are destroyed through no fault of either party,both parties are excused from performance.

Nu-Tec Company contracts to sell fiber optic cable to Online Services,Inc.Nu-Tec ships the cable,which Online accepts but does not pay for.Nu-Tec can

Fact Pattern 21-B1 First State Bank issues a letter of credit in favor of Oboe Company,an American firm,to facilitate an international sales contract to buy resources from Lapland Mining,Ltd. ,a Finnish company. -Refer to Fact Pattern 21-B1.Lapland is entitled to payment when it

Timber Products Corporation and Choice Lumberyards enter into a contract for a sale of plywood.Under a destination contract,the seller must

Vehicle Leasing Agency (VLA)and West Coast Trucking Company enter into a contract for a lease of eight cargo vans.VLA delivers eight vans,but they are not cargo-sized.West Coast

BBQ,Inc. ,makes and sells grills to Grill Mart,a retailer,which sells one of the grills to Hope,a consumer.Their contracts limit consequential damages for personal inju?ries arising from a breach of warranty.This is prima facie un?conscionable with respect to

Coverall Paints agrees to sell Grade A-1 latex outdoor paint to Dropcloth Painters to be delivered May 8.On May 7,Coverall tenders Grade B-2 paint,which Dropcloth.rejects.Two days later,Coverall tenders Grade C-3 paint with an offer of a price allowance.Coverall has

If a lessee wrongfully refuses to accept goods that conform to a contract,the lessor must tender substitute goods.

Fact Pattern 21-B1 First State Bank issues a letter of credit in favor of Oboe Company,an American firm,to facilitate an international sales contract to buy resources from Lapland Mining,Ltd. ,a Finnish company. -Refer to Fact Pattern 21-B1.First State Bank is bound to

Leather & Suede Stores,Inc. ,rejects a shipment of goods that does not conform to its contract with Genuine Cowhide Corporation,but is unable to obtain instructions from the seller.Leather & Suede can

Goods that conform to a contract's description in every way are conforming goods.

The parties to a sales or lease contract can vary their respective rights and obligations by contractual agreement.

Raw Resources,Inc. ,sells unprocessed minerals to commercial proc?essors in Texas.With regard to the UCC's good faith requirement,Raw can

A destination contract requires or authorizes a seller to ship goods by a carrier but does not require delivery of goods at a particular destination.

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course

A: Liability,defenses,and Discharge

B: Liability,defenses,and Discharge