Question 1

If Chuck buys frozen cheese from Cheese,Inc.,then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment,Chuck has accepted the shipment even if there is non-conformity.

Accepted Answer

A) True 
 B)False  True

Question 2

"Course of dealing" refers to prior commercial transactions between the same parties.

Accepted Answer

A) True 
 B)False  True

Question 3

In some industries it is a routine practice to draft contracts permitting imperfection in the seller's goods,thereby limiting the effect of the perfect tender rule by the parties' agreement.

Accepted Answer

A) True 
 B)False  True

Question 4

Leonna orders five table settings of china from Elite China.Each set includes a dinner plate,cup & saucer,bowl,and dessert plate.The china is sold only in sets.When the delivery arrives,Leonna discovers that Elite China sent the wrong pattern.Leonna immediately calls Elite China and is instructed to send the shipment back.While repacking the shipment,Leonna changes her mind and decides to keep the cups and saucers.She returns everything else.Can she do this?

Accepted Answer

The answer of Leonna orders five table settings of china...

Question 5

The UCC "perfect tender" provision states that

Accepted Answer

A)  the buyer can reject the entire shipment if any portion of the goods are nonconforming.
B)  the buyer must accept the goods if the defects are minor and correctable.
C)  the buyer may not accept the conforming part of a shipment and reject the nonconforming part.
D)  a buyer must reject nonconforming goods.

Question 6

Under the doctrine of commercial impracticability,which situation would NOTexcuse the seller's performance?

Accepted Answer

A)  The seller forgot to include the cost of freight in a C&F contract.
B)  The seller's source of supply is no longer available because of a governmental embargo prohibiting an export from another country.
C)  The seller cannot deliver because severe flooding wiped out three-fourths of the state's produce.
D)  The seller's workforce is out on an unexpected strike.

Question 7

Neon orders one thousand 25-foot nylon ropes from Hang'em High Co.Upon inspection of the delivery,Neon learns that Hang'em sent five hundred 25-foot ropes and five hundred 20-foot ropes.Neon may

Accepted Answer

A)  demand that Hang'em send 500 additional 25-foot ropes and get to keep the 20-foot ropes as well.
B)  accept the 500 conforming ropes and reject the 500 nonconforming ropes.
C)  seek an installment contract.
D)  immediately "cure" by finding a substitute product.

Question 8

Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each.If the first installment arrives with 5 pounds of spoilage,then Dessert World may

Accepted Answer

A)  reject the installment shipment because of the perfect tender rule.
B)  not reject the installment if those in the food industry expect a small percentage of spoilage with fresh fruits or vegetables.
C)  reject the entire contract.
D)  declare a breach and "cover."

Question 9

If a seller cures within a reasonable amount of time,the contract

Accepted Answer

A)  has been performed.
B)  is breached.
C)  is void.
D)  is voidable.

Question 10

When a party to a contract notifies the other party that it will not perform the contract as agreed,this conduct is referred to as

Accepted Answer

A)  specific performance.
B)  cover.
C)  repudiation.
D)  assurance.

Question 11

A buyer who accepts nonconforming goods may revoke the acceptance under limited circumstances.

Accepted Answer

A) True 
 B)False

Question 12

A baseball team ordered 500 wooden baseball bats from Bats,Inc.,for delivery on June 1.On May 15,the ball team received 500 aluminum bats instead of the wooden ones.As of May 16,Bats,Inc.

Accepted Answer

A)  may cure before June 1.
B)  has breached the contract and is liable for damages.
C)  has breached the contract only if the baseball team rejects the goods.
D)  may cure if the baseball team gives Bats, Inc. permission to do so.

Question 13

A buyer who is unable to obtain cover

Accepted Answer

A)  will be limited to the remedy of incidental damages.
B)  will be limited to the remedy of consequential damages.
C)  will lose the money or goods invested in the breached contract.
D)  may be allowed the remedy of specific performance.

Question 14

The UCC's requirement that contracting parties perform and enforce their deals honestly is termed

Accepted Answer

A)  conformance.
B)  acceptance.
C)  good faith.
D)  reasonable action.

Question 15

A buyer who properly rejects goods

Accepted Answer

A)  can do so by sending the goods back in any manner.
B)  must notify the seller of the rejection within a reasonable time.
C)  must pay the costs of returning the rejected goods.
D)  is not required to act in good faith.

Question 16

A buyer who accepts goods but notifies the seller the goods are non-conforming

Accepted Answer

A)  cannot recover any damages.
B)  can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages.
C)  cannot recover incidental damages.
D)  cannot recover consequential damages.

Question 17

A homeowner has a contract with a firewood supplier to bring a stack of hardwood at the beginning of each month from October through March.If the supplier has brought a mixture of hard and soft woods for the first three deliveries and the homeowner accepted the deliveries,the homeowner cannot reject a delivery in January just because it includes some soft wood.

Accepted Answer

A) True 
 B)False

Question 18

The term tender means to physically deliver the goods to the buyer.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is NOT TRUE regarding the buyer's right to cover?

Accepted Answer

A)  The buyer must cover.
B)  The measure of damages in a cover is the difference between the cover price and the contract price.
C)  Cover must be done by reasonably obtaining substitute goods.
D)  Consequential damages can be recovered in addition to the cover damages.

Question 20

Buyer Bob breaches his contract for the sale of goods with Seller Suzie.Suzie still has possession of the goods at the time of the breach.Suzie can refuse to deliver the goods and

Accepted Answer

A)  resell the goods and sue Bob for the total contract price.
B)  either resell the goods or sue, but not both.
C)  resell the goods and sue for any loss on the sale plus incidental damages less expenses saved.
D)  resell the goods and sue only for incidental damages.

Exam 23: Performance and Remedies

If Chuck buys frozen cheese from Cheese,Inc.,then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment,Chuck has accepted the shipment even if there is non-conformity.

"Course of dealing" refers to prior commercial transactions between the same parties.

In some industries it is a routine practice to draft contracts permitting imperfection in the seller's goods,thereby limiting the effect of the perfect tender rule by the parties' agreement.

The UCC "perfect tender" provision states that

Under the doctrine of commercial impracticability,which situation would NOTexcuse the seller's performance?

Neon orders one thousand 25-foot nylon ropes from Hang'em High Co.Upon inspection of the delivery,Neon learns that Hang'em sent five hundred 25-foot ropes and five hundred 20-foot ropes.Neon may

Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each.If the first installment arrives with 5 pounds of spoilage,then Dessert World may

If a seller cures within a reasonable amount of time,the contract

When a party to a contract notifies the other party that it will not perform the contract as agreed,this conduct is referred to as

A buyer who accepts nonconforming goods may revoke the acceptance under limited circumstances.

A baseball team ordered 500 wooden baseball bats from Bats,Inc.,for delivery on June 1.On May 15,the ball team received 500 aluminum bats instead of the wooden ones.As of May 16,Bats,Inc.

A buyer who is unable to obtain cover

The UCC's requirement that contracting parties perform and enforce their deals honestly is termed

A buyer who properly rejects goods

A buyer who accepts goods but notifies the seller the goods are non-conforming

The term tender means to physically deliver the goods to the buyer.

Which of the following statements is NOT TRUE regarding the buyer's right to cover?

Buyer Bob breaches his contract for the sale of goods with Seller Suzie.Suzie still has possession of the goods at the time of the breach.Suzie can refuse to deliver the goods and