Question 1

If a warranty of infringement is breached and the buyer is sued by the claim holder, the buyer need not notify the seller of the lawsuit.​

Accepted Answer

A) True 
 B)False

Question 2

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce. After Field Farms ships the lettuce but before the restaurant receives it, the buyer declares bankruptcy. The seller can stop delivery of the goods in transit​

Accepted Answer

A)  ​only if the quantity is at least 50 percent of the contract amount. 
B)  ​only if the quantity is in a single "unit." 
C)  ​only if the quantity is at least a truckload. 
D)  ​regardless of the quantity.

Question 3

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC.​

Accepted Answer

A) True 
 B)False

Question 4

Global Talk Corporation sells phones and other mobile devices. Under most circumstances, Global Talk will be presumed to have warranted that its title to the goods is​

Accepted Answer

A)  ​the same as each brand's name. 
B)  ​none of the choices-a warranty of title is not presumed. 
C)  ​good and valid. 
D)  ​the best that money can buy.

Question 5

HandiTools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that HandiTools must provide​

Accepted Answer

A)  ​free repair or replacement of any defective part. 
B)  ​a toll-free number for a HandiTools-approved service company. 
C)  ​a complete catalog of products and parts available for sale. 
D)  ​repair or replacement of any defective part at a reduced charge.

Question 6

Tarts & Pies Bakery contracts with Sweet Fruits for strawberries to be delivered by Refrigerated Trucking Company. On the day of delivery, the refrigeration on the trucks is not working. Sweet Fruits​

Accepted Answer

A)  ​may ship the strawberries to the buyer using a different carrier. 
B)  ​must cancel the contract. 
C)  ​must wait to ship the strawberries until the carrier fixes its trucks. 
D)  ​must ship the goods through a different carrier and pay damages.

Question 7

The doctrine of commercial impracticability only extends to problems that are unforeseen.​

Accepted Answer

A) True 
 B)False

Question 8

Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is​

Accepted Answer

A)  ​an express warranty. 
B)  ​an implied warranty. 
C)  ​a warranty of title. 
D)  ​puffery.

Question 9

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can​

Accepted Answer

A)  ​recover from Big Dig for breach of warranty. 
B)  ​do nothing. 
C)  ​file criminal charges against Big Dig and Credit Collection. 
D)  ​recover damages from Credit Collection for breach of warranty.

Question 10

To specifically disclaim an implied warranty of merchantability, a seller or lessor must mention the word merchantability.​

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Merchants are absolute insurers against all accidents arising in connection with the goods.​

Accepted Answer

A) True 
 B)False

Exam 16: Performance, Breach, and Warranties of Sales and Lease Contracts

If a warranty of infringement is breached and the buyer is sued by the claim holder, the buyer need not notify the seller of the lawsuit.​

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce. After Field Farms ships the lettuce but before the restaurant receives it, the buyer declares bankruptcy. The seller can stop delivery of the goods in transit​

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC.​

Global Talk Corporation sells phones and other mobile devices. Under most circumstances, Global Talk will be presumed to have warranted that its title to the goods is​

HandiTools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that HandiTools must provide​

Tarts & Pies Bakery contracts with Sweet Fruits for strawberries to be delivered by Refrigerated Trucking Company. On the day of delivery, the refrigeration on the trucks is not working. Sweet Fruits​

The doctrine of commercial impracticability only extends to problems that are unforeseen.​

Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is​

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can​

To specifically disclaim an implied warranty of merchantability, a seller or lessor must mention the word merchantability.​

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

Merchants are absolute insurers against all accidents arising in connection with the goods.​

If a warranty of infringement is breached and the buyer is sued by the claim holder, the buyer need not notify the seller of the lawsuit.

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce. After Field Farms ships the lettuce but before the restaurant receives it, the buyer declares bankruptcy. The seller can stop delivery of the goods in transit

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC.

Global Talk Corporation sells phones and other mobile devices. Under most circumstances, Global Talk will be presumed to have warranted that its title to the goods is

HandiTools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that HandiTools must provide

Tarts & Pies Bakery contracts with Sweet Fruits for strawberries to be delivered by Refrigerated Trucking Company. On the day of delivery, the refrigeration on the trucks is not working. Sweet Fruits

The doctrine of commercial impracticability only extends to problems that are unforeseen.

Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can

To specifically disclaim an implied warranty of merchantability, a seller or lessor must mention the word merchantability.

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

Merchants are absolute insurers against all accidents arising in connection with the goods.