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

Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold

Accepted Answer

A)  ​as is. 
B)  ​by a merchant. 
C)  ​in perfect condition. 
D)  ​with no known defects.

Question 3

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached​

Accepted Answer

A)  ​the merchant's implied duty of inspection. 
B)  ​the implied warranty of merchantability. 
C)  ​no duty or warranty because Beginners Run knew nothing about the defect that made the goods unsafe. 
D)  ​no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted.

Question 4

A warranty of title cannot be disclaimed.

Accepted Answer

A) True 
 B)False

Question 5

Under the UCC, there are no exceptions to the perfect tender rule.

Accepted Answer

A) True 
 B)False

Question 6

Eve’s Pastries & Pies contracts with Fruits 2 You, Inc., for strawberries to be delivered by Kool Refrigerated Trucking. On the day of delivery, the refrigeration on Kool’s trucks is not working. Fruits 2 You

Accepted Answer

A) may ship the strawberries to Eve’s using a different carrier. 
B) must cancel the contract. 
C) must wait to ship the strawberries until Kool has fixed its trucks. 
D) must ship the goods through a different carrier and pay Eve damages.

Question 7

Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." This statement is

Accepted Answer

A)  ​an implied warranty of fitness for a particular purpose. 
B)  ​an implied warranty of merchantability. 
C)  ​an express warranty. 
D)  ​puffery.

Question 8

Greg, a salesperson for Home Improvement Center, tells Irena, "This is the best floor sander I've ever seen." This statement is​

Accepted Answer

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

Question 9

To be merchantable, goods must be at least average, fair, or medium-grade quality.

Accepted Answer

A) True 
 B)False

Question 10

If either the goods or their tender fails to conform to the contract in any respect, the buyer or lessee must reject all of the goods.

Accepted Answer

A) True 
 B)False

Question 11

Statements of fact made during the bargaining process are express warranties.

Accepted Answer

A) True 
 B)False

Question 12

In sales law, a warranty is an assurance by one party of the existence of a fact on which the other party can rely.

Accepted Answer

A) True 
 B)False

Question 13

Puffery creates an express warranty.

Accepted Answer

A) True 
 B)False

Question 14

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

Accepted Answer

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

Question 15

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 16

Hydro Source Company contracts to sell pumps, tanks, and water storage systems to InFlo Irrigation, Inc. Before the goods are delivered, InFlo indicates that it will not be able to pay. Hydro Source can​

Accepted Answer

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

Question 17

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 18

Promises of fact made during the bargaining process are express warranties.

Accepted Answer

A) True 
 B)False

Question 19

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is

Accepted Answer

A) Fuel Connector’s place of business. 
B) Go-Flo’s place of business. 
C) the current location of the hose couplings and fittings. 
D) the U.S. Postal Service office nearest to Go-Flo’s place of business.

Question 20

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers, but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date

Accepted Answer

A) Pleasant Valley Dairy is excused for any resulting delay. 
B) Pleasant Valley Dairy is liable for any resulting delay. 
C) the time for delivery is extended with a price adjustment for the delay. 
D) the contract is canceled.

Exam 18: Performance and Breach 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.

Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached​

A warranty of title cannot be disclaimed.

Under the UCC, there are no exceptions to the perfect tender rule.

Eve’s Pastries & Pies contracts with Fruits 2 You, Inc., for strawberries to be delivered by Kool Refrigerated Trucking. On the day of delivery, the refrigeration on Kool’s trucks is not working. Fruits 2 You

Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." This statement is

Greg, a salesperson for Home Improvement Center, tells Irena, "This is the best floor sander I've ever seen." This statement is​

To be merchantable, goods must be at least average, fair, or medium-grade quality.

If either the goods or their tender fails to conform to the contract in any respect, the buyer or lessee must reject all of the goods.

Statements of fact made during the bargaining process are express warranties.

In sales law, a warranty is an assurance by one party of the existence of a fact on which the other party can rely.

Puffery creates an express warranty.

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

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

Hydro Source Company contracts to sell pumps, tanks, and water storage systems to InFlo Irrigation, Inc. Before the goods are delivered, InFlo indicates that it will not be able to pay. Hydro Source can​

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

Promises of fact made during the bargaining process are express warranties.

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers, but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached

Greg, a salesperson for Home Improvement Center, tells Irena, "This is the best floor sander I've ever seen." This statement is

Hydro Source Company contracts to sell pumps, tanks, and water storage systems to InFlo Irrigation, Inc. Before the goods are delivered, InFlo indicates that it will not be able to pay. Hydro Source can