Question 1

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 2

H2O Company contracts to sell pumps, tanks, and water storage systems to In-Flo Irrigation, Inc. Before the goods are delivered, In-Flo indicates that it will not be able to pay. H2O can

Accepted Answer

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

Question 3

Natural Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Natural Eggs can not reasonably ask Omelet Express to pick up the eggs at

Accepted Answer

A)  1:00 p.m. 
B)  2:00 p.m. 
C)  3:00 p.m. 
D)  2:00 a.m.

Question 4

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 5

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

Accepted Answer

The answer of Erin contracts in writing to sell her...

Question 6

Quarry Equipment Corporation and Rock & Gravel Inc. enter into a lease of three bulldozers. Under the perfect tender rule, Quarry must ship or tender goods to Rock & Gravel that, with respect to the contract description, conform

Accepted Answer

A)  ​to the best of the lessor's ability under the circumstances. 
B)  ​to a reasonable extent. 
C)  ​in every way. 
D)  ​to a substantial degree.

Question 7

Steel Buildings, Inc., agrees to sell four portable garages to Truck Service Center. Five days later, the buyer refuses delivery and cancels the contract. The seller is entitled to

Accepted Answer

A)  ​force the buyer to accept the garages. 
B)  ​recover any damages from the buyer but not resell the garages. 
C)  ​resell the garages and recover any damages from the buyer. 
D)  ​resell the garages but not recover any damages from the buyer.

Question 8

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting to be delivered under a shipment contract. This contract requires Elegant Carpets, the seller, to

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 shipping them. 
D)  place the goods into the hands of a carrier.

Question 9

An installment contract is breached if a seller tenders any nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 10

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Due to a rice shortage, Bob's Bistros cannot obtain the noodles elsewhere. The buyer's right to recover the goods from the seller is the right of

Accepted Answer

A)  ​cover. 
B)  ​cure. 
C)  ​tender. 
D)  ​specific performance.

Question 11

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC 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 except in one or two details. 
C)  ​conform to the contract description in every way. 
D)  ​substantially conform to the contract description in most details.

Question 12

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact, but may not seek damages.

Accepted Answer

A) True 
 B)False

Question 13

Bayou Boats, Inc., contracts for the sale of seven swamp boats to Eventide Fishing Tours. Bayou repudiates the contract. Eventide's recovery is measured at the time

Accepted Answer

A)  ​Bayou advertised the goods. 
B)  ​Eventide ordered the goods. 
C)  ​Eventide learned of the breach. 
D)  ​Bayou knew that it would repudiate the contract.

Question 14

Okay Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Okay Markets 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.

Question 15

There are no circumstances under which a contract can be tendered by multiple deliveries of goods.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto

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.

Question 18

If a contract specifies a certain carrier, a substitution of a different carrier for any reason breaches the contract.

Accepted Answer

A) True 
 B)False

Question 19

ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must

Accepted Answer

A)  ​promptly notify ABC of the intent to cure. 
B)  ​pay a cure fee. 
C)  ​pick up the nonconforming games before the end of the business day. 
D)  ​enter into a new contract with Axel's.

Question 20

With an installment contract, a buyer or lessee can reject a single installment on any pretext.

Accepted Answer

A) True 
 B)False

Exam 14: Performance and Breach of Sales and Lease Contracts

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

H2O Company contracts to sell pumps, tanks, and water storage systems to In-Flo Irrigation, Inc. Before the goods are delivered, In-Flo indicates that it will not be able to pay. H2O can

Natural Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Natural Eggs can not reasonably ask Omelet Express to pick up the eggs at

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

Quarry Equipment Corporation and Rock & Gravel Inc. enter into a lease of three bulldozers. Under the perfect tender rule, Quarry must ship or tender goods to Rock & Gravel that, with respect to the contract description, conform

Steel Buildings, Inc., agrees to sell four portable garages to Truck Service Center. Five days later, the buyer refuses delivery and cancels the contract. The seller is entitled to

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting to be delivered under a shipment contract. This contract requires Elegant Carpets, the seller, to

An installment contract is breached if a seller tenders any nonconforming goods.

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Due to a rice shortage, Bob's Bistros cannot obtain the noodles elsewhere. The buyer's right to recover the goods from the seller is the right of

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact, but may not seek damages.

Bayou Boats, Inc., contracts for the sale of seven swamp boats to Eventide Fishing Tours. Bayou repudiates the contract. Eventide's recovery is measured at the time

Okay Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Okay Markets can

There are no circumstances under which a contract can be tendered by multiple deliveries of goods.

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

Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto

If a contract specifies a certain carrier, a substitution of a different carrier for any reason breaches the contract.

ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must

With an installment contract, a buyer or lessee can reject a single installment on any pretext.