Question 1

Beef Burgers,Inc.contracts to buy five hundred steers from Fattening Feedlots.Before Fattening Feedlots can deliver the steers,there is an outbreak of disease in the feedlot,and all the cattle are quarantined.In this case the perfect tender rule

Accepted Answer

A) applies to both parties. 
B) does not apply. 
C) applies only to Beef Burgers. 
D) applies only to Fattening Feedlots.

Question 2

Under the UCC,if a contract does not designate the place of delivery for the goods,then the goods must be made available at a location halfway between the seller's and the buyer's places of business.

Accepted Answer

A) True 
 B)False

Question 3

Kim's Pony Rides orders ten saddles from Little Horse Saddles,Inc.The sales contract states that if the saddles are defective,Kim's will allow Little Horse Saddles to repair or replace them instead of rejecting the shipment.When the saddles arrive,they are defective.In this case,the perfect tender rule

Accepted Answer

A) does not apply. 
B) applies to both parties. 
C) applies only to Little Horse Saddles. 
D) applies only to Kim's Pony Rides.

Question 4

Food Packaging,Inc.,agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company.Food can obtain only 20,000 of the 6-ounce contain-ers,but also ships 30,000 more expensive 8-ounce containers for the same price.Under these circumstances,Golden

Accepted Answer

A) cannot reject delivery,and Food cannot later replace the containers. 
B) cannot reject delivery,but Food can later replace the containers. 
C) may reject delivery,and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers. 
D) may reject delivery,but Food cannot later replace the containers.

Question 5

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 all of the details of the contract. 
B) entirely conform to the contract except in one or two details. 
C) exactly conform to the contract in every detail. 
D) substantially conform to the contract in most details.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

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 8

In general,a buyer's duty to pay for tendered goods becomes absolute be-fore the buyer has had an opportunity to inspect the goods.

Accepted Answer

A) True 
 B)False

Question 9

An installment contract is breached if a buyer accepts any nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 10

Office Suppliers,Inc.and Little Office Shop enter into a contract for a sale of office supplies.Office Suppliers is the seller.Under a shipment contract,the Office Suppliers does not have to

Accepted Answer

A) obtain and promptly deliver or tender to the buyer any documentsnecessary to enable the buyer to obtain the goods. 
B) deliver the goods to a particular destination. 
C) put the goods in the hands of the carrier. 
D) promptly notify the buyer when the shipment has been made.

Question 11

Once the seller has tendered delivery,the buyer is obligated to accept the goods and pay for them.

Accepted Answer

A) True 
 B)False

Question 12

Under the perfect tender rule,if tender is not perfect,the seller is obligated to try again.

Accepted Answer

A) True 
 B)False

Question 13

Ramblin' Country Stables contracts to buy 1,000 horseshoes from Blacksmith,Inc.,for $1 per shoe.When the market price decreases to 50 cents per shoe,Ramblin' refuses to go through with the deal.Blacksmith can recover

Accepted Answer

A) $1,500. 
B) $1,000. 
C) $500. 
D) $0.

Question 14

An installment contract is a single contract that requires or authorizes delivery in two or more separate lots to be paid for in one payment.

Accepted Answer

A) True 
 B)False

Question 15

Loomis Weaving Company contracts to sell sweaters to Style Mart stores.Before the sweat-ers are delivered,Style Mart indicates that it will not be able to pay.Loomis can resell the goods

Accepted Answer

A) either after finishing the job (and identifying the goods),or after stopping the job. 
B) only after finishing the job and identifying the goods. 
C) only if Loomis immediately stops the job. 
D) under no circumstances.

Question 16

Text Publishers,Inc.,contracts for a sale of textbooks to University Bookstores,Inc.Viable Shipping Corporation,the carrier,transports the books to Warehouse Storage Company.Text's right to stop delivery is lost when University's rights to the goods are acknowledged by

Accepted Answer

A) the appropriate government agency. 
B) the students who opt to buy the books. 
C) University Bookstores. 
D) Warehouse Storage.

Question 17

Sof' Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Sof' tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may

Accepted Answer

A) await performance,sue Sof',or suspend its own performance. 
B) only await Sof's performance for a commercially reasonable time. 
C) only sue Sof' for breach of contract. 
D) only suspend its own performance.

Question 18

If a seller repudiates a contract,the buyer's damages do not have to be adjusted to reflect any expenses that were saved as a result of the breach.

Accepted Answer

A) True 
 B)False

Question 19

Once the time for performance under the contract has expired,the seller or lessor can never exercise the right to cure.

Accepted Answer

A) True 
 B)False

Question 20

Under the UCC,a seller's tender of goods that do not conform in every way to a contract is still a valid tender.

Accepted Answer

A) True 
 B)False

Exam 15: Performance and Breach of Sales and Lease Contracts

Beef Burgers,Inc.contracts to buy five hundred steers from Fattening Feedlots.Before Fattening Feedlots can deliver the steers,there is an outbreak of disease in the feedlot,and all the cattle are quarantined.In this case the perfect tender rule

Under the UCC,if a contract does not designate the place of delivery for the goods,then the goods must be made available at a location halfway between the seller's and the buyer's places of business.

Food Packaging,Inc.,agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company.Food can obtain only 20,000 of the 6-ounce contain-ers,but also ships 30,000 more expensive 8-ounce containers for the same price.Under these circumstances,Golden

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

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

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

In general,a buyer's duty to pay for tendered goods becomes absolute be-fore the buyer has had an opportunity to inspect the goods.

An installment contract is breached if a buyer accepts any nonconforming goods.

Office Suppliers,Inc.and Little Office Shop enter into a contract for a sale of office supplies.Office Suppliers is the seller.Under a shipment contract,the Office Suppliers does not have to

Once the seller has tendered delivery,the buyer is obligated to accept the goods and pay for them.

Under the perfect tender rule,if tender is not perfect,the seller is obligated to try again.

Ramblin' Country Stables contracts to buy 1,000 horseshoes from Blacksmith,Inc.,for $1 per shoe.When the market price decreases to 50 cents per shoe,Ramblin' refuses to go through with the deal.Blacksmith can recover

An installment contract is a single contract that requires or authorizes delivery in two or more separate lots to be paid for in one payment.

Loomis Weaving Company contracts to sell sweaters to Style Mart stores.Before the sweat-ers are delivered,Style Mart indicates that it will not be able to pay.Loomis can resell the goods

Text Publishers,Inc.,contracts for a sale of textbooks to University Bookstores,Inc.Viable Shipping Corporation,the carrier,transports the books to Warehouse Storage Company.Text's right to stop delivery is lost when University's rights to the goods are acknowledged by

Sof' Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Sof' tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may

If a seller repudiates a contract,the buyer's damages do not have to be adjusted to reflect any expenses that were saved as a result of the breach.

Once the time for performance under the contract has expired,the seller or lessor can never exercise the right to cure.

Under the UCC,a seller's tender of goods that do not conform in every way to a contract is still a valid tender.