Question 1

If some of the goods delivered do not conform to a contract and the seller or lessor has failed to cure,the buyer or lessee can make a partial acceptance.

Accepted Answer

A) True 
 B)False  True

Question 2

If a buyer breaches a contract and the seller resells the goods to another party,the seller cannot hold the breaching buyer liable for any loss.

Accepted Answer

A) True 
 B)False  False

Question 3

Revocation of acceptance is not effective until notice is given to the seller or lessor.

Accepted Answer

A) True 
 B)False  True

Question 4

If,before the time for contract performance,one party clearly communicates to the other the intention not to perform,such an action is a breach of the contract.

Accepted Answer

A) True 
 B)False

Question 5

Primo Pools Company and Aquatic Recreation,Inc.,enter into a contract for a sale of prefabricated swimming pools.Under either a shipment contract or a destination contract,the seller must

Accepted Answer

A)  allow the buyer to reject the goods for any reason.
B)  deliver the goods to a particular destination.
C)  place the goods into the hands of a carrier.
D)  provide the buyer with any necessary documents of title.

Question 6

Fact Pattern 21-A1 (Questions A9-A10 apply)
Internet Cafés,Inc.,contracts to buy all of its requirements for coffee,at a minimum of 1 million pounds per year,from Java Corporation for six years.After three years,Internet tells Java that it plans to sell its assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract.
-Refer to Fact Pattern 21-A1.Bagel Bistros's refusal is

Accepted Answer

A)  a justified response based on Bagel Bistros's relation to the contract.
B)  an assignment of Internet's rights under the contract.
C)  a reasonable suspension of performance under the contract.
D)  a repudiation of the contract.

Question 7

Midstates Utility Corporation contracts with North American Energy Company to buy 50,000 gallons of heating oil.North American agrees to deliver the oil in five equal installments between October 1 and the follow?ing March 15.The winter is the warmest on record,however,and after the last agreed delivery,Midstates has accepted only 30,000 gallons of the oil.When North American tenders the rest of the oil,Midstates refuses to take it,citing the weather and claiming to be acting in good faith.Will North American succeed in a suit against Midstates for breach of contract?

Accepted Answer

The answer of Midstates Utility Corporation contracts with North American...

Question 8

Owen and Pablo enter into a contract for a sale of fifty Western saddles.Owen does not deliver.Pablo can normally recover as damages the difference between

Accepted Answer

A)  any loss avoided and any profit gained.
B)  the actual price and the hoped-for price.
C)  the contract price and the market price.
D)  the current prices in the parties' locations.

Question 9

Mitch and Nadine enter into a contract for a sale of seventy-six specially made motion detectors.When Nadine does not deliver within a reasonable time after the agreed delivery date,Mitch files a suit for breach.Nadine asserts the doctrine of commercial impracticability.This doctrine extends only to problems that are

Accepted Answer

A)  foreseen.
B)  preventable.
C)  unforeseen.
D)  ordinarily assumed by a seller or lessor.

Question 10

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks,Inc.,but refuses to deliver.Due to a spice shortage,Roller Rinks cannot obtain pizza elsewhere.Roller Rinks's right to recover the goods from Cheesy is the right of

Accepted Answer

A)  cover.
B)  cure.
C)  replevin.
D)  specific performance.

Question 11

Screen Perfect,Inc.,and Vibrant View Stores enter into a contract for a sale of 3D HD TVs with certain specifications.Screen Perfect ships TVs that are not 3D but otherwise meet the specifications.Vibrant View

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 12

Under the UCC,parties to a contract cannot limit or exclude consequential damages.

Accepted Answer

A) True 
 B)False

Question 13

Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments.Consuelo delivers,but Gabriela does not pay.Consuelo can normally recover as damages

Accepted Answer

A)  any profit lost minus any loss avoided.
B)  whatever amount the seller wishes to claim.
C)  the purchase price plus incidental damages.
D)  the market price at the place at which the seller delivered the goods.

Question 14

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle.Esau cancels the con?tract ten days later.Double D is unable to sell the cattle to another buyer.Double D can

Accepted Answer

A)  force Esau to accept the cattle and pay for them.
B)  recover the contract price from Esau but must hold the cattle for him.
C)  recover the contract price from Esau and keep the cattle.
D)  recover the contract price from Esau but must destroy the cattle.

Question 15

A shipment contract requires a seller to deliver goods at a particular destination.

Accepted Answer

A) True 
 B)False

Question 16

If goods or tender of delivery fail in any respect to conform to a contract,the buyer or lessee loses the right to accept the goods.

Accepted Answer

A) True 
 B)False

Question 17

Nature's Foods,Inc.,orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers.Olive Grove ships "Grade B" oil,which Nature's Foods accepts.To recover damages for the nonconformity,Nature's Foods must give notice of the breach within a reasonable time to

Accepted Answer

A)  Olive Grove.
B)  Pic 'N Pay.
C)  no one.
D)  the appropriate government agency.

Question 18

Nash buys a car under a warranty from Rough Ride Motors.Nash soon discovers that the car has a defect that significantly affects its value and use.In all states and the District of Columbia,Nash may have remedies under

Accepted Answer

A)  a lemon law.
B)  a letter of credit.
C)  Article 74 of the CISG.
D)  the Automobile Dealers' Day in Court Act.

Question 19

Rocky and Slim enter into a contract for a sale of five rowboats.Circumstances make it difficult for Rocky to perform,and the contract is breached.Slim looks for remedies.Unlike the common law,under the UCC,remedies are

Accepted Answer

A)  cumulative.
B)  exclusive.
C)  limited.
D)  unlimited.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 21: Performance Breach of Sales Lease Contracts

If some of the goods delivered do not conform to a contract and the seller or lessor has failed to cure,the buyer or lessee can make a partial acceptance.

If a buyer breaches a contract and the seller resells the goods to another party,the seller cannot hold the breaching buyer liable for any loss.

Revocation of acceptance is not effective until notice is given to the seller or lessor.

If,before the time for contract performance,one party clearly communicates to the other the intention not to perform,such an action is a breach of the contract.

Primo Pools Company and Aquatic Recreation,Inc.,enter into a contract for a sale of prefabricated swimming pools.Under either a shipment contract or a destination contract,the seller must

Owen and Pablo enter into a contract for a sale of fifty Western saddles.Owen does not deliver.Pablo can normally recover as damages the difference between

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks,Inc.,but refuses to deliver.Due to a spice shortage,Roller Rinks cannot obtain pizza elsewhere.Roller Rinks's right to recover the goods from Cheesy is the right of

Screen Perfect,Inc.,and Vibrant View Stores enter into a contract for a sale of 3D HD TVs with certain specifications.Screen Perfect ships TVs that are not 3D but otherwise meet the specifications.Vibrant View

Under the UCC,parties to a contract cannot limit or exclude consequential damages.

Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments.Consuelo delivers,but Gabriela does not pay.Consuelo can normally recover as damages

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle.Esau cancels the con?tract ten days later.Double D is unable to sell the cattle to another buyer.Double D can

A shipment contract requires a seller to deliver goods at a particular destination.

If goods or tender of delivery fail in any respect to conform to a contract,the buyer or lessee loses the right to accept the goods.

Nature's Foods,Inc.,orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers.Olive Grove ships "Grade B" oil,which Nature's Foods accepts.To recover damages for the nonconformity,Nature's Foods must give notice of the breach within a reasonable time to

Nash buys a car under a warranty from Rough Ride Motors.Nash soon discovers that the car has a defect that significantly affects its value and use.In all states and the District of Columbia,Nash may have remedies under

Rocky and Slim enter into a contract for a sale of five rowboats.Circumstances make it difficult for Rocky to perform,and the contract is breached.Slim looks for remedies.Unlike the common law,under the UCC,remedies are

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