Question 1

What was the result in the case in the text Alaska Pacific Trading Co. v. Eagon Forest Products Inc. in which the defendant rejected a shipment of logs?

Accepted Answer

A)   That by not shipping the logs in a timely manner according to the contract, the seller failed to satisfy the perfect tender rule thereby releasing the defendant buyer from its duty to accept the logs.
B)   That the seller satisfied the perfect tender rule although the logs were late and that the defendant buyer breached the contract by refusing to accept the logs.
C)   That the seller was entitled to rely on the common law doctrine of material breach but that the seller did not substantially perform thereby releasing the buyer from contractual duties.
D)   That the seller was entitled to rely on the common law doctrine of material breach, that the seller substantially performed, and that the buyer was in breach.
E)   That the seller was entitled to rely on the perfect tender rule and that the buyer materially breached the contract by refusing to accept the logs.F) None of the above
G) C) and E)

Question 2

Which of the following is true regarding a buyer's acceptance of goods?

Accepted Answer

A)   Goods may be accepted in total even if nonconforming.
B)   The seller may presume acceptance if the buyer fails to reject goods within a reasonable period of time.
C)   The buyer may make a partial acceptance of nonconforming goods when the seller has failed to cure defects.
D)   Goods may be accepted in total even if nonconforming, the seller may presume acceptance if the buyer fails to reject goods within a reasonable period of time, and the buyer may make a partial acceptance of nonconforming goods when the seller has failed to cure defects.
E)   Goods may be accepted in total even if nonconforming, and the seller may presume acceptance if the buyer fails to reject goods within a reasonable period of time; but the buyer may not make a partial acceptance of nonconforming goods when the seller has failed to cure defects.F) B) and E)
G) A) and D)

Question 3

Marge ordered for her soccer team t-shirts with the name of the school shown on the front. The seller requested that Marge come in to inspect the first t-shirt before the others were made. Marge refused because she was too busy and told the seller to go ahead and print the shirts. On receipt of the shirts, Marge discovered that the school name was misspelled. Does Marge have any rights against the seller, and why or why not?

Accepted Answer

Marge has no rights against th...

Question 4

Reference - Refused Furniture. Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments. Selina was to deliver the furniture by February 7. Roland did not pay Selina as promised on February 1. He asked her to wait until March 1, but she refused. She also refused to deliver the furniture. Selina was able to sell the furniture for only $2,500 because of a downturn in the economy. Roland told Selina that she had no right to withhold or sell his furniture and that he was suing. Selina incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased. Selina saved $40 in delivery costs because the subsequent purchaser picked up her own furniture. Which of the following is true regarding any deduction in damages to which Roland is entitled?

Accepted Answer

A)   Roland is not entitled to any deduction because he was the breaching party.
B)   Roland is entitled to a deduction for the delivery expenses only if he can show that Selina agreed in writing to deduct those in the event of a breach.
C)   Roland is entitled to a deduction for the delivery expenses only if he can show that Selina agreed orally or in writing to deduct those in the event of a breach.
D)   Roland is entitled to a deduction for the delivery expenses because that was a savings to Selina.
E)   Roland is entitled to a deduction for the delivery expenses because Selina breached the contract by not delivering the furniture to him and then pursuing an action for damages.F) B) and D)
G) A) and E)

Question 5

Between buyers and sellers in the U.S., which of the following is true regarding disclaiming the warranty of merchantability?

Accepted Answer

A)   The disclaimer must be in writing.
B)   Some states require that the term merchantability be used in the disclaimer.
C)   The disclaimer may be made orally or in writing.
D)   The disclaimer must be in writing, and some states require that the term merchantability be used in the disclaimer.
E)   The disclaimer may be made orally or in writing, and some states require that the term merchantability be used in the disclaimer.F) All of the above
G) B) and D)

Question 6

To invoke the implied warranty of merchantability, the purchaser or lessee must have purchased or leased the good from a merchant.

Accepted Answer

A) True 
 B)False

Question 7

Under the UCC which of the following is true if goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer?

Accepted Answer

A)   The parties are excused from performance.
B)   The seller has 7 days in which to cure.
C)   The seller has 10 days in which to cure.
D)   The seller has 30 days in which to cure.
E)   The seller has 45 days in which to cure.F) B) and D)
G) B) and C)

Question 8

Sally, who has a candy shop, agreed to sell Ricky, a teacher, all the chocolate candy bears in her shop for treats for his class. Unfortunately, through no fault of hers, Sally's air conditioner went out and half of the bears partially melted. What are the rights and duties of the parties in relation to the contract?

Accepted Answer

Under the UCC if goods are identified at...

Question 9

Which of the following was the result on appeal in the case of Webster v. Blue Ship Tea Room, Inc., the case in which the plaintiff sued after getting a bone caught in her throat while eating clam chowder?

Accepted Answer

A)   That the plaintiff could recover based upon the implied warranty of merchantability.
B)   That the plaintiff could recover based upon the implied warranty of fitness for a particular purpose.
C)   That the plaintiff could recover based on an express warranty.
D)   That the plaintiff could not recover because she waited too long in which to sue and also because she was not the direct purchaser of the fish.
E)   That the plaintiff could not recover for reasons including that the bone should not have been unexpected.F) B) and E)
G) B) and D)

Question 10

Under the UCC a delay in delivery or nondelivery, in whole or in part, is not a breach in circumstances in which performance has been made _____________ because a contingency has occurred that was not contemplated when the parties reached the agreement.

Accepted Answer

A)   Unreasonable
B)   Unprofitable
C)   Less profitable
D)   Impracticable
E)   More difficultF) C) and E)
G) B) and D)

Question 11

Under the Magnuson-Moss Act, what is the effect of a full warranty?

Accepted Answer

A)   It means that if the good fails or is defective, the good or its defective part will be replaced; and if replacement cannot be timely effected, the buyer has the right to a refund or a full replacement.
B)   It means only that the good or its defective part will be repaired. The buyer has no other remedy.
C)   It means that if the good fails or is defective, the good or its defective part will be replaced; and if replacement cannot be timely effected, the buyer has the right to a refund or a full replacement; and also that the buyer will receive extra funds to account for expenses.
D)   It means that the buyer must be immediately refunded the full purchase price.
E)   It means that the buyer has the option of an immediate refund of the full purchase price or repair of the good.F) C) and D)
G) B) and D)

Question 12

Express warranties may be found in advertisements.

Accepted Answer

A) True 
 B)False

Question 13

Under the UCC which of the following refers to the history of dealings between the parties in the particular contract at issue?

Accepted Answer

A)   Trade norm
B)   Course of dealing
C)   Anticipated trade dealing
D)   Usage of trade
E)   Course of performanceF) C) and D)
G) B) and E)

Question 14

Which of the following is the right of a buyer and lessee to substitute goods for those due under a sales or lease agreement?

Accepted Answer

A)   Swap
B)   Rearrange
C)   Cover
D)   Shift
E)   ReallocateF) B) and E)
G) D) and E)

Question 15

Reference - Boat Tow. Donnie went to a new car dealership and told the salesperson, who was not the manager, that he needed a new car that would get good gas mileage and would also pull his big boat. The salesperson encouraged him to buy a smaller car that the salesperson promised would pull the boat. Donnie bought the car and used it to pull the boat. Unfortunately, the heavy pull on the car did significant damage to the car's engine. Donnie complained to the salesperson who denied any liability. Donnie, who had half a semester of business law, informed the salesperson that along with the sale of the car he also received an express warranty and an implied warranty of merchantability, and that he could recover under either of those theories. Is Donnie correct that the car was sold with an implied warranty of merchantability?

Accepted Answer

A)   No, because there was no writing guaranteeing that warranty signed by the salesperson.
B)   No, because the salesperson was only engaged in exaggeration.
C)   No, because only the manager can make such a warranty.
D)   No, both because nothing was in writing and also because only the manager can make such a warranty.
E)   Yes.F) A) and D)
G) A) and C)

Question 16

The Magnuson-Moss Act requires a full warranty on the sale of goods.

Accepted Answer

A) True 
 B)False

Question 17

Conforming goods are goods that conform to UCC specifications.

Accepted Answer

A) True 
 B)False

Question 18

Reference - Refused Furniture. Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments. Selina was to deliver the furniture by February 7. Roland did not pay Selina as promised on February 1. He asked her to wait until March 1, but she refused. She also refused to deliver the furniture. Selina was able to sell the furniture for only $2,500 because of a downturn in the economy. Roland told Selina that she had no right to withhold or sell his furniture and that he was suing. Selina incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased. Selina saved $40 in delivery costs because the subsequent purchaser picked up her own furniture. Which of the following is true regarding Roland's claim that Selina had no right to sell the furniture he initially purchased?

Accepted Answer

A)   Roland is correct. Selina had no right to sell the furniture, but she retained the right to sue him for any deficiency.
B)   Roland is correct but only because of the special UCC exception for consumer goods.
C)   Roland is incorrect. Selina had a right to resell the furniture.
D)   Roland is incorrect but only if Selina can prove that she had no reason to believe that he was a credit risk prior to signing the contract of sale.
E)   Roland is correct because of federal consumer protection laws.F) A) and E)
G) A) and D)

Question 19

Which of the following is generally true regarding a liquidated damages provision?

Accepted Answer

A)   A provision for liquidated damages is illegal.
B)   A provision for liquidated damages is void because of public policy.
C)   A provision for liquidated damages is voidable because of public policy.
D)   A provision for liquidated damages is enforceable so long as it is not punitive in nature.
E)   A provision for liquidated damages will be enforced regardless of whether it is punitive in nature.F) B) and D)
G) C) and D)

Question 20

Set forth when an implied warranty of fitness for a particular purpose will be found.

Accepted Answer

That warranty comes about when a seller ...

Exam 15: Formation and Performance of Sales and Lease Contracts

To invoke the implied warranty of merchantability, the purchaser or lessee must have purchased or leased the good from a merchant.

Correct Answer
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Correct Answer
verified
Marge has no rights against th...
View Answer

Which of the following was the result on appeal in the case of Webster v. Blue Ship Tea Room, Inc., the case in which the plaintiff sued after getting a bone caught in her throat while eating clam chowder?

Correct Answer
verified

The Magnuson-Moss Act requires a full warranty on the sale of goods.

Correct Answer
verified

Which of the following is the right of a buyer and lessee to substitute goods for those due under a sales or lease agreement?

Correct Answer
verified

Express warranties may be found in advertisements.

Correct Answer
verified

Conforming goods are goods that conform to UCC specifications.

Correct Answer
verified

Which of the following is generally true regarding a liquidated damages provision?

Correct Answer
verified

Under the UCC which of the following refers to the history of dealings between the parties in the particular contract at issue?

Correct Answer
verified

Under the UCC a delay in delivery or nondelivery, in whole or in part, is not a breach in circumstances in which performance has been made _____________ because a contingency has occurred that was not contemplated when the parties reached the agreement.

Correct Answer
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Correct Answer
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Which of the following is true regarding a buyer's acceptance of goods?

Correct Answer
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Under the UCC which of the following is true if goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer?

Correct Answer
verified

What was the result in the case in the text Alaska Pacific Trading Co. v. Eagon Forest Products Inc. in which the defendant rejected a shipment of logs?

Correct Answer
verified

Correct Answer
verified
Under the UCC if goods are identified at...
View Answer

Correct Answer
verified

Set forth when an implied warranty of fitness for a particular purpose will be found.

Correct Answer
verified
That warranty comes about when a seller ...
View Answer

Between buyers and sellers in the U.S., which of the following is true regarding disclaiming the warranty of merchantability?

Correct Answer
verified

Under the Magnuson-Moss Act, what is the effect of a full warranty?

Correct Answer
verified

Correct Answer
verified

Exam 15: Formation and Performance of Sales and Lease Contracts

To invoke the implied warranty of merchantability, the purchaser or lessee must have purchased or leased the good from a merchant.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedMarge has no rights against th...View AnswerShow Answer

Which of the following was the result on appeal in the case of Webster v. Blue Ship Tea Room, Inc., the case in which the plaintiff sued after getting a bone caught in her throat while eating clam chowder?

Correct AnswerverifiedShow Answer

The Magnuson-Moss Act requires a full warranty on the sale of goods.

Correct AnswerverifiedShow Answer

Which of the following is the right of a buyer and lessee to substitute goods for those due under a sales or lease agreement?

Correct AnswerverifiedShow Answer

Express warranties may be found in advertisements.

Correct AnswerverifiedShow Answer

Conforming goods are goods that conform to UCC specifications.

Correct AnswerverifiedShow Answer

Which of the following is generally true regarding a liquidated damages provision?

Correct AnswerverifiedShow Answer

Under the UCC which of the following refers to the history of dealings between the parties in the particular contract at issue?

Correct AnswerverifiedShow Answer

Under the UCC a delay in delivery or nondelivery, in whole or in part, is not a breach in circumstances in which performance has been made _____________ because a contingency has occurred that was not contemplated when the parties reached the agreement.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true regarding a buyer's acceptance of goods?

Correct AnswerverifiedShow Answer

Under the UCC which of the following is true if goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer?

Correct AnswerverifiedShow Answer

What was the result in the case in the text Alaska Pacific Trading Co. v. Eagon Forest Products Inc. in which the defendant rejected a shipment of logs?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedUnder the UCC if goods are identified at...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Set forth when an implied warranty of fitness for a particular purpose will be found.

Correct AnswerverifiedThat warranty comes about when a seller ...View AnswerShow Answer

Between buyers and sellers in the U.S., which of the following is true regarding disclaiming the warranty of merchantability?

Correct AnswerverifiedShow Answer

Under the Magnuson-Moss Act, what is the effect of a full warranty?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Marge has no rights against th...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Under the UCC if goods are identified at...
View Answer

Correct Answer
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Correct Answer
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That warranty comes about when a seller ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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