Question 1

Which of the following is true regarding the UCC and norms in the industry?

Accepted Answer

A)   The UCC requires that courts consider norms in a particular trade only if consumer goods are involved.
B)   The UCC allows courts to consider norms in a particular trade only if the perfect tender rule has been satisfied.
C)   The UCC requires that courts consider norms in a particular trade.
D)   The UCC does not require that courts consider norms in a particular trade.
E)   The UCC requires that courts consider norms in a particular trade only if goods with a unit price of over $500 are involved.F) B) and C)
G) A) and E)

Question 2

What was the result on appeal in the case in the text Alaska Pacific Trading Co. v. Eagon Forest Products Inc. in which the defendant rejected a shipment of logs, and the plaintiff/seller claimed that its late shipment was excused because the contract did not specify that time was of the essence?

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) A) and D)
G) B) and E)

Question 3

Which of the following was the result on appeal in Donovan v. RRL Corporation, the case in the text in which the plaintiff attempted to enforce a price for an automobile contained in an ad, and the defendant car dealership claimed that a mistake was involved?

Accepted Answer

A)   The court ruled in favor of the dealership because ads can never constitute offers.
B)   The court ruled in favor of the dealership because an intentional misrepresentation is needed before an ad can be considered an offer, and there was no proof of an intentional misrepresentation on the part of the dealership.
C)   The court ruled in favor of the dealership on a combination of mistake and unconscionability.
D)   The court ruled in favor of the plaintiff because the ad constituted an enforceable offer.
E)   The court ruled in favor of the plaintiff on the basis of unilateral mistake and unconscionability.F) B) and D)
G) D) and E)

Question 4

Sally contracted with Ben, who operates a farm in Guatemala, for the importation of some great coffee beans for her coffee shop. The contract provided that Ben would be sure the coffee arrived by September 1st, in time for an open house Sally had planned. Sally was not worried because Ben had always delivered on a timely basis in the past. Ben was busy and was late getting the beans in transit. The beans did not arrive until September 2nd. Sally shipped them back and refused to pay. Ben sued. What is Sally's best defense?

Accepted Answer

A)   That Ben failed to substantially perform.
B)   That Ben failed to materially perform.
C)   That Ben violated the perfect tender rule.
D)   That Ben's beans were not that good and that she decided to go with another brand.
E)   She has no defense because he was only one day late, and she should pay.F) A) and C)
G) C) and E)

Question 5

In reference to the case in the text DeJesus v Cat Auto Tech. Corp., what was the effect of the defendant's payment for goods without inspection on the day of delivery, when the delivery was approximately two weeks after the time called for by the contract?

Accepted Answer

A)   The defendant effectively waived the performance provisions of the contract regarding the time for delivery.
B)   The defendant did not lose any rights because under the UCC he had 24 hours after delivery in which to object to late delivery.
C)   The defendant did not lose any rights because under the UCC he had 48 hours after delivery in which to object to late delivery.
D)   The defendant did not lose any rights because under the UCC he had 7 days after delivery in which to object to late delivery.
E)   The defendant did not lose any rights because under the UCC he had 10 days after delivery in which to object to late delivery.F) A) and D)
G) C) and D)

Question 6

Under sections of the UCC, sellers and lessors have the right to ______ or fix problems with nonconforming goods.

Accepted Answer

A)   Cure
B)   Defend
C)   Deduct
D)   Reject
E)   RenounceF) B) and C)
G) B) and E)

Question 7

Which of the following are goods that conform to contract specifications?

Accepted Answer

A)   Adequate goods
B)   Transforming goods
C)   Conforming goods
D)   Reasonable goods
E)   Superior goodsF) A) and E)
G) A) and C)

Question 8

Conforming goods are goods that conform to UCC specifications.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true regarding any right of inspection in regard to lessees?

Accepted Answer

A)   The UCC provides for no right of inspection for lessees, and the right of inspection is only available to the lessor if it is provided for by contract.
B)   The UCC provides for a right of inspection in regard to perishable items for lessees, but not otherwise.
C)   The UCC provides for a right of inspection in regard to fragile items for lessees, but not otherwise.
D)   The UCC provides for a right of inspection if the lessor and lessee have previously had disputes in regard to shipments, but not otherwise.
E)   The UCC provides for a right of inspection for lessees.F) B) and D)
G) B) and C)

Question 10

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 partially destroyed through no fault of the parties before risk passes to the buyer or lessee?

Accepted Answer

A)   The contract is void.
B)   The buyer may inspect the goods and decide whether to (1)  treat the contract as void or (2)  ask the seller for a reduction of the contract price and then accept the damaged goods.
C)   The seller may inspect the goods and decide whether to (1)  treat the contract as void or (2)  offer the buyer a reduction of the contract price for the damaged goods.
D)   Unless the parties can agree on a price, the matter must be submitted to arbitration for a determination as to an appropriate price.
E)   Unless the parties can agree on a price, the contract is voidable at the option of the seller.F) All of the above
G) A) and E)

Question 11

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 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 12

Under the UCC, _____ requires that the seller/lessor have and hold conforming goods at the disposal of the buyer/lessee and give the buyer/lessee reasonable notification to enable him or her to take delivery.

Accepted Answer

A)   Tender of delivery
B)   Offer of availability
C)   Tender of offer
D)   Offer of delivery
E)   Offer of notificationF) B) and D)
G) A) and B)

Question 13

Which of the following was the result in the "Case Opener" in which Vitol sued Koch Petroleum for delivering oil one day late causing Vitol to sustain a loss based on its sale to another entity?

Accepted Answer

A)   The court ruled that Koch Petroleum had substantially performed and that Vitol could not recover.
B)   The court ruled that Koch Petroleum had materially performed and that Vitol could not recover.
C)   The court ruled that Koch Petroleum had committed fraud in that the delay was intentional and that Vitol could recover.
D)   The court ruled that Koch Petroleum had violated the perfect tender rule and that Vitol could recover.
E)   The court ruled that both parties were in the wrong and that damages would be split between the two.F) A) and C)
G) B) and E)

Question 14

Which of the following occurs when all the material elements of a contract are satisfied even if some nonmaterial requirements may not be satisfied?

Accepted Answer

A)   Substantial tender
B)   Perfect tender
C)   Substantial performance
D)   Perfect performance
E)   Adequate tenderF) All of the above
G) A) and E)

Question 15

"New Furniture." Penny purchased $3,000 worth of furniture from Good Wood Furniture. Through an arrangement with Good Wood, Penny financed the purchase through a financing company called Let Us Help You. Twenty-nine days after the goods were delivered to her, Penny had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay. She notified Good Wood on that day that she was rejecting the goods. Good Wood claimed that she did not properly reject the furniture and also that she failed to act in good faith, an obligation imposed equally on all parties to a transaction. Penny says that she properly rejected; that, although the UCC imposes no duty of good faith, she acted in good faith; and that, in any event, she had an absolute right to return the goods.
-Which of the following is true regarding Penny's claim that the UCC imposes no obligation of good faith conduct?

Accepted Answer

A)   Penny is correct in this instance because while the UCC generally imposes a duty of good faith, that duty is inapplicable during the initial 30 days after a purchase when a buyer has the right to revoke acceptance for a good or a bad reason.
B)   Penny is correct in this instance because while the UCC generally imposes a duty of good faith, that duty is inapplicable in relation to third-party financing.
C)   Penny is correct only if she can establish that the goods were overpriced resulting in the right to disregard any obligation of Good Wood.
D)   Penny is correct only if she can establish that Good Wood Furniture itself failed to act in good faith.
E)   Penny is incorrect.F) B) and D)
G) D) and E)

Question 16

Under the UCC when a buyer alleges that goods failed to conform to contract specifications, the buyer does not automatically have the right to reject the goods.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true regarding whether a buyer and lessee may make a partial acceptance?

Accepted Answer

A)   Buyers and lessees may make partial acceptances at any time.
B)   The buyer may make a partial acceptance when goods are nonconforming and the seller has failed to cure the defects, but a lessee may not make a partial acceptance.
C)   The lessee may make a partial acceptance when goods are nonconforming and the lessor has failed to cure the defects, but a buyer may not make a partial acceptance.
D)   The buyer or lessee may make a partial acceptance when goods are nonconforming and the seller or lessor has failed to cure the defects.
E)   Neither buyers nor lessees may make partial acceptances because either the whole must be accepted or rejected.F) A) and B)
G) C) and E)

Question 18

"Business Law Rocks." Business law teacher Penny ordered 50 T-shirts for her classes that said "Business Law Rocks" on the front. She wanted to give them out on the last day of class and contracted with Frank, who owned a T-shirt business, for the shirts to arrive by that day. The shirts arrived on Thursday, just before the last day of classes on Friday. Unfortunately, the shirts said "Business Law Yuck" on the front. Frank told Penny that he would remedy and fix the problem and that he had the right to do so. She told him, however, that she had to have the shirts the next day because the students would be gone after that. Penny had also ordered some pamphlets on employment law to be used the next fall semester. The seller had agreed to provide the pamphlets 30 days before spring semester ended. The seller, however, erred and sent pamphlets on environmental law which arrived 28 days before spring semester ended. The seller attempted to remedy the problem by sending the correct pamphlets on employment law, but they did not arrive until 27 days before spring semester ended. None of the parties had any prior dealings
-Is Frank correct in that he has a right to remedy and fix the problem?

Accepted Answer

A)   No, the UCC does not provide a party with the right to fix any problem.
B)   No, while the UCC provides a party with the right to fix some problems, the problems with the T-shirts were too serious to afford Frank that right.
C)   Yes, but only if he can provide correctly worded T-shirts by the next day, the last day set for performance.
D)   Yes, Frank has up to 10 days under the UCC to fix any problem.
E)   Yes, Frank has up to 20 days under the UCC to fix any problem.F) B) and C)
G) A) and D)

Question 19

The UCC defines _____ as previous commercial transactions between the same parties.

Accepted Answer

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

Question 20

The UCC requires that sellers and lessors tender ______ goods to the buyer or lessee.

Accepted Answer

A)   Adequate
B)   Transforming
C)   Conforming
D)   Reasonable
E)   SuperiorF) C) and D)
G) D) and E)

Exam 23: Performance and Obligations Under Sales and Leases

Which of the following is true regarding whether a buyer and lessee may make a partial acceptance?

Correct Answer
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Which of the following are goods that conform to contract specifications?

Correct Answer
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Conforming goods are goods that conform to UCC specifications.

Correct Answer
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Which of the following is true regarding the UCC and norms in the industry?

Correct Answer
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Correct Answer
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Correct Answer
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Under the UCC, _____ requires that the seller/lessor have and hold conforming goods at the disposal of the buyer/lessee and give the buyer/lessee reasonable notification to enable him or her to take delivery.

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 partially destroyed through no fault of the parties before risk passes to the buyer or lessee?

Correct Answer
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Which of the following was the result on appeal in Donovan v. RRL Corporation, the case in the text in which the plaintiff attempted to enforce a price for an automobile contained in an ad, and the defendant car dealership claimed that a mistake was involved?

Correct Answer
verified

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

Which of the following was the result in the "Case Opener" in which Vitol sued Koch Petroleum for delivering oil one day late causing Vitol to sustain a loss based on its sale to another entity?

Correct Answer
verified

Under the UCC when a buyer alleges that goods failed to conform to contract specifications, the buyer does not automatically have the right to reject the goods.

Correct Answer
verified

Which of the following is true regarding any right of inspection in regard to lessees?

Correct Answer
verified

The UCC defines _____ as previous commercial transactions between the same parties.

Correct Answer
verified

In reference to the case in the text DeJesus v Cat Auto Tech. Corp., what was the effect of the defendant's payment for goods without inspection on the day of delivery, when the delivery was approximately two weeks after the time called for by the contract?

Correct Answer
verified

What was the result on appeal in the case in the text Alaska Pacific Trading Co. v. Eagon Forest Products Inc. in which the defendant rejected a shipment of logs, and the plaintiff/seller claimed that its late shipment was excused because the contract did not specify that time was of the essence?

Correct Answer
verified

Which of the following occurs when all the material elements of a contract are satisfied even if some nonmaterial requirements may not be satisfied?

Correct Answer
verified

Correct Answer
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The UCC requires that sellers and lessors tender ______ goods to the buyer or lessee.

Correct Answer
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Under sections of the UCC, sellers and lessors have the right to ______ or fix problems with nonconforming goods.

Correct Answer
verified

Exam 23: Performance and Obligations Under Sales and Leases

Which of the following is true regarding whether a buyer and lessee may make a partial acceptance?

Correct AnswerverifiedShow Answer

Which of the following are goods that conform to contract specifications?

Correct AnswerverifiedShow Answer

Conforming goods are goods that conform to UCC specifications.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the UCC and norms in the industry?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Under the UCC, _____ requires that the seller/lessor have and hold conforming goods at the disposal of the buyer/lessee and give the buyer/lessee reasonable notification to enable him or her to take delivery.

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 partially destroyed through no fault of the parties before risk passes to the buyer or lessee?

Correct AnswerverifiedShow Answer

Which of the following was the result on appeal in Donovan v. RRL Corporation, the case in the text in which the plaintiff attempted to enforce a price for an automobile contained in an ad, and the defendant car dealership claimed that a mistake was involved?

Correct AnswerverifiedShow Answer

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

Which of the following was the result in the "Case Opener" in which Vitol sued Koch Petroleum for delivering oil one day late causing Vitol to sustain a loss based on its sale to another entity?

Correct AnswerverifiedShow Answer

Under the UCC when a buyer alleges that goods failed to conform to contract specifications, the buyer does not automatically have the right to reject the goods.

Correct AnswerverifiedShow Answer

Which of the following is true regarding any right of inspection in regard to lessees?

Correct AnswerverifiedShow Answer

The UCC defines _____ as previous commercial transactions between the same parties.

Correct AnswerverifiedShow Answer

In reference to the case in the text DeJesus v Cat Auto Tech. Corp., what was the effect of the defendant's payment for goods without inspection on the day of delivery, when the delivery was approximately two weeks after the time called for by the contract?

Correct AnswerverifiedShow Answer

What was the result on appeal in the case in the text Alaska Pacific Trading Co. v. Eagon Forest Products Inc. in which the defendant rejected a shipment of logs, and the plaintiff/seller claimed that its late shipment was excused because the contract did not specify that time was of the essence?

Correct AnswerverifiedShow Answer

Which of the following occurs when all the material elements of a contract are satisfied even if some nonmaterial requirements may not be satisfied?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The UCC requires that sellers and lessors tender ______ goods to the buyer or lessee.

Correct AnswerverifiedShow Answer

Under sections of the UCC, sellers and lessors have the right to ______ or fix problems with nonconforming goods.

Correct AnswerverifiedShow 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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Under the UCC if goods are identified at...
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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