Law 2 Test 1

Which of the following is/are required for a valid tender rule under the code?

-the seller must put and hold conforming goods at the buyer's disposition -the seller must give notice to the buyer that the goods are available -the seller must give notice at a reasonable time and keep the goods available for a reasonable period of time

Which code section contains the warranty of merchantability?

2-314

Which of the following products would impose strict liability in tort according to Section 402A?

A chain saw sold with the safety shielding removed

Which of the following would constitute a defect within the meaning of 402A of the restatement?

A chair with legs designed to be attached with screws and glue but lacking the screws, a small car designed to have the fuel tank next to the rear axle, and a flammable liquid bottled in a container without a warning label to warn users of the flammability

Which of the following would NOT be considered a breach of the warranty of merchantability in some jurisdiction?

A cherry pit in a can of cherry pie filling

A, wholesale distributor, sells to B, a retail dealer, a set of defective tires manufactured by X, a reputable manufacturer. Both A and B believed the tires to be in perfect condition, although neither part has inspected the tires. C purchases the tires from B and is injured because the defective tires blew out. who if anyone is liable to C in strict liability?

A, B, and X share liability to C under strict liability

Amanco is ot deliver to D&R Wholsesalers 50 dozen wire rim glasses frames by October 15. On October 2, Amanco delivers 30 dozen wire rim frames and 20 dozen plastic frames, if D&R rejects the frames

Amanco has until October 15 to cure the defect if it notifies D&R of its intention to do so

Everett is an accountant for a major accounting firm. One day at work he is discussing his collection of rare coins with one of his co-workers. Everett tells his co-worker that he keeps his collection at home and that he has recently purchased several Chinese gold Panda coins at an exceptional price. The co-worker expresses an interest in buying two of the coins at a price of $250, and a contract is duly formed. If no place for delivery is expressed, where are the coins to be delivered?

At Everett's home

Matt tells Ron that the snow boots he is selling offer protection for temperatures of 20 below zero. Ron orders a pair for his trip to Greenland. Upon delivery, Ron sees that the box states "will protect your feet in temperatures down to 30 below zero." The first night's temperature goes down to 27 below. Ron suffers frostbite on all of his toes. Ron then sues for breach of warranty. What is the result?

Breach, because the later express warranty is valid

Eric bought a new snowmobile from the North pole manufacturing company. After buying the machine, Eric then modified the spark plugs and a few other things in order to soup it up. In February, just after a snowfall, Eric was driving the snowmobile, wen it tipped over, trapping him beneath it. His e.g. was severely burned when it lodged against one of the spark plugs. Eric now wants to sue North Pole for strict liability in tort. Which of the following is correct?

Eric will likely lose the suit, because the machine has been altered since its manufacture

Which of the following terms indicates a shipment contract?

F.A.S. seller's point, C.I.F., and C&F are all shipment contracts

Which of the following terms would indicate a destination contract?

F.O.B. city of buyer

A buyer who sells rejected goods on behalf of the seller is entitled to reasonable expenses not to exceed five percent of the gross proceeds

False

A merchant buyer of goods receives nonconforming goods. The merchant buyer rightfully rejects and appropriately notifies the seller, but the seller has no agent in the buyer's city. The goods are perishable and threaten to decline in value speedily. The merchant buyer has no further duty to the seller other than to await the seller's instructions

False

A seller's tender of performance does not have to conform to the Code's perfect tender rule

False

Barry buys a car from a dealer, which is sold to him "as is" and "with all faults". The next day, the engine blows up. barry can sue the dealer for breach of the implied warranty for fitness

False

Bart buys a car from a friend "as is". The friend tells him, "in my opinion, this car is in excellent mechanical condition". The friend has made an express warranty

False

Cailee has a garage sale at which she sells a defective food processor to Dylan. Cailee will be liable to dylan in strict tort liability under section 402A of the restatement of Torts if he is injured using the product

False

Except in a finance lease, the risk of loss passes to the lessee in a lease of personal property

False

Fitness for a particular purpose and merchantability are implied warranties that apply only to sales by merchants

False

Future goods can be the subject of a present sale

False

Horizontal privity pertains to remote sellers within the chain of distribution

False

Hurst's Used Tires could not be held liable on a theory of strict liability in tort

False

If a delivery of goods is to be made without moving them, title passes only upon delivery of a document of title

False

If a lease contract does not sufficiently cover the particulars of performance, Article 2A provides many gap-filler provisions

False

If no place of tender is indicated by the contract, it is presumed delivery is to be made at seller's residence

False

Implied warranties may arise from course of dealing or usage of trade in leases of personal property under Article 2A of the Code, but not in sales of goods under Article 2

False

In a "no arrival, no sale" contract, the seller is responsible to the buyer for the goods' failure to arrive

False

Jennifer purchased a used refrigerator from her next-door neighbor, a mail carrier. When she took it home and plugged it in, the refrigerator burst into flames. The seller in this case is in breach of the implied warranty of merchantability

False

Jerry bought a stereo from SX company "on approval". The risk of loss passed to Jerry when he took possession of the stereo

False

John entreated into a contract with Miriam to build her a walnut dining room table for $1,000. A few days later, the price of walnut lumber increased 200%, which will result in John's incurring a $300 loss on the table. Due to the price increase, John is automatically excused from performance under the contract

False

Kollenberg's sold a substantial part of its equipment to Castillo Brothers. Nothing else was involve din the sale. The sale of the equipment is a bulk transfer under the Code.

False

Mario, a minor, sells his bicycle to Jimmy for $150. A week later, Kelly, who does not know Mario, buys the bike from Jimmy for $200. Mario, upon learning about Jimmy's sale of the bike, disaffirms his contract with Jimmy. Kelly does not have valid title and must return the bike to Mario

False

Parker agrees to sell to Thompson 500 bushels of soybeans at $6 per bushel. Without the fault of Parker or Thompson, 200 bushels are destroyed. Thompson must take the remaining 300 bushels and pay Parker $1,800

False

Parties may not contractually agree to limit the operation of the perfect tender rule

False

Payment of a C.O.D. shipment constitutes an acceptance of the goods

False

Reliance is a necessary element in any breach of warranty case

False

Revocation following an acceptance of the goods gives the buyer fewer rights than he would have had if he had at first rejected the goods

False

Sally transfer possession of, but not title to, some lawn furniture to Jennifer. Jennifer sells the furniture to Scott, a good faith purchaser for value. In a lawsuit between Sally and Scott over the right of the furniture, Sally will win because she has the legal title and Scott has no recourse in this situation

False

Security interests in goods are governed by the common law rather than the UCC

False

Statements in advertisements and catalogs do not constitute an express warranty

False

Statutes of repose were enacted to give consumers more rights against large manufacturers

False

Steve sold his canoe to his neighbor Rhonda for $300. Steve then tells Rhonda, "I'll put the canoe in my driveway and you can pick it up any time tomorrow" Steve retains risk of loss until Rhonda picks up the canoe

False

Suppose Bob agrees to purchase 1000 gallons of gas from Stevenson gas co. Stevenson owns 5000 gallon tank of gas. Identification occurs only after gas has been pumped into bob's tank

False

Tender can be made any time of the day or night when the seer feels like delivering the goods

False

The CISG follows the perfect tender rule, as does the code

False

The UCC "risk of loss" rules depend on transfer of title

False

The UCC and the common law are essentially the same in regard to their treatment of risk of loss or damage to identified goods

False

The bulk sales portion of the Code applies only to transfers in the ordinary course of business

False

The buyer and seller of goods may not simultaneously hold insurable interest in the goods

False

The code does not excuse performance based upon commercial impracticability

False

The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract

False

The distinction between a void and a voidable title is not important in determining the rights of good faith purchasers of goods

False

The use of a sample or model is a means of creating an implied warranty

False

The warranty of merchantability is found in section 402A of the restatement of the law of torts

False

Under Alternative A of the Code's horizontal privity provision, a corporation may bring a case against the manufacturer of a defective product for breach of the warranty of merchantability

False

Under a shipment contract, the seller passes title to the buyer when the goods arrive

False

Unless the contract specifies otherwise, goods may be tendered in installments

False

When the conformity or default substantially impairs the value of the installment but not the value of the entire contract, the buyer can reject the installment, even if the seller gives adequate assurance of the installment's cure

False

Mary orders a dress $1,000. The designer sends the wrong size. Mary doesn't inspect the dress on arrival and therefore doesn't discover the nonconformity until the day before she is to wear it to her first board meeting as president of Tri-State engineering. This is a month after the dress arrived. She calls the designer an sends the dress back, but it is lost in the mail. Mary's insurance would cover $400 of the loss. The designer insurance would cover $900. Who is liable?

The risk is Mary's to the extent of $400

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

Through a failure to reject after he has had a reasonable opportunity to inspect them

Tom makes pottery in his spare time. Jackie asks if h'ed sell her a particular covered bowl. Later that day, he telephones her a says she can have it for $50. She agrees, so he tells her he'll wrap it up for her and it will be ready in half an hour. Six days later, Jackie had not yet come for the bowl when a dog knocks the box off the shelf and breaks the bowl. Who is liable?

Tom, because he is a merchant regarding the pottery and Jackie had not yet received the bowl

A commercial unit may be a set of articles, such as an assortment of sizes

True

A contract that is FOB Dallas where the seller is in Chicago and the buyer is in Dallas is a destination contract

True

A good faith purchaser acts honestly, gives value, and takes the goods without notice or knowledge of any defect in the title.

True

A major purpose of the bulk sales provisions of the code is to protect the sellers creditors

True

A merchant buyer who has rightfully rejected goods must follow reasonable instructions from the seller regarding disposition of the goods if the seller has no agent at the place of rejection

True

Acceptance of any part of a commercial unit is acceptance of the entire unit

True

After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods

True

An express warranty does not require that the warranty be expressed in written words

True

Article 2A, in a provision analogous to Article 2's warranty of title provision, protects the lessee's right to possession and use of the goods from claims of other parties arising form an act or omission of the lessor

True

Both design and manufacturing defects can subject a manufacturer or seller to products liability

True

Bradley buys a television set that turns out to be stolen. He can sue the seller for breach of warranty

True

Carl ordered 1000 square feet of green carpet from RS Company. In error, RS Company shipped 1,000 square feet of yellow carpet. In this case, the risk of loss remains with the seller until the seller remedies the defect

True

Despite section 402A's bar of contributory negligence in strict liability cases, some courts apply comparative negligence to strict liability cases

True

Dividing the risk and the shift of allocation of risk are options by agreement of both parties

True

Given a transaction involving two innocent persons, the true owner and the good faith purchaser for value, the law will not disturb the legal title but will rule in favor of the one who has it

True

Identification may be made by either the seller of the buyer

True

If a buyer accepts a part of a shipment and rejects part of a shipment, he must pay for the items he keeps at the contract rate

True

If a contract is not clearly a destination or a shipment contract, the law assumes that it is a shipment contract

True

If goods are fungible, identification of a share of undivided goods occurs when the parties enter into the contract

True

If goods are sold and delivered to buyer with an option to return them, the risk is on the buyer until they are returned

True

If the owner of goods entrusts them to a merchant, the merchant can transfer goo title to the goods to a buyer in the ordinary course of business even if the original owner does not want to sell the goods

True

If the seller of goods is an expert and gives an opinion with regard to the goods, the seller may be liable for breach of warranty

True

In a contract that provides that the sale is F.O.B. Chicago, the seller must at his own expense and risk transport the goods to Chicago and there tender delivery to the buyer

True

In a lease of personal property, title does not pass

True

In a warranty action, the seller has the burden of proving defenses based on the buyer's conduct.

True

In an installment contract, the buyer may reject any nonconforming installment if the nonconformity substantially impairs the value of that installment and cannot be cured

True

In the absence of agreement, payment is due at the time and place the buyer is to receive the goods, even though the place of shipment is the place of delivery

True

Jared drives his car knowing that the brakes are defective and has an accident in which the car is damaged and he is injured. He will likely be unable to recover from the manufacturer because he voluntarily assumed the risk of the defective brakes

True

Lucille bought a new lawn mower on sale at a local discount store. The mower did not come with an instruction book, nor did it have warning labels placed near dangerous parts of the mower. If Lucille injures herself while using this mower, she can claim that she purchased a defective product

True

Misuse or abuse of the product is a defense to an action brought under 402A of the restatement

True

On April 1, Marco bought a sailboat from a local marina. The boat was defective and did not turn about properly. Marco used the boat extensively all summer and the boat was no longer in the same condition as when it was bought. By the end of the summer, Marco had waived his right to revoke acceptance.

True

Ralph buys a bicycle for his son. The transaction is considered a sale of goods under the UCC

True

Rejection is ineffective unless the buyer notifies the seller

True

Rightful rejection must be made within a reasonable time after the goods have been tendered or delivered

True

Section 402A of the restatement applies only if the defective product is reasonably dangerous

True

The Code has expanded the rights of good faith purchasers with respect to sales by minors

True

The Magnuson-Moss warranty act was enacted to protect purchasers of consumer goods

True

The UCC uses a transactional approach to risk of loss questions

True

The buyer's payment or tender of payment, unless otherwise agreed, is a condition to the seller's duty to the tender and to complete delivery

True

The code does not label the warranty of title as an implied warranty, despite the fact that it arises out of the sale and not from the words or conduct of the parties

True

The code provides that where neither party is at fault and the agreed manner of delivering the goods becomes a commercially impracticable, a substituted manner of performance, if commercially reasonable, just be tendered and accepted

True

The early common law required privity of contract before a plaintiff could sue a defendant for breach of warranty

True

The federal trade commission administers the Magnuson-Moss warranty Act

True

The seller has an insurable interest in goods even though he no longer owns them if he continues to retain a security interest in them

True

The word "merchantability" mstu be mentioned in a disclaimer of an implied warranty of merchantability

True

Title to existing, identified goods can pass whenever the parties agree it will pass

True

Under the CISG, if prior to the date for performance of the sales contract it is clear that one of the parties will commit a fundamental breach, the other party may declare the contract avoided

True

Under the Magnuson-Moss Warranty act, a seller who makes a written warranty cannot disclaim any implied warranty

True

Unless otherwise agreed the buyer has the right to inspect the goods before he pays

True

Watkins Manufacturing has furniture, some of which it has sold to Home Interiors, stored in Central Warehouse. It is to be delivered without being moved. In order to fulfill its obligations to tender delivery, Watkins may either tender to Home Interiors a document of title or obtain an acknowledgement by the warehouse of Home Interiors' right to possess the furniture

True

Brett contracts to purchase a particular Chevrolet from Johnson's car lot. At what point does Brett obtain a special property interest that enables him to insure the car?

When the contract is made

Goods are to be sent F.O.B. Buffalo NY to Raleigh, NC by UPS. Where does tender occur?

Where the goods are shipped

In which of the following situations does the seller have the right to cure?

Where the time for performance under the contract has not yet expired and after the time for performance has expired if the seller had reasonable grounds for believing the buyer would accept a nonconforming tender with or without monetary adjustment

Jack is a guest in Harry's home. While there, he goes into the library and picks up a music box that is part of Harry's collection. jack overwinds the stem and it breaks. Hoping Harry won't notice, Jack takes the music box for repair to a jewelry who sells similar ones. The jeweler fixes it, but forgets to get it and an unsuspecting clerk sells it to Robert. Jack is frantic. Can Harry get the music box from Robert?

Yes, Robert has assumed only Jack's title, which is no title at all

Alex tells Mona that he thinks her ring is very valuable and that he would like to take it to be appraised. She gives him the ring, and he quickly sells it to unsuspecting Hanna's Antique Jewelry Shop for $2,000. A week later, Mona discovers her ring on sale at Hanna's and uncovers the story. Can Mona get her ring back?

Yes, since Alex had no title to the ring

Geoff's fiancee, Susan, comes to meet his parent for the weekend. On Saturday morning, while using Geoff's mother's hair dryer, the blower short circuits sending sparks across the guest room. Susan's angora sweater and her hands are covered with tiny burns. Susan's mother is a lawyer and wants her to sue the seller of the dryer for breach of warranty. Can she?

Yes, since she is a guest in the hoe of the buyer, the warranties would extend to her in most states

Which of the following would most likely be a defect under 402A restatement of torts?

a chair produced without the appropriate screws

Z, a seller in Miami, enters into a contract which states that goods are to be delivered to X, a buyer, in New York. Title is to remain with Z until delivery to X. This is:

a destination contract

Property law protects existing ownership f goods. A principal belief underlying this policy is:

a person should not be required to retain possession at all times of all the goods he owns in order to maintain his ownership of them AND good faith purchasers for value must be protected in certain circumstances to encourage and make safe the good faith acquisitions of goods

In _____ the goods are sold and delivered to the buyer with an option to return them to the seller

a sale or return

An obligation of the merchant-seller that the goods are reasonably fit for general purposes for which they are manufactured and sold, and the goods are of fair average quality is known as:

a warranty of merchantability

Willingness by the buyer to become the owner of goods tendered or delivered to him by the seller is

acceptance

If no definite time for delivery is fixed by the terms of the contract, delivery:

and acceptance must happen within a reasonable amount of time

If the goods that are the subject of a sale are in the possession of a bailee and are to be delivered without being moved when does the risk of loss pass to the buyer?

at such time as the buyer receives a negotiable document of title and when a nonnegotiable document of title is tendered to the bueyr

A buyer in Atlanta enters into a sales contract with a seller in Chicago. If the contract does not mention the place for delivery of the goods, the place of delivery will be:

at the seller's business or residence in Chicago

The seller and buyer of goods agree that identification will be made by the seller when it manufactures and separates those particular goods out for the buyer. Identification will actually occur:

at the time and in the manner agreed upon by the parties

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may

await performance for a reasonable time and resort to any remedy for breach

Kera rented a lawn mower form Scott Rentals. The lawn mower wheel was loose when she picked it up. When she began to use the mower, the wheel fell off, causing the mower to tip over onto her foot. Under what theory can Kera hold Scott liable for her injuries?

breach of warranty of merchantability

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years. The October shipment consisted of 100 badly defective tires. ZYX cycle company:

can reject the October shipment if it cannot be cured in a timely manner by Supertread

Community hospital in Atlanta entered into a contract tot buy delicate lab equipment from D&D Company in Denver. The contract states shipping terms as FOB, Denver. While in transit the equipment was damaged beyond repair by the carrier, Fly by nite are lines. The carrier is in weak financial condition and refused to pay for the equipment.

community hospital has risk of loss

A(n) ______ is a delivery of possession of personal property to an agent for sale by the agent

consignement

Which of the following is generally NOT a defense to a claim against a manufacturer under 402A?

contributory negligence on the part of the plaintiff

A seller has the right to transfer title

even if the seller does not have either possession of or the title to the goods, if he has authority to sell the goods for the rightful owner

At common law, the risk of loss or damage to goods identified under a contract of a sale:

falls upon the party who had title or ownership of the goods at the time of the loss or damage

According to the Code, a good faith purchaser for value obtains valid title from one possessing voidable title even if that person obtained voidable title by:

fraud as to her identity, criminal fraud, and an agreement that the transaction was to be a cash sale, and the price has not been paid

Which of the following is true regarding identification of the goods under Article 2?

identification of existing goods gives the buyer a special property interest

No implied warranty exists

if it applies to defects that are apparent upon examination and the buyer inspects the goods before entering into the contract and as to defects that an examination ought to have revealed, where the buyer examined the goods as fully as he desired or where the buyer refused to examine the goods

A buyer's cancellation of a contract based on the seller's anticipatory repudiation is effective

if the cancellation precedes the seller's attempt to retract her repudiation

Under the CISG:

if the seller does not perform on time, the buyer may fix an additional, reasonable period of time for performance

Leslie purchased 100 flower pots from a local merchant. Warranties which are not included in her sales contract, but exist by "operation of the law", are the:

implied warranties

Under the UCC, identifying goods to which a contract refers gives the buyer a special property interest which permits the holder to

insure the goods

Under the CISG:

loss of or damage to the goods after the risk of loss has passed to the buyer does not discharge the buyer from the obligation to pay the purchase price

Drapery Makers has signed a contract to make a sell to Hyer curtains for 20 windows by March 31. Higher, however, delays in giving Drapery Makers the dimensions it needs to know in order to do the work. In this case, Drapery Makers:

may proceed to do the work when it receives the information if it performs reasonably and may treat Hyer's failure to cooperate as a breach if it does not receive the information by March 31

If Mary allows the seller, Baymore Co., four weeks to repair the defects in her kitchen set. They have tried, but have not done a good job at it. She may revoke her acceptance as long as she:

notifies Baymore of the revocation

Under the ____, a buyer may reject goods for even the slightest defect

perfect tender rule

Which of the following is correct with respect to the code's approach to impossibility of performance?

performance will be excused when it is commercially impractical as a result of one of more unforeseen supervening events that are more than mere hardship or increased cost of performance

In a sale on approval

possession but not title is transferred to the buyer for a stated period of time

The warranty of fitness for a particular purpose:

requires that the seller know that the buyer is relying on the seller's expertise in selecting a product for the buyer's specific purpose

Edna orders a set of China from Northwestern Catalogue. Northwestern sends the dishes by UPS. The contract does not specify when payment is to be made. Edna must pay when:

she gets the goods from UPS

Article 2A carries over the warranty provisions of Article 2 with relatively minor revision to reflect different in

style, leasing terminology, and leasing practices

In bringing a warranty action, the buyer must prove:

that breach of the warranty proximately caused the loss suffered

Product liability exists if:

the product reaches the consumer without substantial change in the condition in which it is sold

Which of the following is not an express warranty?

the seller's opinion of the value of goods

Which of the following is true with regard o implied warranties under the code?

they may arise from course of dealing or usage of trade

A sale exists when the buyer takes

title to the goods

According to the code, identification takes place:

when the crops are planted or start growing if the contract is for crops to be grown within twelve months

The warranty of title for the sale of goods found in article 2 of the code:

will apply regardless of whether it is provided for in the contract unless the parties have specifically excluded it

Mark tells Leslie that his stereo has quadraphonic speakers because he was told that when he bought it. Leslie buys that stereo, but it does not have quadraphonic speakers. Is mark liable for breach of warranty?

yes, because the statement was false

Growingreen, a gourmet fresh food store, orders 100 lbs of peaches from Western Fruits "on approval". Growingreen has never dealt with Western before this transaction. Since it only sells the highest quality fruits. Growingreen asked for and received these special terms. The peaces arrived on Saturday, but the owners of Growngreen were too busy to open the crates. Sunday they are closed. Monday at 4 pm they opened the boxes and inspected the peaches. They did not meet the high standards of Growngree, so they nailed the crates shut and ordered a truck to return them the next day. They arrived at Western on Thursday, totally spoiled, a week after they were sent. This is the first time Western knew they were not being accepted. Who is responsible for the damages?

Growingreen, since it did not, within a reasonable time, notify Western of its election to return the peaches

Pedro ordered a custom-made suit from Rooks & Sons to be delivered by Friday at 5 pm. When it is delivered to his office on Friday afternoon, he is in conference with a client. His secretary hangs the suit in the office closet. When Pedro tries on the suit Saturday evening, he discovers that the pants are cuffed. He had ordered cuffless trousers, so he called Rooks & Sons on Monday and informed them that he was returning the suit. What can he do?

He can reject the goods since he ha not yet accepted them prior to inspection

Brenda agrees to lease a new car from Hyland Motors. Which of the following statements is true?

Hyland Motors retains an insurable interest in the car unless an until Brenda exercises an option to buy the car

Which of the following is correct with respect to the buyers obligation of payment?

In the absence of agreement, payment is due at the time and place the buyer is to receive the goods; payment by check is sufficient unless the seller demands currency and allows the buyer a reasonable time in which to obtain it; and if the buyer so agrees, he must pay for the goods in advance of delivery

Which of the following is NOT included within the Code definition of merchantability?

In the case of secondhand goods that they be of a quality that matches that of new goods of the same type

Howard stole a word processor and then sold it to his friend Ivan for $100.

Ivan has a void title to the word processor

Amanda ordered fifty personalized sweatshirts from King Manufacturing Company. After the shirts were specially imprinted, but before they were mailed, Amanda called King manufacturing to disavow the contract. The next day the sweatshirts were stolen. Who must bear the loss?

King must first seek payment from its insurance carrier, and then collect from Amanda for any amount not covered by insurance

Karen decided to sell her stair step exercise machine, because she wasn't using it as much as she thought she would. Her friend Lydia bought it from Karen for $100. The first day that Lydia used the stair stepper it fell apart injuring Lydia's ankle.

Lydia cannot sue Karen for warranting that the stair stepper is reasonably fir for its ordinary purpose, because Karen is not a merchant

J&J Co. offers a subscription for baby toys to be delivered every two months from the birth of a child. payment must be made within two weeks of delivery. The Markham family accepted the J&J plan when their son, Timmy, was born. When Timmy was four months old, one J&J toy arrive smashed into pieces.

Markham can reject the installment and refuse to pay if J&J cannot cure it

Greg has been in the business of selling encyclopedias for twenty years. Margaret agreed to buy a set if Greg would also bring her a bookcase for them. Greg bought one and sold it to Margaret along with the books. While shelving the books, she ran her hand over the back edge of the shelves and cut herself severely. The wood was not finished on that side and nails were protruding through the shelf. Can Margaret sue Greg under strict liability?

No, because greg is not a seller under section 402A

Mark, a college student, agreed to sell his horse to Henry for $1,000. The contract required Mark to take the horse on that same day to Idlewild Stable where Henry was going to board the horse. Henry paid Mark the money, patted the horse and said, "I'm glad you're mine, you beauty", and drove off. Mark then led the horse into the trailer and set off for the two hour drive to Idlewild. Has there been a sale?

No, not until devilry to Idlewild

Although he knows the ring is really valuable, Alex tells Mona her ring contains artificial gems but he would be willing to buy it for $50. Mona agrees. Alex quickly takes the ring to Hanna's Antique Jewelry shop and sells it for $1,000. A month later Mona sees her ring on sale for $2,000 at the shop.. Is Mona entitled to get the ring back?

No, since Alex had voidable title to the ring and Hanna was a good faith purchaser

With regard to the UCC article 6, which of the following is true?

Over three fourths of the states have repealed Article 6

If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may

Reject the whole, accept the whole, or accept any commercial units and reject the rest

Alice is browsing in a commercial art gallery when she sees a painting that she likes. Roger, who is the manager of the gallery, tells her that the painting is a genuine Leroy Neiman work. Based upon that representation, Alice buys the work for $5,000. She later discovers that the panting is only a cheap copy of the original that is worth no more than $50.

Roger has breached an express warranty to Alice that the painting is a Neiman work

Sam agrees to sell Bill one 18-cubic foot yellow refrigerator for $700. It is to be delivered to Bill's home on July 7. Under the perfect tender rule, which one of the following cases would be a rightful rejection of the goods?

Sam delivered an 18 cubic foot, blue refrigerator on July 7, and Bill calls Sam to complain

Ina runs a Swedish health spa in Connecticut. She orders 100 loofah sponges from a company in California. They sent "F.O.B. Hartford, Connecticut" but they never arrive at Inga's. What's the consequence?

The California company is required to bear the loss since the sponges hadB not yet reached the F.O.B point

If destruction or casualty to goods, total or partial, occurs after risk of loss has passed to the buyer, who is responsible for losses?

The buyer, who must pay the entire contract price of the goods