BLAW Test 2 Part 2

Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when a. the seller or lessor tenders delivery. b. the buyer or lessee becomes aware of the breach. c. the nonbreaching party notifies the breaching party of the breach. d. four years have passed since the breach occurred.

A seller or lessor tenders delivery

Big Beef, Inc. raises calves to sell. Big Beef breeds its cows in April, and the cows calve in February of the following year. In January Andrea contracts with Big Beef to buy fifty calves. Identification takes place in

April when the calves are conceived

Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced. CSR sells the iPod to Doris, who does not know that it belongs to Brad. Brad can recover from

CSR

Grocers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by a. Grocers. b. Hilltop. c. Refrigerated. d. all of the parties as tenants in common in equal measure.

Grocers

Quest Outdoor Store orders RiverRun-brand kayaks from Sports Merchandise, Inc. Sports Merchandise mistakenly ships kayaks of the wrong size, which Quest rejects and returns via Trans-State Shipping Company. During the return, the kayaks are lost. The loss is suffered by a. Quest . b. Trans-State. c. RiverRun. d. Sports Merchandise.

Sports Merchandise

Brian as agent for Clarion Motors

a merchant's firm offer

Brian, an agent for Clarion Motors, Inc., writes a letter on behalf of Clarion Motors to Dina on November 1 stating that he will sell her a 2016 Subaru Outback for $20,000 between November 1 and December 31. Brian's letter to Dina is a. ​an option contract. b. ​an acceptance. c. ​none of the choices. d. ​a merchant's firm offer.

a merchants firm offer

Car n' Truck Body & Paint Company orders custom paint from Diverse Hues Inc., but Diverse does not deliver. Car n' Truck will probably be unable to enforce the agreement if the parties omitted

a quantity term

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp, Inc. Unless the contract states otherwise, it is assumed to be

a shipment contract

Barley that fills County Grain Co-op's silo is fungible if the barley is

alike naturally, by agreement or by trade usage

Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation, which sells some of the items to Physicians Clinic, which later sells them to Oscar, a patient and consumer. Article 2 of the UCC applies to the sales transactions between

all buyers and sellers

Rice River Farms, who only produces Grade A quality rice, offers to sell Sushi Restaurants, Inc., five hundred bushels of rice. Sushi responds, "We agree to buy five hundred bushels. Is the rice Grade A quality?" This statement is

an acceptance

Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is a. an express warranty. b. an implied warranty. c. a warranty of title. d. puffery.

an express warranty

Fred buys running shoes from Gear Store, telling the clerk that he wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Fred to fall and sustain an injury. The seller most likely breached

an implied warranty of fitness for a particular purpose

Connie transfers a note by signing it and deliver it

an indorsee

Kris transfers a note

an ordinary holder

Containers, Inc., sends its standard order form to Distribution Corporation to evidence a sale of packing materials. Distribution responds with its own standard purchase order form. Additional terms in the purchase order automatically become part of the contract unless a. ​the offeror objects to the new terms within a reasonable time. b. ​the original offer expressly required acceptance of its terms. c. ​any of the choices. d. ​the terms materially alter the original contract.

any of the choices

Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold

as is

Candy Corporation orders Double Chocolate Bars

both candy and edibles

BRC and CTC enter into a contract for a lease

conform to the contract description in every way

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain

cover

Brad buys a bulldozer from Construction Equipment Corporation, which he leases to Deep Digg, Inc. In this situation, the lessee is

deep dig INC

Pine Mills Inc. and Quality Lumber Company enter into a contract for a sale of plywood to be delivered under a destination contract. Pine Mills, the seller, must

deliver the goods to a particular destination

Rod negotiates a bearer instrument to Shauna by​

delivery alone

Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should

demand assurances of performance from the seller

Dental Clinic agent Emma is authorized to write checks on the clinic's account in Finance Bank. Pharma Corporation is a clinic supplier. Emma writes a check on the clinic's account "pay to the order of Pharma [signed] Emma," indorses it in Pharma's name, and deposits it in her own account at Third Bank. If the bank collects payment, the ultimate party most likely to suffer the loss is

dental clinic

Omni Metals Company and Piecework Fabrication, Inc., enter into a contract under which Omni agrees to deliver a certain quantity of sheet metal to Piecework each month. The contract does not include a price term. In a suit between the parties over the price, a court will

determine a reasonable price at the time for delivery

Laura writes on a piece of paper

does not include an express promise to pay

HandiTools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that HandiTools must provide

free repair or replacement of any defective parts

Home Products, Inc., warrants its goods to be free of defects. Ian issues an instrument to Home Products for the purchase of a thermos that leaks. With respect to payment on the instrument, Ian

has a personal defense against it

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor

is excused from the performance of its contracts

Sugar & Spice, Inc., and Taste Treats stores enter into a contract for a sale of confections. Sugar & Spice, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified

is not sufficient to disclaim the implied warranties of merchantability and fitness for a particular purpose because it is not clear and conspicuous, and not brought to the buyer's attention

In a dispute over a sale involving a bicycle, Dain argues that as to this deal Enya's Hobby Shop, where Dain bought the bike, is a merchant. A court may determine whether Enya's is a merchant by assessing whether

it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction

Camille signs an instrument in favor of Donald that states it is

made subject to a separate agreement

Dulcey agrees to cosign a promissory note for Excavation Equipment Leasing & Sales to buy a backhoe. The note is payable to Federal Bank. Dulcey is an accommodation a. drawee b. indorser c. maker d. drawer

maker

Tarts & Pies Bakery contracts with Sweet Fruits for strawberries to be delivered by Refrigerated Trucking Company. On the day of delivery, the refrigeration on the trucks is not working. Sweet Fruits

may ship the strawberries to the buyer using a different carrier

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

no longer applies

Consumer Loans LLC

nonnegotiable because it is not payable within a definite time

Dante buys a new car

not be successful because he did not notify the dealer and give it an opportunity to cure the problem

Alvin signs a promissory note payable to the order of Borrow & Spend Loan Company. The note states that it is payable "with interest at the legal rate." This note is

not necessarily negotiable

Ben signs a promissory note for $1,500 in favor of Community College. The note is undated but specifies that it is "payable one month after date." This note is

not negotiable because the maturity date cannot be determined from the face of the instrument

This promise is enforceable as a contract

only if it is in writing

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipment contract, the seller must

place the goods into the hands of the carrier

Duke signs a note "payable to the order of Equity Bank." Unless Duke has a valid defense against payment his liability on this note is a. impaired. b. primary. c. secondary. d. qualified.

primary

Chord Guitars Inc. sells guitars to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere." This statement is

puffery

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can

recover from big dig for a breach of warranty

Refined Grains Inc., agrees to sell

refined's place of business

Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached

regardless of what ocean knew or could have discovered

On the back of a check payable to Nero, he writes "Pay to Odell, without recourse" and signs it. This

relives Nero of liability on the check

Resource Industries Inc's agent Polly

resource industries

NutriRich, Inc., sells fifty cases of Omega 3 capsules to Good Health stores, but before Good Health takes physical possession, the cases are lost. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of

risk of loss

Farmers Produce, Inc. and Growers Market enter into a contract for the delivery

the course of dealing

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached

the implied warranty of merchantability

Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of

the piano and the gold ring

TackMaker, Inc., and Silver Stallion Stables enter into a contract for a sale of bridles, saddlery, and other equine equipment. TackMaker delivers, but Silver Stallion does not pay. TackMaker can normally recover as damages

the purchase price plus incidental damages

Liz buys a car from Midtown Motors, paying with a check that is later dishonored. Liz later offers the car to Nick for cash. As the seller in the transaction with Nick, Liz's title to the car is a. valid. b. voidable. c. void. d. good.

voidable

Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc. The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality must give Pipes & Culverts a warehouse receipt for the goods, which the buyer will then pick up. Title to the goods passes to Pipes & Culverts when

warehouse receipt