BUL4310 Chapter 11 Quiz

An expression of opinion will usually create a warranty. T/F

False

Goods must be of the highest quality possible to be merchantable. T/F

False

Merchants are not required to warrant that the goods they sell are fit for their ordinary purpose. T/F

False

Title and risk of loss can pass to the buyer from the seller before the goods are identified to the contract. T/F

False

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is the uniform international sales law of countries that account for more than two-thirds of all global trade. T/F

True

The contract term "free on board" indicates that the selling price of goods includes transportation costs to the specific F.O.B. place named in the contract. T/F

True

Under a shipment contract, if the seller does not make a reasonable contract for transportation or notify the buyer of the shipment, the buyer can reject the goods if a material loss results. T/F

True

Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade. T/F

True

Livestock Feedlot orders one hundred sacks of cattle feed from MegaNutrient Feed, Inc. Each sack is stamped with the phrase, "twenty percent protein." This is A. An express warranty. B. An implied warranty C. A warranty of title. D. Puffery

A. An express warranty.

Riverside Ranch is a horse breeding facility. Steed Stables is a customer looking for a new stallion for its breeding program. Riverside's representative Thomas shows Steed a stallion that he says is very fertile and can easily breed twenty mares per year. This statement is A. An express warranty. B. An implied warranty. C. A warranty of title. D. Puffery.

A. An express warranty.

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is A. Fuel Connector's place of business. B. Go-Flo's place of business. C. The current location of the holes couplings and fittings. D. The U.S. Postal Service office nearest to Go-Flo's place of business.

A. Fuel Connector's place of business

Arnold buys a backbone from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company hold a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can A. Recover from Big Dig for breach of warranty. B. Do nothing. C. File criminal charges against Big Dig and Credit Collection. D. Recover damages from Credit Collection for breach of warranty.

A. Recover from Big Data for breach of warranty.

Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a lease of trucks. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises A. Automatically B. Only if the lessee asks for such a warranty C. Only if the lessor expresses such a warranty

A. automatically

Sweet Fruits contracts with Fruits to You Inc. for delivery of two hundred pounds of strawberries to be delivered by Keep Kool Trucking, a trucking company with refrigerated. On the day of delivery, the refrigeration units on Keep Kool's trucks are not working. Fruits to you A. May ship the goods to Sweet Fruits using another trucking company with refrigerated trucks. B. Must refund Sweet Fruits' money and cancel the contract. C. Must wait to ship the strawberries until Keep Kool has fixed its trucks D. Must ship the good through a different carrier and pay Sweet Fruits incidental damages.

A. may ship the goods to Sweet Fruits using another trucking company with refrigerated trucks

Big Beef, Inc. raises calves to sel. 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 A. January, when the contract is signed. B. April, when the calves are conceived. C. February, when the calves are born. D. A reasonable period of time.

B. April, when the calves are conceived

On July 10th, Pet Supply Store orders fifty small dog collars from Quality Collars, Inc. to be delivered by July 15. On July 13, Quality Collars tenders fifty large dog collars. Pet Supply rejects the shipment. Quality Collars has A. No right to cure. B. Until July 15 to cure. C. Until the end of the business day on July 13 to cure. D. Unlimited time to cure.

B. Until July 15 to cure

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp, Inc. Unless the contract states otherwise, it is assumed to be A. None of the choices. B. A destination contract. C. A shipment contract. D. A delivery ex-ship.

C. A shipment contract

Ferris is refinishing his kitchen floor and need a floor sander to complete the job. Ferris's neighbor Gerda suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is A. Ferris. B. Gerda. C. Home Repair. D. None of these parties.

C. Home Repair

Shane's Auto Parts orders twenty tires from Tough Tires, Inc. The truck delivering the tires to Shane's is in an accident and ten of the tires are damaged. Shane's Auto Parts A. Cannot reject the entire shipment. B. Must still pay for all twenty tires at the original contract price C. May inspect the tires and accept the shipment with a reduction in price. D. Must reject the entire shipment

C. May inspect the tires and accept the shipment with a reduction in price

Megan, an agent for a department store, orders one hundred dresses from Sal's Clothing Shop for the Spring Blossom Sale. There's no specific agreement in the sale contract indicating when title will pass to the department store. The title will pass to the department store when A. Megan signs the contract B. Megan and the Sal's Clothing Shop agent sign the contract. C. Sal's Clothing Shop physically delivers the dresses to the department store. D. Megan pays Sal's Clothing Shop for the dresses.

C. Sal's Clothing Shop physically delivers the dresses to the department store

Nature's Products, Inc., sends it standard order form to Omni Distribution Corporation to evidence a sale of packing materials. Omni responds with its own standard purchase order form. Additional terms in the purchase order automatically become part of the contract unless A. The terms materially alter the original contract. B. The original offer expressly required acceptance of its terms. C. The offeror objects to the new terms within a reasonable time. D. Any of these choices.

D. Any of these choices

Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online. "This statement is A. An implied warranty of fitness for a particular purpose. B. An implied warranty of merchantability. C. An express warranty. D. None of the choices.

D. None of the choices

Quaff n' Quench Café buys twenty-five bags of Columbia coffee beans from Roasted Bean Brokers, Inc. The parties agree to ship the oranges not in transit. The loss is suffered by A. Quaff n' Quench. B. Swiftline. C. Columbia D. Roasted Bean

D. Roasted Bean

Toro, S.A., which is based in Mexico, enters into a contract for the purchase of portable livestock fencing from the United States. This contract is governed by A. Mexican law. B. The provisions in the laws of both countries that are similar. C. The Uniform Commercial Code. D. The United States Nations Convention on Contracts for the International Sale of Goods

D. The United States Nations Convention on Contracts for the International Sale of Goods

A bill of lading is a receipt signed by a warehouse for good stored in a warehouse T/F

False

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contract, but may not seek damages. T/F

False

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC. T/F

False

A contract for a sale of real property or services is a contract for a sale of goods. T/F

False

A warranty of good title means that a seller warrants that he or she has valid title to the goods and that transfer of the title is rightful. T/F

True

I identification takes place when specific goods are designed as the subject matter. T/F

True

Statements of fact made during the bargaining process are express warranties. T/F

True