Chapters 20-23 HW questions

The United Nations Convention on Contracts for the International Sale of Goods (CISG) was created in

1980s

who temporarily cares for your personal property without passage of title

A bailee is someone:

False

A bill of lading is the seller's invoice.

False

A disclaimer of an implied warranty of fitness must include the word "fitness."

True

Absent an agreement stating otherwise, title passes to the buyer at the time and place the seller delivers the goods

Four

An action for a breach of contract under the UCC must be commenced within how many years after the cause of action accrues?

one party communicates to the other an intention not to perform

An anticipatory repudiation occurs when:

b. the buyer never indicated any special purpose, nor was that special purpose obvious.

An implied warranty of fitness for a particular purpose normally will NOT arise when:

Precedent

An opportunity for inspection is a condition _______ to the right of the seller to enforce payment.

True

Any party purchasing insurance must have a sufficient interest in the insured item to obtain a valid policy. Insurance laws—not the UCC—determine sufficiency.

When does identification take place for existing goods?

At the time the contract is made

False

Because of the nature of warranties, it is impossible for more than one warranty to be created in a single transaction.

Must be in writing

Disclaimer of implied warranty of fitness

Can be given orally

Disclaimer of merchantability

A buyer promises to purchase only what he or she needs, so the promise constitutes a requirements contract.

False

Only ten countries have adopted the CISG.

False

Output and requirements contracts are basically the same thing.

False

The common law of contracts and the Uniform Commercial Code are exactly the same.

False

Under the CISG, an acceptance is effective on dispatch, similar to the rule under the UCC.

False

True

Goods can be merchantable, but at the same time unfit for a particular purpose.

True

If a seller breaches a contract by supplying non-conforming goods, risk of loss will not immediately pass to the buyer.

False

If a seller has attempted to repair or replace defective parts the implied warranty of merchantability no longer applies to those goods.

True

If parties to a contract do not specify when identification of existing goods will take place, UCC provisions will apply.

False

If the seller is a merchant, risk of loss to goods held by the seller passes to the buyer when the buyer signs the contract.

c. samples take precedence over inconsistent general descriptions.

If two warranties on a good are inconsistent:

are reasonably fit for the ordinary purpose for which they are sold

Implied warranty of merchantability means that the goods:

True

In commercially impracticable situations, the perfect tender rule no longer applies.

True

In sales law, a warranty is an assurance or guarantee by the seller or lessor about the quality and features of the goods being sold.

False

In the absence of any specific agreements, the buyer must make payment at the time and place the contract is signed.

True

Merchants are held to a higher standard of performance or duty than are nonmerchants.

at the moment the goods covered by the contract are identified.

Owen buys light fixtures from an online merchant under a contract covered by the UCC. He first receives an insurable interest in the lamp:

True

Parties to a contract can limit or exclude consequential damages, provided the limitation is not unconscionable.

Three of the most common open terms for which the UCC provides numerous provisions to fill the gaps in a contract are:

Price, Payment, Delivery

False

Revocation of acceptance is effective under all circumstances.

Article 2 of the UCC governs

Sale of goods

False

Sellers typically create an express warranty by making representations concerning good title.

False

Someone who purchases goods for fair market value from a seller, but knew the goods were stolen, can still be considered a buyer in the ordinary course of business.

similar to those in the UCC

The Convention on Contracts for the International Sale of Goods (CISG) provides remedies that are:

False

The Magnuson-Moss Warranty Act requires sellers to give a written warranty for all consumer goods sold.

True

The Uniform Commercial Code generally prevents warranties to be disclaimed or limited.

Article 19 of the CISG provides that a contract may be formed even though an acceptance contains additional terms, unless

The additional terms materially alter the contract

a. accept and pay for conforming goods in accordance with the contract.

The basic obligation of a buyer in performing a sales or lease contract is to:

True

The buyer choosing to reject goods must do so within a reasonable amount of time after delivery and must timely notify the seller.

Arises automatically

The general rule regarding the warranty of good title in most sales contracts is that the warranty:

the difference between the contract price and the market price

The measure of damages under the Convention on Contracts for the International Sale of Goods (CISG) normally is:

What is NOT one of the requirements for a merchant's firm offer?

The offer must state the date for all future shipments

b. deliver or hold at the buyer's disposal goods that conform to the contract's terms in every respect.

The perfect tender rule of the UCC generally requires that the seller:

True

The serving of food or drink is treated as a sale of goods subject to the implied warranty of merchantability.

True

The warranty of title called "no liens" protects buyers who purchase goods that are subject to a creditor's security interest.

False

To create an express warranty, a seller must formally use the words "warranty" or "guarantee."

Any goods that are not in existence at the time of the contracting are known as future goods

True

Generally, in the sale or lease of future goods, identification occurs when the seller or lessor ships, marks, or otherwise designates the goods as those to which the contract refers.

True

Identification is significant because it gives the buyer or lessee the rights to insure the goods.

True

If an additional term relates to payment, quality, quantity, price, time, and place of delivery, the CISG considers the added terms as material alterations.

True

In contracts that involve the sale of both goods and services, once a court decides that such a contract is primarily a goods contract, any dispute, even over the services portion, will be decided under the UCC.

True

Unlike the UCC, the CISG does not apply to consumer sales.

True

incidental

Under the UCC, an unpaid seller can bring an action to recover the purchase price plus ______ damages

when the buyer is unable to cover

Under the UCC, when is the right to replevy goods usually available to a buyer?

Sales contracts between parties residing in the United States and foreign countries are typically governed by the:

United Nations Convention on Contracts for the International Sale of Goods (CISG)

False

Void title means the seller has the power to transfer good title to a good faith purchaser for value.

True

When a buyer makes a partial payment for goods still in the possession of a seller who becomes insolvent, the buyer has the right to obtain the goods if they have been identified and the buyer pays any remaining balance.

True

When a title document is required, title passes to the buyer when and where the document is delivered.

- Cancel the contract - Resell the goods and sue to recover damages - Sue to recover the purchase price or lease payments due - Sue to recover damages for the buyer's nonacceptance

When the buyer breaches a contract, the seller has the right to which of the following remedies:

- A delivery is rejected because the goods were nonconforming. - The time for performance has not yet expired. - The seller or lessor provides timely notice to the buyer or lessee of the intention to cure. - The cure can be made within the contract time for performance. e. All of these

Which of the below is required for a seller or lessor to properly exercise a right to cure a defect in delivered goods?

-The buyer or lessee indicates (by words or conduct) to the seller or lessor that the goods are conforming or that he or she will retain them in spite of their nonconformity. - The buyer or lessee fails to reject the goods within a reasonable period of time. - The buyer performs any act inconsistent with the seller's ownership of the goods

Which of the following represents a demonstration of acceptance of goods by a buyer?

A group of blue jeans of different styles

Which one of the following is NOT an example of fungible goods:

- Treat the repudiation as a final breach by pursuing a remedy - Wait to see if the repudiating party will decide to honor the contract

Which two choices does the non-breaching party have when anticipatory repudiation occurs?

True

Without evidence to the contrary, when both parties to a sales contract have knowledge of a well-recognized trade custom, the courts will infer that both parties intended for that custom to apply to their contract.

The Uniform Commercial Code (UCC) attempts to provide:

a framework of rules to deal with all aspects of commercial sales transactions

What is the one requirement that is NOT necessary for a writing (or electronic record) to be sufficient to satisfy the UCC's statute of frauds?

a notary public's signature

Under the UCC, a bill of lading is:

a receipt of goods signed by a carrier and a contract for transportation of the goods

Under the UCC, fungible goods are:

alike naturally or considered alike by agreement or trade usage.

The Uniform Commercial Code has been adopted by:

all of the states in whole or in part

The UCC provides rules of construction for interpreting contracts. When the court considers a construction unreasonable, the UCC establishes the following order of priority. Which of the following expresses the correct order of priority?

express terms, course of performance, course of dealing, usage of trade

When a court determines that a contract was unconscionable at the time that it was made, the UCC allows all of the following EXCEPT which one:

make the parties go through with the contract no matter what

Under the UCC, a contract that contains open terms will be:

valid if the parties intended to form a contract and there is a good basis for a court to grant a remedy