Legal Issues Test 1

Generally the buyer acquires whatever title the seller has to the goods sold.

true

If parties have no agreed on a price, the court will determine a "reasonable price at the time for delivery"

true

Parties to sales or lease contract often obtain insurance coverage to protect against damage, loss, or destruction of the goods.

true

The parties to a sales contract can limit or exclude consequential damages for any commercial loss such as a business's lost profit or property damage.

true

To create an express warranty, a reasonable buyer must regard a seller's representation of fact - for example on a product label - as part of the basis of the bargain.

true

Under regular contract principles, an offer can be revoked at any time before acceptance

true

Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is

a shipment contract

Rice that fills Harvest Co-ops silo is fungible if the rice is

alike naturally, by agreement or by trade usage

Blake, a salesperson for Custom Commercial Kitchens Inc., shows Dylan, a buyer for Eatery Inc., display items in Custom's showroom, stating that any purchased equipment will match the display. This statement is

an express warranty

Brass instruments, Inc., sells seventy six trombones to community band. To avoid liability for most implied warranties, brass should state in writing that the trombones are sold

as is

Bayou Boats, Inc., contracts for the sale of seven swamp boats to eventide fishing tours. Bayou repudiates the contract. Eventides recovery is measured at the time

eventide ordered the goods

A bar of soap is unmerchantable if stepping on it would cause its user to slip and fall

false

If a buyer is required to cover, and a failure to do so, will bar the buyer any other remedies available under the UCC.

false

When the time for performance under a contract expires, the right to cure also expires.

false

if the buyer wrongfully refuses to pay for the goods, the seller can reclaim them and resell them, without crediting the sale proceeds to the buyer.

false

Destruction of goods that were identified in a. contract can excuse both parties from performance

true

In a destination contract the seller agrees to deliver conforming goods to the buyer at a particular destination

True

Risk of loss cannot pass from seller to buyer unless the goods are identified in the contract.

True

When a contract completely sets forth all the terms and conditions agreed to by the parties and is intended as a final statement of their agreement, it is considered

fully integrated

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a flor sander. In this transaction the lessor is

home repair

Bean Processor, Inc., agrees to ship a certain quantity of coffee beans to Coffee Cafe LLC. Bean sends to Coffee an email indicating that the parties intended to form a contract. Against Bean, as a contract, the email will be sufficient

if it is signed by bean

Pipe company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates

the implied warranty of fitness for a particular purpose