BL EXAM 3 RQ

t/f A product liability action based on negligence requires the injured plaintiff and the negligent defendant-manufacturer to be in privity of contract.

fasle

Fresh Harvest, Inc., agrees to sell to Gina's Bed & Breakfast Inn a certain amount of locally grown produce each week but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at

fresh harvest's place of business

Fun Toyz Corporation makes skateboards, which it sells to consumers, including Gitana. Gitana is injured due to a defect in the board that causes an accident in which Haley, a bystander, is also injured. In a product liability suit based on strict product liability, Fun Toyz may be liable to

gitana and haley

t/f general descriptions take precedence over inconsistent samples

false

t/f In a sale or return, title and risk of loss remain with the seller until the buyer accepts the goods.

false

Amble Country Stables contracts to buy 1,000 horseshoes from Burleigh Blacksmith, Inc., for $1 per shoe. When the market price decreases to 50 cents per shoe, Amble refuses to go through with the deal. Burleigh can recover

$500

Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car. This contract is subject to

article 2A of the UCC

t/f No oral contract is enforceable under the UCC.

false

t/f Once the time for performance under a contract has expired, the seller or lessor loses the right to cure.

false

t/f To avoid strict product liability, a manufacturer must make a product entirely safe for all uses.

false

Delicioso Tea Company and Savory Stores, Inc., enter into a contract for a sale of organic tea. The contract includes the term "F.O.B. River City," which is Savory's location. This means that the contract is

a shipment contract

Musical Tones, Inc., sells fifty MP3 players to Noise Stores, Inc. To avoid liability for most implied warranties, Musical should state in writing that the players are sold

as is

t/f When a lessor refuses to deliver the goods, a lessee can obtain specific performance only if the goods are not unique.

false

Welding Systems, Inc. (WSI), makes welding torches, masks, and related products. A WSI product may be unreasonably dangerous due to

a defect in its design

Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. Refer to Fact Pattern 17-1A. Neil's performance is most likely

a material breach

Jane and Kelly want Lucy to replace Kelly as a party to their contract. They can best accomplish this by

a novation

Rally Corporation enters into a contract to sell ski gear to SnoSportz Company, which sells a pair of the skis to Tyra, a consumer, who later sells them to Uli, another consumer. Article 2 of the UCC applies to the sales transactions between

all of the buyers and sellers

Pressing Music, Inc., offers to buy from Digital Media Corporation (DMC) one million blank CDs of a certain quality. Without notifying Pressing, DMC timely ships CDs of a different quality. With respect to the offer and a possible contract, this shipment is

an acceptance and a breach

Horizon Corporation makes cell phones. Ginvera files a product liability suit against Horizon, alleging a design defect. Under the Restatement (Third) of Torts: Products Liability, in deciding whether to hold Horizon liable, the court may consider the "reasonableness" of

an available alternative design

Parker, a salesperson for Quality Textiles, Inc., shows Rosa, a fabric buyer for Style Clothing Company, samples of cloth, stating that any shipment will match the samples. This statement is

an express warranty

Recycle Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Organic Dairy Company. Recycle can obtain only 20,000 of the 6-ounce containers, but also ships 30,000 more expensive 8-ounce containers for the same price. Organic rejects the 8-ounce containers. With time for performance not yet expired, Recycle can

attempt to cure the defect

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bushels of apples. Refer to Fact Pattern 17-2A. When the market price for apples exceeds the price in the contract with Hill & Dale, Evelyn decides not to deliver the apples. Evelyn's contract with Hill & Dale is

breached

t/f Express warranties displace inconsistent implied warranties with no exception.

false

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m. and 6 a.m. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been

complete

Belle enters into a contract to subdivide and sell housing lots in Colin's hillside field if Dell City annexes the property within the next year. Belle's duty to perform is

conditional

Dorothy eats a candy bar made and sold by Eastwich Candy Corporation and becomes ill. Dorothy files a suit against Eastwich, alleging that the candy bar was not merchantable. Merchantable food is food that is fit to eat on the basis of

consumer expectations

Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. Refer to Fact Pattern 17-1A. With respect to Mutual's duties, Neil's performance most likely

discharges mutual from the contract

Overseas Corporation (OC), a U.S. firm, orally agrees to sell six freezers to Pisa Pizza, Ltd., in Italy. OC fails to deliver. Under the CISG, Pisa Pizza can

enforce the argument

Dwayne, an electrician, files a suit against Electro Mechanix, Inc., alleging that its circuit breakers are unreasonably dangerous due to the possibility of electrical shock. Dwayne's suit is most likely to

fail, because Dwayne is a knowledgeable user

t/f A breach of contract occurs only when a party fails to perform all of his or her duties under a contract.

false

t/f A lessee acquires whatever title the lessor has to the goods.

false

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

Cleo sells kitchen appliances to persons who come into her store, Buy n' Sell Appliances. One afternoon, Cleo sells a used display shelf to Earline. At a garage sale at her home, Cleo sells a used sofa to Flavia. Under the UCC, Cleo is a merchant of

kitchen appliances only

Nature's Foods, Inc., orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers. Olive Grove ships "Grade B" oil, which Nature's Foods accepts. To recover damages for the nonconformity, Nature's Foods must give notice of the breach within a reasonable time to

olive grove

Sea Locate, Inc., makes and sells marine navigation equipment, through independent salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act covers

only a seller's written promise

Lark enters into a contract to mine limestone in Milena's quarry, sell it, and share the profits on its sale with Milena. If the duties under this contract are discharged like those under most contracts, the duties will be

performed

Oven Products Company makes microwave ovens. Pico discovers that his Oven Products oven is defective and sues the maker for product liability based on strict liability. To win, Pico must show that

pico suffered an injury caused by a defect

Pie Sales Corporation orders ReadyMade-brand pies from Savory Foods Company. Savory identifies the goods. Before they are shipped to Pie Sales, an insurable interest in the goods exists in

pie sales and savory foods

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle. Esau cancels the contract ten days later. Double D is unable to sell the cattle to another buyer. Double D can

recover the contract price from Esau and keep the cattle

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks, Inc., but refuses to deliver. Due to a spice shortage, Roller Rinks cannot obtain pizza elsewhere. Roller Rinks's right to recover the goods from Cheesy is the right of

replevin

Uri sells 100 cases of vitamins to Wanda, but before she 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

Commercial Construction, Inc. (CCI), contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1. On June 1, Rita's bank is closed, and for this reason, Rita's claims it cannot pay on time. In this situation

rita's is in breach of a contract

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bushels of apples. Refer to Fact Pattern 17-2A. A strike delays delivery of the apples by ten days. Evelyn's contract with Hill & Dale is

suspended

Safe-T-Made Company makes electrical cords and other connectors for electronic devices. Rowena files a product liability suit against Safe-Rite, alleging a warning defect. Under the Restatement (Third) of Torts: Products Liability, in deciding whether to hold Safe-T-Made liable, the court may consider

the characteristics of expected users

Olisa enters into a contract to buy a stove from Pay-to-Own Appliance store with the price to be paid in monthly installments. After thirty-six months of payments, Olisa has paid more than twice the price of a similar stove. Eighteen payments remain due under the contract. Refer to Fact Pattern 19-1A. Olisa files a suit against Pay-to-Own, claiming that their contract is so unfair and one sided that it would be unreasonable to enforce it. Olisa is asserting

the doctrine of unconscionably

Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel, including the land, building, furnishings, shares of stock in Suite Dreams Company, and a contract with Trudy to create an ad campaign. Reba suspects that Quinn may be misrepresenting the facts. The UCC Statute of Frauds governs the sale of

the furnishings priced at $500 or more

Suki leaves a Update-brand watch at Timepiece Sales & Repair to be fixed. Timepiece sells the watch to Vera, who does not know that the watch belongs to Suki. Suki can recover from

timepiece

An action in strict product liability requires that the defendant fail to exercise reasonable care.

true

UCC Article 2 applies to sales transactions between all buyers and sellers.

true

t/f A contract is discharged when a change in the law renders the performance illegal.

true

t/f A seller with voidable title can transfer good title to a good faith purchaser for value.

true

t/f Certain provisions of UCC Article 2A apply only to consumer leases.

true

t/f In most contracts, promises of performance are not expressly conditioned.

true

t/f The UCC's good faith provision can never be disclaimed.

true

Twyla buys a Voracious-brand bicycle from U-Pik-It Bike Store, which agrees to keep the bike for Twyla until she picks it up. Before Twyla gets the bike, a fire destroys the store and the bike. The loss of the bike is suffered by

u-pik=it