BLAW 420

A licensee for purposes of tort law is a person invited upon land as a member of the public or for a business purpose.

False

A merchant receives nonconforming goods, rightfully rejects and appropriately notifies the seller, but the seller has no agent in the buyer's city. The goods are perishable and will decline in value speedily. The merchant buyer has no further duty to the seller other than to await the seller's instructions.

False

A commercial unit may be a group of items, such as a dozen pairs of socks. true false

True

A contract that is FOB Dallas where the seller is in Chicago and the buyer is in Dallas is a destination contract.

True

A widely applied test for causation in fact is the "but-for" test.

True

After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods.

True

The buyer's payment or tender of payment, unless otherwise agreed, is a condition to the seller's duty to tender and to complete delivery.

True

Unless otherwise agreed, the buyer has the right to inspect the goods before making payment.

True

If no definite time for delivery is fixed by the terms of the contract, delivery: a.and acceptance must happen within a reasonable amount of time. b.must be immediate. c.must begin within 10 days of the contract. d.will not take place.

a. and acceptance must happen within a reasonable amount of time.

In general, which of the following will not terminate an offer? a. An inquiry by the offeree as to size or materials b. An acceptance that adds a material term c. The death of the offeree d. The death of the offeror

a. An inquiry by the offeree as to size or materials

Stella goes to Lakeview Department Store to look for clothes. The store is in the process of remodeling, and there is a lot of clutter in the aisle. Stella trips over the clutter and breaks her leg. What standard of care does the store have toward Stella under the circumstances? a. Because Stella is a business visitor, the store must exercise reasonable care to protect her against dangerous conditions she is unlikely to discover. b. None, because she came to the store voluntarily. c. Because she is a licensee, the store must warn her of hazards of which the store knows but which Stella is not likely to discover. d. The store owes her a duty of only ordinary care, because she is a trespasser.

a. Because Stella is a business visitor, the store must exercise reasonable care to protect her against dangerous conditions she is unlikely to discover.

Chad has offered to take Miles into his accounting firm as a partner upon payment of $5,000 cash. In response, Miles says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership." In this case: a. Miles has made a counteroffer; hence there is no contract. b. any indefinite provisions in the contract between Chad and Miles will be supplied by Article 2 of the UCC. c. Chad is a merchant making a firm offer under Article 2 of the UCC. Hence there is a contract. d. Miles has rejected the terms of the original offer, but there is still a contract.

a. Miles has made a counteroffer; hence there is no contract.

Noel and Lyle have a contract whereby Noel is to perform routine construction services according to the blueprints that Lyle has provided. Noel assigns the contract to David. As a result of this assignment: a. Noel no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform. b. Noel has all of his rights under the contract, but he has no responsibility for the performance of the duties. c. Lyle can bring suit based upon detrimental reliance. d. Noel has no more rights or responsibilities with regard to the contract.

a. Noel no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform.

Which of the following generally is not grounds for discharge of a contract by operation of law? a. Running of the statute of limitations b. Bankruptcy c. Objective impossibility d. Subsequent illegality

a. Running of the statute of limitations

If the goods that are the subject of a sale are in the possession of a bailee and are to be delivered without being moved, when does the risk of loss pass to the buyer? a. When the buyer receives a negotiable document of title or a nonnegotiable document of title is tendered to the buyer b. When the seller tenders a negotiable document of title c. When a negotiable or nonnegotiable document of title is tendered to the buyer d. When the seller tenders a negotiable or nonnegotiable document of title

a. When the buyer receives a negotiable document of title or a nonnegotiable document of title is tendered to the buyer

Alex tells Mona that he thinks her ring is very valuable and that he would like to take it to be appraised. She gives him the ring, and he quickly sells it to unsuspecting Hanna's Antique Jewelry Shop for $1,000. A week later, Mona discovers her ring on sale for $2,000 at Hanna's and uncovers the story. Can Mona get the ring back? a. Yes, since Alex had no title to the ring b. Yes, a true owner can always recover his or her own property c. No, since Alex had voidable title to the ring and Hanna was a good faith purchaser d. No, since Hanna has paid for the ring

a. Yes, since Alex had no title to the ring

Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy. Maxine: a. has revoked her offer to Tom. b. must sell Tom a video camera for $200 because she made a firm offer to him. c. must get the camera back from Cindy if Tom accepts within two weeks. d. Both (b) and (c) are appropriate alternatives in this case.

a. has revoked her offer to Tom.

The most important element in determining whether a sales contract has been made is the: a. intention of the parties to make a contract. b. fact that the terms of the offer and acceptance are exactly alike. c. language of the contract. d. number of open terms.

a. intention of the parties to make a contract.

Under the ____, a buyer may reject goods for even the slightest defect. a. rules for inspection b. perfect tender rule c. revocation of acceptance rule d. excuses for nonperformance

b. perfect tender rule

Cal sprayed pesticide on his crops in a very careful manner on a windless day. Nevertheless, some of the pesticide spray fell on his neighbor's side of the fence and contaminated the feed for the chickens. The chickens died, and the neighbor sues. What is the likely result? a. Cal is not liable for the damage because of contributory negligence. b. Cal is liable because spraying pesticides is an abnormally dangerous activity. c. Cal is not liable because he was not negligent in his spraying operation. d.Cal is not liable because the neighbor assumed the risk of damage to the feed by placing it so close to the fence.

b. Cal is liable because spraying pesticides is an abnormally dangerous activity.

Tate enters into a contract with Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence? a. Quasi contract b. Executory contract c. Illusory contract d. Executed contract

b. Executory contract

Who among the following is most likely not considered a merchant according to Article 2 of the UCC? a. Jan who is not knowledgeable about selling sailboats, but employs an experienced person in the trade. b. Kay who sells her 3-year-old fishing boat to her neighbor. c. Jim who owns a wholesale auto parts business. d. Tom who, as a hobby, builds and sells birdhouses on the weekends.

b. Kay who sells her 3-year-old fishing boat to her neighbor.

Inga runs a Swedish health spa in Connecticut. She orders 100 loofah sponges from a company in California. They are sent "F.O.B. Hartford, Connecticut," but they never arrive at Inga's. What consequence? a. It cannot be determined from the information given who has the risk of loss. b. The California company is required to bear the loss since the sponges had not yet reached the F.O.B. point. c. The California company and Inga will have to split the loss since they did not specify in their contract when the risk of loss would pass to Inga. d. Inga has to pay anyway since it was a destination contract.

b. The California company is required to bear the loss since the sponges had not yet reached the F.O.B. point.

Which of the following is true regarding unconscionability under the Code? a. It is defined in Article 2 as "monstrously extortionately harsh, showing no regard for conscience." b. The Code denies or limits enforcement of an unconscionable contract for the sale of goods. c. The Code allows for the cancellation of an unconscionable contracts, but not for payment of attorney's fees. d. Unconscionability may be substantive, but it cannot be procedural.

b. The Code denies or limits enforcement of an unconscionable contract for the sale of goods.

Alice offers to sell her computer, monitor, and printer to Bradley for $300. Bradley says he will accept provided that Alice includes her word processing software. What is the status of their discussions? a. There is no contract, because the time for delivery has not been decided. b. There is no contract, because Bradley has made a counteroffer. c. There is no contract, because the offer has been revoked by the offeror. d. There is a valid contract for the computer, the monitor, the printer, and the software.

b. There is no contract, because Bradley has made a counteroffer.

Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct? a. Violet may disaffirm the contract at any time. b. Violet may not disaffirm the contract. c. Violet may disaffirm the contract when Tim becomes an adult. d. Tim may ratify the contract at any time during his minority.

b. Violet may not disaffirm the contract.

If no time is specified for the acceptance of an offer, the offer terminates after: a. 24 hours. b. a reasonable period of time. c. 48 hours. d. two weeks.

b. a reasonable period of time.

The way parties usually show mutual assent is by: a. an act exchanged for an act. b. an offer by words or conduct and an acceptance by words or conduct. c. a proposal in words and an acceptance in words. d. an offer and a counteroffer.

b. an offer by words or conduct and an acceptance by words or conduct.

Under Article 2 of the UCC, which of the following would be considered a sale? a.Bill lends his car to his friend. b.Bill trades his car for a motorcycle. c.Bill puts up his car as security for a $500 loan. d.Bill gives his car to his sister.

b.Bill trades his car for a motorcycle.

If destruction or casualty to goods, total or partial, occurs after risk of loss has passed to the buyer, who is responsible for losses? a.The buyer if the loss is partial; both parties share the loss if it is total b.The buyer, who must pay the entire contract price of the goods c.The seller d.The carrier delivering the goods

b.The buyer, who must pay the entire contract price of the goods

Mary purchased a dining room table and chairs from Baymore Co. It was defective and Baymore has tried unsuccessfully for the past four weeks to repair the defects. Mary may revoke her acceptance as long as she: a.inspected the goods herself. b.notifies Baymore of the revocation. c.does not use the table and chairs. d.could not discover the defects easily.

b.notifies Baymore of the revocation.

Which of the following is not a requirement of the statute of frauds provision of Article 2 of the UCC? a. Some writing or record that indicates a contract has been made b. A term specifying quantity c. A term specifying price d. Signature of the party against whom enforcement is sought

c. A term specifying price

Which of the following is NOT always necessary in order for a valid contract to be formed? a. Competent parties b. Legality of purpose c. A writing d. Mutual assent

c. A writing

Adam doesn't like having neighborhood teenagers walk across his yard at night. He rigs an animal trap on the path the teenagers usually use to cross his land. One night, Tim and his friends are walking across the yard when Tim gets caught in the trap. He is taken to the hospital for his injuries. In this case: a. Tim is a trespasser on Adam's property, and Adam has the right to use animal traps to strongly discourage anyone from trespassing. b. Adam has no duty toward Tim. c. Adam is not free to inflict intentional injury on a trespasser. d. All of these.

c. Adam is not free to inflict intentional injury on a trespasser.

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may: a. await performance for a reasonable time. b. resort to any remedy for breach. c. Both of these options. d. None of these options.

c. Both of these options.

Community Hospital in Atlanta entered into a contract to buy delicate lab equipment from D & D Company in Denver. The contract states shipping terms as FOB, Denver. While in transit the equipment was damaged beyond repair by the carrier, Fly-by-Nite Air Lines. The carrier is in weak financial condition and refused to pay for the equipment. In this case: a. D & D Company and Community Hospital will share the loss equally. b. D & D Company must replace the equipment at no cost to the hospital. c. Community Hospital has risk of loss. d. risk of loss will depend on which party chose Fly-by-Nite as the carrier.

c. Community Hospital has risk of loss.

Donald, a minor, makes a contract with Albert, an adult, to buy a computer. One week later, Donald has his eighteenth birthday. If shortly thereafter Donald tells Albert he will pick up the computer the next week: a. Donald can change his mind and avoid the contract, because it was made when he was a minor. b. the contract must be renegotiated, because Donald was a minor when it was made. c. Donald has expressly ratified the contract. d. the contract is void ab initio, because Donald was a minor at the time it was made.

c. Donald has expressly ratified the contract.

Which of the following is not generally required in order to have a valid contract? a. A lawful purpose b. Parties who have contractual capacity c. Fairness of the bargain d. Mutual assent

c. Fairness of the bargain

Growingreen, a gourmet fresh food store, orders 100 lbs. of peaches from Western Fruits "on approval." Growingreen has never dealt with Western before this transaction. Since it only sells the highest quality fruits, Growingreen asked for and received these special terms. The peaches arrived on Saturday, but the owners of Growingreen were too busy to open the crates. Sunday they are closed. Monday at 4 p.m., they opened the boxes and inspected the peaches. They did not meet the high standards of Growingreen, so they nailed the crates shut and ordered a truck to return them the next day. They arrived at Western on Thursday, totally spoiled, a week after they were sent. This is the first time Western knew they were not being accepted. Who is responsible for the damages to the peaches? a. Western, because they agreed to take the goods back b. Growingreen; the risk of loss was on them when the peaches arrived c. Growingreen, since it did not, within a reasonable time, notify Western of its election to return the peaches d. Western, since they retained the risk of loss until approval

c. Growingreen, since it did not, within a reasonable time, notify Western of its election to return the peaches

In which of the following situations will a court grant specific performance? a. Where goods have been identified to the contract. b. Where goods are mixed with other goods of the same type. c. In a case involving breach of contract for the sale of real property or rare goods. d. In contracts for personal services.

c. In a case involving breach of contract for the sale of real property or rare goods.

Although he knows the ring is really valuable, Alex tells Mona her ring contains artificial gems, but he would be willing to buy it for $50. Mona agrees. Alex quickly takes the ring to Hanna's Antique Jewelry Shop and sells it for $1,000. A month later, Mona sees her ring on sale for $2,000 at the shop. Is Mona entitled to get the ring back? a. No, since Mona was an entruster. b. Yes, she is the true owner of the ring since she was defrauded. c. No, since Alex had voidable title to the ring and Hanna was a good faith purchaser. d. Yes, since Alex had void title to the ring.

c. No, since Alex had voidable title to the ring and Hanna was a good faith purchaser.

Which of the following is not true regarding the contracts of intoxicated persons? a. Contracts made while a person is too intoxicated to act in a reasonable manner may be ratified when the intoxicated person regains his capacity. b. The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. c. Slight intoxication will destroy one's contractual capacity. d. If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable.

c. Slight intoxication will destroy one's contractual capacity

With regard to uncertainty in a contract that falls within the scope of Article 2, which of the following is true? a. Missing terms cannot be supplied at a later date. b. Uncertainty will usually make the contract unenforceable. c. Uncertainty as to incidental matters will seldom be fatal as long as the parties intend to form a contract. d. Missing terms will cause the contract to be voidable, but the parties will have a chance to fill them in later.

c. Uncertainty as to incidental matters will seldom be fatal as long as the parties intend to form a contract.

A sequence of previous conduct between a buyer and a seller, which may be regarded as establishing an understanding for interpreting an agreement between the two parties, is known as: a. good faith. b. a course of performance. c. a course of dealing. d. usage of trade.

c. a course of dealing.

In dealing with unconscionability: a. courts have not considered inequality in the bargaining positions of the parties. b. courts have applied the doctrine to the negotiation process, which involves substantive unconscionability. c. most cases have involved low-income consumers. d. courts have demonstrated an unwillingness to limit freedom of contract.

c. most cases have involved low-income consumers.

Damages for reliance include expenses for: a. punishment of the breaching party. b. injury to the person. c. preparing to perform. d. lost profits.

c. preparing to perform.

The Code defines ____ as "honesty in fact in the conduct or transaction concerned." a.unconscionability b.entrusting c.good faith d.merchantability

c.good faith

To which of the following does a property owner owe the highest duty of care? a. A stranded motorist who comes onto the property to seek help b. A social guest and close friend who have come to the house for a party c. A neighbor who comes over uninvited to use a backyard lounge chair d. A client who has come to an accountant's office in a building which the accountant owns

d. A client who has come to an accountant's office in a building which the accountant owns

Express contracts and implied contracts are: a. both genuine contracts. b. equally enforceable. c. voidable for lack of capacity. d. All of these.

d. All of these.

Russell promises Marty $1,500 if he will completely landscape Russell's yard. Which of the following would discharge Russell's obligations to pay under this contract? a. Russell isn't satisfied with Marty's design. b. Marty leaves a one-foot strip of land barren. c. Marty doesn't begin work on the landscaping until after he finishes two other jobs. d. Marty doesn't plant any flowers, shrubs, or grasses.

d. Marty doesn't plant any flowers, shrubs, or grasses.

Meg has contracted to paint a portrait of Julio, but dies before completing the portrait. Which of the following is correct? a. A novation must be entered between Julio and a third person in order to discharge Meg's duty under the contract. b. Meg's contractual duty is discharged due to subjective impossibility. c. Meg's executor must find a capable artist to complete the work to Julio's satisfaction. d. Meg's contractual duty is discharged due to objective impossibility.

d. Meg's contractual duty is discharged due to objective impossibility.

Chris was driving a car with defective brakes very slowly down Fifth Avenue looking for a parking place. Mindy jumped out into the street five feet in front of his car. Chris could not avoid hitting her. What is Chris's best defense to the charge of negligence? a. Chris was not negligent since he did not have a statutory duty to keep his brakes in top condition. b. Mindy had a mental deficiency. c. Chris was lawfully seeking a parking place and did not see her jump out. d. Mindy illegally crossed in the middle of the street, which was a superseding cause of the accident.

d. Mindy illegally crossed in the middle of the street, which was a superseding cause of the accident.

Which of the following transactions is governed by Article 2 of the UCC? a. The sale of an apartment complex b. A contract to receive medical services in a hospital c. The sale of common stock of a soft drink company d. The sale of oranges to be picked from a 10-acre grove

d. The sale of oranges to be picked from a 10-acre grove

James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege. Jennifer pays James $100. Which statement describes the payment of $100? a. A unilateral contract has been formed. b. This is a formal contract. c. An implied in fact contract has been formed. d. This is an option contract.

d. This is an option contract.

In ____ the goods are sold and delivered to the buyer with an option to return them to the seller. a. entrusting to a merchant b. a bailment c. a sale on approval d. a sale or return

d. a sale or return

Violation of a statute designed to protect underage, unlicensed drivers, as well as innocent third parties, from the consequences of juvenile car theft and "joy riding" by prohibiting car owners from leaving the keys in their cars if the cars are unattended, is likely to be characterized as: a. contributory negligence. b. assumption of risk. c. res ipsa loquitur. d. negligence per se.

d. negligence per se.

In a sale on approval: a. title but not possession is transferred to the buyer for a stated period of time. b. possession and title are transferred to the buyer for a stated period of time. c. title but not risk of loss remains with the seller until the buyer accepts the goods. d. possession but not title is transferred to the buyer for a stated period of time.

d. possession but not title is transferred to the buyer for a stated period of time.

While driving his car five miles over the speed limit, Carl struck Darla, who was jaywalking across the street. Darla sues and when the case comes to trial, the jury determines that Carl was 60% negligent and that Darla was 40% negligent. Darla's damages for injuries are $10,000. If this accident occurred in a state following the comparative negligence theory of recovery, Darla will: a. recover $4,000. b. not recover anything. c. recover $10,000. d. recover $6,000.

d. recover $6,000.

Edna orders a set of china from Northwestern Catalog. Northwestern sends the dishes by UPS. The contract does not specify when payment is to be made. Edna must pay when: a. she receives notification that the goods have been shipped.. b. Northwestern takes the goods to UPS. c. she orders the goods from Northwestern. d. she gets the goods from UPS.

d. she gets the goods from UPS.

Barbara, a wealthy widow, promises the pastor of her church that she will donate $20,000 to the church to help pay off its mortgage if the stewardship committee can obtain enough pledges for the balance of the $80,000 mortgage. Other pledges are obtained to pay off the mortgage, but now Barbara has changed her mind and plans to take an around-the-world cruise instead. In this case: a. under the Restatement, Barbara's promise is enforceable only if it is in writing. b. Barbara's promise is not enforceable because the church did not give consideration. c. the promise to pay $20,000 is a promise to give a gift and is therefore not enforceable. d. the doctrine of promissory estoppel can be applied.

d. the doctrine of promissory estoppel can be applied.

Shirley hears about a reward being offered by the local television station for information leading to the arrest and conviction of a local rapist. She supplies the requested information, and the suspect is then arrested and convicted. In this case: a. Shirley was just doing her duty as a citizen and has no right to the payment of any money. b. because Shirley failed to notify the station of her intention to supply the information before actually doing so, she has not accepted their offer. c. Shirley cannot collect the money unless the offer was specifically made to her by the station. d. the offer by the television station was an offer made to the general public to enter into a unilateral contract, which offer Shirley has accepted.

d. the offer by the television station was an offer made to the general public to enter into a unilateral contract, which offer Shirley has accepted.

A "sale," as defined by the UCC, takes place when: a. the price is paid. b. there is a manifestation of mutual assent. c. the parties shake hands or affirmatively agree. d. the title is transferred to the buyer.

d. the title is transferred to the buyer.

Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy. This contract is: a. voidable. b. valid. c. voidable only at the option of Anna. d. void.

d. void.

The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract. True False

false

A social guest is a public invitee.

False

If negligence of the plaintiff and negligence of the defendant proximately caused the injury and damage sustained by the plaintiff, the plaintiff can recover some damages in those states where contributory negligence is still recognized.

False

If no place of tender is indicated by the contract, it is presumed delivery is to be made at the buyer's place of business. True False

False

In a "no arrival, no sale" contract, the seller is responsible to the buyer for the goods' failure to arrive.

False

Tender can be made any time of the day or night when the seller feels like delivering the goods. True False

False

The Code does not excuse performance based upon commercial impracticability. True False

False

The seller's tender of performance does not have to conform to the Code's perfect tender rule. true false

False

There is an established rule in the law of torts that even one who has not created a peril has a duty to take affirmative action to assist an imperiled person when there is little or no personal risk to the rescuer.

False

When the nonconformity or default substantially impairs the value of the installment but not the value of the entire contract, the buyer can reject the installment, even if the seller gives adequate assurance of the installment's cure.

False

evocation following an acceptance of the goods gives the buyer fewer rights than he would have had if he had at first rejected the goods. True False

False

In a contract that provides that the sale is F.O.B. Chicago, the seller must at his own expense and risk transport the goods to Chicago and there tender delivery to the buyer.

True

In an action for negligence, five elements must be proved: a duty of care, breach of that duty, factual cause, harm, and proximate cause.

True

In an installment contract, the buyer may reject any nonconforming installment if the nonconformity substantially impairs the value of that installment and cannot be cured.

True

In the absence of agreement, payment is due at the time and place the buyer is to receive the goods, even though the place of shipment is the place of delivery.

True

In the majority of states, in a case of negligence per se the plaintiff would only have to prove violation of a statute in order to show negligent conduct.

True

On April 1, Marco bought a sailboat from a local marina. Though the boat was defective and did not turn about properly, Marco used it extensively all summer and it was no longer in the same condition as when it was bought. By the end of the summer, Marco had waived his right to revoke acceptance. True False

True

Rightful rejection must be made within a reasonable time after the goods have been tendered or delivered. True False

True

Special relations between the parties, such as babysitter and child, may impose a duty of reasonable care to aid or protect the child in situations where the duty would not otherwise exist.

True

Ted is informed that his eight-year-old child is shooting in the street with a .22 rifle. Ted fails to take the gun away from the child. The child unintentionally shoots Carlton, a pedestrian. Ted is liable to Carlton.

True

The Code provides that where neither party is at fault and the agreed manner of delivering the goods becomes commercially impracticable, a substituted manner of performance, if commercially reasonable, must be tendered and accepted.

True

The general rule in negligence is that a person is under a duty to all others at all times to exercise reasonable care for the safety of others.

True

The standard of conduct to which a child must conform to avoid being negligent is that of a reasonably careful person of the same age, intelligence, and experience under the circumstances..

True

Under the CISG, if prior to the date for performance of the sales contract it is clear that one of the parties will commit a fundamental breach, the other party may declare the contract avoided. True False

True

Workers' compensation is a form of strict liability.

True

In which of the following situations does the seller have the right to cure? a.Where the time for performance under the contract has not yet expired b.After the time for performance has expired if the seller didn't have any conforming items to tender c.Where the buyer has revoked acceptance d.All of these.

a. Where the time for performance under the contract has not yet expired

Steven intentionally makes a material misrepresentation of fact regarding his motorcycle to Thelma who agrees to buy the motorcycle based upon the misrepresentation. This contract is: a. voidable. b. executed. c. unenforceable. d. void.

a. voidable.

Gary, a partner in G & R Enterprises, went to a trade show and discussed with a manufacturer's representative of Foods 4 U, Inc. the purchase of three dozen food processors. A week after the trade show Gary received a signed letter from the representative thanking Gary for visiting his booth and saying Gary's order for three dozen Style 418B food processors at $90 each would be shipped to his business address within 30 days. Can Gary be contractually bound to accept and pay for the food processors? a. If Gary does not object in writing within ten days after receiving the letter, he can be bound to accept and pay for the three dozen food processors. b. Gary did not sign an order form, and an order this large would have to be in writing and signed by Gary to be enforceable. c. If, after he returns from the trade show, Gary decides he only wants to purchase twelve food processors, he would not have to pay for three dozen if they are shipped to him as long as he notifies Foods 4 U of the change in quantity before it ships the goods. d. The letter is not sufficient to bind either Gary or Foods 4 U, Inc. to the purchase and sale of the food processors.

a. If Gary does not object in writing within ten days after receiving the letter, he can be bound to accept and pay for the three dozen food processors.

Jack is a guest in Harry's home. While there, he goes into the library and picks up a music box that is part of Harry's collection. Jack overwinds the stem and it breaks. Hoping Harry won't notice, Jack takes the music box for repair to a jeweler who sells similar ones. The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it to Robert. Jack is frantic. Can Harry get the music box from Robert? a. Yes, Robert has assumed only Jack's title, which is no title at all b. No, the jeweler was not a merchant with regard to the music box c. No, the jeweler gives good title to a bona fide purchaser for value d. Yes, Robert was not a buyer in the ordinary course of business

a. Yes, Robert has assumed only Jack's title, which is no title at all

Zander, a seller in Miami, enters into a contract which states that goods are to be delivered to Xavier, a buyer, in New York. Title is to remain with Zander until delivery to Xavier. This is: a. a destination contract. b. an FOB Miami contract. c. a shipment contract. d. a contract voidable by the buyer until delivery.

a. a destination contract.

Walter stole a laptop computer and then sold it to his friend Ivan for $100. Ivan has: a. a void title to the laptop computer. b. good title to the laptop computer if he is a good faith purchaser for value. c. a voidable title to the laptop computer. d. good title to the laptop computer, because he paid for it.

a. a void title to the laptop computer.

An offer need not take any particular form to have legal validity. To be effective, however, it must: a. be communicated to the offeree. b. always contain the place of delivery. c. be spoken directly to the offeree. d. always contain the price of the product or service offered.

a. be communicated to the offeree.

Ari makes a written offer to Linville, who replies with a conditional acceptance. Ari ships the goods, which Linville accepts. A contract: a. consists of the written terms to which Ari and Linville agreed, along with supplementary provisions of the UCC. b. was never formed. c. was formed when Linville conditionally accepted. d. consists only of the written terms to which Ari and Linville agreed.

a. consists of the written terms to which Ari and Linville agreed, along with supplementary provisions of the UCC.

A(n) ____ contract is one in which the parties have manifested their agreement by oral or written language, or both. a. express b. implied c. formal d. executory

a. express

Abe is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Abe is treated at the hospital and released a day later. The hospital sends him a bill for $2,400, which Abe refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious. Abe: a. has a quasi-contractual agreement with the hospital. b. has entered into an implied in fact contract with the hospital. c. and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill. d. has entered into a unilateral contract with the hospital and therefore will have to pay the bill.

a. has a quasi-contractual agreement with the hospital.

David enters into a contract to give Edward the right of first refusal to purchase a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward. An appropriate remedy for Edward to seek would be: a. injunction. b. liquidated damages. c. punitive damages. d. reformation.

a. injunction.

Under the UCC, identifying goods to which a contract refers gives the buyer a special property interest which permits the holder to: a. insure the goods. b. sue the seller for improper treatment of the goods. c. immediately transfer title to the goods. d. take immediate possession of the goods from the seller.

a. insure the goods.

A misrepresentation is material if: a. it would likely induce a reasonable person to enter into a transaction. b. it changes the price paid by the buyer. c. it is made knowingly. d. All of these.

a. it would likely induce a reasonable person to enter into a transaction.

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is: a. reformation. b. injunction. c. rescission. d. specific performance.

a. reformation.

Knecht contracts to sell $20,000 of goods to Morales. Later, Morales hears from another supplier that Knecht is having financial trouble, and Morales is concerned that Knecht will not be able to fill his order. If Morales has reasonable grounds for insecurity about Knecht's contractual performance: a.Morales may demand written assurance of performance from Knecht before the contract delivery date, and Knecht must provide adequate assurance within a reasonable time not exceeding 30 days. b.Morales may demand assurance of performance from Knecht, and Knecht must provide adequate assurance within ten days or the contract is repudiated. c.Morales has no recourse except to wait for the contractual delivery date and, if Knecht fails to deliver, Morales can then sue for breach of contract. d.the statement by the other supplier creates an anticipatory repudiation which allows Morales to avoid the contract.

a.Morales may demand written assurance of performance from Knecht before the contract delivery date, and Knecht must provide adequate assurance within a reasonable time not exceeding 30 days.

Under the CISG: (contracts for international sale of goods) a. if the seller does not perform on time, the buyer may fix an additional, reasonable period of time for performance. b. the seller has no right to cure a defective delivery. c. the seller may, even after the date for delivery, cure a defective performance if it can be done without unreasonable delay. The buyer cannot claim damages for delay as long as the cure was within a reasonable time. d. the seller has a limited right to cure a defective performance, but only before the date for delivery specified in the contract.

a.if the seller does not perform on time, the buyer may fix an additional, reasonable period of time for performance.

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract? a.Only after an express acceptance b.Through a failure to reject after he has had a reasonable opportunity to inspect them c.Only by conduct that shows the buyer's willingness to become owner of the goods d.Immediately upon delivery

b. Through a failure to reject after he has had a reasonable opportunity to inspect them

Which of the following would most probably be considered a valid offer? a. "I'd give $50 for a cold glass of water." b. "$100 reward for return of lost white-gold, men's wedding band inscribed with initials 'TEA' to Tony Adams, 350 Main Street, Peoria." c. "Special sale on DVRs today - $200 each." d. "Would you like to buy this?"

b. "$100 reward for return of lost white-gold, men's wedding band inscribed with initials 'TEA' to Tony Adams, 350 Main Street, Peoria."

Mary agrees to sew Georgia's prom dress for $50 plus costs. Georgia decides that she wants ruffles around the neck and calls Mary who says it will now cost $60. When Mary finishes the dress (with ruffles), Georgia must pay: a. $50, since that is the original agreement. b. $60, since the modified agreement is supported by additional consideration. c. $50, since a modification must be in writing. d. $60, since any subsequent agreement is enforceable.

b. $60, since the modified agreement is supported by additional consideration.

Amanco is to deliver to D & R Wholesalers 50 dozen wire-rim glasses frames by October 15. On October 2, Amanco delivers 30 dozen wire-rim frames and 20 dozen plastic frames. If D & R rejects the frames: a. Amanco has no opportunity to cure the defect since it exhibited bad faith in not sending goods specified in the original contract. b. Amanco has until October 15 to cure the defect if it notifies D & R of its intention to do so. c. the contract is automatically voided since the goods were nonconforming. d. D & R need not notify Amanco of its rejection of the nonconforming goods in order for the rejection to be effective since Amanco should know the goods did not meet the contract specifications.

b. Amanco has until October 15 to cure the defect if it notifies D & R of its intention to do so.

Andrew agrees to paint Betty's house for $500. Two days after he starts the job, he decides that $500 isn't enough money. He refuses to finish the job unless Betty agrees to pay him $100 more. What law applies to this fact situation? . Betty has made a promise in exchange for a forbearance. b. Andrew gives no additional consideration in return for modification of a preexisting contract. c. The acceptance of additional money to settle a disputed claim is supported by consideration. d. A past obligation is sufficient consideration for a new promise.

b. Andrew gives no additional consideration in return for modification of a preexisting contract.

With regard to UCC Article 6, which of the following is true? a. The 1988 joint recommendation of the National Conference of Commissioners on Uniform State Laws and the American Law Institute was for states to adopt the revised version of Article 6, which the majority of states have done. b. At least 45 states have repealed Article 6. c. Article 60 is a revision of Article 6. d. Article 6 applies to sales of live goods such as cattle, chickens and hogs.

b. At least 45 states have repealed Article 6.

On November 1, Paula and Mia enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Mia, "I cannot and do not plan to perform my duties in our contract." This statement is a(n): a. material alteration. b. anticipatory repudiation. c. accord. d. nonmaterial breach since the statement is made before December 31.

b. anticipatory repudiation.

A(n) ____ is an intended beneficiary of a contract who receives the benefits of the contract as a gift. a. assignor b. donee beneficiary c. intended beneficiary d. incidental beneficiary

b. donee beneficiary

A seller has the right to transfer title: a. in all cases in which the seller has the power to transfer title. b. even if the seller does not have either possession of or title to the goods, if he has authority to sell the goods for the rightful owner. c. in any case in which the seller has possession of the goods. d. only if the seller is the rightful owner of the goods.

b. even if the seller does not have either possession of or title to the goods, if he has authority to sell the goods for the rightful owner.

A(n) ____ is a third party who obtains possible benefits but no rights under a contract. a. assignor b. incidental beneficiary c. donee beneficiary d. intended beneficiary

b. incidental beneficiary

Wayne helped Hank study all night for an important exam. After Hank got an "A" on the exam, he told Wayne, "I will give you $10 for helping me get a good grade." Wayne said, "Thanks, I'll take it." There is: a. a contract with sufficient consideration. b. no contract because there is no valid consideration. c. no contract because $10 is reasonably inadequate consideration. d. no contract because there is no mutual assent.

b. no contract because there is no valid consideration.

Fred is a concert violinist who is scheduled to perform at Carnegie Hall for the first time. He buys what he is told is a Stradivarius violin from a well-known, reputable dealer in quality violins, and he pays the going rate for a Stradivarius. He later learns the violin is an imitation, although it is such a good imitation that even the dealer thought it was authentic. In this case: a. the sale is voidable, because the dealer has made a fraudulent misrepresentation. b. the sale is voidable by the purchaser for mutual mistake. c. Fred has made a unilateral mistake and cannot avoid the contract. d. the dealer has committed fraud in the inducement.

b. the sale is voidable by the purchaser for mutual mistake.

Property law protects existing ownership of goods. A principal belief underlying this policy is: a. a person should not be required to retain constant possession of all the goods he owns, yet at the same time, ownership should be indicated by who is in possession of the goods. b. while a person should not be required to retain constant possession of all the goods he owns, there must be a method for good faith purchasers for value to be protected so they may make safe acquisitions of goods. c. even good faith purchasers should be held responsible for making sure the item they are buying wasn't stolen from the rightful owner. d. there must not be conflicts among underlying beliefs.

b. while a person should not be required to retain constant possession of all the goods he owns, there must be a method for good faith purchasers for value to be protected so they may make safe acquisitions of goods.

Mark is out sailing in his boat one evening when he hears a young girl crying for help in the lake. Which of the following is true? a.Mark MUST help the girl or he will be liable for negligence. b.Mark MUST help the girl if he begins to rescue her and moves her to a position farther from the shore. c.Mark MUST help the girl if he is the girl's uncle. d.Mark must help the girl ONLY if he knows her.

b.Mark MUST help the girl if he begins to rescue her and moves her

Mallory orally agrees to buy 500 electronic cash registers from Thomas for $25,000. Thomas delivers 300 cash registers to Mallory, who receives and accepts them. Which of the following is correct with regard to this transaction? a.Mallory can enforce the contract for the additional 200 cash registers. b.The contract is enforceable only to the extent of the 300 cash registers that have been received and accepted. c.This is a bad deal and therefore unconscionable and unenforceable from the beginning. d.The entire contract is in violation of the statute of frauds and cannot be enforced.

b.The contract is enforceable only to the extent of the 300 cash registers that have been received and accepted.

A(n) ____ is a delivery of possession of personal property to an agent for sale by the agent. a.sale on approval b.consignment c.sale or return d.None of these.

b.consignment

The most important element in determining whether a sales contract has been made is the: a.fact that the terms of the offer and acceptance are exactly alike. b.intention of the parties to make a contract. c.language of the contract. d.number of open terms.

b.intention of the parties to make a contract.

At common law, the risk of loss or damage to goods identified under a contract of sale falls upon: a.the buyer. b.the party who had title or ownership of the goods at the time of the loss or damage. c.the designated party as determined by the court. d.the seller.

b.the party who had title or ownership of the goods at the time of the loss or damage.

Which of the following is not considered "goods" within the meaning of Article 2? a. An unborn calf b. A field of corn still in the field c. Timber which is still standing d. All of these are goods under Article 2.

c. Timber which is still standing

Which of the following is correct with respect to the Code's approach to impossibility of performance? a.Ordinarily, a strike by employees of the seller will excuse performance by the seller. b.Increased production costs alone will excuse performance by the seller. c.Performance will be excused when it is commercially impractical as a result of one or more unforeseen supervening events that are more than mere hardship or increased cost of performance. d.All of these are correct.

c. Performance will be excused when it is commercially impractical as a result of one or more unforeseen supervening events that are more than mere hardship or increased cost of performance.

Troy Tech contracts with Helen to have her knit 14 sweaters for the soccer team in their school colors with their names on the front and "Go Tech" on the back. The contracted price is $100 per sweater. After Helen has almost finished the last sweater, Troy Tech decides it should spend the money on repairs to the locker room instead of on the sweaters. Does Helen's contract have to be in writing for her to enforce it? a. No, because each sweater only cost $100 b. Yes, because the total cost is $1,400 c. No, because they are specially manufactured sweaters d. Yes, because they are specially manufactured sweaters

c. No, because they are specially manufactured sweaters

Todd, a minor, rents an automobile from Rosa, an adult. Todd damages the vehicle when he negligently backs into a pole. Under the majority view, can Rosa recover damages from Todd? a. Yes, although Todd is a minor, it is well settled that minors are generally liable for their torts. b. No, minors generally cannot be held liable for their torts. c. No, his contractual immunity protects him from legal action by Rosa. d. Yes, Todd breached his duty to exercise reasonable care and diligence to protect the automobile.

c. No, his contractual immunity protects him from legal action by Rosa.

Rick's driveway has potholes. He has been thrown from his bike several times because of them. If Rick invites his biking friends for a barbecue, what must he do to escape liability for any harm to them? a. Repair the potholes. b. Post signs saying "slow to 15 mph." c. Telephone his friends to warn them about the potholes. d. None of these.

c. Telephone his friends to warn them about the potholes.

Hannah has agreed to buy Greg's car, but the two have not agreed on the price. When there is no agreement in a sales contract as to price, what effect does it have on the contract? a. There is no contract, because the agreement is not definite and certain enough. b. There is a contract, with the price being a reasonable price at the time the agreement was made. c. There is a contract, with the price being a reasonable price at the time of delivery. d. There is a contract, with the price being whatever Greg decides.

c. There is a contract, with the price being a reasonable price at the time of delivery.

In which of the following situations would a landowner NOT have liability to a trespasser? a. Where the landowner has rigged up a trap to injure anyone coming onto the property without permission. b. Where a landowner next to a nursery school has an unfenced swimming pool and a trespassing child drowns. c. Where a trespasser trips over some lawn furniture in an unlighted backyard. d. The landowner would have liability to a trespasser in all of these situations.

c. Where a trespasser trips over some lawn furniture in an unlighted backyard.

Don has an employment contract with Dunkirk Ice Cream. He sells ice cream and novelty ice cream products. He has nine children and doesn't make enough money, so he decides to see if another dairy will hire him, too. "After all," he reasons, "most stores carry four or five different brands." His employment contract prohibits him from competing. If Don sells for another dairy in addition to Dunkirk, will he be in trouble under his contract? a. No, it is unenforceable as against public policy. b. No, the prohibition against competing is enforceable only after he quits Dunkirk. c. Yes, it is likely to be enforceable during employment. d. A court would have to rule on the enforceability of the covenant not to compete since courts are reluctant to enforce such covenants during a period of employment.

c. Yes, it is likely to be enforceable during employment.

Wes, who is an art collector, offered to buy a print from Le Monde Gallery. Le Monde balked at the price, sending Wes a letter of rejection. That day it discovered that the print was not as highly valued as originally thought. Le Monde immediately telephoned Wes to accept his offer. Is there a contract? a. No, because the rejection was effective upon dispatch b. Yes, because the acceptance is always effective upon dispatch c. Yes, since the acceptance was received before the rejection d. No, because the rejection terminated the offer

c. Yes, since the acceptance was received before the rejection

Janet promises Eli $4,000 for one of his original paintings on the condition that she receive $1 million from her mother's will. Janet has made: a. a conditional promise which is not sufficient to form consideration. b. a legally inadequate promise, and the courts will therefore not enforce it. c. a legally sufficient promise unless Janet knew at the time she made the promise that she could not inherit the $1 million. d. an illusory promise.

c. a legally sufficient promise unless Janet knew at the time she made the promise that she could not inherit the $1 million.

A contract prepared on a standard form and offering terms on a take-it-or-leave-it basis is called: a. a usurious contract. b. an illegal restraint of trade. c. an adhesion contract. d. exculpatory.

c. an adhesion contract.

Defenses to an action in strict liability include: a. comparative negligence only. b. contributory negligence and comparative negligence. c. express assumption of risk under the Third Restatement and, in some states, comparative negligence. d. contributory negligence only.

c. express assumption of risk under the Third Restatement and, in some states, comparative negligence.

Unless one of the parties contractually assumes the risk, the ____ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible. a. bankruptcy law b. subjective impossibility doctrine c. frustration of purpose doctrine d. perfect tender rule

c. frustration of purpose doctrine

By law, all apartment buildings in Mary's state must have smoke alarms in the ceilings. If Mary suffers smoke inhalation because the smoke alarm in her apartment building was not yet installed and Mary sues the owner for negligence, Mary would have to prove: a. a duty existed toward her. b. a breach of that duty. c. injury and causation. d. All of these.

c. injury and causation.

The local supermarket has a large glass front door which is well lighted and plainly visible. Nelson, who is new in the neighborhood, mistook the glass for an open doorway and walked into it, shattering the door and injuring himself. The store: a. is liable under res ipsa loquitur. b. is strictly liable to Nelson. c. is not liable to Nelson. d. has no duty to Nelson.

c. is not liable to Nelson.

In order to form a contract, the parties must: a. create a formal document called a contract. b. indicate solely through written word their intent. c. manifest their agreement objectively. d. manifest their agreement subjectively.

c. manifest their agreement objectively.

The Rogers family has always wanted to buy the beautiful house at the top of the hill. The owners of the house, the Thompsons, decided to sell and called Mr. Rogers. Before he could get back in touch with Mr. Thompson, Mr. Rogers suffered a heart attack and died. Mr. Rogers' adult daughter, to whom the Thompsons had not spoken, still wants the house. She may: a. accept since the offer cannot be revoked without notice. b. accept since the contract offer is assignable. c. not accept since the offer is terminated. d. not accept because she does not have the capacity.

c. not accept since the offer is terminated.

A ____ is an offeree's refusal to accept an offer. a. statutory irrevocability b. counteroffer c. rejection d. revocation.

c. rejection

Where there is no course of performance, usage of trade, or course of dealing, and where a contract is silent as to the place of delivery, the place for delivery is: a. wherever the goods were manufactured. b. the buyer's place of business. c. the seller's place of business. d. wherever the goods are located.

c. the seller's place of business.

Which of the following terms would indicate a destination contract? a.F.A.S. seller's port b.F.O.B. city of seller c.F.O.B. city of buyer d.C.I.F.

c.F.O.B. city of buyer

Brenda agrees to lease a new car from Hyland Motors. Which of the following statements is true? a.Brenda has no insurable interest in the car. b.Brenda receives title at the time of her contract with Hyland Motors. c.Hyland Motors retains an insurable interest in the car unless and until Brenda exercises an option to buy the car. d.None of the above.

c.Hyland Motors retains an insurable interest in the car unless and until Brenda exercises an option to buy the car.

Tom makes pottery in his spare time. Jackie asks if he'd sell her a particular covered bowl. Later that day, he telephones her and says she can have it for $50. She agrees, so he tells her he'll wrap it up for her and it will be ready in half an hour. Six days later, Jackie had not yet come for the bowl when a dog knocks the box off the shelf and breaks the bowl. Who is liable? a.Jackie, because Tom had it ready for her to pick up for nearly a week b.Jackie, because she had identified the bowl c.Tom, because he is a merchant regarding the pottery and Jackie had not yet received the bowl d.Tom, because the bowl was in his possession when the dog broke it

c.Tom, because he is a merchant regarding the pottery and Jackie had not yet received the bowl

In a sale on approval: a.title but not possession is transferred to the buyer for a stated period of time. b.possession and title are transferred to the buyer for a stated period of time. c.possession but not title is transferred to the buyer for a stated period of time. d.title but not risk of loss remains with the seller until the buyer accepts the goods.

c.possession but not title is transferred to the buyer for a stated period of time.

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years. The October shipment consisted of 100 badly defective tires. ZYX Cycle Company: a.can treat the whole contract as breached. b.must sell the defective tires for whatever they can get for them and sue Supertread for the difference. c.cannot reject the October shipment since it is part of the installment series. d.can reject the October shipment if it cannot be cured in a timely manner by Supertread.

d. can reject the October shipment if it cannot be cured in a timely manner by Supertread.

Albert read Gem City's ad in the local newspaper advertising a one-quarter carat diamond ring for $89. Albert rushed to the store to buy the ring, only to be told by the salesperson that the ad was a misprint and the price should have been $289. Albert gave the salesperson $89 plus sales tax and demanded the ring. In this case: a. the store must accept the price stated in the ad, but only if Albert has a copy of the ad with him. b. the ad is a contract and the store must abide by terms stated in the contract. c. the ad is a firm offer by the merchant, and the ring must be sold for $89. d. Albert is merely making an offer to Gem City to buy the ring for $89 plus sales tax.

d. Albert is merely making an offer to Gem City to buy the ring for $89 plus sales tax.

Which of the following is correct with respect to the buyer's obligation of payment? a. In the absence of agreement, payment is due at the time and place the buyer is to receive the goods. b. Payment by check is sufficient unless the seller demands currency and allows the buyer a reasonable time in which to obtain it. c. If the buyer so agrees, he must pay for the goods in advance of delivery. d. All of these are correct.

d. All of these are correct.

Which of the following is/are required for a valid tender under the Code? The seller must: a. put and hold conforming goods at the buyer's disposition. b. give notice to the buyer that the goods are available. c. give notice at a reasonable time and keep the goods available for a reasonable period of time. d. All of these are required.

d. All of these are required.

A contract which does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations? a. Where the goods have been delivered and accepted b. Where payment has been accepted c. Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business d. All of these are situations where the contract would be enforceable.

d. All of these are situations where the contract would be enforceable.

A contract which does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations? a. Where the goods have been delivered and accepted b. Where payment has been accepted c. Where the goods have been specially manufactured and are not suitable for resale in the ordinary course of business d. All of these are situations where the contract would be enforceable.

d. All of these are situations where the contract would be enforceable.

The UCC provides rules, where the parties do not set forth terms in their contract, to cover: a. terms of payment. b. place of delivery. c. particulars of performance. d. All of these.

d. All of these.

Everett is an accountant for a major accounting firm. One day at work, he is discussing his collection of rare coins with one of his co-workers. Everett tells his co-worker that he keeps his collection at home and that he has recently purchased several Chinese gold Panda coins at an exceptional price. The co-worker expresses an interest in buying two of the coins at a price of $250, and a contract is duly formed. If no place for delivery is expressed, where are the coins to be delivered? a. At the office of the accounting firm where the parties to the contract work b. At the co-worker's home c. In the parking lot of the accounting firm d. At Everett's home

d. At Everett's home

Sam agrees to sell Jaden one 18-cubic-foot, yellow refrigerator for $1200. It is to be delivered to Jaden's home on July 7. Under the perfect tender rule, which one of the following cases would be a rightful rejection of the goods? a. Sam sent his truck to Jaden's home with the 18-cubic-foot, yellow refrigerator on July 7, but Jaden was not home. b. Sam sent an 18-cubic-foot, yellow refrigerator with a dent in it on July 7. Jaden refuses delivery but never bothers to call Sam. c. Sam sent an 18-cubic-foot, yellow refrigerator without ice cube trays on July 5 and notifies Jaden of the defect. d. Sam delivered an 18-cubic-foot, blue refrigerator on July 7, and Jaden calls Sam to complain.

d. Sam delivered an 18-cubic-foot, blue refrigerator on July 7, and Jaden calls Sam to complain.

Which of the following is true regarding unconscionability under the Code? a. Unconscionability may be substantive, but it cannot be procedural. b. The Code allows for the cancellation of an unconscionable contracts, but not for payment of attorney's fees. c. It is defined in Article 2 as "monstrously extortionately harsh, showing no regard for conscience." d. The Code denies or limits enforcement of an unconscionable contract for the sale of goods.

d. The Code denies or limits enforcement of an unconscionable contract for the sale of goods.

Gary mails an offer to Brian on June 15. Brian receives the offer on June 16. Gary mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18 and Gary receives the acceptance on June 20. Brian receives the revocation on June 19. Was a contract formed? a. No, the offer was revoked before acceptance b. Yes, on June 16 c. Yes, on June 20 d. Yes, on June 18

d. Yes, on June 18

Mia's Boutique and Renaldi Co. have dealt with each other for more than 10 years. Mia's Boutique orders 100 assorted lipsticks at $3.00 each from Renaldi Co. Renaldi sends back a confirmation letter stating that the shipment will be made by UPS rather than by U.S. mail as usual. There is: a. a contract for shipment by U.S. mail. b. a contract for shipment by UPS only if Mia agrees. c. no contract, but a counteroffer. d. a contract for shipment by UPS unless Mia objects.

d. a contract for shipment by UPS unless Mia objects.

When both parties misunderstand the same set of facts relating to a basic assumption on which a contract is made, it is termed: a. mistake of law. b. rescissionary mistake. c. unilateral mistake. d. mutual mistake.

d. mutual mistake.

Which of the following is/are required for a valid tender under the Code? The seller must: a.put and hold conforming goods at the buyer's disposition. b.give notice to the buyer that the goods are available. c.give notice at a reasonable time and keep the goods available for a reasonable period of time. d.All of these are required.

d.All of these are required.

If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may: a.reject the whole. b.accept the whole. c.accept any commercial unit(s) and reject the rest. d.Any of these.

d.Any of these.

Mark agreed to sell his horse to Henry for $1,000. The contract required Mark to take the horse on that same day to Idlewild Stables where Henry was going to board the horse. Henry paid Mark the money, patted the horse and said, "I'm glad you're mine, you beauty," and drove off. Mark then led the horse into the trailer and set off for the two-hour drive to Idlewild. Has there been a sale? a.No, not until Henry sees the horse again. b.Yes, since the contract was made earlier in the day. c.Yes, since Henry already paid for it. d.No, not until delivery to Idlewild.

d.No, not until delivery to Idlewild.

If a buyer accepts part of a shipment and rejects part of a shipment, he must pay for the items he keeps at the contract rate. true false

true