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 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
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
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.
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.
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
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
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
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.
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
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
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.
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.
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.
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
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.
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 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
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.
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
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.
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
In a "no arrival, no sale" contract, the seller is responsible to the buyer for the goods' failure to arrive.
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
After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods.
True
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 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
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
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
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
Unless otherwise agreed, the buyer has the right to inspect the goods before making payment.
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
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.
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.
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
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.
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.
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 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.
Under the CISG: 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.
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.
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.
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.
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
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
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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
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.
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.
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.
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.
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.
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.
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
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.
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.