Law Chapter 8 Homework

True

The underlying policy of the Uniform Commercial Code (UCC) is to promote commercial efficiency by providing standardized procedures, which merchants and consumers may rely upon. True or False

Ace Corp. will bear the risk of loss until the goods are delivered to Red Source.

Ace Corp., a company based in New York, uses the delivery services of Red Source Inc. to ship machinery to a customer located in Boston. If the contract is a normal shipment contract, the customer will be liable to Red Source for any damages during the transit. the customer will be liable to Ace Corp. for any damages during the transit. Ace Corp. will bear the risk of loss till the goods reach the customer. Ace Corp. will bear the risk of loss until the goods are delivered to Red Source.

True

Article 2 of the Uniform Commercial Code (UCC) contains special provisions that apply only in transactions between merchants. True or False

Three Months

Generally, with respect to a merchant's firm offer, the Uniform Commercial Code (UCC) provides that the offer can be irrevocable for a maximum period of _____. three months one year 15 days 18 months

If Maya recovers the full value of the contract from Kevin, she cannot resell the goods even if a new buyer is found.

Maya enters into a sales contract with Kevin. Which of the following is most likely to be true if Kevin breaches the contract even before he receives the goods? If the breach occurs while the goods are in transit to Kevin, Maya cannot cancel the contract outright. If the goods are perishable, commercial standards and state law may require a public auction advertised over a period of time. If Maya incurs incidental damages due to reselling the goods, she cannot claim any difference in value between the contract price and resale price. If Maya recovers the full value of the contract from Kevin, she cannot resell the goods even if a new buyer is found.

False

Normally, in destination contracts, so long as the goods were properly tendered as agreed, the risk of loss is allocated to the seller at the time of tender. True or False

the CISG allows sellers the right to cure even after the performance period is over.

The U.N. Convention on Contracts for the International Sale of Goods (CISG) is different from the Uniform Commercial Code (UCC) in that the UCC has no statute of frauds. the CISG does not apply to merchants. the UCC applies to sales contracts that include goods and services. the CISG allows sellers the right to cure even after the performance period is over.

False

The Uniform Commercial Code (UCC) applies to real estate sales contracts. True or False

False

The Uniform Commercial Code (UCC) considers electronic records and signatures in a sales transaction as invalid. True or False

False

The Uniform Commercial Code (UCC) requires several specific terms of a contract to be in the writing, while common law contracts have a much more liberal rule concerning what must be in the writing. True or False

True

The good faith provision of the Uniform Commercial Code (UCC) imposes a duty of good faith and commercial reasonableness as the bedrock of any sales contract. True or False

Perfect Tender Rule

Under the Uniform Commercial Code (UCC), a seller's obligation actually goes beyond just delivering conforming goods. The seller must deliver the goods in a manner that matches the contract terms in every respect. This is known as the _____. mirror image rule seasonable notice rule knockout rule perfect tender rule

True

Under the Uniform Commercial Code (UCC), if a seller fails to achieve perfect tender in a sales contract, the buyer has the option of accepting any number of commercial units and rejecting the rest of the goods in a reasonable time. True or False

Output contract

Vino Tinto Inc. sells a variety of wines but specializes in selling premium red wine. If the company enters into an agreement with a winery in Spain to purchase all the red wine the winery produces, this would be a(n) _____. output contract requirements contract input contract closed-term contract

True

When a buyer agrees to purchase all of the goods needed to complete a project from a particular seller, the contract is said to be a requirements contract. True or False

Cover

When a seller breaches a sales contract, the Uniform Commercial Code (UCC) provides the buyer with an option to take immediate steps by canceling the contract and purchasing substitute goods from another vendor in order to continue business operations. This right is known as _____. tender cover knockout cure

Both do not require an offer to have complete terms in order to be valid.

Which of the following is a similarity between the Uniform Commercial Code (UCC) and the U.N. Convention on Contracts for the International Sale of Goods (CISG)? Both do not apply to nonmerchants. Both include a statute of frauds. Both do not require an offer to have complete terms in order to be valid. Both allow sellers the right to cure even after the performance period is over.

A sales agreement made by Mike, a wholesaler, who sells to Sunil, the owner of a retail store.

Which of the following sales agreements is most likely to be subject to Article 2 of the Uniform Commercial Code (UCC) because it represents a merchant transaction? A sales agreement made by Gus, who regularly provides tutoring services to high-school students. A sales agreement made by Mike, a wholesaler, who sells to Sunil, the owner of a retail store. A sales agreement made by Sonia, a college student, who sells her old laptop to a friend. A sales agreement made by Sally, who runs a pet clinic.

The CISG specifically provides that contracts are not subject to formal writing requirements.

Which of the following statements is true of the U.N. Convention on Contracts for the International Sale of Goods (CISG)? The CISG specifically provides that contracts are not subject to formal writing requirements. The CISG requires offers to have complete terms in order to be valid and enforceable. The CISG provisions apply to transactions in which one party is a nonmerchant. The CISG does not require a buyer to allow a seller the opportunity to cure.