Blaw Exam 2 Study

Grocers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by a. Grocers. b. Hilltop. c. Refrigerated. d. all of the parties as tenants in common in equal measure.

a. Grocers.

Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached a. regardless of what Ocean knew or could have discovered b. only if Ocean did not know of the defect c. only if Ocean knew about or could have discovered the defect d. only if Ocean did not know of and could not have discovered the defect.

a. regardless of what Ocean knew or could have discovered

Brain, an agent for Clarion Motors, Inc., writes a letter on behalf of Clarion Motors to Dina on November 1 stating that he will sell her a 2016 Subaru Outback for $20,000 between November 1 and December 31. Brain's letter to Dina is a. is option contract b. a merchant's firm offer c. an acceptance d. non of the choices

b. a merchant's firm offer

Car n' Truck Body & Paint Company orders custom paint from Diverse Hues Inc., but Diverse does not deliver. Car n' Truck will probably be unable to enforce the agreement if the parties omitted a. a price term b. a quantity term c. shipping arrangements d. a delivery date

b. a quantity term

Barley that fills County Grain Co-op's silo is fungible if the barley is a. fun, good, and edible b. alike naturally, by agreement, or by trade usage c. fundamentally different d. rotting due to a leaky roof and a delay in shipping.

b. alike naturally, by agreement, or by trade usage

In a dispute over a sale involving a bicycle, Dain argues that as to this deal Enya's Hobby Shop, where Dain bought the bike, is a merchant. A court may determine whether Enya's is a merchant by assessing whether a. it subscribes to Bike, a biweekly trade magazine b. it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction c. it has sold any bikes within the last year d. its owner enyoys biking

b. it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction

Beef Burgers, Inc. contracts to buy five hundred steers from Fattening Feedlots. Before Fattening Feedlots can deliver the steers, there is an outbreak of disease in the feedlot, and all the cattle are quarantined. In this case the perfect tender rule a. applies to both parties b. no longer applies c. applies only to Cattle Ranch d. applies only to Beef Burgers

b. no longer applies

Tarts & Pies Bakery contracts with Sweet Fruits for strawberries to be delivered by Refrigerated Trucking Company. On the day of delivery, the refrigeration on the trucks is not working. Sweet Fruits a. must cancel the contract b. must wait to ship the strawberries until the carrier fixes its trucks c. must ship the goods through a different carrier and pay damages d. may ship the strawberries to the buyer using a different carrier

d. may ship the strawberries to the buyer using a different carrier

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached a. no duty or warranty because Beginners Run knew nothing about the defect that made the goods unsafe b. no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted c. the merchant's implied duty of inspection d. the implied warranty of merchantability

d. the implied warranty of merchantability

Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when a. four years have passed since the breach occurred b. the non breaching party notifies the breaching party of the breach c. the buyer or lessee becomes aware of the breach d. the seller or lessor tenders delivery

d. the seller or lessor tenders delivery

On July 10, Pet supply Store orders fifty small dog collars from Quality Collars, Inc. to be delivered by July 15. Only July 13, Quality Collars tenders fifty larger dog collars. Pet supply rejects the shipment. Quality Collars has a. until the end of the business day on July 13 to cure b. unlimited time to cure c. no right to cure d. until July 15 to cure

d. until July 15 to cure

Liz buys a car from Midtown Motors, paying with a check that is later dishonored. Liz later offers the car to Nick for cash. As the seller in the transaction with Nick, Liz's title to the car is a. valid b. void c. good d. voidable

d. voidable

Refined Grains, Inc., agrees to sell to Sunny Cereal Company a certain quantity of refined oats each week but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at a. Refined's place of business b. Sunny's place of Business c. a neutral place of business halfway between the parties' locations d. a "reasonable" place of delivery

a. Refined's place of business

Quest Outdoor Store orders RiverRun-brand kayaks from Sports Merchandise, Inc. Sports Merchandise mistakenly ships kayaks of the wrong size, which Quest rejects and returns via Trans-State Shipping Company. During the return, the kayaks are lost. The loss is suffered by a. Quest . b. Trans-State. c. RiverRun. d. Sports Merchandise.

a. Sports Merchandise

Fred buys running shoes from Gear Store, telling the clerk that he wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Fred to fall and sustain an injury. The seller most likely breached a. an implied warranty of fitness for a particular purpose b. an express warranty c. an implied warranty of merchantability d. none of the choices

a. an implied warranty of fitness for a particular purpose

Dante buys a new car from U-Drive-It Car Lot. In the first month, the car breaks down six times. Each time, Dante takes the car to his local mechanic, without contacting the dealership. Finally, he gives up on the mechanic being able to fix the car, and demands his money back from the deal. Dante will a. be successful under his state's lemon law b. not be successful because he did not notify the dealer and give it an opportunity to cure the problem c. not be successful because he vehicle's condition has changed since it left the dealership d. not be successful because the lemon law only covers used vehicles

a. be successful under his state's lemon law

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that a. conform to the contract description in every way b. substantially conform to the contract description in most details c. approximately conform to the contract description d. entirely conform to the contract description except in one or two details

a. conform to the contract description in every way

Omni Metals Company and Piecework Fabrication, Inc., enter into a contract under which Omni agrees to deliver a certain quantity of sheet metal to Piecework each month. The contract does not include a price term. In a suit between the parties over the price, a court will a. determine a reasonable price at the time for delivery b. impose the lowest market price c. impose the highest market price d. return the parties to the positions they held before the contract

a. determine a reasonable price at the time for delivery

NutriRich, Inc., sells fifty cases of Omega 3 capsules to Good Health stores, but before Good Health takes physical possession, the cases are lost. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of a. risk of loss b. insurable interest c. identification d. title

a. risk of loss

Farmers Produce Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. the parties use a standard farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten or sold. Growers Market refuses to pay for the spoiled goods. Farmers Produce responds that it did not waive payment for spoiled goods in the parties' previous transaction. Farmers produce is arguing that the court should take into account a. the course of dealing b. the usage of trade c. none of the choices d. the course of performance

a. the course of dealing

Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of a. the piano and the gold ring b. neither the piano nor the gold ring c. the piano only d. the gold ring only

a. the piano and the gold ring

Rice River Farms, who only produces Grade A quality rice, offers to sell Sushi Restaurants, Inc., five hundred bushels of rice. Sushi responds, "We agree to buy five hundred bushels. Is the rice Grade A quality?" This statement is a. a counteroffer b. an acceptance c. a breach d. a confirmation

b. an acceptance

Pine Mills Inc. and Quality Lumber Company enter into a contract for a sale of plywood to be delivered under a destination contract. This contract requires Pine Mills, the seller, to a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. inspect the goods before tendering their delivery. d. place the goods into the hands of a carrier.

b. deliver the goods to a particular destination.

Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." This statement is a. an implied warranty of merchantability b. puffery c. an implied warranty of fitness for a particular purpose d. an express warranty

b. puffery

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can a. recover damages from Credit Collection for breach of warranty b. recover from Big Dig for breach of warranty c. file criminal charges against Big Dig and Credit Collection d. do nothing

b. recover from Big Dig for breach of warranty

Big Beef, Inc. raises calves to sell. Big Beef breeds its cows in April, and the cows calve in February of the following year. In January Andrea contracts with Big Beef to buy fifty calves. Identification takes place in a. January, when the contract is signed b. February, when the calves are born c. April, when the calves are conceived d. a reasonable period of time

c. April, when the calves are conceived

Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced. CSR sells the iPod to Doris, who does not know that it belongs to Brad. Brad can recover from a. no one b. apple, inc., the maker of the iPod c. CSR d. Doris

c. CSR

Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc. The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality must give Pipes & Culverts a warehouse receipt for the goods, which the buyer will then pick up. Title to the goods passes to Pipes & Culverts when a. Quality stores the pumps b. Pipes & Culverts picks up the pumps. c. Quality gives Pipes & Culverts a warehouse receipt for the pumps d. Pipes & Culverts orders the pumps

c. Quality gives Pipes & Culverts a warehouse receipt for the pumps

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp, Inc. Unless the contract states otherwise, it is assumed to be a. a delivery ex-ship b. a destination contract c. a shipment contract d. none of the choices

c. a shipment contract

Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation, which sells some of the items to Physicians Clinic, which later sells them to Oscar, a patient and consumer. Article 2 of the UCC applies to the sales transactions between a. Medico and New hospital only b. new hospital and physicians clinic only c. all buyers and sellers d. physicians clinic and Oscar only

c. all buyers and sellers

Containers, Inc., sends its standard order form to Distribution Corporation to evidence a sale of packing materials. Distribution responds with its own standard purchase order form. Additional terms in the purchase order automatically become part of the contract unless a. the offeror objects to the new terms within a reasonable time b. the terms materially alter the original contract c. any of the choices d. the original offer expressly required acceptance of its terms

c. any of the choices

Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold a. by a merchant b. in perfect condition c. as is d. with no known defects

c. as is

Candy Corporation orders Double Chocolate Bars from Edibles Distribution Company. Edibles identifies the goods. Before they are shipped to Candy Corporation, an insurable interest in the goods exists in a. Candy only b. neither Candy nor Edibles c. both Candy and Edibles d. Edibles only

c. both Candy and Edibles

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain a. cure b. specific performance c. cover d. tender

c. cover

Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should a. consider the contract repudiated and sue the seller for breach b. buy the equipment from a different firm and bill excavation for the price c. demand assurances of performance from the seller d. buy the equipment from a different firm and bill the seller for the price

c. demand assurances of performance from the seller

HandiTools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that HandiTools must provide a. a toll-free number for a HandiTools-approved service company b. repair or replacement of any defective parts at a reduced charge c. free repair or replacement of any defective part d. a complete catalog of products and parts available for sale.

c. free repair or replacement of any defective part

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor a. can substitute some other material for the tin b. must still supply the tin needs of its customers c. is excused from the performance of its contracts d. is liable for breach of contract.

c. is excused from the performance of its contracts.

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipment contract, the seller must a. inspect the goods before shipping them b. allow the buyer to reject the goods for any reason c. place the goods into the hands of a carrier d. deliver the goods to a particular destination

c. place the goods into the hands of a carrier

TackMaker, Inc., and Silver Stallion Stables enter into a contract for a sale of bridles, saddlery, and other equine equipment. TackMaker delivers, but Silver Stallion does not pay. TackMaker can normally recover as damages a. whatever amount the seller wishes to claim b. any profit lost minus any loss avoided c. the purchase price plus incidental damages d. the market price at the place at which the seller delivered the goods

c. the purchase price plus incidental damages

Brad buys a bulldozer from Construction Equipment Corporation, which he leases to Deep Digg, Inc. In this situation, the lessee is a. construction equipment corporation b. none of the choices c. brad d. Deep Digg, Inc.

d. Deep Digg, Inc.

Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is a. a warranty of title b. puffery c. an implied warranty d. an expressed warranty

d. an expressed warranty

Sugar & Spice, Inc., and Taste Treats stores enter into a contract for a sale of confections. Sugar & Spice, a merchant who deals in goods of the kind sold, includes in its contract that the confections are being sold "as is." The language is in small print, on page 3 of the contract, and is not mentioned during the contract negotiations. This language

is not sufficient to disclaim the implied warranties of merchantability and fitness for a particular purpose because it is not clear and conspicuous, and not brought to the buyer's attention