Ch 14

How do parties determine which is the appropriate law for a mixed contract? Choose 2 answer choices. Common law is appropriate for some mixed contracts. The UCC applies to all mixed contracts. Common law applies to all mixed contracts. The predominant-factor test dictates the proper choice of law.

Common law is appropriate for some mixed contracts. The predominant-factor test dictates the proper choice of law.

In which of these situations does an express warranty exist? Choose 2 answer choices. Crane Outdoor Shop advertises they have the best outdoor furniture in the state. An employee at Crane Outdoor Shop promises Korinne that their outdoor furniture does not fade in the sun. Korrine states she wants to buy the furniture for indoor use, and it will not be in the sun. Crane Outdoor Shop sells only online. The product postings include detailed descriptions of the features, but no pictures. Crane Outdoor Shop shows products on the showroom floor as examples of what they sell, but all purchases are made online and another sample of that item is delivered to the customer's home.

Crane Outdoor Shop sells only online. The product postings include detailed descriptions of the features, but no pictures. Crane Outdoor Shop shows products on the showroom floor as examples of what they sell, but all purchases are made online and another sample of that item is delivered to the customer's home.

What remedies are available to a buyer when a seller refuses to deliver the goods that are the subject of a contract? Choose 3 answers. The buyer may buy other goods and recover damages from the seller. The buyer may cancel the contract. The buyer may cancel all other contracts with this seller on the grounds of anticipatory breach. The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy.

The buyer may buy other goods and recover damages from the seller. The buyer may cancel the contract. The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy.

What rights does the perfect tender rule give buyers of goods? Choose 2 answer choices. The right to reject goods that conform to the contract specifications The right to accept delivery of all of the goods The right to reject goods if they are not delivered as agreed The right to reject the seller's goods if the goods are not exactly as described in the contract

The right to accept delivery of all of the goods The right to reject the seller's goods if the goods are not exactly as described in the contract

Which of the following must a plaintiff prove when suing based on an express warranty for a defective product? Choose 3 answers. The seller knew the buyer would use the product in the manner in which it was used. The seller breached the warranty. The seller made a statement of fact to the buyer about the quality or uses of the product. One of the buyer's reasons for the purchase is the product warranty.

The seller breached the warranty. The seller made a statement of fact to the buyer about the quality or uses of the product. One of the buyer's reasons for the purchase is the product warranty.

When Michelle buys a laptop, she pays an extra fee so that the computer arrives at her door with the latest version of Microsoft Word preinstalled. Under Article 9, the software is considered: a. "goods." b. "services." c. "software." d. None of these

a. "goods."

What must a plaintiff prove in an express warranty case? a. Buyer reliance on the seller's promises b. The seller's opinion about the product c. The buyer's opinion about the product d. A disclaimer

a. Buyer reliance on the seller's promises

The Uniform Commercial Code applies to what types of contract? a. Contracts for goods over $500 b. Contracts for leasing c. Contracts for services over $500 d. Contracts for real estate

a. Contracts for goods over $500

In many states, a person must be in what position to have standing to sue for the breach of a product's implied warranty? a. The buyer must be in privity of contract with the defendant. b. The buyer must still have the receipt for the product. c. The buyer must have received a written warranty. d. The buyer must have inspected the product at the time of sale.

a. The buyer must be in privity of contract with the defendant.

Which of the following has the highest priority in the distribution of assets when two or more creditors have an interest in the same collateral? a. The creditor whose interest was perfected first. b. The creditor whose interest attached first. c. The creditor with the largest value secured interest. d. The creditor who filed first.

a. The creditor whose interest was perfected first.

In which of the following cases must the contract modification have additional consideration to be binding? a. Tony's boss promises him a higher salary because he did a good job. b. Tiana's Toys agrees to upgrade Tal's order of tricycles to expedited shipping. c. Both require new consideration. d. Neither requires new consideration.

a. Tony's boss promises him a higher salary because he did a good job.

an the parties to a contract agree to change the time limit for commencing an action for breach of contract under the Uniform Commercial Code (UCC)? a. Yes, they may set the time limit to any time between one year and four years. b. Yes, they may set the time limit to any time they agree upon. c. Yes, but the maximum time allowed is ten years. d. No, they must abide by the Statute of Limitations time limit of four years.

a. Yes, they may set the time limit to any time between one year and four years.

A security interest has attached when the creditor: a. has possession or control of the collateral. b. and the debtor have reached an agreement. c. has described the collateral in writing. d. receives the first installment of loan payments.

a. has possession or control of the collateral.

Which of the following transactions is not governed by Article 2 of the UCC? a. Purchasing an automobile for $35,000 b. Leasing an automobile worth $35,000 c. Purchasing a stereo worth $501 d. Purchasing a stereo worth $499

b. Leasing an automobile worth $35,000

Alpha perfects its security interest by properly filing a financing statement on January 1, 2016. Alpha files a continuation statement on September 1, 2020. It files another continuation statement on September 1, 2024. When will Alpha's financing statement expire? a. January 1, 2021 b. September 1, 2025 c. September 1, 2029 d. Never

b. September 1, 2025

CPA QUESTION Under the UCC Secured Transactions Article, which of the following actions will best perfect a security interest in a negotiable instrument against any other party? a. Filing a security agreement b. Taking possession of the instrument c. Perfecting by attachment d. Obtaining a duly executed financing statement

b. Taking possession of the instrument

Breeze Manufacturing agrees to purchase goods from Hawkins Inc. In what situation could Breeze reject a shipment of goods from Hawkins under the perfect tender rule? a. If Breeze accepted flawed goods from Hawkins in the past. b. The goods do not meet the specifications detailed in the contract. c. The industry practice is to allow for minor flaws, but Breeze and Hawkins did not specifically agree to that. d. If Hawkins Inc. hires a carrier to deliver the goods that was different from the carrier the parties included in the contract.

b. The goods do not meet the specifications detailed in the contract.

If a consumer falls when a step on a new ladder breaks, what warranty could apply? a. express warranty b. implied warranty of merchantability c. implied warranty of fitness for a particular purpose d. implied warranties implied from prior dealings or trade custom

b. implied warranty of merchantability

An example of unsecured credit is a: a. mortgage. b. private student loan. c. business loan to buy a piece of equipment. d. car loan.

b. private student loan.

CPA QUESTION Under Article 9 of the UCC, perfection of a security interest by a creditor provides added protection against other parties in the event the debtor does not pay its debts. Which of the following parties is not affected by perfection of a security interest? a. Other prospective creditors of the debtor b. The trustee in a bankruptcy case c. A BIOC d. A subsequent personal injury judgment creditor

c. A BIOC

What is the most common way of perfecting a security interest? a. Completing a purchase-money security interest. b. Hiring a lawyer to draft the documents. c. Filing a financing statement. d. Publishing the interest in the classified section of the newspaper.

c. Filing a financing statement.

Linda wants to buy some equipment and needs computer software to use the equipment. Linda asks the salesperson if the software is Mac-compatible because she owns only one computer and it is a Macbook. The salesperson states that the computer software is Mac-compatible and many of his customers use the software on their Apple computers. The software box offers no information regarding operating system requirements. When Linda arrives home and opens the package, she discovers the software is not Mac-compatible. The store states it will not accept returns of opened software, and the salesperson says he was relying on what other customers told him. What will be the result if Linda files a lawsuit? a. Linda wins under warranties implied from prior dealings or trade custom. b. The manufacturer is liable for any damages because it did not include the operating system information on the software packaging. c. Linda wins under implied warranty of fitness for a particular purpose. d. The store wins because the salesperson was not an expert on software and merely relied on feedback from other customers.

c. Linda wins under implied warranty of fitness for a particular purpose.

In what situations does the UCC overrule common law? a. The UCC governs situations in which common law is silent. b. The UCC applies to mixed contracts if the predominant purpose of the deal is to sell services. c. The UCC applies to contracts that sell goods. d. The UCC applies to contracts that sell services.

c. The UCC applies to contracts that sell goods.

What is the time limit for commencing an action for breach of contract under the Uniform Commercial Code (UCC)? a. one year b. there is no time limit c. four years d. 90 days

c. four years

Which of the following implied warranties means the warranty arose from practices used in the industry for the product? a. implied warranty of fitness for a particular purpose b. implied warranty of title c. implied warranty of merchantability d. implied warranty from prior dealings or trade custom

d. implied warranty from prior dealings or trade custom