Chapter 11 Review

Any explicit understanding between the buyer and seller determines when title passes.

True

Identification takes place when specific goods are designated as the subject matter of a sales or lease contract

True

Statements of fact made during the bargaining process are express warranties

True

The parties to a sales or lease contract can expressly provide for remedies in addition to those provided in the UCC.

True

Under a shipment contract, if the seller does not make a reasonable contract for transportation or notify the buyer of the shipment, the buyer can reject the goods if a material loss results.

True

Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade

True

An expression of opinion will usually create a warranty

False

Goods must be of the highest quality possible to be merchantable

False

Trucks and Trailers, and United Delivery Services enter into a contract for a lease of trucks. T&T is a merchant who deals in goods of the kind leased. Under the UCC an implied warranty of merchantability arises.

Automatically

A bill of lading is a receipt signed by a warehouse for goods stored in a warehouse.

False

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC.

False

Fuel Connector Products agrees to sell Go-Flo a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-flo is expected to pick up the goods. The place of delivery is

Fuel Connector's place of business

Sweet Fruits contracts with Fruits to You, for a delivery of two hundred pounds of strawberries, to be delivered by Keep Kool Trucking, a trucking company with refrigerated trucks. On the day of delivery, the refrigeration units on Keep Kool's trucks are not working. Fruits to you

May ship the goods to Sweet Fruits using another trucking company with refrigerated trucks

Arnold buys a backhoe from Big Dig Equipment, Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If credit collection reposses the backhoe, Arnold can

Recover from Big Dig for breach of warranty

Livestock Feedlot orders one hundred sacks of cattle feed from MegaNutrition Feed. Each sack is stamped with the phrase "Twenty Percent Protein." This is

an express warranty

Nature's Products sends its standard order form to Omni Distribution Corporation to evidence a sale of packing materials. Omni responds with its own standard purchase order form. Additional terms in the purchase order automatically become part of the contract unless.

any of the choices

Beef Burgers 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 quarintined. In this case the perfect tender rule

does not apply

Shane's Auto Parts orders twenty tires from Tough Tires. The truck delivering the tires to Shane's is an accident and ten of the tires are damaged. Shane's Auto Parts

may inspect the tires and accept the shipment with a reduction in price

Fresh Dairy is the offeror and Gelato Ice Cream Company is the offeree under a unilateral sales contract in which Hector's Helado Corporation is also interested. Gelato is not notified of Fresh Dairy's performance within a reasonable time. Gelato

may treat the offer as having lapsed

Toro S.A. which is based in Mexico, enters into a contract for the purchase of portable livestock fencing from United Fencing Company, which is based in the United States. This contract is governed by

the United Nations Convention on Contracts for the International Sale of Good