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A states to B, "Within the next month, I will be placing an order for 100 Model A computers, so please give me your best price." B replies, "I will sell you this model computer for $500 each." A enters into a contract to sell the computers to C for a profit. Three weeks later, B refuses to sell the computers to A. Under the CISG:

A will win because B's reply was a firm offer.

In the event that a buyer receives a shipment of seriously defective goods, under the CISG:

All of the above.

Price reduction is not available as a buyer's remedy for the seller's breach under the CISG if:

All of the above.

When one party clearly sees that the other contracting party will either not perform a substantial part of the contract, this is a

Anticipatory Breach

A German plaintiff had sold equipment to an American firm on open account. On the date the amounts were due, the American firm owed the plaintiff 60,000 marks. At that time, the dollar was worth 2.5 marks. Three years later, the plaintiff took a judgment against the American firm in the courts of New York. At the time of judgment, the dollar was worth only 1.5 marks. The New York court may do which of the following:

Award judgment to the plaintiff in $40,000 of U.S. currency.

If a question arises over a trade usage, the CISG provides that:

Both B and C.

International Sales Law: I. Is not uniform because of vast political, cultural, and historical differences. II. Is embodied in the Convention on the International Sale of Goods. Which of the following is correct?

Both I and II.

If a U.S. buyer wants to avoid a sales contract with an Italian seller, the CISG states that the U.S. buyer:

Can avoid the contract only if there has been a fundamental breach by the Italian seller.

The name of the clause put into international sales contracts to limit the liability of the parties in the event of an intervening and disruptive force beyond a party's control makes performance more difficult than expected is:

Force Majeure clause.

Paul has a contract to sell i-watches to a Jo Ann in Vietnam, and enter into a contract to purchase the i-watches from Gregory in Silicon Valley. The Vietnam Government banned i-watches imported into the country. Consequently, Paul cancels the contract with Gregory. Is "frustration of purpose", and recognized in the United States?

Generally not recognized in the United States

Negotiations style in Japan can be characterized as

Harmony, personal dignity, consensus

Contract laws in socialist countries tend to be: I. Detailed, mechanical, and cumbersome. II. Enforced by private companies operating on behalf of the state. Which of the following is correct?

I only.

Under the CISG, a communication between the parties would be considered an offer when:

It is sufficiently definite and indicates an intention to be bound

The following are all problems faced by developing countries in their business contract relationships with wealthier nations except:

Lack of natural resources to use as collateral for credit.

If a merchant receives goods unsolicited with a note, "If I don't hear from you, I assume you will keep them and pay for them", failure to respond to the sender is an acceptance

No acceptance

A, a New York firm, sends a purchase order to B in Sweden. A standard clause on the purchase order states that "All disputes are to be heard in the courts of New York." B confirms using its standard form, which states that "all disputes are to be resolved in arbitration before the ICC, Sweden." Under the CISG:

No contract exists because B's terms were a counteroffer that was not accepted by A.

All of the following are remedies available under CISG except:

Reformation

The following elements are all considered to be key elements materially altering the terms of an offer when included with an acceptance under the CISG except:

Specification of the ship to be used for carriage.

All of the following may be raised as reasons for nonperformance of sales contract except:

Subjective Constraints.

A and B have entered into a sales contract. If it becomes apparent to A that B might not perform a substantial part of his bargain as promised, A may:

Suspend performance.

Eastern Airlines contracted with Gulf Oil for a supply of jet fuel. An oil embargo resulted in a 400 percent increase in the price of oil. Gulf demanded a price increase from Eastern. Eastern sued to ensure its supply of oil at the contract price. The result in court was:

That Eastern won because Gulf should have foreseen this situation.

Both the U.S. and France have ratified the Convention on Contracts for the International Sale of Goods (CISG). A buyer in France and a seller in the U.S. enter into a contract for the sale of widgets. If a dispute arises:

The CISG will apply since all the requirements have been met.

A U.S. company sends a purchase order to an Italian shoe company. The Italian shoe company sends a letter confirming the purchase order. The CISG provides:

The Italian company can withdraw the acceptance if the withdrawal reaches the U.S. before its acceptance.

Buyers and sellers entered into a contract for the sale of nuts. The usual route used the Suez Canal. Prior to shipment, a war closed the canal. Because the freight charges would be so high by another route, the seller refused to ship. The buyer had to buy at a higher price elsewhere and sued the seller. At trial:

The buyer will win since this is just a risk of doing business.

In the U.S., the remedy of specific performance is limited to those instances where:

The goods are unique.

Under CISG, all of the following are requirements to excuse nonperformance of a contract except:

The impediment is of such a monetary value as to shock the conscience.

If a U.S. company wants to limit its implied warranties in connection with a sale of goods to a French company, the CISG provides that:

The limitation is valid no matter what the form.

Contract negotiations in Japan are characterized by all of the following except

The presence of lawyers during the negotiations to insure that their clients' legal interests are protected.

The following sales are excluded from the CISG:

The sale of ships and aircraft.

U.S. Wheat Sales, Inc. has a contract with Zambia to supply 1,000,000 bushels of wheat. Before shipment, the U.S. government put an embargo on the sale of wheat to Zambia. U.S. Wheat cannot ship. In a legal action:

U.S. Wheat will be excused from performance because of the doctrine of impossibility of performance.

The primary body of law in the U.S. dealing with domestic sales contracts is:

Uniform Commercial Code (UCC)