BLAW Quiz Ch. 20-27

Home Repair

Ferries is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Garda suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is: A) Ferris B) Gerda C) Home Repair D) none of the parties

A) the implied warranty of fitness for a particular purpose

Watercourse Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face her of." This disclaimer effectively negates: A) the implied warranty of fitness for a particular purpose B) the implied warranty of merchantability D) the implied warranty of title C) none of the choices

the concept of good faith

American Coffee Company and Beans Brokers, Inc., enter into a contract for the sale of a certain quality and quantity of coffee beans, with Beans Brokers to determine the price. The price must be set according to: A) the concept of good faith B) the principle of fair trade C) the predominant-factor test D) the doctrine of unconscionability

A) Recover from Big Dig for breach of warranty

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 from big dig for breach of warranty B) Do nothing C) file criminal charges against Big Dig and Credit Collection D) recover damages from Credit Collection for breach of warranty

B) the implied warranty of merchantability

Beginnings 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) the merchant's implied duty of inspection B) the implied warranty of merchantability C) no duty or warrant because Beginners Run knew nothing about the defect that made the goods unsafe D) no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted

D) None of the choices

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 fitness for a particular purpose B) an implied warranty of merchantability C) an express warranty D) none of the choices

C) the implied warranty of fitness for a particular purpose takes precedence

Eden Valley Ranch and Farm Supply Corporation enter into a contract for a sale of fencing materials. Farm Supply, a merchant who deals in goods of the kind, makes implied and express warranties in connection with the sale. Under the UCC, if these are inconsistent: A) all implied warranties displace express warranties B) all express warranties displace all implied warranties C) the implied warranty of fitness for a particular purpose takes precedence D) the implied warranty of merchantability take precedence

May treat the offer as having lapsed

Fresh Diary, Inc., 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 reasonable time. Gelato: A) may treat the offer as having lapsed B) must assume that Fresh Dairy has started to perform C) must contract Fresh Dairy D) must notify Hector's

The doctrine of unconscionability

Global Outfitters Outlet and Hyacinth, a consumer, enter into a contract for a sale of ultra-weather camping gear. If the contract includes a clause that is perceived as grossly unfair to Hyacinth, its enforcement may be challenged under: A) the mirror image rule B) the principle of fair trade C) the predominant-factor test D) the doctrine of unconscionability

A) An express warrnaty

Livestock Feedlot orders one hundred sacks of cattle feed from MegaNutrient Feed, Inc. Each sack is stamped with the phrase "Twenty Percent Protein." This is: A) an express warranty B) an implied warranty C) a warranty of title D) puffery

Any of the choices

Nature's Products, Inc., sends it 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: A) the terms materially alter the original contract B) the original offer expressly limited acceptance to its terms C) the offeror objects to the new terms within a reasonable time D) any of the choices

All of the parties' sales of the goods

Over the course of a year, Suites & Sets corporation sells household furnishings to customers to whom it extends credit. Suites & Sets orders the furnishings from The Storage Depot's warehouse, from which the items are shipped via common carrier to Suites & Sets customers. Article 2 of the UCC governs: A) all of the parties' sales of the goods B) Suites & Sets' extension of credit C) The Storage Depot's storage of the goods D) each company's management of its operations

A) An express warranty

Quake is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quake shows her a painting that in his opinion is by Picasso. Quade's statement is: A) an express warranty B) an implied warranty C) an opinion D) puffery

Commercial transactions for the sale of and payment for goods

Refined Grains, Inc., is a Kanas-based firm that does business throughout the world. Refined Grains manages retail and wholesale operations, buys and sells commercial venues, undeveloped land, and agricultural products, and other goods. Refined Grains has had to deal with employee and customer theft. With respect to these circumstances, the UCC provides a framework for: A) commercial transactions for the sale and payment for goods B) international distribution agreements C) domestic and foreign transactions in real estate D) prosecuting crimes against business interests

A) Consumer expectations

Rita eats Salsa Caliente Maddie and sold by Salsa Zest Corporation and becomes ill. Rita files a suit against Salsa Zest, alleging that its product was not merchantable. Merchantable food is food that is fit to eat on the basis of: A) consumer expectations B) what constitutes a perfect condition C) its maker's intentions D) its producer's experience

A) An express warranty

Riverside Ranch is a horse breeding facility. Steed Stables is a customer looking for a new stallion for its breeding programs. Riverside's representative Tomas shows Steed a stallion that he says is very fertile and can easily breed twenty mares per year. This statement is: A) an express warranty B) an implied warranty C) a warranty of title D) puffery

Agree to whatever terms they wish

Savannah and Tim enter into a sales contract for orchids. With respect to the specific contractual provisions set out in the UCC, Savannah and Tim may: A) agree to different terms only to a reasonable extent B) agree to different terms unless they "get caught" C) agree to whatever terms they wish D) not agree to different terms

All of the states, in whole or in part

Stop n' Gas Convenience Stores, Inc., is an East Coast-based firm that does business throughout the United States. With respect to this circumstance, the UCC has been adopted by, and applies in: A) All of the states, in whole or in part B) only the states on the Atlantic and Pacific coasts C) Noneo f the states to date D) only the lowre forty-eight states - not Alaska or Hawaii

False

T/F Goods must be of the highest quality possible to be merchantable.