cengage 20-24, 32, 33

Fiesta LLC contracts to buy 1,000 balloons from Gas Bags Inc. for $1 per item. When the market price decreases to 50 cents per balloon, Fiesta refuses to go through with the deal. Gas Bags can recover a. $500. b. $1,500. c. $1,000. d. $0.

$500.

Ota buys a Prius from Quincy's Toyota, paying with a check that is later dishonored. Ota offers to sell the car to Rafe for cash. With respect to this offer, Ota's title to the car is a. void. b. valid. c. voidable. d. good.

voidable.

A seller's title to goods being sold is voidable if the goods a. were bought on credit. b. were delivered to a buyer but have not yet been paid for. c. must be sold to a good faith purchaser for value. d. were obtained by fraud

were obtained by fraud

Grinders Mill agrees to sell to Harvest Company a certain quantity of refined grains. Some of the other terms in the deal are left open. In the case of a dispute, a court will presume a. nothing. b. whatever favors the plaintiff. c. whatever favors the non-breaching party. d. whatever is reasonable.

whatever is reasonable.

The government of Japan sets a limit on the amount of beef that can be imported from the United States. This is a. a tariff. b. a quota. c. an antidumping duty. d. a dumping duty.

a quota.

Embers Corporation orders twelve fire extinguishers from Firefighting Inc., which delivers the equipment. This is most likely a. a lease of goods. b. a sale of goods. c. a gift. d. a contract for services.

a sale of goods.

Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is a. a lease. b. a sublease. c. a sale. d. a contract for services.

a sale.

Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp, Inc. Unless the contract states otherwise, this document is assumed to be a. a shipment contract. b. a destination contract. c. a warehouse receipt. d. a bill of lading.

a shipment contract.

Luce is married to Marc. Luce buys food for their children's lunches and charges the cost to Marc's account. This is a. not an agency relationship. b. an agency by agreement. c. an agency by estoppel. d. an agency by operation of law.

an agency by operation of law.

Flight Craft Corporation sends its agent Gavin to a sales convention hosted by Holiday Travel to showcase Flight's new passenger jet. Gavin, who is authorized to make statements about the aircraft, makes false claims about its capability. Liability for injuries or damage to third parties who rely on the false claims extends to a. Flight Craft and Gavin only. b. Flight Craft only. c. Holiday Travel only. d. Gavin only.

Flight Craft and Gavin only.

Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." Fair value is the price of Mont Blanc's goods in a. France. b. the world market. c. the European market. d. the United States.

France

Fuel Connectors Inc. agrees to sell Go-Flo, Inc., 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 a. the current location of the hose couplings and fittings. b. a warehouse midway between the parties' places of business. c. Fuel Connector's place of business. d. Go-Flo's place of business.

Fuel Connector's place of business.

Appliance Corporation sells Best-brand vacuum cleaners to Cash Discount Stores and other retailers. Appliance will have an insurable interest in the vacuums as long as a. Appliance remains in business. b. Appliance retains title to the goods. c. there is no risk of loss. d. the goods are in existence.

Appliance retains title to the goods.

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

April, when the calves are conceived.

Curt enters into a contract with Drivers Lease Company for a three-year lease of a car. This contract is subject to a. Article 2A of the UCC. b. Article 2 of UCC. c. the common law only. d. none of the choices.

Article 2A of the UCC.

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. CSR. b. no one. c. Doris. d. the maker of the iPod.

CSR

Cal directs Diego, Cal's agent, to harvest the hay on Edna's farm, although neither Cal nor Diego has the right to go onto the land and cut and remove the crop. Liability for the trespass and damage to the property extends to a. Cal and Diego only. b. Cal only. c. Diego only. d. Cal, Diego, and Edna.

Cal and Diego only.

Agri Products Inc., a U.S. firm, signs a contract with Bao Ltd., a Chinese firm, to distribute Agri's products in China. The most likely reason for this deal is a. Agri will thereby avoid jurisdictional and contract-law issues. b. China is a new market for Agri. c. Agri prefers to limit its involvement in Chinese markets. d. China represents a substantial market for Agri.

China represents a substantial market for Agri.

Commercial Rents Corporation agrees to lease a pressure washer to Delivery Trucks Inc., which agrees to pick it up at E Street Warehouse. Before Delivery Trucks retrieves the washer, it is stolen. The loss is suffered by a. E Street Warehouse. b. Delivery Trucks. c. the thief. d. Commercial Rents.

Commercial Rents.

Corinne discloses that she is acting as an agent on behalf of Development LLC when she enters into a contract with Enterprise Funds Inc. Liability for nonperformance of the contract may be imposed on a. Development LLC only. b. Corinne only. c. none of the choices. d. Corinne and Development LLC

Corinne and Development LLC

Bren buys a new motorcycle from Cycles Inc. The most important factor in determining whether an express warranty is created is whether a. Cycles' promise becomes part of the basis of the bargain. b. Bren expresses to Cycles what she wants warranted. c. Bren's desire for the cycle becomes part of her motivation to deal. d. Cycles' expression to Bren of what it expects from its customers.

Cycles' promise becomes part of the basis of the bargain.

Consumers Choice Store accepts a shipment of phones from Digital Devices Inc. Consumers Choice later discovers a defect in the phones, revokes acceptance, and returns the goods via GoBack, Inc. During the return, the goods are lost. The loss is suffered by a. Digital Devices. b. Consumers Choice. c. GoBack. d. consumers by increases in the prices of other goods and shipping

Digital Devices.

Without authority, Dot contracts purportedly on Eva's behalf with Field & Farm Equipment Inc. for the purchase of a tractor. Liability on the contract extends to a. Dot and Eva. b. Eva only. c. Dot only. d. none of the choices

Dot only.

Coal Corporation buys a Durable-brand bulldozer from Equipment Inc. Coal is unaware that Finance Company holds a lien against the bulldozer. Finance repossesses the goods. Coal can recover for breach of warranty from a. any of the parties. b. Equipment. c. Finance. d. Durable.

Equipment.

Bayou Boats Inc. contracts for the sale of seven swamp boats to Eventide Fishing Tours. Bayou repudiates the contract. Eventide's recovery is measured at the time a. Eventide learned of the breach. b. Eventide ordered the goods. c. Bayou knew that it would repudiate the contract. d. Bayou advertised the goods.

Eventide learned of the breach.

EverSafe Corporation in New York sells a truckload of protective suits, masks, and other safety gear to Foundry Inc. in Connecticut, "F.O.B. New York." EverSafe arranges with Geo Truckline to transport the goods. The cost of the transport will be paid by a. Geo. b. Foundry. c. all businesses through an increase in the prices of safety gear. d. EverSafe

EverSafe

United Wear Inc. and Winter Gear stores enter into a contract for a sale of coats. Their contract can indicate that the price includes transportation costs to a specific destination by including the term a. F.A.S. b. F.O.B. c. delivery ex-ship. d. C.I.F.

F.O.B.

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

Growers.

Hana indicates that she is acting as an agent on behalf of an unidentified client—In-Flight Service Inc.—when she enters into a contract with Jet Airlines. Liability to the airline for nonperformance of the contract may be imposed on a. In-Flight only. b. Hana only. c. none of the choices. d. Hana and In-Flight

Hana and In-Flight

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is a. Ferris. b. Home Repair. c. none of the choices. d. Gina.

Home Repair.

Garden Stores order a specific assortment of rose bulbs from Hybrid Company. Hybrid mistakenly ships a selection of annuals, which Garden rejects and returns via Indie Transport Inc. During the return, the annuals are lost. The loss is suffered by a. Garden. b. Hybrid. c. Indie. d. consumers by increases in the prices of other goods and shipping.

Hybrid.

Jared buys a kayak from a Lake Craft store, which agrees to keep it for him until he picks it up. Before Jared gets the kayak, an unforeseen tornado destroys the store and the goods. The loss is suffered by a. the government agency that failed to foresee the tornado. b. Lake Craft. c. Jared. d. the maker of the kayak

Lake Craft.

Milos employs Natalie to handle a list of financial transactions on Milos's behalf. This power will terminate on a. any transaction causing a loss to Milos. b. Milos's death or incapacity. c. Milos's sixty-fifth birthday. d. Natalie's handling of one of each stipulated transaction.

Milos's death or incapacity.

Organic Café orders five gallons of PureMaid-brand olive oil from Quico Oil Inc. Quico mistakenly ships Pure soy oil, which Organic keeps, despite the nonconformity. The oil is destroyed in a fire. The loss is suffered by a. all of the parties as owners in common in equal measure. b. Organic. c. Pure. d. Quico.

Organic.

In the course and scope of employment, Oscar, an agent for Processed Food Inc., violates state sanitation regulations by mishandling certain food products distributed by Quality Transport Corporation. In some jurisdictions, liability for the violations could extend to a. Processed Food Inc. b. the state. c. none of the choices. d. Quality Transport Corporation.

Processed Food Inc.

Qin, the owner of Reprocess Plant, instructs Shi, a plant supervisor, to fill a storage tank with a chemical made by Toxins Inc. that, as both Qin and Shi know, will combust if combined with the substance previously stored in the tank. And, as they also both know, the tank has not been cleaned. Liability for any resulting harm or damage extends to a. Qin only. b. Shi only. c. Qin and Shi only. d. Toxins Inc. only.

Qin and Shi only.

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

Quality gives Pipe the warehouse receipt.

Raj agrees to act as a sales agent for Service Company on a commission basis. Their contract stipulates six-months' notice of termination. The firm ends the deal without notice. If Raj seeks payment of commissions on sales for the six months following the termination, a court is most likely to hold that a. Raj is entitled to the commissions. b. any compensation on sales during the period should be split equally. c. the amounts accrue to Service, which had the power to end the agency. d. Raj can recoup expenses but no profit.

Raj is entitled to the commissions.

Quaff Café buys twenty-five crates of apples from Reynaldo Produce, Inc. The parties agree to ship the apples "F.O.B. Quaff" via Swift Trucking Company. The apples rot in transit. The loss is suffered by a. Swift. b. Quaff. c. Reynaldo. d. F.O.B.

Reynaldo.

Roasters Corporation and Outdoor Barbecues Inc. enter into a contract for a sale of a commercial grill. The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor. Risk of loss passes to Outdoor when a. Roasters and Outdoor enter into their contract. b. Roasters delivers the goods to Speedy. c. Outdoor begins to use the grill. d. Speedy transports the goods to Outdoor.

Roasters delivers the goods to Speedy.

Roofing Contractor LLC buys roof tiles from Shingles Inc. The parties agree that the tiles will be shipped "F.O.B. Shingles" to Roofing via Tristate Shipping Corporation. The goods are lost in transit. The loss is suffered by a. Tristate. b. Shingles. c. Roofing. d. consumers by an increase in the prices of tiles and shipping

Roofing.

Ruby, an agent for Shipping Company, leases a warehouse from Transit Facilities Inc. without stating that she is acting on Shipping Company's behalf. Liability for nonpayment of rent under the lease may be imposed on a. Shipping Company only. b. Ruby only. c. none of the choices. d. Ruby and Shipping Company.

Ruby and Shipping Company.

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

Sports Merchandise.

Spuds Corporation buys from Tater Farm Inc. a potato crop that Tater plans to plant and harvest during the next growing season. Spuds plans to sell the potatoes to Tasty Food Restaurant. After the potatoes are planted, but before they are harvested, an insurable interest in the crop exists in a. Spuds, Tater, and Tasty. b. Spuds and Tater, but not Tasty. c. none of the choices. d. Tater only.

Spuds and Tater, but not Tasty.

Refined Mills orders "Grade A" oats from Sweet Farms to grind and sell to Town Grocery. Sweet ships "Grade B" grain, which Refined accepts. To recover damages for the nonconformity, Refined must give notice of the breach within a reasonable time to a. the appropriate state government agency. b. Town. c. Sweet. d. no one.

Sweet.

Talk Inc. offers to buy from Ultra Corporation 1,000 phones with certain features. Without notifying Talk, Ultra timely ships phones with fewer features. With respect to the offer, this shipment is an acceptance and a. a counteroffer. b. complete performance. c. an accommodation. d. a breach.

a breach.

Skyscape LLC regularly engages in the business of leasing construction equipment, primarily to commercial contractors. Tilde, a consumer, leases a backhoe from Skyscape to landscape the property at her home. The price is less than the amount set by state statute. Under the UCC, the deal with Tilde is a. a construction lease. b. a commercial lease. c. a consumer lease. d. none of the choices.

a consumer lease.

A contract between Fresh Fruit Corporation and Green Grocer Inc. requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is a. a shipment contract. b. a bill of lading. c. a destination contract. d. a warehouse receipt.

a destination contract.

Mountain Coffee Company and Nature's Cuisine Inc. enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is a. a destination contract. b. a warehouse receipt. c. a bill of lading. d. a shipment contract.

a destination contract.

Opti-Med Inc., a U.S. firm, signs a contract with Pharma Ltd., a Canadian firm, to give Pharma the right to sell Opti-Med's products in Canada. This is a. a distribution agreement. b. licensing. c. indirect exporting. d. direct exporting.

a distribution agreement.

Marine Expeditions Inc. pays Noah's Boats $4,000 to use an oceangoing vessel for a month. For the purposes of the UCC, this is a. a lease. b. a contract for services. c. a sale. d. a merchant's firm offer.

a lease.

Seacoast Transport Company pays Trucks & Trailers Inc. a stated price for the use of seven tractor-trailer rigs for a year. Under the UCC, this is a. a lease. b. a sublease. c. a contract for services. d. a sale.

a lease.

Burger Bistros, a U.S. firm, makes a deal with a Canadian firm, Donny's Diners, that allows Donny's to use Burger's trade name in Canada in return for a fee. This is a. a distribution agreement. b. a subsidiary. c. direct exporting. d. a license.

a license.

In international business, franchising involves a. a subsidiary. b. a distribution agreement. c. direct exporting. d. a license.

a license.

Brooke is an art collector and hires a broker to buy and sell artworks on her behalf. Under the UCC, in those transactions, Brooke has the status of a. an employer and manager. b. an agent or other intermediary. c. a consumer. d. a merchant

a merchant

Bev indicates that she is acting as an agent on behalf of an unidentified client—Cuisine LLC—when she enters into a contract with Diners Bistro. Cuisine is a. a disclosed principal. b. an undisclosed principal. c. a partially disclosed principal. d. an apparent agent.

a partially disclosed principal.

Luis hires Mieko to act as his agent to buy Noh's Southeast Asian Café. Luis tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Noh's seller who that third party is. Luis is a. a disclosed principal. b. a partially disclosed principal. c. an undisclosed principal. d. not a principal.

a partially disclosed principal.

Kit hires Lane to obtain insurance for Kit's business. Lane agrees to act on Kit's behalf in the effort, and Kit trusts Lane to so act. Their relationship is a. a principal and an agent. b. a broker and an independent contractor. c. none of the choices. d. an employee and an agent.

a principal and an agent.

Lasers Inc. hires Mal to buy rare earth minerals on its behalf. In this relationship, Lasers is a. a principal. b. an agent. c. an independent contractor. d. an employee

a principal.

Power Company offers to buy from Quality Transformers LLC a specific quantity of a certain type of transformer for a stated price. Quality can accept the offer by a. a promise to ship the goods. b. a rejection of the offer with an invitation to negotiate a different price. c. any of the choices. d. a counteroffer within a reasonable time.

a promise to ship the goods.

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

a quantity term.

Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is a. a shipment contract. b. a warehouse receipt. c. a destination contract. d. a bill of lading.

a shipment contract.

The United States taxes most goods imported from China at a flat rate. This is a. a dumping duty. b. a tariff. c. a quota. d. an antidumping duty.

a tariff.

Bagels Inc. and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. According to the UCC, this is a. none of the choices. b. a usage of trade. c. a course of dealing. d. a course of performance.

a usage of trade.

Regional Freight LLC delivers a receipt issued by Storage Warehouse for goods stored in its facility to Transnational Inc., a buyer of the goods. This is a. a destination contract. b. a bill of lading. c. a shipment contract. d. a warehouse receipt.

a warehouse receipt.

In determining the reasonableness of a buyer's reliance on a seller's statement purported to be an express warranty, it can be considered that a reasonable person is more likely to rely on a. a feature asserted to be "always" or "never." b. a written statement in an ad. c. an oral statement by a salesperson. d. an expression of puffery.

a written statement in an ad.

In a letter-of-credit transaction, Unum Inc., a U.S. firm, delivers a bill of lading to Verity Bank to prove that a contracted-for shipment was made to Wallaby Ltd., an Australian company. Verity must pay Unum a. after verifying the facts that the bill of lading purports to reflect. b. before policing the underlying contract. c. coincident with the buyer's assurance of its receipt of the goods. d. against the bill of lading, without more.

against the bill of lading, without more.

Lau, an agent for Mae, acts outside the scope of her authority, to enter into a contract on Mae's behalf. Mae approves of the deal and affirms the contract. This is a. agency by ratification. b. agency by estoppel. c. the appearance of, but not in fact, an agency. d. agency by agreement.

agency by ratification.

Ingmar asks Jess to contract with Kay's Lawn Service to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by a. agreement. b. estoppel. c. operation of law. d. ratification

agreement.

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

alike naturally, by agreement, or by trade usage.

Excluded from Article 2 of the UCC are a. patents and copyrights. b. corporate stocks and bonds. c. ordinary contract rights. d. all of the choices.

all of the choices.

Without authorization, Race contracts on behalf of Sophie to have Theo paint Sophie's Boutique. If Sophie decides to ratify the contract, she must affirm a. all of the contract. b. any part of the contract before performance begins. c. any part of the contract at any time. d. any part of the contract, with Race liable to Theo for the difference.

all of the contract.

Resort Hotel Corporation, a U.S. firm, establishes a wholly owned subsidiary in Singapore. As a parent corporation, with respect to the subsidiary, Resort retains complete ownership of a. more than half, but less than all, of the facilities in Singapore. b. all of the facilities in Singapore. c. none of the facilities in Singapore. d. no more than half of the facilities in Singapore

all of the facilities in Singapore.

Watercraft Inc. employs Vern as a sales agent for a trial period. At the end of the period, Watercraft and Vern disagree on the amount of the commissions Vern is due for sales that he made. Vern may demand a. a constructive trust. b. specific performance. c. an accounting. d. nothing.

an accounting.

Rubio is injured in an accident with Stavros. Unable to use his hands due to the injury, Rubio indicates that Tam should sign a settlement agreement on Rubio's behalf with Stavros's insurance company. This is a. an agency by estoppel. b. not an agency relationship. c. an agency by operation of law. d. an agency by agreement.

an agency by agreement.

Rosa introduces Sol to her friend Trey as "my associate." Sol purports to act as Rosa's agent in a business transaction with Trey. If Rosa is liable for Sol's actions, it will be because their relationship is a. an agency by estoppel. b. not an agency relationship. c. an agency by agreement. d. an agency by operation of law.

an agency by estoppel.

Consolidated Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Consolidated empowers Doha Ltd., an Egyptian firm, to enter into contracts in certain countries on behalf of Consolidated. This is a. an agency relationship. b. direct exporting. c. a distribution agreement. d. indirect exporting.

an agency relationship.

Life Insurance Company hires Minh to sell insurance policies for the company. Minh agrees to act on the firm's behalf in the endeavor, and the company trusts Minh to so act. Minh is a. an agent and an independent contractor. b. a principal and an agent. c. none of the choices. d. an employee and an agent

an agent and an independent contractor.

Motor Parts Sales Inc. hires Nolly to work on its shipping dock, accepting deliveries, and dispatching trucks, and dealing with customers and drivers. With respect to Motor Parts, Nolly is most likely a. an agent and a principal. b. an agent. c. none of the choices. d. a principal.

an agent.

Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers. The company closely supervises its sales reps, and dictates their schedules. With respect to third parties, Nora is a. a principal. b. an employee only. c. an employee and agent. d. an independent contractor.

an employee and agent.

Orin works at Pumps Inc. He works in the company's engineering department, interacting with third parties only to discuss technical issues. With respect to third parties, Orin is a. a principal. b. an employee and agent. c. an independent contractor. d. an employee only.

an employee only.

Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is a. an independent contractor. b. an employee. c. a principal. d. an employer.

an employee.

A sales contract for a new car states that the vehicle is "warranted to be free from defects for 48,000 miles or forty-eight months, whichever occurs first." This statement creates a. an express warranty but not an implied warranty. b. no warranty. c. an express warranty and an implied warranty. d. an implied warranty but not an express warranty.

an express warranty and an implied warranty.

A label reads, "Box contains one bass clarinet." This creates a. an implied warranty that the goods are merchantable. b. a statement of opinion that the goods are in the package. c. an express warranty that the goods conform to the description. d. a statement of value or worth about the goods.

an express warranty that the goods conform to the description.

A representation concerning the quality, condition, description, or performance potential of goods is a. a warranty of title. b. not a warranty. c. an implied warranty. d. an express warranty.

an express warranty.

Cato, a salesperson for Durable Sportswear Corporation, tells Elan, a buyer for Footwear Inc., that Durable's athletic shoes are made of certain materials. This is a. an implied warranty. b. a statement of opinion. c. an express warranty. d. puffery

an express warranty.

Jem, a salesperson for Kitchens Inc., shows Lana, a buyer for Metro Diner, display items in Kitchens' showroom, stating that any purchased equipment will match the display. This is a. an implied warranty. b. a statement of opinion. c. puffery. d. an express warranty.

an express warranty.

Fatima asks Gianni, a salesperson for Hues & Colors, for a gallon of paint of a certain color and suitable for interior walls. Gianni sells her a gallon of interior paint of a different color. Gianni has breached a. no warranty. b. an implied warranty of fitness for a particular purpose. c. the implied warranty of merchantability. d. an implied warranty for the ordinary purpose of the goods.

an implied warranty of fitness for a particular purpose.

A warranty that the law derives by inference from the nature of a transaction or the relative situations or circumstances of the parties is a. an implied warranty. b. not a warranty. c. an express warranty. d. a warranty of title.

an implied warranty.

Glass Company and competitive merchants who deal in goods of the same kind assert that their products are reasonably fit for the ordinary purposes for which such goods are used. This is a. an implied warranty. b. puffery. c. an express warranty. d. a warranty of title.

an implied warranty.

Packaged Foods Inc. and competitive merchants who deal in goods of the same kind imply that their products are properly packaged and labeled. This is a. a warranty of title. b. puffery. c. an express warranty. d. an implied warranty.

an implied warranty.

Precision Parts Corporation and competitive merchants who deal in goods of the same kind assert that their products are of the proper quality. This is a. an express warranty. b. a warranty of title. c. puffery. d. an implied warranty.

an implied warranty.

Rosario is a chef and caterer who hires out on a per-project basis to companies with on-location work sites, as well as to the hosts of banquets and other events. In this capacity, Rosario is a. an agent. b. a principal. c. an independent contractor. d. an employee.

an independent contractor.

An insurable interest is a. an interest in goods permitting a party to insure against their damage. b. none of the choices. c. interest that can accrue from investing in insurance of certain goods. d. an interest in ensuring that goods are of a certain quality

an interest in goods permitting a party to insure against their damage.

Dino, a certified public accountant and an investor, and Elma, an insurance salesperson and a realtor, may create an agency relationship for a. a business purpose only. b. only a purpose related to these parties' professions. c. any stated purpose. d. any legal purpose.

any legal purpose.

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 Distribution's form automatically become part of the contract unless a. the terms materially alter the original contract. b. the original offer expressly required acceptance of its terms. c. Containers objects to the new terms within a reasonable time. d. any of the choices.

any of the choices.

Market Maven Inc., a U.S. firm, can license a foreign manufacturing company to use its a. trade secrets. b. trademarked brand. c. patented intellectual property. d. any of the choices.

any of the choices.

Nature's Eggs Inc. agrees to supply Omelet Express with five hundred eggs. Nature's Eggs can reasonably ask Omelet Express to pick up the eggs at a. any reasonable hour. b. no specific time—only a buyer can set the time. c. any hour. d. no time—as a seller, Nature's Eggs must deliver the goods.

any reasonable hour.

Based on Jin's conduct, Kai reasonably believes that Lore has the authority to act on Jin's behalf even though Lore does not have the actual authority to do so. In this circumstance, Lore has a. express authority. b. implied authority. c. apparent authority. d. no authority.

apparent authority.

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

as is.

Trucks Inc. and United Express Service enter into a contract for a lease of trucks. The lessor is a merchant that deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises a. automatically. b. only if the lessor expresses such a warranty. c. only if the lessee asks for it. d. only in conjunction with sales, not lease, contracts.

automatically.

Chair Company contracts to deliver a dozen suites of dining room tables and chairs to Furniture Store on May 1. On April 15, Chair tells Furniture that delivery will be delayed until June 1. Furniture may a. only sue Chair for breach of contract. b. await performance, sue Chair, or suspend its own performance. c. only await Chair's performance for a commercially reasonable time. d. only suspend its own performance.

await performance, sue Chair, or suspend its own performance.

Sure Good Appliance Corporation contracts with Trucking Company to take a selection of appliances to United Railroad Inc. for United to transport the goods to a VeriSafe Company warehouse. Trucking, United, and VeriSafe each acknowledge possession of the goods by a document of title. These parties are a. bailees. b. buyers. c. lessees. d. sellers.

bailees.

Based on Kim's conduct, Lam reasonably believes that Minh has the authority to act on Kim's behalf, although Minh does not have such authority. A contract between Lam and Minh calls for performance by Kim, who refuses to comply. In this situation, Kim may a. use a power of attorney to avoid the contract. b. cancel the contract at the principal's election. c. force the agent to perform the contract. d. be estopped from denying that the agent had the requisite authority.

be estopped from denying that the agent had the requisite authority.

Confection Corporation orders Double Chocolate Bars from Edible Distribution Company. Edible identifies the goods. Before they are shipped via Fast Shipping LLC, an insurable interest in the goods exists in a. Edible only. b. Confection, Edible, and Fast. c. Confection only. d. both Confection and Edible.

both Confection and Edible.

Durable Goods Inc., a U.S. firm, and Économique S.A., a French company, contract for an international sale of goods with the use of a letter of credit issued by Finance Corporation. In this transaction, the letter protects a. only any third parties, such as advising and paying banks. b. primarily the issuer. c. both the buyer and the seller. d. chiefly the account party.

both the buyer and the seller.

Meds-Free Inc. enters into a contract to sell its product line to Naturopath Clinic, which later sells some of the items to Oneida, a patient and consumer. Article 2 of the UCC applies to a. the sale from the clinic to its patient only. b. both transactions. c. none of the transactions. d. the sale from Med-Free to the clinic only.

both transactions.

An agency contract between Trucking Company and United Dispatch does not expressly state that United will use reasonable skill and diligence in performing the work. United fails to meet this standard. The agent is most likely liable for a. failure to cooperate. b. breach of contract. c. an accounting. d. nothing.

breach of contract.

Pho enters into an exclusive agreement with Qin to find suitable property for Qin's enterprise. Later, Qin signs an exclusive agreement with Row for the same purpose. Neither agent knows about the other, and each expends reasonable efforts to perform. Qin buys a building through Pho. Most likely, Qin may be liable to Row for a. none of the choices. b. an accounting. c. breach of the duty of cooperation. d. negligence.

breach of the duty of cooperation.

Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Global Mining Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can a. bring civil suits under the Alien Tort Claims Act. b. do nothing. c. subject the private company to the provisions of the Sherman Act. d. file criminal complaints under Title VII of the Civil Rights Act.

bring civil suits under the Alien Tort Claims Act.

Motor Parts Inc. and National Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Motor ships goods that do not comply. National a. can reject the entire shipment. b. must accept the entire shipment. c. must reject the entire shipment. d. cannot reject the entire shipment.

can reject the entire shipment.

Singh, a consumer, leases sheet music from Tunes Inc. for a public performance. United Music Corporation, which holds a copyright on the music, sues Singh to stop the performance without a royalty payment. Singh fails to notify Tunes of the suit within a reasonable time. The lessee a. can assert this failure to delay the litigation, but it is not a defense. b. can sue the lessor to recover the expenses of the suit. c. can raise the failure to notify as a defense in copyright holder's suit. d. loses any remedy against the lessor for liability established in the suit.

can sue the lessor to recover the expenses of the suit.

Lorane, an attorney, contracts with Melos to incorporate the client's business. Their contract stipulates the amount of the fee. On completion of the work, the attorney's right to be paid this amount arises from the client's duty of a. compensation. b. reimbursement. c. indemnification. d. none of the choices.

compensation.

Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is a. the doctrine of sovereign immunity. b. expropriation. c. the act of state doctrine. d. confiscation.

confiscation.

Curly Fries Inc. grants its agent Damon an exclusive territory in which to sell its products. The company cannot compete with Damon in that territory under the duty of a. none of the choices. b. reimbursement. c. cooperation. d. indemnification.

cooperation.

Under the second of two contracts with Citrus Orchard for deliveries of fruit, Distribution Center refuses to pay for fruit that arrives damaged. Citrus responds that the buyer did not waive payment for damaged goods in the parties' first contract. Citrus is arguing that the court should take into account a. course of performance. b. none of the choices. c. usage of trade. d. course of dealing.

course of dealing.

Gary drives a truck as an employee for Hauling Inc. Gary would most likely be considered acting outside the scope of her employment if he a. ran over an attendant at a gas station while refueling the truck. b. smashed into a store-front while intoxicated on-duty. c. crashed into a car at the airport while off duty. d. hit a pedestrian in a parking lot during a "working" lunch.

crashed into a car at the airport while off duty.

Darya serves in a representative capacity for Ellen's Botanicals. To accomplish the objectives of this relationship, Darya's authority can be implied by a. any subjective measure. b. contradiction. c. custom. d. none of the choices.

custom

Velma is a purchasing agent for Wild-Caught Fish Inc., with the authority to buy the catches of commercial fishers up to a certain quantity. When the limit is reached, the agency relationship terminates a. following notice to all fishers within a reasonable geographic area. b. following notice to all fishers with whom Velma did business. c. following published notice. d. automatically

d. automatically

Lumber Company agrees to sell a certain quantity of plywood to Metro Builders Inc. under a destination contract. Lumber must a. inspect the plywood before tendering its delivery. b. allow the buyer to reject the plywood for any reason. c. deliver the plywood to a particular destination. d. place the plywood into the hands of a carrier.

deliver the plywood to a particular destination.

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

demand an assurance of performance from the seller.

Refined Metals Company and Superior Fabrication Inc. enter into a contract under which Refined agrees to deliver a certain quantity of sheet metal to Superior 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. b. impose the highest market price. c. impose the lowest market price. d. return the parties to the positions they held before the contract.

determine a reasonable price.

Airbud Corporation, a U.S. firm, signs a contract with Bueno Computadores Ltd., an Argentinean firm, for a shipment and payment for Airbud's goods. This is a. licensing. b. a distribution agreement. c. indirect exporting. d. direct exporting.

direct exporting.

The Magnuson-Moss Warranty Act requires that a seller who elects to give a full warranty for consumer goods must a. disclose certain information in "readily understandable language." b. discover the buyer's purpose for the purchase before closing the sale. c. determine that the products are fit for any foreseeable purpose. d. deal in goods only of the kind offered for sale.

disclose certain information in "readily understandable language."

Rancho Stables orders ten saddles from Saddles Inc. The sales contract states that if the tack is defective, Rancho will allow Saddles to repair or replace it instead of rejecting the shipment. When the gear arrives, it is defective. In this case, the perfect tender rule a. applies only to Saddles. b. does not apply. c. applies to both parties. d. applies only to Rancho.

does not apply.

To create an express warranty, a seller or lessor a. must use the word "guarantee." b. must use the word "warrant." c. does not have to use formal words.

does not have to use formal words.

The use of a letter of credit in a transaction for the international sale of goods greatly reduces costs in the deal because the issuer a. has the obligation to police the underlying contract. b. must determine whether the contract conditions have been satisfied. c. pays only against the facts reflected in documents presented by the beneficiary. d. does not inquire into whether the contract conditions have been met.

does not inquire into whether the contract conditions have been met.

Wei Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is a. confiscation. b. a trade barrier. c. dumping. d. normal trade relations

dumping.

Under the Export Trading Company Act, U.S. banks are a. prohibited from lending funds to export trading companies. b. required to report financial transactions with export trading companies. c. discouraged from granting credit to export trading companies. d. encouraged to invest in export trading companies.

encouraged to invest in export trading companies.

Romero employs Supply Procurement Service as an agent under a written agreement that describes the rights and duties of both parties. This is a. apparent authority. b. express authority. c. equal authority. d. implied authority.

express authority.

With respect to a contract for a sale of goods, when its express terms cannot be construed as reasonably consistent with the parties' course of performance and course of dealing, and the usage of trade, the UCC gives priority to a. usage of trade. b. express terms. c. course of dealing. d. course of performance.

express terms.

Habitat Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays the firm just compensation. This is a. confiscation. b. expropriation. c. the act of state doctrine. d. the doctrine of sovereign immunity.

expropriation.

Home Remodel Inc. and Ivan enter into a contract for a sale of countertops. Home, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably a. the best that money can buy. b. fit for the buyer's particular purpose. c. suitable for resale at an acceptable price. d. fit for the ordinary purpose for which such goods are used.

fit for the ordinary purpose for which such goods are used.

Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this part of the business, Ben's authority can be inferred a. from the position Ben occupies. b. to contradict Ben's express authority. c. under no circumstances. d. by a reasonable party with whom Coffee Roaster does business

from the position Ben occupies.

Lima buys a new car from Motor City Inc. In the first month after the purchase, the car repeatedly fails to meet standards of quality and performance. To prevail against Motor in a lemon-law dispute, Lima must a. file a court action without prior notice of the defect to the dealer. b. have reason to know of the cause of the failure. c. take the car to an expert third party for an independent inspection. d. give the dealer or manufacturer an opportunity to remedy the problem

give the dealer or manufacturer an opportunity to remedy the problem

Holiday Corporation sells Idyll-brand campers and trailers. Under most circumstances, Holiday will be presumed to have warranted that its title to the goods is a. none of the choices—a warranty of title is not presumed. b. only such as the seller has acquired in the goods. c. good and valid. d. the same as every other merchant who deals in goods of the kind.

good and valid.

Merchant Mart accepts a shipment of nonconforming goods from Nabob Inc. Under the applicable statute of limitations, with respect to pursuing a remedy against the seller for the shipment, the buyer a. has a reasonable time to notify the seller of the breach. b. must warrant that the goods will be returned. c. is barred from seeking damages. d. is limited to a certain amount of damages.

has a reasonable time to notify the seller of the breach.

A sudden storm threatens the property of Marina Bay LLC. Ngoc, Marina Bay's sales agent, is on site, but lacks the express or implied authority to bind the firm to the cost of appropriate protective measures. Unable to communicate with Marina Bay, Ngoc a. has emergency powers to deal with the situation. b. cannot authorize the expense. c. can imply a power of attorney to assume the needed authority. d. must await the principal's express ratification to act.

has emergency powers to deal with the situation.

Security Insurance Agency contracts with Town Motors to buy six cars. The contract lists the cars by their VINs (vehicle identification numbers). Under the UCC, identification a. cannot take place unless the cars are in the seller's possession. b. has taken place. c. cannot take place until the cars are in the buyer's possession. d. requires the filing of a copy of the contract in the appropriate state office.

has taken place.

Because those who cannot legally enter into contracts directly cannot do so indirectly through an agent, a principal must a. employ only one agent at any given time. b. proffer consideration to enter into an agency relationship. c. put an agency agreement into writing. d. have contractual capacity to be a principal.

have contractual capacity to be a principal.

Alpha Packaging Company agrees to buy goods from Boxes Inc. Their contract limits Alpha's remedies to repair or replacement of defective parts. Alpha can pursue other remedies a. if a defective part cannot be repaired or replaced. b. under no circumstances. c. for any breach. d. for indirect losses that were not reasonably foreseeable.

if a defective part cannot be repaired or replaced.

Bean Processor Inc. agrees to ship a certain quantity of coffee beans to Coffee Café LLC. Bean sends to Coffee an e-mail indicating that the parties intended to form a contract. Against Bean, as a contract, the e-mail will be sufficient a. under no circumstances. b. if it is signed by Bean. c. if it is signed by Coffee. d. if Coffee responds with an acknowledgment of the deal.

if it is signed by Bean.

Jade offers to sell Khan a collection of baseball cards. To qualify as a sale under the UCC, Khan's payment must be a. in cash, or its equivalent, or in other goods or services. b. the fair market value of the goods. c. specified on an invoice and evidenced by a receipt. d. split into more than one installment.

in cash, or its equivalent, or in other goods or services.

Business Rents LLC and Cartage Trucking Inc. enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, Business Rents must ship or tender lifts to Cartage that, with regard to the contract specifications, conform a. to the best of Business Rents' ability under the circumstances. b. in every way. c. reasonably. d. substantially.

in every way.

Equip Corporation agrees to lease a woodchipper to Forest Management LLC. Before any interest in the woodchipper can pass from Equip to Forest, it must be a. in Equip's physical possession. b. in existence and identified as the goods in the contract. c. listed in a document of title filed in the appropriate state office. d. in Forest's physical possession.

in existence and identified as the goods in the contract.

Ira serves in a representative capacity for Jeff. Key is injured through Ira's negligence. Jeff may be liable to Key if Ira's conduct occurred a. during normal working hours. b. due to a propensity Jeff was not and could not have been aware of. c. outside the parties' employment relationship. d. in the course and scope of Ira's employment.

in the course and scope of Ira's employment.

Ana, a sales agent for Bread Company makes claims for a product that the company has told its agents not to make. Croissant Café sues the firm when the product fails to stand up to the claim. The company can sue Ana for a. reimbursement. b. failure of specific performance. c. indemnification. d. breach of a constructive trust.

indemnification

Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm. Jon makes a deal with Lila for the sheep, but neither Jon nor Kino pays the price. Lila sues Jon for breach. Jon's right to hold Kino liable for any damages is the right to a. none of the choices. b. reimbursement. c. indemnification. d. compensation.

indemnification.

Sufficient business develops in France for Graphic Comics Inc., a U.S. firm, to appoint Comics Graphique Ltd., a French firm, to act as the U.S. firm's marketing representative in France. This is a. direct exporting. b. indirect exporting. c. franchising. d. licensing.

indirect exporting.

A body of law—formed as a result of international customs, treaties, and organizations—that governs relations among or between nations is a. universal law. b. national law. c. space law. d. international law.

international law.

Bon, an agent for City Motors Inc., e-mails Dale on May 1 that the dealer will sell to her a 2018 Ford pick-up truck for $25,000 between May 1 and July 1. Bon's offer to Dale is a. irrevocable for the stated period. b. irrevocable until Dale responds. c. revocable at any time. d. revocable on the payment of consideration to Dale.

irrevocable for the stated period.

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. is liable for breach of contract. b. must obtain tin in any way to meet the needs of its customers. c. can substitute some other material for the tin. d. is excused from the performance of its contracts.

is excused from the performance of its contracts.

Mara and Nim enter into a contract for a sale of orchids that requires payment within thirty days of delivery. Under the UCC, the payment term in the contract a. is superseded by the UCC rule that payment is due on delivery. b. removes the entire transaction from the UCC. c. is not enforceable because it does not specify a definite date. d. is fully enforceable

is fully enforceable

Star Flights Inc. launches commercial space flights from its base in the United States. In the event of a collision with other space objects, under the Outer Space Treaty, liability for injury or damage a. is to be assumed by all involved parties equitably b. is strict liability—that is, liability without fault. c. is subject to a determination of fault. d. does not exist.

is subject to a determination of fault.

A power of attorney should be used with great caution and only in exceptional circumstances because a. it grants extensive authority to an agent. b. failure to comply with the equal dignity rule makes a contract voidable. c. the power to be exercised defines the duty to be obeyed. d. an attorney must be licensed to practice law in the state of authority.

it grants extensive authority to an agent.

Irv, an agent for Jin, signs an agreement with Kai on Jin's behalf but neglects to tell Jin that the agreement requires the payment of a certain tax. The government prosecutes Jin for failing to pay the tax. Jin is a. liable, because notice to Kai is notice to Jin. b. not liable, because Irv did not notify Jin of the tax. c. liable, because notice to Irv is notice to Jin. d. not liable, because Kai did not tell Jin about the tax.

liable, because notice to Irv is notice to Jin.

Lunchies Corporation, a U.S. firm, signs a contract with Manger au Brasserie, S.A., a French firm, to give Manger the right to use the Lunchies trademark in restaurants in France. This is a. direct exporting. b. licensing. c. a distribution agreement. d. indirect exporting.

licensing.

Speedy Auto Parts orders two gross of tires from Tough Tread Inc. Ten of the tires are delivered in a damaged condition. Speedy a. cannot reject the entire shipment. b. may accept the shipment with a reduction in price. c. must pay for all of the tires at the contract price. d. must reject the entire shipment.

may accept the shipment with a reduction in price.

Julia agrees to act as Kale's agent to negotiate, in Kale's presence, a sale of Kale's ranch. A contract for a sale of land must be in writing. The agreement between Julia and Kale a. can be implied. b. may be oral or in writing. c. should be ratified, affirmed, or authorized orally. d. must be in writing.

may be oral or in writing.

Ruiz agrees to act as Seth's agent to sell Seth's farm while Seth is away from the property. A contract for a sale of real estate must be in writing. The agreement between Ruiz and Seth a. must be in writing. b. can be implied. c. should be ratified, affirmed, or authorized orally. d. may be oral or in writing.

must be in writing.

Hayes, a real estate broker, offers to sell Invers's property at no charge. Hayes negotiates a sale to Jed, but negligently fails to complete the deal. The broker is most likely liable to the seller for a. an accounting. b. breach of contract. c. negligence. d. nothing.

negligence.

Jin buys a used car from Klee. Jin knows that Loan Company has a security interest in the car but is not aware that Klee has missed several payments on the loan. Loan repossesses the car. Jin can recover for breach of warranty from a. Loan but not Klee. b. Klee but not Loan. c. Klee or Loan. d. neither Klee nor Loan.

neither Klee nor Loan.

Burgers Inc. contracts to buy five hundred head of cattle from Cattle Ranch. Before the seller delivers, an outbreak of disease causes a quarantine of the ranch. In this circumstance, the perfect tender rule a. applies only to the buyer. b. applies only to the seller. c. no longer applies. d. applies to both parties.

no longer applies.

Clark hires Dell, a real estate broker, to sell his beach house. The house is destroyed in a storm before it can be sold. Dell is Clark's agent a. until the destroyed house is rebuilt and sold. b. no more. c. until the destroyed house is sold. d. until Clark's insurer pays Dell's commission.

no more.

Watercraft Inc., a U.S. firm, files a suit in a U.S. court against Xia Ltd., a Chinese company, seeking specific performance. Under the United Nations Convention for the International Sale of Goods, the court is most likely to grant this remedy if a. the parties' deal was a simple letter-of-credit transaction. b. no remedy at law is available and the goods at issue are unique. c. specific performance is a commonly granted remedy in China. d. the measure of damages would be undercut by currency differences.

no remedy at law is available and the goods at issue are unique.

Under the Outer Space Treaty, a moon, a planet, an asteroid, or any other celestial body is subject to the appropriation of a. the first nation to explore it. b. the first nation to claim title to it. c. no single nation. d. the first nation to exploit it.

no single nation.

Bristol is an officer of Commerce Company. To conduct ordinary business transactions on the firm's behalf, Bristol a. needs formal, written authority. b. must act only in the presence of other corporate officers or employees. c. none of the choices. d. is required to have oral and written authority.

none of the choices.

Equity International Inc., a U.S. firm, and Finance Invest Ltd., a firm in Great Britain, are parties to a contract with a forum-selection clause. The forum specified in the clause must be within the geographic boundaries of a. a "select" forum, such as a United Nations protectorate. b. Great Britain. c. the United States. d. none of the choices.

none of the choices.

Fiscal Corporation, a U.S. firm, files a suit against Ghana in a U.S. court. Under the Foreign Sovereign Immunities Act, Ghana is immune from the jurisdiction of the court if Ghana has a. committed a tort in the United States. b. engaged in commercial activity within the United States. c. none of the choices. d. engaged in commercial activity outside the United States that has a direct effect in the United States.

none of the choices.

Rent-From-Us Inc. leases Speedy-brand moving vans. Under most circumstances, the lessor will be presumed to have warranted that its title to the goods is a. only such as the lessor has acquired in the goods. b. none of the choices—there is no warranty of title in lease contracts. c. good and valid. d. the same as every other merchant who deals in goods of the kind.

none of the choices—there is no warranty of title in lease contracts.

Grass Farm LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." Their contract is formed according to a. the new terms of the acceptance. b. whatever is reasonable. c. the terms of the original offer. d. none of the terms.

none of the terms.

As part of a deal for power-generating equipment, Solar Wind Company and Thermal Gen Ltd. enter into a written contract that includes a clause providing for the arbitration of any dispute in the United States. Under the New York Convention, if a dispute arises, a court will compel arbitration if both parties are a. U.S. citizens. b. citizens of non-signatory countries. c. not U.S. citizens. d. citizens of countries that are members of the World Trade Organization.

not U.S. citizens.

Under a contract with Assemble Inc. for the delivery of a shipment of TV sets, Buyers Store refuses to pay for sets with cracked cases. Assemble files a suit against Buyers, claiming that the defendant assumed the risk of damaged goods. The court may allow evidence of this term if it finds that the parties' contract is a. a complete and final statement of their agreement. b. fully integrated. c. not fully integrated. d. none of the choices.

not fully integrated.

Space Corporation launches exploratory space flights to the moon and Mars. The purpose is to discover and retrieve minerals and other resources. Under U.S. law, the corporate explorer a. owns what it retrieves in space. b. must share with all interested parties what it retrieves in space. c. cannot legally retrieve resources in space. d. cannot profit from resources retrieved in space.

owns what it retrieves in space.

Elegant Carpet Inc. agrees to sell a certain quantity of carpeting to Fabulous Floor stores under a shipment contract. Elegant must a. place the carpeting into the hands of a carrier. b. inspect the carpeting before shipping it. c. allow Fabulous to reject the goods for any reason. d. deliver the carpeting to a particular destination.

place the carpeting into the hands of a carrier.

Snee, a consumer, agrees to buy an exercise machine from Treadmills Inc. Their contract excludes consequential damages for personal injuries resulting from the use of the device. This exclusion is a. not unconscionable because any loss would be commercial in nature. b. presumably unconscionable. c. permissible because the buyer can pursue other remedies. d. reasonably foreseeable and therefore meets its essential purpose.

presumably unconscionable.

Aaron offers to sell Babe a collection of movie memorabilia. For the transaction to be a sale under the UCC, title to the collection must be passed from the seller to the buyer for a. cash. b. goods. c. services. d. a price.

price

ABC Hardware Store orders one hundred power hand-drills from Drilling Tools Inc. When the hand-drills are delivered, they are all missing pieces. ABC rejects the shipment. To exercise a right to cure, Drilling must a. promptly notify ABC of the intent to cure. b. pick up the nonconforming tools before the end of the business day. c. enter into a new contract with ABC. d. pay a cure fee.

promptly notify ABC of the intent to cure.

The Outer Space Treaty provides that a nation retains jurisdiction over objects on its space registry that are launched into space. The treaty also prohibits interference with space activities. In effect, these provisions a. protect property rights with respect to private space activities. b. ban the national appropriation of territory in space. c. assert sovereignty over celestial bodies. d. declare exclusive international jurisdiction over space locations.

protect property rights with respect to private space activities.

Gabe, a salesperson for Headphones Inc., tells Ike, a potential customer, that Headphones' products "last a lifetime." This is a. a statement of value. b. an implied warranty. c. puffery. d. an express warranty.

puffery

To cover potential liability for the conduct of an agent or employee, most employers a. require personnel to agree to liability waivers. b. purchase liability insurance. c. do not ask applicants or workers about past misbehavior. d. classify agents and employees as independent contractors.

purchase liability insurance.

Without express or implied authority, Xi contracts on behalf of Yan to purchase a certain building from Zhu. Yan and Zhu are not bound in contract unless Yan a. refuses to accept responsibility for the unauthorized contract. b. ratifies the contract before Zhu withdraws from the deal. c. affirms any part of the contract. d. views the contract as an unaccepted offer, awaiting Zhu's acceptance.

ratifies the contract before Zhu withdraws from the deal.

The principal-agent relationship between Medical Clinic LLC and Network Referral Service is not contractual. If Medical, the principal, violates a duty to Network, the agent is entitled to a. recover for past services and future damages. b. none of the choices. c. sue for services and damages, and obtain specific performance. d. force the principal to allow the agent to continue acting as its agent.

recover for past services and future damages.

River Gear Company and Scenic Trips Inc. enter into a contract on August 1 for the sale of fifty inflatable river rafts. Scenic cancels the contract ten days later. River is unable to sell the rafts to another buyer. River can a. recover the contract price and keep the rafts. b. recover the contract price but must hold the rafts for the buyer. c. recover the contract price but must destroy the rafts. d. force the buyer to accept the rafts and pay for them.

recover the contract price but must hold the rafts for the buyer.

Fresh Grow Farm enters into a contract with Gourmand's Restaurant for a sale of a certain quantity of specified vegetables. After Fresh ships the produce but before Gourmand's receives it, the buyer declares bankruptcy. Fresh can stop delivery of the goods in transit a. only if the quantity is in a single "unit." b. regardless of the quantity. c. only if the quantity is at least a truckload. d. only if the quantity is at least 50 percent of the contract amount.

regardless of the quantity.

Bull & Cow Corporation, a U.S. firm, and Carne Ltd., an Italian company, contract for a sale of beef. Under a letter of credit issued by Fiscal Bank to facilitate the deal, Carne promises to a. reimburse the bank for the amount paid to the seller. b. ascertain whether the seller delivers as contracted. c. pay the seller when the bank has complied with the terms of the letter. d. transmit information and expedite payment

reimburse the bank for the amount paid to the seller.

Roc is an agent for Statistics Inc. On the firm's behalf and at its request, Roc pays Tech LLC for specially customized software. Roc's right to obtain the amount of the payment from Statistics Inc. arises under the duty of a. none of the choices. b. reimbursement. c. compensation. d. indemnification.

reimbursement.

Steel Buildings Inc. agrees to sell four portable garages to Truck Service Center. Five days later, Truck refuses delivery and cancels the contract. Steel is entitled to a. resell the garages but not recover any damages from Truck. b. resell the garages and recover any damages from Truck. c. recover any damages from Truck but not resell the garages. d. force Truck to accept the garages

resell the garages and recover any damages from Truck.

H2O Company contracts to sell pumps, tanks, and water storage systems to In-Flo Irrigation, Inc. Before the goods are delivered, In-Flo indicates that it will not be able to pay. H2O can a. require In-Flo to find a buyer for the goods. b. force In-Flo to accept and pay for the goods. c. do nothing. d. resell the goods and recover any damages from In-Flo.

resell the goods and recover any damages from In-Flo.

Trade barriers are a. restrictions on exports. b. restrictions on imports. c. the lack of incentives and subsidies to stimulate exports. d. the lack of incentives and subsidies to stimulate imports.

restrictions on imports.

Under the Outer Space Treaty, with respect to a space object and the personnel aboard it, the launching state a. forfeits supervisory authority to the United Nations. b. retains complete jurisdiction and control. c. shares dominion and responsibility with the United Nations. d. grants political autonomy to those aboard the object.

retains complete jurisdiction and control.

Gaye agrees to act as a sales agent for Homewood Company on a commission basis. They further agree that either party can terminate the agency relationship at will. If Homewood ends their deal, the act of termination is called a. renunciation. b. repudiation. c. revocation. d. ratification.

revocation.

Speedy Trucking Inc. and Trailer Rents LLC are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by a. repeating the terms in a phone call. b. mutually agreeing not to commit fraud. c. shaking hands on the deal. d. setting out the terms in a memo.

setting out the terms in a memo.

Lake Craft Inc. sells boats to consumers. To avoid liability for oral express warranties, each sales agreement should note that a boat is sold a. subject to warranties included in the written contract only. b. as is. c. with no known defects. d. in perfect condition.

subject to warranties included in the written contract only.

Loading Ramps Inc. contracts to sell sixteen loading ramps to Moving Service Inc. Loading ships the ramps, which Moving accepts but does not pay for. Loading can a. sue to recover the purchase price plus incidental damages. b. require Moving to revoke its acceptance of the ramps. c. resell the ramps to any buyer willing to repossess them from Moving. d. sue to recover the purchase price minus incidental damages.

sue to recover the purchase price plus incidental damages.

Farah hires Gil, a real estate broker, to act as her agent to sell her land for $150,000. Before the land is sold at the stated price, oil is discovered beneath it, causing its market value to increase considerably. The agreement between Farah and Gil is likely a. continued until Gil tells prospective buyers of the discovery. b. continued with a proportionate increase in Gil's sales commission. c. terminated by operation of law. d. terminated by act of the parties.

terminated by operation of law.

Rena is a book dealer and an expert in the publications of Shakespeare's plays. She tells Toby, an investor in rare books, that in her opinion a certain bound volume is an early edition of several Shakespearean dramas. Rena has warranted a. nothing. b. the accuracy of her opinion. c. the basis for a bargain between Toby and the owner of the volume. d. the appropriateness of the volume as an investment

the accuracy of her opinion.

Venezuela seizes the assets of World Oil Inc., a U.S. firm. World Oil's recovery from Venezuela in a U.S. court may be prevented by a. the principle of comity. b. the act of state doctrine. c. a court in Venezuela. d. the doctrine of sovereign immunity.

the act of state doctrine.

In a sale of camping equipment from Outdoor Outfitters to Pedro, a consumer, if the parties have not agreed to limit or modify the remedies available, on a breach of warranty a. the buyer can sue to recover damages. b. the buyer has no recourse against the seller. c. repair or replacement is the only option. d. rescission of the parties' agreement is the only remedy.

the buyer can sue to recover damages.

Identification gives a. none of the choices. b. the buyer or lessee the right to insure certain goods. c. the seller the right to collect payment for goods before their delivery. d. the state the right to impose taxes on a sale or lease of goods.

the buyer or lessee the right to insure certain goods.

Creekside Mill enters into a contract for a sale of lumber to Development Company. The mill knows the purpose for which the buyer will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises if a. the seller believes that a product is fit for a particular purpose. b. a particular purpose coincides with the ordinary purpose of the goods. c. the buyer relies on the seller to select suitable goods. d. the goods are merchantable

the buyer relies on the seller to select suitable goods.

In a sale of oranges from Citrus Grove Farms to Donuts & Juice Inc. to be delivered after the harvest, a fire destroys the fruit before it is picked. Under the UCC, the rights and liabilities of Citrus and Donuts in this circumstance are generally determined by a. who has title. b. the concepts of identification and risk of loss. c. the right of ownership. d. all of the choices.

the concepts of identification and risk of loss.

Granos de Café S.A., a Columbian company, and Hot Drinks Inc., a U.S. firm, contract for a sale of coffee beans. Granos does not deliver. Under the United Nations Convention for the International Sale of Goods, Hot can recover as damages the difference between a. the actual price and the hoped-for price. b. the market prices in the contracting parties' places of business. c. any loss avoided and any profit gained. d. the contract price and the market price

the contract price and the market price

Under the United Nations Convention for the International Sale of Goods, the measure of damages for a breach of an international sales contract normally is the difference between a. the value of the currencies of the contracting parties' respective markets. b. compensatory damages and foreseeable consequential damages. c. the costs of assurance and cooperation. d. the contract price and the market price of the goods.

the contract price and the market price of the goods.

Real Stones Inc. and Sparkling Jewelry stores enter into a contract for a sale of gemstones. The seller fails to deliver. Sparkling can recover as damages the difference between a. the contract price and the market price. b. the current prices in the contracting parties' places of business. c. any loss avoided and any profit gained. d. the actual price and the hoped-for price.

the contract price and the market price.

Part of the rationale for the doctrine of respondeat superior is that an injured person should be afforded effective relief, which is usually best provided by a business because a. the cost of risk can be spread over an entire business enterprise. b. employers today are not the masters of their employees. c. agents and other personnel typically execute liability waivers. d. employees are normally classified as independent contractors

the cost of risk can be spread over an entire business enterprise.

Sal, an accountant, contracts with Torre to act on Torre's behalf during a tax audit. Their contract does not expressly state that Sal will be paid for the service. Most likely, Torre must pay a. only the costs incurred if he accountant fails to perform. b. only the expenses accrued in the course of the audit. c. nothing. d. the customary compensation for the services.

the customary compensation for the services.

The most important factor weighted by the courts in determining employee status is a. the distinction between the occupations of a worker and an employer. b. the skill required of the worker to do a job. c. the degree of control an employer exercises over the details of the work. d. the method of payment, whether by time period or completion of work.

the degree of control an employer exercises over the details of the work.

Bread Company hires Craig to sell the company's products in a certain area. Bread agrees to pay Craig a salary, plus commission, for a trial period. They also agree that he can sell using any methods and during any hours that seem appropriate. The key factor in whether Craig is Bread's employee is a. the amount of the salary. b. the length of the trial period. c. the degree of the employer's control over the details of the work. d. the size of the sales area.

the degree of the employer's control over the details of the work.

Sugar Company, a U.S. firm, owns property in Trinidad and Tobago. When the foreign government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Trinidad and Tobago is exempt from the court's jurisdiction. This is an application of a. the doctrine of sovereign immunity. b. the act of state doctrine. c. the principle of comity. d. a coercive action.

the doctrine of sovereign immunity.

Bern, a salesperson at Carpet Inc., tells Dan, a customer, "Buy your flooring here, and I'll install it for less than the company would charge." Dan buys carpeting, which Bern installs for half the firm's price. Bern keeps the money. With respect Carpet Inc., Bern has breached a. no duty. b. the duty of performance. c. the duty of loyalty. d. the duty of obedience.

the duty of loyalty.

Power Company employs Qin to negotiate the purchase of rights of way for a future power transmission project. Qin secretly buys some of the property along the planned route and sells the rights to Power at a profit. Qin has breached a. the duty of performance. b. no duty. c. the duty of notification. d. the duty of loyalty.

the duty of loyalty.

Isabel is an agent for Julian. He gives her clear instructions to enter into contracts on his behalf only on Mondays. She enters into a contract on his behalf on Friday. Isabel has breached a. the duty of obedience. b. the duty of performance. c. the duty of loyalty. d. no duty.

the duty of obedience.

3D Printers LLC includes with each sale of its product a technical manual that includes a general description and exact specifications. Specialty Metalwork buys a 3D product but soon realizes that it is not sufficient for Specialty's purpose. On the buyer's claim that the manual's statements are inconsistent, a court is most likely to hold that a. each statement voids the other. b. the exact specifications displace the general description. c. the claim of inconsistency is irrelevant to a breach of warranty. d. the general description takes precedence.

the exact specifications displace the general description.

Ric enters into written agreements with Sophie involving a sale of Timberline Motel, including the land, the building, and the furnishings. The UCC Statute of Frauds governs the sale of a. the building. b. the land. c. all of the choices. d. the furnishings priced at $500 or more.

the furnishings priced at $500 or more.

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 hereof." This disclaimer negates a. the implied warranty of title. b. none of the choices. c. the implied warranty of merchantability. d. the implied warranty of fitness for a particular purpose.

the implied warranty of fitness for a particular purpose.

Bike Shop sells a trail bike to Cian. When Cian rides the bike, the frame breaks apart. The cause is something that Bike Shop did not know about and could not have discovered. This is a breach of a. a warranty of title. b. an express warranty. c. puffery. d. the implied warranty of merchantability.

the implied warranty of merchantability.

Mexico is likely to defer and give effect to the laws and judicial decrees of the United States as long as a. the laws and decrees are consistent with Mexican law and public policy. b. smaller countries fear and are intimidated by more powerful nations. c. all of the choices. d. poorer countries admire and envy richer nations.

the laws and decrees are consistent with Mexican law and public policy.

RV Company agrees to buy a certain quantity of vintage campers from Sales Inc. Their contract limits consequential damages for lost profits resulting from the use of the goods. This limit is not necessarily unconscionable because a. the loss would be commercial in nature. b. lost profits are indirect losses. c. the transaction is a sale, not a lease. d. consequential damages cover only reasonable foreseeable losses.

the loss would be commercial in nature.

In many states, in a lemon-law dispute submitted for arbitration according to the program in a vehicle manufacturer's warranty, the decision of the arbitration panel is binding on a. the manufacturer and the purchaser. b. neither the manufacturer nor the purchaser. c. the manufacturer but not the purchaser. d. the purchaser but not the manufacturer.

the manufacturer but not the purchaser.

Rice Farm offers to sell Sushi Restaurants Inc. five hundred bushels of rice. Sushi responds, "We agree to buy five hundred bushels only if the rice is Grade-A quality." Without more, their contract is formed according to a. the new terms of the acceptance. b. the terms of the original offer. c. none of the terms. d. whatever is reasonable.

the new terms of the acceptance.

Suisse Internationale, a Swiss maker of athletic equipment, enters into a price-fixing agreement with Total World Sports, a U.S. wholesaler of Suisse's products. U.S. courts will apply U.S. antitrust laws if a. the Swiss government agrees to be sued in the United States. b. the price fixing has a substantial effect on U.S. commerce. c. the agreement was made in Switzerland. d. the agreement was made in the United States

the price fixing has a substantial effect on U.S. commerce.

Anything that an agent obtains by virtue of an agency relationship is held in a constructive trust and thereby belongs to a. the party from whom the agent obtained it. b. the agent. c. the principal. d. the equitable trust.

the principal.

When an agent breaches an agency agreement, the right to avoid the contract can be exercised at the election of a. any party with whom the agent contracted. b. the principal. c. any of the choices. d. the agent.

the principal.

Comida de Chile S.A., an export company in Chile, and Deli Source Inc., an import form in the United States, enter into a contract. When Deli breaches the contract, Comida obtains an award of damages in a Chilean court. Comida then asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Chilean court's decree. This is an application of a. none of the choices. b. the act of state doctrine. c. the doctrine of sovereign immunity. d. the principle of comity.

the principle of comity.

Retail Operations, Inc., a U.S. firm, obtains a judgment in a U.S. court against Shinobu, Ltd., a Japanese business. Whether the court's judgment will be enforced by a court in Japan depends on the Japanese court's application of a. the doctrine of sovereign immunity. b. the principle of comity. c. the Foreign Sovereign Immunities Act. d. the act of state doctrine

the principle of comity.

Builder Inc. and Concrete Supply Company enter into a contract for a sale of cement. Concrete delivers, but Builder does not pay. Concrete can recover as damages a. the purchase price plus incidental damages. b. the market price at the place at which Concrete delivered the goods. c. any profit lost minus any loss avoided. d. whatever amount Concrete wishes to claim.

the purchase price plus incidental damages.

Global Project, a U.S. firm, owns property in Hong Kong. The government of China seizes the property. The firm claims that this is confiscation. The government claims that it is expropriation. The difference concerns a. the business of the firm and the citizenship of its owners. b. none of the choices. c. the location of the seizure and the nature of its government. d. the purpose of the seizure and the payment of compensation.

the purpose of the seizure and the payment of compensation.

Jo owns a condominium that she leases to Kia. Jo gives her daughter Liu $450 on her sixteenth birthday. Jo sells her car to her neighbor Maia for $1,500. Article 2 of the UCC covers a. the lease with Kia. b. the sale to Maia. c. all of the choices. d. the gift to Liu.

the sale to Maia.

Minh owns a beach house that she rents to vacationers. Minh gives her son Ngo a trip to Omaha on his graduation from community college. Minh sells her car to her neighbor Phan for $4,500. UCC Article 2 covers a. the sale to Phan. b. none of the choices. c. the gift to Ngo. d. the beach house rentals.

the sale to Phan.

An action for breach of warranty accrues when a. the non-breaching party notifies the breaching party of the cause. b. the seller or lessor tenders delivery of the goods. c. the buyer or lessee is made aware of the breach. d. the action is commenced.

the seller or lessor tenders delivery of the goods.

Runners Feet, a shoe store, orders one hundred pair of athletic shoes from Speedster Inc. Absent a contrary agreement between the parties, title will pass to Runners Feet when a. the seller physically delivers the goods. b. the parties sign the contract. c. the buyer pays for the goods. d. the goods exist and are identified.

the seller physically delivers the goods.

Elle sells a motorcycle to Fran for $5,000, a bike to Gwen for $600, a pool table to Holly for $200, and three shares of stock to Inez for $100. Article 2 of the UCC does not apply to the sale of a. the motorcycle. b. the stock. c. the bike. d. the pool table.

the stock.

When the risk of loss passes is generally determined by a. the expression of a buyer or lessee's interest in obtaining certain goods. b. the passage of title to identified goods. c. the terms of a contract for a sale or lease of goods. d. the acquisition of an insurable interest in specific goods.

the terms of a contract for a sale or lease of goods.

Dona offers to sell her used sofa, chair, coffee table, end table, and lamp to Etta for $700. Etta responds that she will pay that price if Dona's TV set is included. Neither party is a merchant. Their contract is formed according to a. the terms of the original offer. b. the new terms of the acceptance. c. none of the terms. d. whatever is reasonable

the terms of the original offer.

Joel sells a violin to Key for $5,000, a cello to Leia for $400, and five music stands to Mica for $50. A writing is required to enforce the sale of a. the violin and the cello only. b. the violin only. c. none of the choices. d. the violin, the cello, and the music stands.

the violin only.

Under the UCC, when express and implied warranties are consistent a. each warranty voids the other. b. the express warranty is presumably dominant. c. the implied warranty displaces the express warranty. d. they are construed as cumulative.

they are construed as cumulative.

Masonry Corporation fails to inspect work areas and to warn agents and employees of unsafe situations in the firm's plant. Noh, an employee, is injured in an accident whose cause can be attributed to the employer's failure. Most likely, Masonry is liable to Noh for breach of the duty a. to provide safe working conditions. b. of reimbursement and indemnification. c. of cooperation and compensation. d. none of the choices.

to provide safe working conditions.

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

until July 15 to cure.

Under a contract with Fresh Farm LLC for a delivery of vegetables, Growers Mart refuses to pay for some of the produce. The buyer contends that the practice in the trade with respect to payment for spoiled produce justifies its refusal to pay. Growers Mart is arguing that the court should take into account a. none of the choices. b. course of dealing. c. usage of trade. d. course of performance.

usage of trade.

Lev, an agent for Mill Grains LLC, executes an unauthorized contract with National Grocers Inc. The deal is highly advantageous to Mill Grains, and the company ratifies the contract. The contract is a. voidable. b. valid. c. vicarious. d. void.

valid.

Elena buys from Fiesta Autos a used pick-up truck. The truck was manufactured by Gem Vehicles, Inc., and previously owned by Hanna. Regarding title to the truck, Elena acquires a. whatever title Fiesta had. b. whatever title Hanna had. c. no title. d. whatever title Gem had.

whatever title Fiesta had.

A court is most likely to infer that both parties to a sale or lease of goods intended for a well-recognized trade custom to apply to their contract a. despite evidence to the contrary. b. if no implied warranty arises from the parties' course of dealing. c. in the absence of negligence on the part of the seller or lessor. d. when both parties had knowledge of the custom.

when both parties had knowledge of the custom.