Chapters 20-23 HW questions
The United Nations Convention on Contracts for the International Sale of Goods (CISG) was created in
1980s
who temporarily cares for your personal property without passage of title
A bailee is someone:
False
A bill of lading is the seller's invoice.
False
A disclaimer of an implied warranty of fitness must include the word "fitness."
True
Absent an agreement stating otherwise, title passes to the buyer at the time and place the seller delivers the goods
Four
An action for a breach of contract under the UCC must be commenced within how many years after the cause of action accrues?
one party communicates to the other an intention not to perform
An anticipatory repudiation occurs when:
b. the buyer never indicated any special purpose, nor was that special purpose obvious.
An implied warranty of fitness for a particular purpose normally will NOT arise when:
Precedent
An opportunity for inspection is a condition _______ to the right of the seller to enforce payment.
True
Any party purchasing insurance must have a sufficient interest in the insured item to obtain a valid policy. Insurance laws—not the UCC—determine sufficiency.
When does identification take place for existing goods?
At the time the contract is made
False
Because of the nature of warranties, it is impossible for more than one warranty to be created in a single transaction.
Must be in writing
Disclaimer of implied warranty of fitness
Can be given orally
Disclaimer of merchantability
A buyer promises to purchase only what he or she needs, so the promise constitutes a requirements contract.
False
Only ten countries have adopted the CISG.
False
Output and requirements contracts are basically the same thing.
False
The common law of contracts and the Uniform Commercial Code are exactly the same.
False
Under the CISG, an acceptance is effective on dispatch, similar to the rule under the UCC.
False
True
Goods can be merchantable, but at the same time unfit for a particular purpose.
True
If a seller breaches a contract by supplying non-conforming goods, risk of loss will not immediately pass to the buyer.
False
If a seller has attempted to repair or replace defective parts the implied warranty of merchantability no longer applies to those goods.
True
If parties to a contract do not specify when identification of existing goods will take place, UCC provisions will apply.
False
If the seller is a merchant, risk of loss to goods held by the seller passes to the buyer when the buyer signs the contract.
c. samples take precedence over inconsistent general descriptions.
If two warranties on a good are inconsistent:
are reasonably fit for the ordinary purpose for which they are sold
Implied warranty of merchantability means that the goods:
True
In commercially impracticable situations, the perfect tender rule no longer applies.
True
In sales law, a warranty is an assurance or guarantee by the seller or lessor about the quality and features of the goods being sold.
False
In the absence of any specific agreements, the buyer must make payment at the time and place the contract is signed.
True
Merchants are held to a higher standard of performance or duty than are nonmerchants.
at the moment the goods covered by the contract are identified.
Owen buys light fixtures from an online merchant under a contract covered by the UCC. He first receives an insurable interest in the lamp:
True
Parties to a contract can limit or exclude consequential damages, provided the limitation is not unconscionable.
Three of the most common open terms for which the UCC provides numerous provisions to fill the gaps in a contract are:
Price, Payment, Delivery
False
Revocation of acceptance is effective under all circumstances.
Article 2 of the UCC governs
Sale of goods
False
Sellers typically create an express warranty by making representations concerning good title.
False
Someone who purchases goods for fair market value from a seller, but knew the goods were stolen, can still be considered a buyer in the ordinary course of business.
similar to those in the UCC
The Convention on Contracts for the International Sale of Goods (CISG) provides remedies that are:
False
The Magnuson-Moss Warranty Act requires sellers to give a written warranty for all consumer goods sold.
True
The Uniform Commercial Code generally prevents warranties to be disclaimed or limited.
Article 19 of the CISG provides that a contract may be formed even though an acceptance contains additional terms, unless
The additional terms materially alter the contract
a. accept and pay for conforming goods in accordance with the contract.
The basic obligation of a buyer in performing a sales or lease contract is to:
True
The buyer choosing to reject goods must do so within a reasonable amount of time after delivery and must timely notify the seller.
Arises automatically
The general rule regarding the warranty of good title in most sales contracts is that the warranty:
the difference between the contract price and the market price
The measure of damages under the Convention on Contracts for the International Sale of Goods (CISG) normally is:
What is NOT one of the requirements for a merchant's firm offer?
The offer must state the date for all future shipments
b. deliver or hold at the buyer's disposal goods that conform to the contract's terms in every respect.
The perfect tender rule of the UCC generally requires that the seller:
True
The serving of food or drink is treated as a sale of goods subject to the implied warranty of merchantability.
True
The warranty of title called "no liens" protects buyers who purchase goods that are subject to a creditor's security interest.
False
To create an express warranty, a seller must formally use the words "warranty" or "guarantee."
Any goods that are not in existence at the time of the contracting are known as future goods
True
Generally, in the sale or lease of future goods, identification occurs when the seller or lessor ships, marks, or otherwise designates the goods as those to which the contract refers.
True
Identification is significant because it gives the buyer or lessee the rights to insure the goods.
True
If an additional term relates to payment, quality, quantity, price, time, and place of delivery, the CISG considers the added terms as material alterations.
True
In contracts that involve the sale of both goods and services, once a court decides that such a contract is primarily a goods contract, any dispute, even over the services portion, will be decided under the UCC.
True
Unlike the UCC, the CISG does not apply to consumer sales.
True
incidental
Under the UCC, an unpaid seller can bring an action to recover the purchase price plus ______ damages
when the buyer is unable to cover
Under the UCC, when is the right to replevy goods usually available to a buyer?
Sales contracts between parties residing in the United States and foreign countries are typically governed by the:
United Nations Convention on Contracts for the International Sale of Goods (CISG)
False
Void title means the seller has the power to transfer good title to a good faith purchaser for value.
True
When a buyer makes a partial payment for goods still in the possession of a seller who becomes insolvent, the buyer has the right to obtain the goods if they have been identified and the buyer pays any remaining balance.
True
When a title document is required, title passes to the buyer when and where the document is delivered.
- Cancel the contract - Resell the goods and sue to recover damages - Sue to recover the purchase price or lease payments due - Sue to recover damages for the buyer's nonacceptance
When the buyer breaches a contract, the seller has the right to which of the following remedies:
- A delivery is rejected because the goods were nonconforming. - The time for performance has not yet expired. - The seller or lessor provides timely notice to the buyer or lessee of the intention to cure. - The cure can be made within the contract time for performance. e. All of these
Which of the below is required for a seller or lessor to properly exercise a right to cure a defect in delivered goods?
-The buyer or lessee indicates (by words or conduct) to the seller or lessor that the goods are conforming or that he or she will retain them in spite of their nonconformity. - The buyer or lessee fails to reject the goods within a reasonable period of time. - The buyer performs any act inconsistent with the seller's ownership of the goods
Which of the following represents a demonstration of acceptance of goods by a buyer?
A group of blue jeans of different styles
Which one of the following is NOT an example of fungible goods:
- Treat the repudiation as a final breach by pursuing a remedy - Wait to see if the repudiating party will decide to honor the contract
Which two choices does the non-breaching party have when anticipatory repudiation occurs?
True
Without evidence to the contrary, when both parties to a sales contract have knowledge of a well-recognized trade custom, the courts will infer that both parties intended for that custom to apply to their contract.
The Uniform Commercial Code (UCC) attempts to provide:
a framework of rules to deal with all aspects of commercial sales transactions
What is the one requirement that is NOT necessary for a writing (or electronic record) to be sufficient to satisfy the UCC's statute of frauds?
a notary public's signature
Under the UCC, a bill of lading is:
a receipt of goods signed by a carrier and a contract for transportation of the goods
Under the UCC, fungible goods are:
alike naturally or considered alike by agreement or trade usage.
The Uniform Commercial Code has been adopted by:
all of the states in whole or in part
The UCC provides rules of construction for interpreting contracts. When the court considers a construction unreasonable, the UCC establishes the following order of priority. Which of the following expresses the correct order of priority?
express terms, course of performance, course of dealing, usage of trade
When a court determines that a contract was unconscionable at the time that it was made, the UCC allows all of the following EXCEPT which one:
make the parties go through with the contract no matter what
Under the UCC, a contract that contains open terms will be:
valid if the parties intended to form a contract and there is a good basis for a court to grant a remedy