Business Law Quiz's 9, 10, 11, 12
Fruited Plain, Inc., agrees to sell high-quality grain seed to Grange Co-op. Because only half of the quantity ordered is available, Fruited Plain ships a lesser quality seed in twice the amount of the remainder of the order for the same price. Grange Co-op rejects the lesser quality seed. With time for performance not yet expired, Fruited Plain can a) attempt to cure the defect b) cancel the contract c) recover the amount of its expected profit plus incidental damages d) resell or dispose of th
Attempt to cure the defect
Mountainside 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 bill of lading b) a destination contract c) a shipment contract d) a warehouse contract
A destination contract
Country Dentists Clinic offers to buy from Dental & Medical Supplies Company a certain quantity of floss and other items for a certain price. Dental & Medical can accept the offer by a) a material alteration of the terms within a reasonable time b) a prompt promise to ship or a prompt or current shipment of the goods c) any of the choices d) a shipment of nonconforming goods with a notice of accommodation
A prompt promise to ship or a prompt or current shipment of the goods
D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is a) a delegation b) an assignment c) a third party beneficiary contract d) an alienation
A third party beneficiary contract
Orchid and Peony enter into a contract for the sale of Orchid's textbook at the end of the fall semester for which Peony agrees to pay Orchid $75. Peony wants to transfer her right to payment for the book to Queenie. This transfer a) a delegation b) an assignment c) prohibited d) a third-party beneficiary contract
An assignment
Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is a) a delegate b) an intended beneficiary c) an incidental beneficiary d) an assignor
An incidental beneficiary
Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain a) cover b) cure c) tender d) specific performance
Cover
Dumont threatens physical harm to force Eddie to sell his business, Citywide Vending, Inc., to Dumont for a below-market price. This is a) duress b) fraud c) none of the choices d) undue influence
Duress
A lessor is a party who acquires a right to the possession and use of goods under a lease a) True b) False
False
A threat to exercise a legal right ordinarily constitutes duress. a) True b) False
False
Damages that compensate the nonbreaching party for the loss of a bargain are known as consequential damages a) True b) False
False
Giving notice is legally necessary to establish the validity of an assignment. a) True b) False
False
In the absence of any specific agreements, the buyer or lessee must make payment after reciept of the goods a) True b) False
False
Subjective impossibility of performance can discharge a contract a) True b) False
False
To be enforceable, a writing evidencing an oral contract must have been signed by the party who seeks to enforce it a) True b) False
False
Under the UCC, if a contract for a sale of goods does not specify the quantity, a court will objectively determine what is a reasonable quantity a) True b) False
False
Under the United Nations Convention on Contracts for the International Sale of Goods, there are no irrevocable offers a) True b) False
False
Household Appliance Corporation sells Ideal-brand vacuum cleaners to Jiffy Discount Stores and other retailers. Household will have an insurable interest in the vacuums as long as a) Household remains in business b) Household retains title to the goods c) the goods are in existence d) there is no risk of loss
Household retains title to the goods
Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest a) automatically b) if she demonstrates her consent to the promise at HIlda's request c) if Indemnity attempts to modify the terms of the contract d) on the occurrence of the event for which the insurance was procured
On the occurrence of the event for which the insurance was procured
Country Trucking Company contracts with Baldwin to transport crated goods to a certain destination for $5,000. Country delivers the crates, but Baldwin does not pay. Country learns that the crates contained stolen goods. Country can a) do nothing with respect to the contract b) recover $5,000 from Baldwin c) recover the goods but not the $5,000 from Baldwin d) recover the goods and the $5,000 from Baldwin
Recover the $5,000 from Baldwin
Red's Roofing buys asphalt tiles from Shingles, Inc. The parties agree that the tile will be shipped "F.O.B. Shingles's warehouse" to Red's Roofing location via Tristate Trucking Corporation. The tiles are lost in transit. The loss is suffered by a) Tristate b) Shingles, Inc. c) Red's d) Red's customers by an increase in the prices of goods and services
Red's
Morris threatens physical harm to force Barb to contract to pay him for protecting her store—Barb's Baubles—against vandalism and destruction. Barb may a) rescind the contract or refuse to comply with its terms b) do nothing once she has agreed to pay c) recover from her insurer for the cost d) recover from the local police for their failure to protect her store
Rescind he contract or refuse to comply with its terms
On May 1, Garage Prefabricators, Inc., agrees to sell four portable garages to Hiway Truck Service Center. Five days later, Hiway refuses delivery and cancels the contract. Garage Prefabricators is entitled to a) force Hiway to accept the garages b) recover any damages from Hiway but not resell the garages c) resell the garages and recover any damages from Hiway d) resell the garages but not recover any damages from Hiway
Resell the garages and recover any damages from Hiway
Spuds Corporation buys from Tater Farms, Inc., a potato crop that Tater plans to plant and harvest during the next growing season. Spuds plans to sell the potatoes to Tasty Foods Restaurants. After the potatoes are planted, but before they are harvested, an insurable interest in the crop exists in a) Spuds and Tater, but not Tasty Food b) Spuds, Tater, and Tasty Foods c) Tater only d) none of the choices
Spuds and Tater, but not Tasty Food
Loading Ramps Plus Inc. contracts to sell sixteen aluminum loading ramps to Moving Services, Inc. Loading Ramps ships the ramps, which Moving Services accepts but does not pay for. Loading Ramps can a) sue to recover the purchase price plus incidental damages b) sue to recover the purchase price minus incidental damages c) resell the ramps to any buyer willing to reclaim them from Moving Services d) require Moving Services to revoke its acceptance of the ramps
Sue to recover the purchase price plus incidental damages
Olivia contracts to buy a refrigerator from a Prairie State Appliance store with the price to be paid in monthly installments. Later, Olivia files a suit against Prairie State, claiming that their contract is so unfair and one-sided that it would be unreasonable to enforce it. Olivia is asserting a) the concept of good faith b) the entrustment rule c) the mirror image rule d) the doctrine of unconscionability
The doctrine of unconscionability
On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable as a contract, a writing is required for the purchase of a) the tunes, the GPS device, and the tablet b) the GPS device and the tablet only c) the tablet only d) the tunes only
The tablet only
A novation requires the existence of a previous, valid obligation a) True b) False
True
A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer a) True b) False
True
An assignee has a right to demand performance from the obligor. a) True b) False
True
If a lessee breaches a contract, the lessor can cancel the contract a) True b) False
True
Implied warranties can arise from a "usage of trade." a) True b) False
True
In most illegal contracts, both parties are considered to be equally at fault, and neither party can enforce it or recover damages under it. a) True b) False
True
Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched a) True b) False
True
The principle of good faith applies to both parties to a sales contact a) True b) False
True
To be enforceable, a contract for a sale of goods priced at $500 or more should be in writing a) True b) False
True
To be merchantable, goods must be at least average, fair, or medium-grade quality a) True b) False
True
Under the UCC, a sale is the passing of title from a seller to a buyer for a price a) True b) False
True
On Victor's eighteenth birthday, he decides that he no longer wants to keep a fishing boat he bought from Water Craft, Inc., when he was seventeen. His right to disaffirm the deal will depend on a) why Victor no longer wants to keep the boat b) why Victor entered into the contract to buy the boat c) whether Victor acts within a reasonable period of time d) whether Water Craft has the right to disaffirm
Whether Victor acts within a reasonable period of time
Edward and First Star Company enter into an oral contract under which Edward agrees to provide delivery service for First Star for nine months. This contract is enforceable by a) none of the choices b) either Edward or First Star c) any interested third party, such as a First Star customer d) First Star only
either Edward or First Star
