Chapter 13 Acct 416
Car n' Truck Body & Paint Company orders custom paint from Diverse Hues Inc., but Diverse does not deliver. Car n' Truck will probably be unable to enforce the agreement if the parties omitted a. a quantity term. b. shipping arrangements. c. a delivery date. d. a price term.
a. a quantity term.
Coffee Roasters, Inc., sells whole bean and ground coffee to Delicioso Deli under an existing contract. When the cost of coffee beans increases, Delicioso agrees to a price increase, but later wants to cancel the contract. Delicioso may a. not cancel the contract. b. cancel the contract only on reasonable notice. c. cancel the contract immediately. d.cancel the contract only after accepting a final shipment.
a. not cancel the contract.
Curt enters into a contract with Drivers Lease Company for a three-year lease of a car. This contract is subject to a. the common law only. b. Article 2A of the UCC. c. none of the choices. d. Article 11 of the CISG.
b. Article 2A of the UCC.
Refined Grains, Inc., agrees to sell to Sunny Cereal Company a certain quantity of refined oats each week but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at a. Sunny's place of business. b. Refined's place of business. c. a "reasonable" place of delivery. d.a neutral place of business halfway between the parties' locations.
b. Refined's place of business.
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. impose the lowest market price. b. determine a reasonable price. c. impose the highest market price. d.return the parties to the positions they held before the contract.
b. determine a reasonable price.
Fresh Dairy, Inc., is the offeror and Gelato Ice Cream Company is the offeree under a unilateral sales contract in which Hector's Helado Corporation is also interested. Fresh Dairy is not notified of Gelato's performance within a reasonable time. Fresh Dairy a.must assume that Fresh Dairy has started to perform. b. must contact Fresh Dairy. c. may treat the offer as having lapsed. d. must notify Hector's.
c. may treat the offer as having lapsed.
Dian, an agent for Expo Motors, Inc., writes a letter to Flynn on November 1 stating that she will sell him a 2017 Subaru Outback for $25,000 between November 1 and December 31. Dian's letter to Flynn is a. an acceptance. b. an option contract. c. a merchant's firm offer. d. none of the choices.
c. a merchant's firm offer.
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 the purchase order automatically become part of the contract unless a.the offeror objects to the new terms within a reasonable time. b. the terms materially alter the original contract. c. any of the choices. d.the original offer expressly required acceptance of its terms.
c. any of the choices.
Downtown Contractors LLC and Equipment Rental Corporation are parties to an oral agreement for a one-year lease of a crane with payments totaling more than $10,000. 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.
d. setting out the terms in a memo.
Jacob offers to sell Bill a collection of baseball cards. For their transaction to be a sale under the UCC, Bill a. must pay for the cards with services. b. must pay for the cards in cash. c. must pay the fair market value of the cards. d.may pay for the cards with cash, goods, or services.
d.may pay for the cards with cash, goods, or services.
