Question 1

Under the UCC,the buyer does not automatically have the right to reject the goods when the buyer alleges that goods failed to conform to contract specifications.

Accepted Answer

A) True 
 B)False

Question 2

Goods that conform to UCC specifications are called conforming goods.

Accepted Answer

A) True 
 B)False

Question 3

Which statement is true in regard to the efforts of the seller of the employment law pamphlets to remedy the problem with the incorrect pamphlets?

Accepted Answer

A)  The seller correctly acted to remedy the problem because he had up to 20 days under the UCC to fix any problem.
B)  The seller could not act to remedy the problem because he did not have assurance from Courtney in writing that she would allow additional time in which to cure.
C)  The seller could likely exercise the right to cure once the contract time for performance had ended because the seller would have had reasonable grounds to believe that Courtney would not have objected to the tender of the correct item at the time it was tendered.
D)  The seller correctly acted to remedy the problem because he had up to 10 days under the UCC to fix any problem.
E)  The seller could not exercise the right to cure once the contract time for performance had ended because the seller did not provide prompt notice of his intent to cure and did not have reasonable grounds to believe that the nonconforming tender of environmental pamphlets would be acceptable to Courtney.F) B) and D)
G) A) and D)

Question 4

Under the UCC,a delay in delivery or nondelivery,in whole or in part,is not a breach in circumstances in which performance has been made ________ because a contingency has occurred that was not contemplated when the parties reached the agreement.

Accepted Answer

A)  Unreasonable
B)  Unprofitable
C)  Impracticable
D)  More difficult
E)  Less profitableF) A) and E)
G) A) and B)

Question 5

If a buyer decides to reject goods,what kind of notice must be provided?

Accepted Answer

A)  3 days.
B)  10 days.
C)  5 days.
D)  Reasonable.
E)  Written.F) C) and E)
G) B) and E)

Question 6

Which of the following is not an exception to the perfect tender rule?

Accepted Answer

A)  Commercial impracticability
B)  Past dealings between the parties
C)  Norms in the industry
D)  Revocation of acceptance
E)  Exceptions outlined in the parties' agreementF) D) and E)
G) B) and D)

Question 7

Which of the following are the obligations of buyers and lessees?

Accepted Answer

A)  Accept and pay for conforming goods in accordance with the contract.
B)  Cure defects,and accept and pay for conforming goods in accordance with the contract.
C)  Accept and pay for conforming goods in accordance with the contract,ordinarily after inspecting the goods.
D)  Inspect the goods,cure defects,and accept and pay for conforming goods in accordance with the contract.
E)  Inspect the goods and pay for conforming goods in accordance with the contract.F) C) and D)
G) B) and E) C

Question 8

Under an installment contract,when does the UCC provide that a buyer/lessee may reject an installment of a particular item?

Accepted Answer

A)  If the defects cannot be cured even if defects are minor.
B)  If the defects devalue the property by more than 10% and if the defects cannot be cured.
C)  If the defects substantially impair the value of the goods regardless of whether cure is possible.
D)  If the defects substantially impair the value of the goods and if the defects cannot be cured.
E)  If the defects devalue the property by more than 20% and if the defects cannot be cured.F) B) and C)
G) A) and B)

Question 9

Which statement is true regarding the governance of the inspection process?

Accepted Answer

A)  The inspection must take place at a reasonable time and place,in a reasonable way.
B)  The buyer has an absolute right to dictate the date and time of inspection,but the seller has the right to dictate the method of inspection.
C)  The seller has an absolute right to dictate the date and time of inspection,but the buyer has the right to dictate the method of inspection.
D)  The seller has an absolute right to dictate the date,time,and method of inspection.
E)  The buyer has an absolute right to dictate the date,time,and method of inspection.F) A) and B)
G) C) and D)

Question 10

A common law rule known as the ________ required that the seller deliver goods in conformity with the terms of the contract,down to the last detail.

Accepted Answer

A)  Perfect tender rule
B)  Regulatory rule
C)  Superior delivery rule
D)  Tender of offer regulation
E)  Certain tender ruleF) A) and B)
G) A) and C)

Question 11

Which statement is correct regarding similarities between American and European contract law?

Accepted Answer

A)  U) S.law finds guidance in the Restatements of the Law constituting soft law,not statutory enactments;and Europe has begun crafting its own version of the U.S.Restatement of Contracts.
B)  U) S.law finds guidance in the Restatements of the Law constituting soft law,not statutory enactments,but Europe has refused to consider crafting its own version of the U.S.Restatement of Contracts.
C)  U) S.law finds guidance in the Restatements of the Law constituting soft law,not statutory enactments;and Europe has disavowed the CISG choosing to follow a code similar to the U.S.Restatements of the Law.
D)  U) S.law is provided guidance through the UCC,a federal statutory enactment,but European law relies entirely on the CISG.
E)  U) S.law is provided guidance through statutory enactments known as the Restatements of the Law,but European law relies entirely on the CISG.F) D) and E)
G) B) and C)

Question 12

Under the perfect tender rule,there is no distinction between material and immaterial contractual requirements.

Accepted Answer

A) True 
 B)False

Question 13

In reference to the case in the text DeJesus v Cat Auto Tech.Corp. ,what was the effect of the defendant's payment for goods without inspection on the day of delivery,when the delivery was approximately two weeks after the time called for by the contract?

Accepted Answer

A)  The defendant did not lose any rights because under the UCC he had 7 days after delivery in which to object to late delivery.
B)  The defendant did not lose any rights because under the UCC he had 24 hours after delivery in which to object to late delivery.
C)  The defendant did not lose any rights because under the UCC he had 10 days after delivery in which to object to late delivery.
D)  The defendant effectively waived the performance provisions of the contract regarding the time for delivery.
E)  The defendant did not lose any rights because under the UCC he had 48 hours after delivery in which to object to late delivery.F) B) and E)
G) C) and E)

Question 14

Once a buyer or lessee has accepted,performance is complete and a buyer or lessee cannot withdraw acceptance.

Accepted Answer

A) True 
 B)False  False

Question 15

What did the court rule in the case of Hubbard v.UTZ Quality Foods,Inc. ,in which the buyer refused on the basis of color to accept potatoes that were the subject of an installment contract?

Accepted Answer

A)  That the failure to meet the proper color standard was a substantial impairment but that it did not impair the contract.
B)  That the tendering of the potatoes was made in bad faith.
C)  That the refusal to accept the potatoes was made in bad faith.
D)  That the failure to meet the proper color standard was not a substantial impairment.
E)  That the failure to meet the proper color standard amounted to a substantial impairment of the installments,substantially impairing the whole contract.F) None of the above
G) B) and C)

Question 16

Another term for course of performance is course of dealing.

Accepted Answer

A) True 
 B)False  False

Question 17

The UCC requires that sellers and lessors tender ________ goods to the buyer or lessee.

Accepted Answer

A)  Reasonable
B)  Superior
C)  Adequate
D)  Transforming
E)  ConformingF) A) and D)
G) B) and C)

Question 18

The concept of commercial practicality governs the inspection process.

Accepted Answer

A) True 
 B)False

Question 19

Under the UCC,which of the following is true if goods are identified at the time the parties entered into a contract and these goods are partially destroyed through no fault of the parties before risk passes to the buyer or lessee?

Accepted Answer

A)  Unless the parties can agree on a price,the matter must be submitted to arbitration for a determination as to an appropriate price.
B)  The buyer may inspect the goods and decide whether to 1) treat the contract as void or 2) ask the seller for a reduction of the contract price and then accept the damaged goods.
C)  The seller may inspect the goods and decide whether to 1) treat the contract as void or 2) offer the buyer a reduction of the contract price for the damaged goods.
D)  Unless the parties can agree on a price,the contract is voidable at the option of the seller.
E)  The contract is void.F) A) and B)
G) A) and C)

Question 20

How does the position of the UCC compare with the common law in regard to the perfect tender rule?

Accepted Answer

A)  The UCC and common law differ with the UCC requiring perfect tender and common law requiring the lesser standard of material performance.
B)  The UCC and common law differ with the UCC requiring the lesser standard of material performance and common law requiring perfect tender.
C)  They are the same.
D)  The UCC and common law differ with the UCC requiring the lesser standard of substantial performance and common law requiring perfect tender.
E)  The UCC and common law differ with the UCC requiring perfect tender and common law requiring the lesser standard of substantial performance.F) B) and C)
G) B) and D)

Exam 23: Performance and Obligations Under Sales and Leases

Under the UCC,the buyer does not automatically have the right to reject the goods when the buyer alleges that goods failed to conform to contract specifications.

Correct AnswerverifiedShow Answer

Goods that conform to UCC specifications are called conforming goods.

Correct AnswerverifiedShow Answer

Which statement is true in regard to the efforts of the seller of the employment law pamphlets to remedy the problem with the incorrect pamphlets?

Correct AnswerverifiedShow Answer

Under the UCC,a delay in delivery or nondelivery,in whole or in part,is not a breach in circumstances in which performance has been made ________ because a contingency has occurred that was not contemplated when the parties reached the agreement.

Correct AnswerverifiedShow Answer

If a buyer decides to reject goods,what kind of notice must be provided?

Correct AnswerverifiedShow Answer

Which of the following is not an exception to the perfect tender rule?

Correct AnswerverifiedShow Answer

Which of the following are the obligations of buyers and lessees?

Correct AnswerverifiedC

Under an installment contract,when does the UCC provide that a buyer/lessee may reject an installment of a particular item?

Correct AnswerverifiedShow Answer

Which statement is true regarding the governance of the inspection process?

Correct AnswerverifiedShow Answer

A common law rule known as the ________ required that the seller deliver goods in conformity with the terms of the contract,down to the last detail.

Correct AnswerverifiedShow Answer

Which statement is correct regarding similarities between American and European contract law?

Correct AnswerverifiedShow Answer

Under the perfect tender rule,there is no distinction between material and immaterial contractual requirements.

Correct AnswerverifiedShow Answer

In reference to the case in the text DeJesus v Cat Auto Tech.Corp. ,what was the effect of the defendant's payment for goods without inspection on the day of delivery,when the delivery was approximately two weeks after the time called for by the contract?

Correct AnswerverifiedShow Answer

Once a buyer or lessee has accepted,performance is complete and a buyer or lessee cannot withdraw acceptance.

Correct AnswerverifiedFalse

What did the court rule in the case of Hubbard v.UTZ Quality Foods,Inc. ,in which the buyer refused on the basis of color to accept potatoes that were the subject of an installment contract?

Correct AnswerverifiedShow Answer

Another term for course of performance is course of dealing.

Correct AnswerverifiedFalse

The UCC requires that sellers and lessors tender ________ goods to the buyer or lessee.

Correct AnswerverifiedShow Answer

The concept of commercial practicality governs the inspection process.

Correct AnswerverifiedShow Answer

Under the UCC,which of the following is true if goods are identified at the time the parties entered into a contract and these goods are partially destroyed through no fault of the parties before risk passes to the buyer or lessee?

Correct AnswerverifiedShow Answer

How does the position of the UCC compare with the common law in regard to the perfect tender rule?

Correct AnswerverifiedShow Answer

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