Question 1

Which of the following is true regarding buyers or lessees who want to accept nonconforming goods and then seek monetary damages?

Accepted Answer

A)   Buyers and lessees are allowed to do so in order to receive the benefit of the bargain, but they must give the seller/lessor reasonable notice of the defect.
B)   Buyers and lessees are allowed to do so in order to receive the benefit of the bargain, and there is no requirement that they give the seller/lessor prior notice of the defect.
C)   Buyers may do so in order to receive the benefit of the bargain so long as reasonable notice of the defect is given, but lessors may not.
D)   Lessors may do so in order to receive the benefit of the bargain so long as reasonable notice of the defect is given, but buyers may not.
E)   Buyers and lessors may do so only if the seller/lessee agrees to the retention of the nonconforming goods and does not request their return.F) B) and D)
G) B) and C)

Question 2

What is the effect of a failure to comply with the statute of limitations?

Accepted Answer

A)   It operates as a waiver of warranty rights under the contract.
B)   There is no effect so long as the plaintiff can establish that he or she was not aware of the statute of limitations.
C)   It operates as a waiver of warranty rights only if the defendant can establish that the plaintiff had actual knowledge of the statute of limitations.
D)   It results in the plaintiff only having the right to sue for injunctive relief, not damages.
E)   It results in the plaintiff only having the right to sue for damages, not injunctive relief.F) B) and E)
G) A) and D)

Question 3

The UCC requires that buyers are obligated to accept and pay for _____________ in accordance with the contract.

Accepted Answer

A)   Reasonably conforming goods
B)   Select conforming goods
C)   Materially conforming goods
D)   Significantly conforming goods
E)   Conforming goodsF) A) and D)
G) A) and B)

Question 4

Reference - Refused Furniture. Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments. Selina was to deliver the furniture by February 7. Roland did not pay Selina as promised on February 1. He asked her to wait until March 1, but she refused. She also refused to deliver the furniture. Selina was able to sell the furniture for only $2,500 because of a downturn in the economy. Roland told Selina that she had no right to withhold or sell his furniture and that he was suing. Selina incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased. Selina saved $40 in delivery costs because the subsequent purchaser picked up her own furniture. Which of the following is true regarding any right of Selina to recover the additional advertising fees she incurred from Roland?

Accepted Answer

A)   She is entitled to recover the damages if she can show that Roland agreed to pay such damages in his contract with her.
B)   She is entitled to recover the damages if she can show that Roland orally agreed to pay such damages.
C)   She is entitled to recover the damages if she can show that Roland has a history of breaching contracts of sale.
D)   Selina will be able to recover the damages so long as they were reasonably incurred because of Roland's breach.
E)   She is not entitled to recover the fees because she had no right to resell the furniture.F) All of the above
G) C) and D)

Question 5

Which of the following was the result in Hill v. Gateway 2000, the case in the text in which the purchaser of a computer failed to read a contract requiring arbitration that came packaged with the computer and asked the court to determine that a seller of computers could not limit buyers' remedies or require arbitration by bundling hardware and legal documents?

Accepted Answer

A)   That the contract was binding on the purchaser because the purchaser accepted the risk of not reading the contract.
B)   That the contract was binding on the purchaser because the contract's requirement of arbitration was reasonable.
C)   That the contract was binding on the purchaser because the contract's requirement of arbitration was actually in the purchaser's favor.
D)   That the contract was unconscionable and nonbinding.
E)   That the contract was nonbinding because it should have been provided to the purchaser for review before the computer was shipped.F) A) and B)
G) A) and C)

Question 6

Which of the following is true regarding the implied warranty of fitness for a particular purpose?

Accepted Answer

A)   It applies in every case in which an express warranty is found.
B)   It applies in every case in which an implied warranty of merchantability is found.
C)   It applies in every case in which either an express warranty or an implied warranty of merchantability is found.
D)   It applies in every sales transaction involving a merchant.
E)   None of these.F) None of the above
G) A) and D)

Question 7

Set forth what the UCC requires in the way of good faith and the duty imposed on nonmerchants and merchants in regard to fair dealing.

Accepted Answer

The UCC requires good faith in the perfo...

Question 8

Under the UCC a delay in delivery is not a breach of contract in circumstances in which performance has been made impracticable because a contingency has occurred that was not contemplated when the parties reached an agreement.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following are examples of what is needed in order for goods to be merchantable?

Accepted Answer

A)   That goods pass without objection in the trade or market for similar goods.
B)   That goods be fit for the ordinary purposes for which such goods are used.
C)   That goods be adequately contained, packaged, and labeled as the agreement may require.
D)   That goods conform to the promises or affirmations made on the container or label, if any.
E)   All of these.F) C) and D)
G) A) and E)

Question 10

Reference - Boat Tow. Donnie went to a new car dealership and told the salesperson, who was not the manager, that he needed a new car that would get good gas mileage and would also pull his big boat. The salesperson encouraged him to buy a smaller car that the salesperson promised would pull the boat. Donnie bought the car and used it to pull the boat. Unfortunately, the heavy pull on the car did significant damage to the car's engine. Donnie complained to the salesperson who denied any liability. Donnie, who had half a semester of business law, informed the salesperson that along with the sale of the car he also received an express warranty and an implied warranty of merchantability, and that he could recover under either of those theories. Will Donnie be able to recover damages based upon breach of the implied warranty of fitness for a particular purpose?

Accepted Answer

A)   Yes.
B)   No, because there was no express warranty.
C)   No, because Donnie's only right of recovery was for breach of the implied warranty of merchantability.
D)   No, because Donnie's only right of recovery was for breach of an express warranty.
E)   No, because Donnie as a reasonable person should have known that the car would not pull the boat regardless of what the salesperson said.F) A) and E)
G) A) and D)

Question 11

Sometimes language in the parties' agreement limits the rigidity of the perfect tender rule.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the damages a seller or lessor may recover when a buyer or lessee is in breach and the goods are sold or leased to another party.

Accepted Answer

The seller may recover the difference be...

Question 13

Assuming adoption of the UCC, which of the following is true regarding whether the buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC?

Accepted Answer

A)   The buyer and seller may not negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than two years.
B)   The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC without any limits.
C)   The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than one year.
D)   The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than six months.
E)   The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than two years.F) B) and C)
G) A) and D)

Question 14

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

Accepted Answer

A)   Adequate
B)   Transforming
C)   Conforming
D)   Reasonable
E)   SuperiorF) B) and C)
G) A) and B)

Question 15

Which of the following determines the obligations of sellers/lessors and buyers/lessees?

Accepted Answer

A)   Terms the parties outline in agreements
B)   Custom
C)   Rules outlined by the UCC
D)   Terms the parties outline in agreements, custom, and rules outlined by the UCC
E)   Terms the parties outline in agreements and custom, but not rules outlined by the UCCF) A) and B)
G) All of the above

Question 16

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)   Tender of offer regulation
B)   Superior delivery rule
C)   Certain tender rule
D)   Regulatory rule
E)   Perfect tender ruleF) None of the above
G) A) and B)

Question 17

The UCC adopted the common law of warranties in total.

Accepted Answer

A) True 
 B)False

Question 18

A[n] _________ is any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract.

Accepted Answer

A)   Express warranty
B)   Implied warranty
C)   Acknowledged warranty
D)   Claimed warranty
E)   Consequential warrantyF) All of the above
G) A) and D)

Exam 15: Formation and Performance of Sales and Lease Contracts

Set forth what the UCC requires in the way of good faith and the duty imposed on nonmerchants and merchants in regard to fair dealing.

Correct Answer
verified
The UCC requires good faith in the perfo...
View Answer

Which of the following is true regarding buyers or lessees who want to accept nonconforming goods and then seek monetary damages?

Correct Answer
verified

Under the UCC a delay in delivery is not a breach of contract in circumstances in which performance has been made impracticable because a contingency has occurred that was not contemplated when the parties reached an agreement.

Correct Answer
verified

Which of the following determines the obligations of sellers/lessors and buyers/lessees?

Correct Answer
verified

Correct Answer
verified

What is the effect of a failure to comply with the statute of limitations?

Correct Answer
verified

The UCC adopted the common law of warranties in total.

Correct Answer
verified

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

Correct Answer
verified

A[n] _________ is any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract.

Correct Answer
verified

Which of the following are examples of what is needed in order for goods to be merchantable?

Correct Answer
verified

Discuss the damages a seller or lessor may recover when a buyer or lessee is in breach and the goods are sold or leased to another party.

Correct Answer
verified
The seller may recover the difference be...
View 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 Answer
verified

Assuming adoption of the UCC, which of the following is true regarding whether the buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC?

Correct Answer
verified

The UCC requires that buyers are obligated to accept and pay for _____________ in accordance with the contract.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following is true regarding the implied warranty of fitness for a particular purpose?

Correct Answer
verified

Sometimes language in the parties' agreement limits the rigidity of the perfect tender rule.

Correct Answer
verified

Exam 15: Formation and Performance of Sales and Lease Contracts

Set forth what the UCC requires in the way of good faith and the duty imposed on nonmerchants and merchants in regard to fair dealing.

Correct AnswerverifiedThe UCC requires good faith in the perfo...View AnswerShow Answer

Which of the following is true regarding buyers or lessees who want to accept nonconforming goods and then seek monetary damages?

Correct AnswerverifiedShow Answer

Under the UCC a delay in delivery is not a breach of contract in circumstances in which performance has been made impracticable because a contingency has occurred that was not contemplated when the parties reached an agreement.

Correct AnswerverifiedShow Answer

Which of the following determines the obligations of sellers/lessors and buyers/lessees?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the effect of a failure to comply with the statute of limitations?

Correct AnswerverifiedShow Answer

The UCC adopted the common law of warranties in total.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A[n] _________ is any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract.

Correct AnswerverifiedShow Answer

Which of the following are examples of what is needed in order for goods to be merchantable?

Correct AnswerverifiedShow Answer

Discuss the damages a seller or lessor may recover when a buyer or lessee is in breach and the goods are sold or leased to another party.

Correct AnswerverifiedThe seller may recover the difference be...View AnswerShow 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

Assuming adoption of the UCC, which of the following is true regarding whether the buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC?

Correct AnswerverifiedShow Answer

The UCC requires that buyers are obligated to accept and pay for _____________ in accordance with the contract.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true regarding the implied warranty of fitness for a particular purpose?

Correct AnswerverifiedShow Answer

Sometimes language in the parties' agreement limits the rigidity of the perfect tender rule.

Correct AnswerverifiedShow Answer

Correct Answer
verified
The UCC requires good faith in the perfo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The seller may recover the difference be...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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