Question 1

The Uniform Commercial Code assumes that the seller has valid title to the goods.

Accepted Answer

A) True 
 B)False

Question 2

According to the Uniform Commercial Code,which of the following refers to the history of dealings between the parties in the particular contract at issue?

Accepted Answer

A)  Trade dress
B)  Course of dealing
C)  Commercial equity
D)  Usage of trade
E)  Course of performanceF) C) and D)
G) A) and B)

Question 3

Under which of the following circumstances will a court refuse to uphold modifications or limitations to remedies agreed upon by the parties?

Accepted Answer

A)  When they seem unfair according to a subjective standard of reasonableness.
B)  When they seem unfair according to an objective standard of reasonableness.
C)  When the party seeking to enforce the modification or limitation is a corporation.
D)  When one or both parties were not represented by an attorney.
E)  When the remedies fail in their essential purpose.F) B) and C)
G) C) and E)

Question 4

Under Uniform Commercial Code Sections 2-513(1) and 2A-515(1) ,the seller or lessor must provide the buyer or lessee _____.

Accepted Answer

A)  the right to revoke nonconforming goods
B)  the right to be excused from performance if the goods are destroyed
C)  an opportunity for inspection before enforcing payment
D)  a reasonable extension of time,at the buyer's request,to accept delivery of non-conforming goods
E)  a reasonable opportunity to comply with reasonable commercial standards of fair dealingF) B) and D)
G) C) and D)

Question 5

Marge ordered for her soccer team t-shirts with the name of the school shown on the front.The seller requested that Marge come in to inspect the first t-shirt before the others were made.Marge refused because she was too busy,and told the seller to go ahead and print the shirts.On receipt of the shirts,Marge discovered that the school name was misspelled.Does Marge have any rights against the seller,and why or why not?

Accepted Answer

Marge has no rights against th...

Question 6

Which of the following is needed in order for the implied warranty of merchantability to be applied?

Accepted Answer

A)  Both parties must be merchants,and a sale must be involved.
B)  Both parties must be merchants,and either a sale or lease must be involved.
C)  The seller must be a merchant,and a sale must be involved.
D)  A seller or lessor must be a merchant,and either a sale or lease must be involved.
E)  The seller must be a merchant,goods valued at over $500 must be involved,and either a sale or lease must be involved.F) B) and C)
G) C) and D)

Question 7

According to the Uniform Commercial Code,a delay in delivery or non-delivery,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)  cumbersome
B)  unprofitable
C)  less profitable
D)  impracticable
E)  more difficultF) A) and B)
G) B) and E)

Question 8

Which of the following usually requires that the seller deliver the particular goods identified in the contract?

Accepted Answer

A)  Substantial performance
B)  Strict performance
C)  Specific performance
D)  Commercial equity
E)  Commercial practicabilityF) None of the above
G) A) and E)

Question 9

Stacy,located in Florida,is entering into a contract with Natasha,located in Russia,for the purchase of snow globes to sell to people who do not typically get to see snow.Stacy is familiar with the Uniform Commercial Code,but she is uneasy about what law would apply if she has a dispute with Natasha regarding the contract.She would like for Florida law to apply.Which of the following is the best advice to Stacy?

Accepted Answer

A)  Stacy should attempt to have a contract clause inserted providing that the law of Florida would govern any dispute.
B)  While a requirement that Florida law would govern the dispute would likely be deemed unconscionable,Stacy should attempt to have a contract clause inserted providing that international law would govern any dispute.
C)  There is nothing that Stacy can do because Russian law,the law of the seller,would govern any dispute.
D)  Stacy does not need to do anything because as a matter of law,Florida law,the law of the buyer in this case,would govern any dispute.
E)  It depends on the value of the contract.If it is for $1,000 or more,Stacy should attempt to secure a provision in the contract that Florida law governs; otherwise,she has no option but to allow a court to later determine the conflict-of-law issue.F) A) and B)
G) C) and D)

Question 10

In order for goods to be merchantable,the goods must ________.

Accepted Answer

A)  pass without substantial objection in the trade or market for similar goods
B)  pass without objection in the trade or market for similar goods; and be fit for the particular purpose(s) for which the buyer intends to use such goods
C)  pass without substantial objection in the trade or market for similar goods; be fit for the particular purpose(s) for which the buyer intends to use such goods; and be adequately contained,packaged,and labeled as the agreement may require
D)  pass without substantial objection in the trade or market for similar goods; be fit for the particular purpose(s) for which the buyer intends to use such goods; be adequately contained,packaged,and labeled as the agreement may require; and conform to the promises or affirmations made on the container or label (if any) 
E)  pass without objection in the trade or market for similar goods; be fit for the ordinary purposes for which such goods are used; be adequately contained,packaged,and labeled as the agreement may require; and conform to the promises or affirmations made on the container or label,if anyF) C) and E)
G) B) and D)

Question 11

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 both get good gas mileage and 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 taken 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.Is Donnie correct that the car was sold with an implied warranty of merchantability?

Accepted Answer

A)  No,because there was no writing guaranteeing that warranty signed by the salesperson.
B)  No,because the salesperson only made an exaggeration.
C)  No,because only a manager can make such a warranty.
D)  No,both because nothing was in writing and also because only a manager can make such a warranty.
E)  Yes.F) C) and E)
G) A) and B)

Question 12

Under Uniform Commercial Code Section 1-205(2) ,any practice that members of an industry expect to be part of their dealings is known as ________.

Accepted Answer

A)  trade dress
B)  course of dealing
C)  commercial equity
D)  usage of trade
E)  course of performanceF) D) and E)
G) B) and E)

Question 13

The Uniform Commercial Code does not allow buyers and sellers to seek the remedy of specific performance when the goods are unique or a remedy at law is inadequate.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following represent the three basic categories of warranties?

Accepted Answer

A)  Express,implied,and equitable warranties
B)  Express,implied,and due-on-sale warranties
C)  Warranties of title,equitable warranties,and due-on-sale-warranties
D)  Warranties of title,express warranties,and due-on-sale warranties
E)  Warranties of title,express warranties,and implied warrantiesF) A) and B)
G) B) and E)

Question 15

According to the Uniform Commercial Code,a buyer or lessee may reject an installment of a particular item only if the defects substantially impair the value of the goods and cannot be cured.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

Accepted Answer

A)  A seller must provide an express,full warranty.
B)  A seller must provide an implied,full warranty.
C)  A seller must provide at least an express,limited warranty.
D)  A seller must provide at least an implied,limited warranty.
E)  The act does not require that the seller provide any warranties.F) C) and D)
G) B) and D)

Question 17

Which of the following are damages for lost profits a buyer may recover in the event of a breach of contract?

Accepted Answer

A)  Nominal
B)  Consequential
C)  Reformation
D)  Nominal,consequential,and reformation
E)  Nominal and consequential,but not reformationF) C) and D)
G) B) and C)

Question 18

A seller's right to provide conforming goods when nonconforming goods were initially delivered is known as ________.

Accepted Answer

A)  substantial performance
B)  usage of trade
C)  cure
D)  parlay
E)  course of dealingF) B) and E)
G) A) and E)

Question 19

Which of the following means that the seller has delivered the goods to a carrier,but the carrier has not yet turned them over to the buyer?

Accepted Answer

A)  In process
B)  In transit
C)  Intermediation
D)  Carrier-ready
E)  Transport-readyF) B) and C)
G) A) and B)

Question 20

What does the Uniform Commercial Code provide for liquidated damages if the parties do not otherwise agree to them?

Accepted Answer

A)  That the nonbreaching seller may claim against a breaching buyer 20 percent of the purchase price or $500,whichever is less,as liquidated damages.
B)  That the nonbreaching seller may claim against a breaching buyer 20 percent of the purchase price or $500,whichever is more,as liquidated damages.
C)  That the nonbreaching seller may claim against a breaching buyer 30 percent of the purchase price or $1,000,whichever is less,as liquidated damages.
D)  That the nonbreaching seller may claim against a breaching buyer 30 percent of the purchase price or $1,000,whichever is more,as liquidated damages.
E)  The Uniform Commercial Code does not establish an amount for liquidated damages if the parties do not otherwise agree to them.F) D) and E)
G) C) and D)

Exam 16: Sales and Lease Contracts: Performance, Warranties, and Remedies

According to the Uniform Commercial Code,a delay in delivery or non-delivery,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 Answer
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Which of the following is needed in order for the implied warranty of merchantability to be applied?

Correct Answer
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Correct Answer
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According to the Uniform Commercial Code,a buyer or lessee may reject an installment of a particular item only if the defects substantially impair the value of the goods and cannot be cured.

Correct Answer
verified

In order for goods to be merchantable,the goods must ________.

Correct Answer
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A seller's right to provide conforming goods when nonconforming goods were initially delivered is known as ________.

Correct Answer
verified

Under Uniform Commercial Code Sections 2-513(1) and 2A-515(1) ,the seller or lessor must provide the buyer or lessee _____.

Correct Answer
verified

Correct Answer
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Marge has no rights against th...
View Answer

Under which of the following circumstances will a court refuse to uphold modifications or limitations to remedies agreed upon by the parties?

Correct Answer
verified

Which of the following are damages for lost profits a buyer may recover in the event of a breach of contract?

Correct Answer
verified

Under Uniform Commercial Code Section 1-205(2) ,any practice that members of an industry expect to be part of their dealings is known as ________.

Correct Answer
verified

Which of the following represent the three basic categories of warranties?

Correct Answer
verified

Which of the following means that the seller has delivered the goods to a carrier,but the carrier has not yet turned them over to the buyer?

Correct Answer
verified

The Uniform Commercial Code assumes that the seller has valid title to the goods.

Correct Answer
verified

Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

Correct Answer
verified

What does the Uniform Commercial Code provide for liquidated damages if the parties do not otherwise agree to them?

Correct Answer
verified

According to the Uniform Commercial Code,which of the following refers to the history of dealings between the parties in the particular contract at issue?

Correct Answer
verified

Which of the following usually requires that the seller deliver the particular goods identified in the contract?

Correct Answer
verified

The Uniform Commercial Code does not allow buyers and sellers to seek the remedy of specific performance when the goods are unique or a remedy at law is inadequate.

Correct Answer
verified

Correct Answer
verified

Exam 16: Sales and Lease Contracts: Performance, Warranties, and Remedies

According to the Uniform Commercial Code,a delay in delivery or non-delivery,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

Which of the following is needed in order for the implied warranty of merchantability to be applied?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the Uniform Commercial Code,a buyer or lessee may reject an installment of a particular item only if the defects substantially impair the value of the goods and cannot be cured.

Correct AnswerverifiedShow Answer

In order for goods to be merchantable,the goods must ________.

Correct AnswerverifiedShow Answer

A seller's right to provide conforming goods when nonconforming goods were initially delivered is known as ________.

Correct AnswerverifiedShow Answer

Under Uniform Commercial Code Sections 2-513(1) and 2A-515(1) ,the seller or lessor must provide the buyer or lessee _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedMarge has no rights against th...View AnswerShow Answer

Under which of the following circumstances will a court refuse to uphold modifications or limitations to remedies agreed upon by the parties?

Correct AnswerverifiedShow Answer

Which of the following are damages for lost profits a buyer may recover in the event of a breach of contract?

Correct AnswerverifiedShow Answer

Under Uniform Commercial Code Section 1-205(2) ,any practice that members of an industry expect to be part of their dealings is known as ________.

Correct AnswerverifiedShow Answer

Which of the following represent the three basic categories of warranties?

Correct AnswerverifiedShow Answer

Which of the following means that the seller has delivered the goods to a carrier,but the carrier has not yet turned them over to the buyer?

Correct AnswerverifiedShow Answer

The Uniform Commercial Code assumes that the seller has valid title to the goods.

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

Correct AnswerverifiedShow Answer

What does the Uniform Commercial Code provide for liquidated damages if the parties do not otherwise agree to them?

Correct AnswerverifiedShow Answer

According to the Uniform Commercial Code,which of the following refers to the history of dealings between the parties in the particular contract at issue?

Correct AnswerverifiedShow Answer

Which of the following usually requires that the seller deliver the particular goods identified in the contract?

Correct AnswerverifiedShow Answer

The Uniform Commercial Code does not allow buyers and sellers to seek the remedy of specific performance when the goods are unique or a remedy at law is inadequate.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Marge has no rights against th...
View Answer

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