Question 1

Which of the following is true regarding whether the buyer and seller may negotiate contractually for a shorter time period to sue for breach of contract than the statute of limitations period ordinarily recognized by the Uniform Commercial Code?

Accepted Answer

A)  The buyer and seller may not negotiate for a shorter time period to sue for breach of contract; instead,they must recognize the statute of limitations period established by the Uniform Commercial Code.
B)  Without limitation,the buyer and seller may negotiate for a shorter time period to sue for breach of contract than the statute of limitations period ordinarily recognized by the Uniform Commercial Code.
C)  The buyer and seller may negotiate for a shorter time period to sue for breach of contract than the statute of limitations period ordinarily recognized by the Uniform Commercial Code,so long as the contractually-agreed-upon time period is not for less than one year.
D)  The buyer and seller may negotiate for a shorter time period to sue for breach of contract than the statute of limitations period ordinarily recognized by the Uniform Commercial Code,so long as the contractually-agreed-upon time period is not for less than six months.
E)  The buyer and seller may negotiate for a shorter time period to sue for breach of contract than the statute of limitations period ordinarily recognized by the Uniform Commercial Code,so long as the time period is not for less than two years.F) A) and E)
G) C) and D)

Question 2

Priscilla,who worked for a dry cleaner,came up with a great new idea for a type of press that speeded up the process immensely.She quit her job,hired labor and purchased materials,and manufactured a number of the presses.She sold the presses to her friend Phil for resale.Phil began advertising and distributing the press,but was notified by ABC Company that the sales violated its patent.After investigation,Phil determined that ABC had the better argument and demanded that Priscilla refund the purchase price.Priscilla declined on the basis that she had no idea that a patent on a similar press was in existence.Who will likely win the dispute and why?

Accepted Answer

A)  Phil will likely win,because Priscilla violated the implied warranty of merchantability.
B)  Phil will likely win,because Priscilla violated the implied warranty of fitness for a particular purpose.
C)  Phil will likely win,because Priscilla violated the warranty of title.
D)  Priscilla will likely win,because she had no knowledge of any previous patent.
E)  Priscilla will likely win,because she had no knowledge of any previous patent and because the duty was on Phil to investigate whether any patents existed prior to his purchase of the presses.F) C) and D)
G) None of the above

Question 3

What is the effect of a buyer's failure to comply with the statute of limitations recognized by the Uniform Commercial Code for a breach of contract action?

Accepted Answer

A)  The buyer waives his or her warranty rights under the contract.
B)  There is no effect if the buyer can establish that he or she was not aware of the statute of limitations.
C)  It operates as a waiver of the buyer's warranty rights,but only if the seller can establish by a preponderance of the evidence that the buyer had actual knowledge of the statute of limitations.
D)  It results in the buyer only having the right to sue the seller for injunctive relief,not damages.
E)  It results in the buyer only having the right to sue the seller for damages,not injunctive relief.F) B) and D)
G) D) and E)

Question 4

The obligations of sellers and buyers are determined by which of the following?

Accepted Answer

A)  Terms the parties outline in agreements
B)  Custom
C)  Rules outlined by the Uniform Commercial Code
D)  Terms the parties outline in agreements,custom,and rules outlined by the Uniform Commercial Code
E)  Terms the parties outline in agreements and custom,but not rules outlined by the Uniform Commercial CodeF) A) and D)
G) A) and B)

Question 5

An express warranty is a non-material term of a sale or lease contract.

Accepted Answer

A) True 
 B)False

Question 6

What needs to be shown under the Uniform Commercial Code for goods to be found merchantable?

Accepted Answer

For goods to be merchantable under the U...

Question 7

Describe when an implied warranty of fitness for a particular purpose will be found.

Accepted Answer

The implied warranty of fitness for a pa...

Question 8

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

Question 9

Under the Uniform Commercial Code,a delay in delivery is a breach of contract even 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 10

An implied warranty 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) True 
 B)False

Question 11

What was the result in Alaska Pacific Trading Co.v.Eagon Forest Products Inc.,the case in the textbook in which the defendant rejected a shipment of logs?

Accepted Answer

A)  By not shipping the logs in a timely manner according to the contract,the seller failed to satisfy the perfect tender rule,thereby releasing the defendant buyer from its duty to accept the logs.
B)  The seller satisfied the perfect tender rule despite the fact that the logs were late,and the defendant buyer breached the contract by refusing to accept the logs.
C)  The seller was entitled to rely on the common law doctrine of material breach,but the seller did not substantially perform,thereby releasing the buyer from its contractual duties.
D)  The seller was entitled to rely on the common law doctrine of material breach,the seller substantially performed,and the buyer was in breach of contract.
E)  The seller was entitled to rely on the perfect tender rule,and the buyer materially breached the contract by refusing to accept the logs.F) B) and C)
G) None of the above

Question 12

Conforming goods are goods that conform to contract specifications.

Accepted Answer

A) True 
 B)False

Question 13

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?

Accepted Answer

A)  The contract is void.
B)  The buyer may inspect the goods and decide whether to a) treat the contract as void or b) ask the seller for a reduction of the contract price and then accept the damaged goods.
C)  The buyer has three business days to determine whether to void the contract or enforce the seller's obligations under it.
D)  Unless the parties can agree on a reduced price,the matter must be submitted to arbitration for a determination regarding an appropriate price.
E)  Unless the parties can agree on a reduced price,the contract is voidable at the option of the seller if the seller chooses not to remedy the partial destruction of the goods.F) A) and B)
G) None of the above

Question 14

A buyer may revoke acceptance of goods if the buyer can show that defects in the goods have caused their value to be ________.

Accepted Answer

A)  reduced preponderantly
B)  reduced by ten percent or more
C)  reduced by twenty-five percent or more
D)  substantially impaired
E)  compromisedF) A) and D)
G) A) and B)

Question 15

A seller may disclaim the implied warranty of fitness for a particular purpose either orally or in writing.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following damages may a seller receive if the seller resells goods to another buyer when the original buyer is in breach of contract?

Accepted Answer

A)  The difference between the resale price and the contract price,plus incidental damages and minus expenses saved.
B)  The difference between the resale price and the contract price.
C)  The difference between the resale price and the contract price,minus expenses and without any allowance for incidental damages.
D)  The difference between the resale price and the contract price,plus incidental damages,with no deduction for expenses saved.
E)  Nominal damages.F) A) and B)
G) A) and C)

Question 17

Which of the following are damages identified before the breach occurs?

Accepted Answer

A)  Nominal
B)  Compensatory
C)  Reliance
D)  Liquidated
E)  ConsequentialF) All of the above
G) A) and C)

Question 18

The three warranties of quality that arise under the Uniform Commercial Code are the:

Accepted Answer

A)  Warranty of title,express warranty,and implied warranty
B)  Warranty of title,express warranty,and implied warranty of merchantability
C)  Warranty of title,express warranty,and implied warranty of fitness for a particular purpose.
D)  Implied warranty of merchantability,implied warranty of fitness for a particular purpose,and implied warranty of trade usage.
E)  Express warranty,implied warranty of merchantability,and implied warranty of fitness for a particular purpose.F) A) and E)
G) C) and D)

Question 19

List the exceptions to title warranties.

Accepted Answer

The only exceptions to title warranties ...

Question 20

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 Roland's claim that Selina had no right to withhold his furniture?

Accepted Answer

A)  Roland is correct.Selina was required to deliver the furniture,but she retained the right to sue him for any deficiency.
B)  Roland is correct,but only because of the special Uniform Commercial Code exception for consumer goods.
C)  Roland is incorrect.Selina had a right to withhold the furniture.
D)  Roland is incorrect,but only if Selina can prove that she had no reason to believe that he was a credit risk prior to signing the contract of sale.
E)  Roland is correct because of federal consumer protection laws.F) All of the above
G) A) and D)

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

The three warranties of quality that arise under the Uniform Commercial Code are the:

Correct Answer
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Which of the following is true regarding whether the buyer and seller may negotiate contractually for a shorter time period to sue for breach of contract than the statute of limitations period ordinarily recognized by the Uniform Commercial Code?

Correct Answer
verified

Which of the following are damages identified before the breach occurs?

Correct Answer
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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?

Correct Answer
verified

What is the effect of a buyer's failure to comply with the statute of limitations recognized by the Uniform Commercial Code for a breach of contract action?

Correct Answer
verified

An implied warranty 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 damages may a seller receive if the seller resells goods to another buyer when the original buyer is in breach of contract?

Correct Answer
verified

Describe when an implied warranty of fitness for a particular purpose will be found.

Correct Answer
verified
The implied warranty of fitness for a pa...
View Answer

What needs to be shown under the Uniform Commercial Code for goods to be found merchantable?

Correct Answer
verified
For goods to be merchantable under the U...
View Answer

The obligations of sellers and buyers are determined by which of the following?

Correct Answer
verified

Under the Uniform Commercial Code,a delay in delivery is a breach of contract even 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

Correct Answer
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Correct Answer
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An express warranty is a non-material term of a sale or lease contract.

Correct Answer
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A buyer may revoke acceptance of goods if the buyer can show that defects in the goods have caused their value to be ________.

Correct Answer
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List the exceptions to title warranties.

Correct Answer
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The only exceptions to title warranties ...
View Answer

Correct Answer
verified

A seller may disclaim the implied warranty of fitness for a particular purpose either orally or in writing.

Correct Answer
verified

What was the result in Alaska Pacific Trading Co.v.Eagon Forest Products Inc.,the case in the textbook in which the defendant rejected a shipment of logs?

Correct Answer
verified

Conforming goods are goods that conform to contract specifications.

Correct Answer
verified

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

The three warranties of quality that arise under the Uniform Commercial Code are the:

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether the buyer and seller may negotiate contractually for a shorter time period to sue for breach of contract than the statute of limitations period ordinarily recognized by the Uniform Commercial Code?

Correct AnswerverifiedShow Answer

Which of the following are damages identified before the breach occurs?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

What is the effect of a buyer's failure to comply with the statute of limitations recognized by the Uniform Commercial Code for a breach of contract action?

Correct AnswerverifiedShow Answer

An implied warranty 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 damages may a seller receive if the seller resells goods to another buyer when the original buyer is in breach of contract?

Correct AnswerverifiedShow Answer

Describe when an implied warranty of fitness for a particular purpose will be found.

Correct AnswerverifiedThe implied warranty of fitness for a pa...View AnswerShow Answer

What needs to be shown under the Uniform Commercial Code for goods to be found merchantable?

Correct AnswerverifiedFor goods to be merchantable under the U...View AnswerShow Answer

The obligations of sellers and buyers are determined by which of the following?

Correct AnswerverifiedShow Answer

Under the Uniform Commercial Code,a delay in delivery is a breach of contract even 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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An express warranty is a non-material term of a sale or lease contract.

Correct AnswerverifiedShow Answer

A buyer may revoke acceptance of goods if the buyer can show that defects in the goods have caused their value to be ________.

Correct AnswerverifiedShow Answer

List the exceptions to title warranties.

Correct AnswerverifiedThe only exceptions to title warranties ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A seller may disclaim the implied warranty of fitness for a particular purpose either orally or in writing.

Correct AnswerverifiedShow Answer

What was the result in Alaska Pacific Trading Co.v.Eagon Forest Products Inc.,the case in the textbook in which the defendant rejected a shipment of logs?

Correct AnswerverifiedShow Answer

Conforming goods are goods that conform to contract specifications.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified
The implied warranty of fitness for a pa...
View Answer

Correct Answer
verified
For goods to be merchantable under the U...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The only exceptions to title warranties ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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