Question 1
10 out of 10 points
| | |
|[pic] |A merchant buyer who rejects nonconforming goods, but remains in possession of those goods, might be obligated to: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |a and b. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |a and b. | | | |
| | | | | |
Question 2
10 out of 10 points
| | |
|[pic] |If a seller has delivered nonconforming goods that have been rejected by the buyer, the seller has a right to cure: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |Under some circumstances, even if the time for performance of the contract has expired. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |Under some circumstances, even if the time for performance of the contract has expired. | | | |
| | | | | |
Question 3
10 out of 10 points
| | |
|[pic] |Mary purchased a new kitchen set. However, Mary saw that it was defective when it was delivered. Mary allowed the | | | |
| |seller, Baymore Co., six weeks to repair the defects in her kitchen set. They have tried, but have not done a good | | | |
| |job at it. She may revoke her acceptance as long as she: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |notifies Baymore of the revocation. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |notifies Baymore of the revocation. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 4
10 out of 10 points
| | |
|[pic] |By accepting nonconforming goods, a buyer normally: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |Is obligated to pay for the goods. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |Is obligated to pay for the goods. | | | |
| | | | | |
Question 5
10 out of 10 points
| | |
|[pic] |In which of the following situations does the seller have the right to cure? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |Two of the above, a and b. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |Two of the above, a and b. | | | |
| | | | | |
Question 6
10 out of 10 points
| | |
|[pic] |In the absence of agreement, under the UCC, payment is due at the time and place the buyer is to receive the goods. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 7
10 out of 10 points
| | |
|[pic] |Under the ____, a buyer may reject goods for even the slightest defect. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |perfect tender rule | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |perfect tender rule | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 8
10 out of 10 points
| | |
|[pic] |Rejection is ineffective unless the buyer notifies the seller. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 9
10 out of 10 points
| | |
|[pic] |A contract that is FOB Dallas where the seller is in Chicago and the buyer is in Dallas is a destination contract. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 10
10 out of 10 points
| | |
|[pic] |A merchant buyer of goods receives nonconforming goods. The merchant buyer rightfully rejects and appropriately | | | |
| |notifies the seller, but the seller has no agent in the buyer's city. The goods are perishable and threaten to | | | |
| |decline in value speedily. The merchant buyer has no further duty to the seller other than to await the seller's | | | |
| |instructions. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 1
10 out of 10 points
| | |
|[pic] |Parties may not contractually agree to limit the operation of the perfect tender rule. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 2
10 out of 10 points
| | |
|[pic] |For General Construction Corporation to revoke acceptance of a shipment of tools from Ace Tool Company, General | | | |
| |Construction must: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |All of the above. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |All of the above. | | | |
| | | | | |
Question 3
10 out of 10 points
| | |
|[pic] |A non-merchant buyer who rejects nonconforming goods: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |Must hold the goods for the seller for a reasonable time. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |Must hold the goods for the seller for a reasonable time. | | | |
| | | | | |
Question 4
10 out of 10 points
| | |
|[pic] |Parties to a sales contract may not alter the application of the perfect tender rule to their transaction through | | | |
| |contractual provisions. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
Question 5
10 out of 10 points
| | |
|[pic] |Everett is an accountant for a major accounting firm. One day at work, he is discussing his collection of rare coins | | | |
| |with one of his co-workers. Everett tells his co-worker that he keeps his collection at home and that he has recently| | | |
| |purchased several Chinese gold Panda coins at an exceptional price. The co-worker expresses an interest in buying two| | | |
| |of the coins at a price of $250, and a contract is duly formed. If no place for delivery is expressed, where are the | | | |
| |coins to be delivered? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |At Everett's home | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |At Everett's home | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 6
10 out of 10 points
| | |
|[pic] |Revocation of acceptance by the buyer: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |Requires a substantial nonconformity in the goods. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |Requires a substantial nonconformity in the goods. | | | |
| | | | | |
Question 7
10 out of 10 points
| | |
|[pic] |Ordinarily, fires, strikes or lock-outs are sufficient to excuse contractual performance on the grounds of | | | |
| |performance impossibility. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
Question 8
10 out of 10 points
| | |
|[pic] |Edna orders a set of china dishes from Northwestern Catalog. Northwestern sends the dishes by UPS. The contract does | | | |
| |not specify when payment is to be made. Edna must pay when: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |she gets the goods from UPS. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |she gets the goods from UPS. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 9
10 out of 10 points
| | |
|[pic] |Walter, a merchant, rightfully rejects a shipment of razor blades but is unable to obtain instructions from the | | | |
| |seller. Walter may: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |Any of the above. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |Any of the above. | | | |
| | | | | |
Question 10
10 out of 10 points
| | |
|[pic] |A contract for the sale of goods calls for the goods to be sent by carrier, F.O.B. Buffalo, NY to Raleigh, NC. When | | | |
| |does the seller's obligation of tender occur? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |When the goods are delivered to the carrier | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |When the goods are delivered to the carrier | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 1
10 out of 10 points
| | |
|[pic] |Edna orders a set of china dishes from Northwestern Catalog. Northwestern sends the dishes by UPS. The contract does | | | |
| |not specify when payment is to be made. Edna must pay when: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |she gets the goods from UPS. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |she gets the goods from UPS. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 2
10 out of 10 points
| | |
|[pic] |A buyer in Atlanta enters into a sales contract with a seller in Chicago. If the contract does not mention the place | | | |
| |for delivery of the goods, the place of delivery will be: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |at the seller's business or residence in Chicago. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |at the seller's business or residence in Chicago. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 3
10 out of 10 points
| | |
|[pic] |Under which rule, may a buyer reject goods for even the slightest defect? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |Perfect tender rule. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |Perfect tender rule. | | | |
| | | | | |
• Question 4
10 out of 10 points
| | |
|[pic] |Alice, a retailer of electronic equipment, purchased 50 DVD players from a wholesaler. The purchase contract called | | | |
| |for the goods to be delivered to Alice's retail store. When the shipment arrived, Alice discovered that only 49 DVD | | | |
| |players were included in the shipment. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |Alice can reject the entire shipment if she wants to. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |Alice can reject the entire shipment if she wants to. | | | |
| | | | | |
• Question 5
10 out of 10 points
| | |
|[pic] |By accepting nonconforming goods, a buyer normally: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |Is obligated to pay for the goods. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |Is obligated to pay for the goods. | | | |
| | | | | |
• Question 6
10 out of 10 points
| | |
|[pic] |Mary purchased a new kitchen set. However, Mary saw that it was defective when it was delivered. Mary allowed the | | | |
| |seller, Baymore Co., six weeks to repair the defects in her kitchen set. They have tried, but have not done a good | | | |
| |job at it. She may revoke her acceptance as long as she: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |notifies Baymore of the revocation. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |notifies Baymore of the revocation. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 7
10 out of 10 points
| | |
|[pic] |Ordinarily, fires, strikes or lock-outs are sufficient to excuse contractual performance on the grounds of | | | |
| |performance impossibility. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
• Question 8
10 out of 10 points
| | |
|[pic] |Acceptance of performance takes place when the buyer | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |all of the above are correct | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |all of the above are correct | | | |
| | | | | |
• Question 9
10 out of 10 points
| | |
|[pic] |Walter, a merchant, rightfully rejects a shipment of razor blades but is unable to obtain instructions from the | | | |
| |seller. Walter may: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |Any of the above. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |Any of the above. | | | |
| | | | | |
• Question 10
10 out of 10 points
| | |
|[pic] |Upon delivery of conforming goods, the buyer must | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |tender payment | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |tender payment | | | |
| | | | | |
|• Alice purchased a new computer from "Compu-Best", a local computer store. She used the computer for a month, then the computer|
|began to malfunction. She returned it to the store, where the store manager assured her that he could repair what he called a |
|"minor problem" in the computer. After two months had passed and Alice had returned the computer ten times for repair, Alice gave|
|up and demanded her money back. Under these circumstances: |
|Answer |
|Selected Answer: |
|[pic] [None Given] |
| |
|Correct Answer: |
|[pic] c. |
|Alice can revoke her acceptance because when she accepted the goods, the malfunction had not yet occurred. |
| |
• Question 2
0 out of 10 points
| | |
|[pic] |Jerry ordered a custom-made suit from Suits-R-Us (SRU) to be delivered by Friday at 5 p.m. When it is delivered to | | | |
| |his office on Friday afternoon, he is in conference with a client. His secretary accepted the delivery and she hung | | | |
| |the suit in the office closet. When Jerry tries on the suit Saturday morning, he discovers that the pants are cuffed.| | | |
| |He had ordered cuff-less trousers, so he called (SRU) on Monday and informed them that he was returning the suit. | | | |
| |What can Jerry do? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] [None Given] | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |He can reject the goods since he had not yet accepted them prior to inspection. | | | |
| | | | | |
• Question 3
10 out of 10 points
| | |
|[pic] |If no definite time for delivery is fixed by the terms of the contract, delivery: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |must happen within a reasonable amount of time. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |must happen within a reasonable amount of time. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 4
0 out of 10 points
| | |
|[pic] |Able Hardware, a retailer, ordered 100 hammers from Chicago Hardware Inc., a wholesaler. The hammers were delivered | | | |
| |on time and in perfect condition. However, only 99 hammers were delivered. Meanwhile, Able has discovered another | | | |
| |supplier of hammers for a much lower price, and wants to reject the shipment of hammers from Chicago. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |Able must accept the 99 hammers but it is entitled to an offset in price for one hammer. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |Able may reject the 99 hammers because Chicago's tender of performance was less than perfect. | | | |
| | | | | |
• Question 5
10 out of 10 points
| | |
|[pic] |Rejection is ineffective unless the buyer notifies the seller. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 6
10 out of 10 points
| | |
|[pic] |By accepting nonconforming goods, a buyer normally: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |Is obligated to pay for the goods. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |Is obligated to pay for the goods. | | | |
| | | | | |
• Question 7
0 out of 10 points
| | |
|[pic] |Acceptance of performance takes place when the buyer | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |informs the seller that the goods are conforming | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |all of the above are correct | | | |
| | | | | |
• Question 8
10 out of 10 points
| | |
|[pic] |A sales contract may call for the seller to deliver goods prior to receiving payment. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
• Question 9
10 out of 10 points
| | |
|[pic] |Abe, in Moscow Idaho, sold certain goods for a price of $1,000 to Juan in Chicago. The goods were to be shipped via | | | |
| |railroad, with payment C.O.D. If this is all we know regarding this transaction, what kind of contract is this? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |It is a shipment contract because that is the default condition. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |It is a shipment contract because that is the default condition. | | | |
| | | | | |
• Question 10
10 out of 10 points
| | |
|[pic] |Revocation of acceptance by the buyer: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |Requires a substantial nonconformity in the goods. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |Requires a substantial nonconformity in the goods. | | | |
| | | | | |
• Question 1
10 out of 10 points
| | |
|[pic] |If no definite time for delivery is fixed by the terms of the contract, delivery: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |must happen within a reasonable amount of time. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |must happen within a reasonable amount of time. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 2
10 out of 10 points
| | |
|[pic] |When is a buyer considered to have accepted performance regarding goods that are delivered pursuant to a contract? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |After a failure to reject following a reasonable opportunity to inspect the goods. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |After a failure to reject following a reasonable opportunity to inspect the goods. | | | |
| | | | | |
• Question 3
10 out of 10 points
| | |
|[pic] |Under a shipment contract, the seller is required to do all but which of the following? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |Deliver the goods to the city of the buyer. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |Deliver the goods to the city of the buyer. | | | |
| | | | | |
• Question 4
10 out of 10 points
| | |
|[pic] |A sales contract may call for the seller to deliver goods prior to receiving payment. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
• Question 5
10 out of 10 points
| | |
|[pic] |In the absence of agreement, under the UCC, payment is due at the time and place the buyer is to receive the goods. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 6
10 out of 10 points
| | |
|[pic] |John entered into a contract with Merriam to build her a walnut dining room table for $1,000. A few days later, the | | | |
| |price of walnut lumber increased 200%, which will result in John's incurring a $300 loss on the table. Due to the | | | |
| |price increase, John is excused from his performance under the contract. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 7
10 out of 10 points
| | |
|[pic] |A contract for the sale of goods calls for the goods to be sent by carrier, F.O.B. Buffalo, NY to Raleigh, NC. When | | | |
| |does the seller's obligation of tender occur? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |When the goods are delivered to the carrier | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |When the goods are delivered to the carrier | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 8
10 out of 10 points
| | |
|[pic] |Under the ____, a buyer may reject goods for even the slightest defect. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |perfect tender rule | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |perfect tender rule | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 9
10 out of 10 points
| | |
|[pic] |Alice purchased a new computer from "Compu-Best", a local computer store. She used the computer for a month, then the| | | |
| |computer began to malfunction. She returned it to the store, where the store manager assured her that he could repair| | | |
| |what he called a "minor problem" in the computer. After two months had passed and Alice had returned the computer ten| | | |
| |times for repair, Alice gave up and demanded her money back. Under these circumstances: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |Alice can revoke her acceptance because when she accepted the goods, the malfunction had not yet occurred. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |Alice can revoke her acceptance because when she accepted the goods, the malfunction had not yet occurred. | | | |
| | | | | |
• Question 10
10 out of 10 points
| | |
|[pic] |Able Hardware, a retailer, ordered 100 hammers from Chicago Hardware Inc., a wholesaler. The hammers were delivered | | | |
| |on time and in perfect condition. However, only 99 hammers were delivered. Meanwhile, Able has discovered another | | | |
| |supplier of hammers for a much lower price, and wants to reject the shipment of hammers from Chicago. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |Able may reject the 99 hammers because Chicago's tender of performance was less than perfect. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |Able may reject the 99 hammers because Chicago's tender of performance was less than perfect. | | | |
| | | | | |
• Question 1
10 out of 10 points
| | |
|[pic] |For a buyer to revoke acceptance, the seller’s defective performance must substantially impair the value of the | | | |
| |goods. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
• Question 2
10 out of 10 points
| | |
|[pic] |Parties to a sale of goods contract are excused from performance when that performance becomes commercially | | | |
| |impracticable. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
• Question 3
10 out of 10 points
| | |
|[pic] |When the sales contract does not specify the location for delivery, the place for delivery is deemed the buyer’s | | | |
| |place of business. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
• Question 4
10 out of 10 points
| | |
|[pic] |Tony, a non-merchant, ordered a jacket from the mail order catalog of LL Green (LLG). LLG sent the wrong color jacket| | | |
| |by mistake. Tony does not like the color. He promptly notified LLG that he is rejecting the jacket. Tony's legal | | | |
| |obligation with regard the jacket is to: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |Hold it for a reasonable time and allow LLG to remove it. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |Hold it for a reasonable time and allow LLG to remove it. | | | |
| | | | | |
• Question 5
10 out of 10 points
| | |
|[pic] |In a contract that provides that the sale is F.O.B. Chicago, the seller must at his own expense and risk provide | | | |
| |transport of the goods to Chicago, and there tender delivery to the buyer. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 6
10 out of 10 points
| | |
|[pic] |In which of the following situations does the seller have the right to cure? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |Two of the above, a and b. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |Two of the above, a and b. | | | |
| | | | | |
• Question 7
10 out of 10 points
| | |
|[pic] |To be effective, revocation of acceptance must be made | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |within a reasonable time after the nonconformity of the goods is discovered | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |within a reasonable time after the nonconformity of the goods is discovered | | | |
| | | | | |
• Question 8
10 out of 10 points
| | |
|[pic] |Which of the following is correct with respect to the buyer's obligation of payment? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |All of the above are correct. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |All of the above are correct. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 9
10 out of 10 points
| | |
|[pic] |If no definite time for delivery is fixed by the terms of the contract, delivery: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |must happen within a reasonable amount of time. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |must happen within a reasonable amount of time. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
• Question 10
10 out of 10 points
| | |
|[pic] |Birch, a distributor of consumer electronic goods, and Maple, a retail seller of those goods, entered into a contract| | | |
| |for the sale of 100 televisions for delivery on or before June 1. On June 1 Birch delivered 99 televisions of the | | | |
| |exact make and model called for in the contract. Which is true? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |Maple does have the right to reject Birch's performance because it was not a perfect tender. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |Maple does have the right to reject Birch's performance because it was not a perfect tender. | | | |
| | | | | |
Question 1
0 out of 10 points
| | |
|[pic] |Under a shipment contract, the seller must | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |deliver the goods to a carrier | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |do all of these | | | |
| | | | | |
Question 2
10 out of 10 points
| | |
|[pic] |Which of the following is correct with respect to the buyer's obligation of payment? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |All of the above are correct. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |All of the above are correct. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 3
10 out of 10 points
| | |
|[pic] |Upon delivery of conforming goods, the buyer must | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |tender payment | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |tender payment | | | |
| | | | | |
Question 4
0 out of 10 points
| | |
|[pic] |A buyer’s right of inspection | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |may not be eliminated by a clause in the contract | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |requires the buyer to bear inspection expenses | | | |
| | | | | |
Question 5
10 out of 10 points
| | |
|[pic] |In a contract that provides that the sale is F.O.B. Chicago, the seller must at his own expense and risk provide | | | |
| |transport of the goods to Chicago, and there tender delivery to the buyer. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 6
10 out of 10 points
| | |
|[pic] |A buyer in Atlanta enters into a sales contract with a seller in Chicago. If the contract does not mention the place | | | |
| |for delivery of the goods, the place of delivery will be: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |at the seller's business or residence in Chicago. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |at the seller's business or residence in Chicago. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 7
10 out of 10 points
| | |
|[pic] |Parties to a sales contract may not alter the application of the perfect tender rule to their transaction through | | | |
| |contractual provisions. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
Question 8
10 out of 10 points
| | |
|[pic] |Abe, in Moscow Idaho, sold certain goods for a price of $1,000 to Juan in Chicago. The goods were to be shipped via | | | |
| |railroad, with payment C.O.D. If this is all we know regarding this transaction, what kind of contract is this? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |It is a shipment contract because that is the default condition. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |It is a shipment contract because that is the default condition. | | | |
| | | | | |
Question 9
0 out of 10 points
| | |
|[pic] |Hillary, a TV dealer, sold a new plasma HD TV set to Bill. The TV was delivered to Bill's home. Unfortunately when | | | |
| |Bill turned it on, people's faces appeared red. Bill immediately contacted Hillary, who sent over her best technician| | | |
| |the next day, to resolve the problem. The technician was unable to diagnose the problem in Bill's home, and requested| | | |
| |permission to take the TV to the shop where a diagnostic program could be run. It was possible that the problem was | | | |
| |serious, but it was also possible that the problem could be fixed with a small, minor adjustment. However, Bill | | | |
| |demanded a brand new TV; he said he did not want a "repaired" TV. Bill did not let the technician remove the TV, and | | | |
| |he sued Hillary for breach of contract and the return of his full purchase price. He said he would return his TV to | | | |
| |Hillary after Hillary returned his purchase price. Who will win this lawsuit? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |Bill will win because the goods were in violation of the perfect tender rule. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |Hillary will win because her right to cure was violated. | | | |
| | | | | |
Question 10
10 out of 10 points
| | |
|[pic] |Which of the following would constitute a valid acceptance of performance? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |All the above are correct. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |All the above are correct. | | | |
| | | | | |
Question 1
10 out of 10 points
| | |
|[pic] |Delivery may be tendered at any hour and conducted in any manner as the seller chooses. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
Question 2
10 out of 10 points
| | |
|[pic] |When the sales contract does not mention time for delivery, the seller | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |has a reasonable time after entering the contract to deliver the goods | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |has a reasonable time after entering the contract to deliver the goods | | | |
| | | | | |
Question 3
10 out of 10 points
| | |
|[pic] |"Tender of delivery" means: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |That the seller must make the goods available to the buyer during reasonable hours and for a reasonable time. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |That the seller must make the goods available to the buyer during reasonable hours and for a reasonable time. | | | |
| | | | | |
Question 4
10 out of 10 points
| | |
|[pic] |Choose one of the following answers to best illustrate a shipment contract. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |All of the above are shipment contracts. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |All of the above are shipment contracts. | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 5
10 out of 10 points
| | |
|[pic] |If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |Any of the above. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |Any of the above. | | | |
| | | | | |
Question 6
10 out of 10 points
| | |
|[pic] |To be effective, revocation of acceptance must be made | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |within a reasonable time after the nonconformity of the goods is discovered | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |within a reasonable time after the nonconformity of the goods is discovered | | | |
| | | | | |
Question 7
10 out of 10 points
| | |
|[pic] |Ordinarily, fires, strikes or lock-outs are sufficient to excuse contractual performance on the grounds of | | | |
| |performance impossibility. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |False | | | |
| | | | | |
Question 8
10 out of 10 points
| | |
|[pic] |Everett is an accountant for a major accounting firm. One day at work, he is discussing his collection of rare coins | | | |
| |with one of his co-workers. Everett tells his co-worker that he keeps his collection at home and that he has recently| | | |
| |purchased several Chinese gold Panda coins at an exceptional price. The co-worker expresses an interest in buying two| | | |
| |of the coins at a price of $250, and a contract is duly formed. If no place for delivery is expressed, where are the | | | |
| |coins to be delivered? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |At Everett's home | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |At Everett's home | | | |
| | | | | |
| |Answer Feedback: | | | |
| |Correct. | | | |
| | | | | |
Question 9
10 out of 10 points
| | |
|[pic] |The buyer’s acceptance of goods cuts off the buyer's right to reject those goods. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
Question 10
10 out of 10 points
| | |
|[pic] |A buyer’s right of inspection | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |requires the buyer to bear inspection expenses | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |requires the buyer to bear inspection expenses | | | |
| | | | | |
Question 1
10 out of 10 points
| | |
|[pic] |Which of the following would constitute a valid acceptance of performance? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |All the above are correct. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |All the above are correct. | | | |
| | | | | |
Question 2
10 out of 10 points
| | |
|[pic] |Revocation of acceptance by the buyer: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |Requires a substantial nonconformity in the goods. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |Requires a substantial nonconformity in the goods. | | | |
| | | | | |
Question 3
10 out of 10 points
| | |
|[pic] |A buyer’s right of inspection | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |requires the buyer to bear inspection expenses | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |requires the buyer to bear inspection expenses | | | |
| | | | | |
Question 4
10 out of 10 points
| | |
|[pic] |Parties to a sale of goods contract are excused from performance when that performance becomes commercially | | | |
| |impracticable. | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |True | | | |
| | | | | |
Question 5
10 out of 10 points
| | |
|[pic] |In which of the following situations does the seller have the right to cure? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |Two of the above, a and b. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |Two of the above, a and b. | | | |
| | | | | |
Question 6
10 out of 10 points
| | |
|[pic] |Duties of a merchant buyer who rejects nonconforming goods can include: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] c. | | | |
| |a and b. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] c. | | | |
| |a and b. | | | |
| | | | | |
Question 7
10 out of 10 points
| | |
|[pic] |When the sales contract does not mention time for delivery, the seller | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] a. | | | |
| |has a reasonable time after entering the contract to deliver the goods | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] a. | | | |
| |has a reasonable time after entering the contract to deliver the goods | | | |
| | | | | |
Question 8
10 out of 10 points
| | |
|[pic] |For General Construction Corporation to revoke acceptance of a shipment of tools from Ace Tool Company, General | | | |
| |Construction must: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] d. | | | |
| |All of the above. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] d. | | | |
| |All of the above. | | | |
| | | | | |
Question 9
10 out of 10 points
| | |
|[pic] |Under which rule, may a buyer reject goods for even the slightest defect? | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |Perfect tender rule. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |Perfect tender rule. | | | |
| | | | | |
Question 10
10 out of 10 points
| | |
|[pic] |"Tender of delivery" means: | | | |
| |Answer | | | |
| |Selected Answer: | | | |
| |[pic] b. | | | |
| |That the seller must make the goods available to the buyer during reasonable hours and for a reasonable time. | | | |
| | | | | |
| |Correct Answer: | | | |
| |[pic] b. | | | |
| |That the seller must make the goods available to the buyer during reasonable hours and for a reasonable time. | | | |
| | | | | | 