Question 1

Which of the following is true about the statute of limitations under the UCC?

Accepted Answer

A)   The statute of limitations is always 4 years.
B)   The statute of limitations cannot exceed 4 years.
C)   The statute of limitations cannot be less than 2 years.
D)   The statute of limitations depends only on the terms of the specific contract.E) C) and D)
F) All of the above

Question 2

A buyer who rightfully rejects goods must notify the seller of the reasons for rejection to preserve the buyer's rights.

Accepted Answer

A) True 
 B)False

Question 3

A ski shop orders 500 pairs of downhill ski boots from a ski equipment manufacturer to be delivered to the ski shop on November 1.Late in the day on November 1,the ski shop receives a delivery.After the shop closes for the day,shop employees notice that the shipment consists of 500 pairs of skis,not ski boots.Which is true regarding the manufacturer's right to cure?

Accepted Answer

A)   The manufacturer has a reasonable time to cure.
B)   There is no right to cure because this breach was substantial.
C)   There is no right to cure because the time for performance has passed.
D)   The manufacturer has a right to cure,but only if the value of the skis received is at least as great as the value of the ski boots that were ordered.E) All of the above
F) None of the above

Question 4

Jane,a private individual,has her only piano for sale.Roger contracts to buy it for $500; however,Roger never accepts or pays for it.Jane then sells it to Mark for $550.Jane had no additional costs or expenses.If Jane sues Roger for breach of contract,the proper measure of Jane's damages would be which of the following?

Accepted Answer

A)   contract price less resale price
B)   contract price less fair market value
C)   contract price
D)   lost profits
E)   Jane suffered no damage.F) None of the above
G) B) and E)

Question 5

Sustainable Earth Clothiers is a retailer who sells only natural fiber clothing made from fibers that are organically raised.Because of the store's heavy advertising that it sells only products made from organically raised fibers,it simply cannot sell any clothing that is not made from such fibers.Sustainable Earth buys 1,000 cotton shirts that are delivered and accepted after an inspection.Three weeks later it is learned that these shirts were made from cotton that was not organically grown.The market value of the shirts is not affected by the fact that the cotton is nonorganic.Assuming that it is difficult to determine by observing the shirts that they were made from nonorganic cotton,which of the following is true?

Accepted Answer

A)   Sustainable Earth must keep the shirts because it accepted them after the inspection.
B)   Sustainable Earth must keep the shirts because the market value of the nonconforming shirts is the same as that for conforming shirts.
C)   Sustainable Earth will be able to revoke acceptance of the nonconforming shirts.
D)   Sustainable Earth will be able to revoke acceptance of the shirts only if it can show that the contract would be unconscionable if it were not allowed to revoke the acceptance.E) B) and C)
F) B) and D)

Question 6

The right to cure extends beyond the date that delivery is called for under the contract:

Accepted Answer

A)   only if the contract allows
B)   in all contracts covered by the UCC
C)   in any situation where it is commercially reasonable that it extend
D)   in any situation where cure by the original delivery date would impose a hardship on the seller
E)   in any situation where the seller reasonably believed that the buyer would accept the nonconforming goodsF) D) and E)
G) None of the above

Question 7

When the goods identified to a contract are totally destroyed through the fault of neither party before risk of loss passes to the buyer,which of the following is true?

Accepted Answer

A)   The contract is void.
B)   The seller is obligated to find replacement goods.
C)   The contract is voidable by the buyer.
D)   The seller is liable to the buyer for damages.E) B) and D)
F) None of the above

Question 8

In a shipment contract,the buyer must do all of the following EXCEPT:

Accepted Answer

A)   locate the most cost-effective common carrier for the shipment of the goods
B)   place the goods in the possession of the carrier
C)   contract for the proper and safe transportation of the goods
D)   obtain and deliver any appropriate documents related to the sale and shipment
E)   notify the buyer of the shipmentF) A) and E)
G) D) and E)

Question 9

Seller,a television manufacturer,contracts to deliver one hundred 20" color televisions sets with silver cabinets to the buyer on or before December 1 at a stated price.On November 25,seller delivers the sets to the buyer,but all have black cabinets.The buyer rejects these goods.Which of the following best describes this situation?

Accepted Answer

A)   The buyer cannot reject these goods because the nonconformity does not significantly impair the value of the sets.
B)   The seller has a right to cure,but only on or before December 1.
C)   The seller has a right to cure,and may make a conforming delivery within a reasonable time.
D)   The seller may cure,but only if the buyer agrees.
E)   This is an anticipatory repudiation.F) C) and D)
G) C) and E)

Question 10

An appliance manufacturer contracts to purchase a quantity of steel from Megasteel Corporation to be delivered to the appliance manufacturer on June 1,2002.On April 1,2002,there is a massive explosion at Megasteel's only steel mill that destroys the mill.According to newspaper reports,the mill will take at least one year to be rebuilt and put back into operation.The appliance company purchasing manager makes a frantic phone call to Megasteel asking,"Is it true you won't be making any more steel for at least a year?" The Megasteel representative says that it is true it will not be able to make any steel for at least a year.The appliance manufacturer immediately contracts with another steel company to deliver similar steel on June 1.A shipment of steel is received from each company on June 1.Has the appliance manufacturer breached its contract with Megasteel if it refuses to accept and pay for the Megasteel steel?

Accepted Answer

The explosion,by itself,was not an antic...

Question 11

Which of the following statements is true regarding installment contracts?

Accepted Answer

A)   To be an installment contract,the contract must state that each delivery is a separate contract or words to that effect.
B)   The buyer may reject the entire contract for any nonconformity.
C)   The buyer may reject the entire contract only if the nonconformity of one shipment affects the value of the entire contract.
D)   A,B,and C are true.
E)   A and C only are true.F) D) and E)
G) A) and B)

Question 12

A buyer contracts to buy an automobile from a seller (an individual who is not a car dealer) for $1,000.The buyer fails to accept and pay for this car,so the seller sells it to another party for $1,200.This second sale cost the seller an extra $50 in advertising.The seller sues the buyer for damages for breach of contract.In this situation,which of the following is true?

Accepted Answer

A)   The seller can collect $250.
B)   The seller can collect $200.
C)   The seller can collect $50.
D)   The seller collects nothing,but keeps the extra amount received.
E)   The seller collects nothing,but must give buyer the extra $150.F) A) and C)
G) D) and E)

Question 13

When goods named in a contract are held by a bailee,tender of delivery occurs when the buyer receives the goods from the bailee.

Accepted Answer

A) True 
 B)False

Question 14

A destination contract requires that the seller:

Accepted Answer

A)   deliver the goods to a common carrier
B)   deliver the goods to the buyer
C)   give proper and adequate notice to the buyer
D)   A and C
E)   B and CF) B) and C)
G) D) and E)

Question 15

If a seller gives notice to a buyer to return goods sold to him or her,and the buyer refuses the demand,then the seller or lessor may use self-help to reclaim the goods.

Accepted Answer

A) True 
 B)False

Question 16

A seller contracts to sell some rare coins to a collector for $10,000,to be delivered 2 months after the date of the contract.On the date that delivery is due,the coins are worth $12,000,but the seller refuses to deliver.The collector acquires similar coins the following week for $13,000,the best price he can find.What can the collector recover from the seller?

Accepted Answer

A)   $1,000
B)   $2,000
C)   $3,000
D)   $5,000
E)   Nothing,because she chose to enter into a separate contract for the purchase of coins from another seller.F) B) and C)
G) B) and D)

Question 17

A buyer who has knowingly accepted nonconforming goods with no assurance of cure:

Accepted Answer

A)   has given up any right to later reject the good for this nonconformity
B)   may nonetheless recover damages resulting from the nonconformity
C)   may recover damages only if the buyer covers
D)   may recover damages only if the buyer can prove lost profitsE) A) and C)
F) All of the above

Question 18

Generally,a buyer may take physical possession of the goods and inspect them within a reasonable time without having accepted the goods.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following must be met in every instance in order to revoke an acceptance of goods?

Accepted Answer

A)   The nonconformity must substantially impair the value of the goods.
B)   The seller's promise to cure the nonconformity must not have not been met.
C)   The goods must have been accepted before discovery of the nonconformity and the nonconformity must have been one that was difficult to discover.
D)   The goods must have been accepted before discovery of the nonconformity and the seller must have assured the buyer that the goods were conforming.E) A) and C)
F) All of the above

Question 20

A seller hears that one of its customers has filed for bankruptcy.The seller demands in writing assurance of performance by the buyer.If the buyer does give written assurance that it will perform,which of the following is true?

Accepted Answer

A)   The written assurance will require that the seller deliver the goods.
B)   The seller may withhold delivery of the goods despite the assurance of performance.
C)   The seller may withhold delivery only if the insolvency will prevent payment of this debt.
D)   The seller must deliver the goods to the custody of the bankruptcy trustee.E) A) and D)
F) None of the above

Exam 20: Remedies for Breach of Sales and Lease Contracts

Correct Answer
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The explosion,by itself,was not an antic...
View Answer

A buyer who rightfully rejects goods must notify the seller of the reasons for rejection to preserve the buyer's rights.

Correct Answer
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Correct Answer
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A seller hears that one of its customers has filed for bankruptcy.The seller demands in writing assurance of performance by the buyer.If the buyer does give written assurance that it will perform,which of the following is true?

Correct Answer
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A buyer who has knowingly accepted nonconforming goods with no assurance of cure:

Correct Answer
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Generally,a buyer may take physical possession of the goods and inspect them within a reasonable time without having accepted the goods.

Correct Answer
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Which of the following statements is true regarding installment contracts?

Correct Answer
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Which of the following is true about the statute of limitations under the UCC?

Correct Answer
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Correct Answer
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When the goods identified to a contract are totally destroyed through the fault of neither party before risk of loss passes to the buyer,which of the following is true?

Correct Answer
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Correct Answer
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When goods named in a contract are held by a bailee,tender of delivery occurs when the buyer receives the goods from the bailee.

Correct Answer
verified

Correct Answer
verified

The right to cure extends beyond the date that delivery is called for under the contract:

Correct Answer
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A destination contract requires that the seller:

Correct Answer
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In a shipment contract,the buyer must do all of the following EXCEPT:

Correct Answer
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Correct Answer
verified

Correct Answer
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Which of the following must be met in every instance in order to revoke an acceptance of goods?

Correct Answer
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If a seller gives notice to a buyer to return goods sold to him or her,and the buyer refuses the demand,then the seller or lessor may use self-help to reclaim the goods.

Correct Answer
verified

Exam 20: Remedies for Breach of Sales and Lease Contracts

Correct AnswerverifiedThe explosion,by itself,was not an antic...View AnswerShow Answer

A buyer who rightfully rejects goods must notify the seller of the reasons for rejection to preserve the buyer's rights.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A seller hears that one of its customers has filed for bankruptcy.The seller demands in writing assurance of performance by the buyer.If the buyer does give written assurance that it will perform,which of the following is true?

Correct AnswerverifiedShow Answer

A buyer who has knowingly accepted nonconforming goods with no assurance of cure:

Correct AnswerverifiedShow Answer

Generally,a buyer may take physical possession of the goods and inspect them within a reasonable time without having accepted the goods.

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding installment contracts?

Correct AnswerverifiedShow Answer

Which of the following is true about the statute of limitations under the UCC?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When the goods identified to a contract are totally destroyed through the fault of neither party before risk of loss passes to the buyer,which of the following is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When goods named in a contract are held by a bailee,tender of delivery occurs when the buyer receives the goods from the bailee.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The right to cure extends beyond the date that delivery is called for under the contract:

Correct AnswerverifiedShow Answer

A destination contract requires that the seller:

Correct AnswerverifiedShow Answer

In a shipment contract,the buyer must do all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following must be met in every instance in order to revoke an acceptance of goods?

Correct AnswerverifiedShow Answer

If a seller gives notice to a buyer to return goods sold to him or her,and the buyer refuses the demand,then the seller or lessor may use self-help to reclaim the goods.

Correct AnswerverifiedShow Answer

Correct Answer
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The explosion,by itself,was not an antic...
View Answer

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