Question 1

Under the Uniform Commercial Code,buyers and lessees are obligated to accept and pay for conforming goods in accordance with the contract.

Accepted Answer

A) True 
 B)False

Question 2

The Uniform Commercial Code requires that buyers are obligated to accept and pay for ________ goods in accordance with the contract.

Accepted Answer

A)  substantially conforming
B)  select conforming
C)  even nonconforming
D)  preponderantly conforming
E)  conformingF) B) and E)
G) C) and E)

Question 3

Which is true regarding a buyer's right to waive warranties?

Accepted Answer

A)  A buyer may not waive warranties.
B)  A buyer may waive implied warranties,but not express warranties.
C)  A buyer may waive express warranties,but not implied warranties.
D)  A buyer may waive both implied and express warranties.
E)  A buyer may waive express warranties and the implied warranty of fitness for a particular purpose,but not the implied warranty of merchantability.F) A) and E)
G) C) and E) D

Question 4

Liquidated damages are identified before a breach of contract occurs.

Accepted Answer

A) True 
 B)False

Question 5

The Uniform Commercial Code defines course of dealing as previous commercial transactions between the same parties.

Accepted Answer

A) True 
 B)False

Question 6

The Uniform Commercial Code requires good faith in the performance and enforcement of a contract,but only if the parties expressly include the good faith obligation in their agreement.

Accepted Answer

A) True 
 B)False  False

Question 7

Belinda orders a certain type of hybrid rose for her wedding.A disease sweeps through that type of rose and the florist could only obtain the roses at great cost,if at all.Which of the following is the appropriate term for the florist's best defense?

Accepted Answer

A)  Frustration of purpose
B)  Commercial impracticability
C)  Substantial performance
D)  Unforeseen circumstances
E)  Substantial impairmentF) A) and E)
G) B) and E)

Question 8

Should the perfect tender rule be rejected and replaced with a concept of substantial performance?

Accepted Answer

Student responses will vary.In favor of ...

Question 9

Assuming a buyer that is insolvent has breached a contract by not paying for goods that are in transit,which of the following may occur?

Accepted Answer

A)  The carrier may stop delivery regardless of the quantity shipped.
B)  The carrier may stop delivery,but only if the quantity shipped is a large shipment.
C)  The carrier may stop delivery,but only if the buyer expressly agreed in a signed writing to the remedy of stopping shipment.
D)  The carrier may stop delivery,but only if ordered to do so by a bankruptcy judge.
E)  The carrier may not stop delivery under any circumstances.F) B) and E)
G) A) and D)

Question 10

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

Accepted Answer

The seller may recover the difference be...

Question 11

According to the Uniform Commercial Code,a buyer who has accepted goods may later revoke the acceptance even if the buyer cannot demonstrate that the defects substantially impair the value of the goods.

Accepted Answer

A) True 
 B)False

Question 12

According to the Uniform Commercial Code,in transit means that the seller has delivered the goods to a carrier,and the carrier has turned the goods over to the buyer.

Accepted Answer

A) True 
 B)False

Question 13

Express warranties cannot be created by statements found in advertisements or brochures.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an accurate statement regarding state choice(s) in recognizing the rights of third-party beneficiaries of warranties?

Accepted Answer

A)  According to the Uniform Commercial Code,states must recognize that a seller's warranties extend to the buyer's household members and guests only.
B)  According to the Uniform Commercial Code,states must recognize that a seller's warranties extend to any reasonable and foreseeable user.
C)  According to the Uniform Commercial Code,states must recognize that a seller's warranties extend to anyone injured by the good.
D)  States are given the following three choices regarding third-party beneficiaries of warranties: a) a seller's warranties extend to the buyer's household members and guests; b) a seller's warranties extend to any reasonable and foreseeable user; or c) a seller's warranties extend to anyone injured by the good.
E)  States are given the following two choices regarding third-party beneficiaries of warranties: a) a seller's warranties extend to the buyer's household members and guests; or b) a seller's warranties extend to any reasonable and foreseeable user.F) A) and B)
G) C) and D)

Question 15

Which of the following determines the obligations of sellers and buyers?

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 C)
G) A) and B)

Question 16

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

Accepted Answer

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

Question 17

Uniform Commercial Code Section ________ requires good faith in the performance and enforcement of every contract.

Accepted Answer

A)  1-204
B)  2-205
C)  3-301
D)  3-302
E)  1-304F) C) and D)
G) None of the above E

Question 18

In order for an implied warranty of fitness for a particular purpose to be created,the seller must be a merchant.

Accepted Answer

A) True 
 B)False

Question 19

What do Uniform Commercial Code Sections 2-601 and 2A-509 indicate regarding the perfect tender rule?

Accepted Answer

A)  If goods or tender of delivery fails in any respect to conform to the contract,the buyer has the right to accept the goods,reject the entire shipment,or accept part and reject part.
B)  If goods or tender of delivery fails in any material respect to conform to the contract,the buyer has the right to accept the goods,reject the entire shipment,or accept part and reject part.
C)  If goods or tender of delivery fails in any respect to conform to the contract,the buyer has the right to accept all of the goods or reject the entire shipment,but not the right to accept part and reject part.
D)  If goods or tender of delivery fails in any material respect to conform to the contract,the buyer has the right to accept all of the goods or reject the entire shipment,but not the right to accept part and reject part.
E)  If goods or tender of delivery fails in any respect to conform to the contract,the buyer only has the right to accept the entire shipment and sue for damages.F) C) and E)
G) A) and D)

Question 20

Which of the following is the right of a buyer to substitute goods for those due under a sales agreement?

Accepted Answer

A)  Consignment
B)  Subrogation
C)  Cover
D)  Revocation
E)  ReallocationF) D) and E)
G) All of the above

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

Under the Uniform Commercial Code,buyers and lessees are obligated to accept and pay for conforming goods in accordance with the contract.

Correct AnswerverifiedShow Answer

The Uniform Commercial Code requires that buyers are obligated to accept and pay for ________ goods in accordance with the contract.

Correct AnswerverifiedShow Answer

Which is true regarding a buyer's right to waive warranties?

Correct AnswerverifiedD

Liquidated damages are identified before a breach of contract occurs.

Correct AnswerverifiedShow Answer

The Uniform Commercial Code defines course of dealing as previous commercial transactions between the same parties.

Correct AnswerverifiedShow Answer

The Uniform Commercial Code requires good faith in the performance and enforcement of a contract,but only if the parties expressly include the good faith obligation in their agreement.

Correct AnswerverifiedFalse

Belinda orders a certain type of hybrid rose for her wedding.A disease sweeps through that type of rose and the florist could only obtain the roses at great cost,if at all.Which of the following is the appropriate term for the florist's best defense?

Correct AnswerverifiedShow Answer

Should the perfect tender rule be rejected and replaced with a concept of substantial performance?

Correct AnswerverifiedStudent responses will vary.In favor of ...View AnswerShow Answer

Assuming a buyer that is insolvent has breached a contract by not paying for goods that are in transit,which of the following may occur?

Correct AnswerverifiedShow Answer

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

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

According to the Uniform Commercial Code,a buyer who has accepted goods may later revoke the acceptance even if the buyer cannot demonstrate that the defects substantially impair the value of the goods.

Correct AnswerverifiedShow Answer

According to the Uniform Commercial Code,in transit means that the seller has delivered the goods to a carrier,and the carrier has turned the goods over to the buyer.

Correct AnswerverifiedShow Answer

Express warranties cannot be created by statements found in advertisements or brochures.

Correct AnswerverifiedShow Answer

Which of the following is an accurate statement regarding state choice(s) in recognizing the rights of third-party beneficiaries of warranties?

Correct AnswerverifiedShow Answer

Which of the following determines the obligations of sellers and buyers?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Uniform Commercial Code Section ________ requires good faith in the performance and enforcement of every contract.

Correct AnswerverifiedE

In order for an implied warranty of fitness for a particular purpose to be created,the seller must be a merchant.

Correct AnswerverifiedShow Answer

What do Uniform Commercial Code Sections 2-601 and 2A-509 indicate regarding the perfect tender rule?

Correct AnswerverifiedShow Answer

Which of the following is the right of a buyer to substitute goods for those due under a sales agreement?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified
Student responses will vary.In favor of ...
View Answer

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
E

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified