Question 1

The right to fix errors in a contractual agreement,such as typographical errors,is known as the right to cure.

Accepted Answer

A) True 
 B)False

Question 2

Which statement is true regarding both the UCC and common law with regard to conforming and nonconforming goods?

Accepted Answer

A)  The perfect tender rule recognizes the distinction between material and immaterial contractual requirements.
B)  Under the UCC and common law,if goods fail 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.
C)  Under common law,if goods fail 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.
D)  Common law usually substitutes perfect tender with the doctrine of substantial performance.
E)  Both the UCC and common law recognize the distinction between material and immaterial contractual requirements.F) A) and E)
G) B) and E)

Question 3

What type of notice must a party who wishes to replace nonconforming goods and cure within the time set for performance give the other party?

Accepted Answer

A)  Notice within 5 days of delivery
B)  Prompt notice
C)  Notice within 10 days of delivery
D)  Notice within 1 day of delivery
E)  There is no set time so long as notice is given prior to the time set for performanceF) A) and D)
G) C) and D)

Question 4

Lui tells Kai the cupcakes can still be sold.Must Kai accept the cupcakes?

Accepted Answer

A)  No,Kai can treat the contract as void or Kai can ask Lui for a price reduction and then accept the damaged goods.
B)  No,Kai's only option is to treat the contract as void.
C)  Yes,his only option is to accept the cupcakes and ask for a price reduction.
D)  Yes,because they are still sellable and he must pay the price under the contract.
E)  No,but Kai must provide Lui with time to cure.F) None of the above
G) A) and E)

Question 5

________ occurs when all the material elements of a contract are satisfied,even if some nonmaterial requirements may not be satisfied?

Accepted Answer

A)  Perfect tender
B)  Substantial performance
C)  Adequate tender
D)  Perfect performance
E)  Substantial tenderF) All of the above
G) B) and D)

Question 6

Which statement is correct regarding any right of inspection for buyers?

Accepted Answer

A)  The UCC provides for a right of inspection in regard to fragile items for buyers,but not otherwise.
B)  The UCC provides for a right of inspection for buyers.
C)  The UCC provides for no right of inspection for buyers,and the right of inspection is only available to the buyer if it is provided for by contract.
D)  The UCC provides for a right of inspection in regard to perishable items for buyers,but not otherwise.
E)  The UCC provides for a right of inspection if the buyer and seller have previously had disputes in regard to shipments,but not otherwise.F) A) and B)
G) C) and D)

Question 7

Good faith in the performance and enforcement of every contract is required by UCC Section ________.

Accepted Answer

A)  1-007
B)  2-205
C)  1-203
D)  3-301
E)  3-302F) None of the above
G) B) and E)

Question 8

[Brea's Berries] Brea,a berry farmer,regularly supplies berries under an installment contract to Zelda's,a manufacturer of frozen desserts.Zelda's prefers its berries to be large,to provide the best quality for its products,and mandated that the contract contain a provision that each berry needed to be at least one inch in length.Zelda's rejected the latest shipment of berries,claiming that the majority of the berries did not meet the requisite length.Brea argues that Zelda cannot reject the entire shipment because it is only a trivial detail.Zelda responds that the size constitutes a substantial impairment in the goods and will make her products less desirable.She tells Brea she's cancelling the contract because she has to quickly find another supplier in order to complete a large order.
-Can Zelda reject the shipment because of the size?

Accepted Answer

A)  No,because she cancel a contract for trivial defects.
B)  Yes,because failure to meet the proper size standard may constitute a substantial impairment,especially in light of the contract provision about berry size.
C)  No,because failure to meet the proper size standard would never constitute a substantial impairment.
D)  No,a buyer has no right to reject a shipment based on subjective factors,such as inappropriate size.
E)  Yes,because of the perfect tender rule and no exception applies.F) A) and B)
G) A) and D)

Question 9

Define "course of performance," and discuss its relationship to decisions regarding whether goods conform to contract specifications.

Accepted Answer

Course of performance refers to the hist...

Question 10

A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects substantially impair the value of the goods.

Accepted Answer

A) True 
 B)False

Question 11

What is Yolanda's best defense as to why the doll shoes and purses do not conform perfectly to the order?

Accepted Answer

A)  An exception to the perfect tender rule was outlined in the parties' agreement.
B)  The substitution of additional purses for shoes did not substantially impair the value of the good.
C)  Trade usage.
D)  Course of performance provides an exception to the perfect tender rule.
E)  The perfect tender ruleF) A) and B)
G) A) and E)

Question 12

The term "reasonable commercial standards of fair dealing" is often called _.

Accepted Answer

A)  Good faith standards
B)  Transactional reasonableness
C)  Good faith reasonableness
D)  Commercial standards
E)  Commercial reasonablenessF) All of the above
G) A) and C)

Question 13

Troy's failure to cure the problem will most likely have which effect?

Accepted Answer

A)  Troy will be required to take a 30% reduction on the price to be paid for the goods.
B)  In order to receive payment,Troy must provide correct trophies;otherwise,he is not entitled to payment.
C)  Troy will be required to take a 50% reduction on the price to be paid for the goods.
D)  Troy will be required to take a 20% reduction on the price to be paid for the goods.
E)  Eduardo's actions effectively prevented Troy from an opportunity to cure any defects and,therefore,Eduardo's actions cannot be said to have effectively rejected the goods,resulting in Eduardo owing payment to Troy.F) All of the above
G) A) and B)

Question 14

Which of the following is true under the UCC,regarding the right of a seller or lessor to presume acceptance?

Accepted Answer

A)  Both lessors and sellers may presume acceptance if buyers or lessees fail to reject goods within 48 hours.
B)  The lessor may presume acceptance if the lessee fails to reject goods within 48 hours,but the seller may not presume acceptance.
C)  Sellers and lessors do not have the right to presume acceptance.
D)  Both lessors and sellers may presume acceptance if buyers or lessees fail to reject goods within a reasonable period of time.
E)  The seller may presume acceptance if the buyer fails to reject goods within 48 hours,but the lessor may not presume acceptance.F) A) and B)
G) B) and E)

Question 15

means good faith in relation to transactions between parties who are not merchants.

Accepted Answer

A)  Honesty in law and also reasonable commercial standards of fair dealing
B)  Honesty in law
C)  Honesty in fact and also reasonable commercial standards of fair dealing
D)  Honesty in fact and honesty in law
E)  Honesty in factF) None of the above
G) A) and D)

Question 16

Which of the following was the result in the "Case Opener" in which Vitol sued Koch Petroleum for delivering oil one day late causing Vitol to sustain a loss based on its sale to another entity?

Accepted Answer

A)  The court ruled that Koch Petroleum had materially performed and that Vitol could not recover.
B)  The court ruled that Koch Petroleum had violated the perfect tender rule and that Vitol could recover.
C)  The court ruled that both parties were in the wrong and that damages would be split between the two.
D)  The court ruled that Koch Petroleum had substantially performed and that Vitol could not recover.
E)  The court ruled that Koch Petroleum had committed fraud in that the delay was intentional and that Vitol could recover.F) A) and C)
G) None of the above

Question 17

Which of the following is true about the Uniform Computer Information Transactions Act (UCITA) ?

Accepted Answer

A)  UCITA is silent about rejection of defective products
B)  Software vendors are in favor of UCITA because it would protect software vendors.
C)  UCITA ensures perfect tender rules apply to all software.
D)  UCITA has been passed by all fifty states.
E)  Software vendors are generally not in favor of UCITA because it would disrupt their industry.F) A) and E)
G) B) and D)

Question 18

The UCC requires that buyers are obligated to accept and pay for ________ in accordance with the contract.

Accepted Answer

A)  Significantly conforming goods
B)  Reasonably conforming goods
C)  Select conforming goods
D)  Conforming goods
E)  Materially conforming goodsF) C) and D)
G) A) and C)

Question 19

Whether goods conform to contract terms is a ________.

Accepted Answer

A)  Question of fact unless an installment contract is involved in which case it is a question of law
B)  Mixed question of law and fact
C)  Question of law unless an installment contract is involved in which case it is a question of fact
D)  Question of fact
E)  Question of lawF) A) and E)
G) C) and D)

Question 20

[Toshi's Dolls] Toshi owns a specialty doll store and purchases dolls regularly from Yolanda,a doll distributor.For the past few years,Toshi and Yolanda have signed yearly contracts that set forth the terms of the agreement.Although delivery terms are set forth in the agreement,if the delivery comes a day or two late or if Yolanda substitutes doll purses for shoes,Toshi does not complain,as she knows the next shipment will have more shoes than purses.Yolanda has added a new line of designer dolls,and Yolanda asks Toshi to sign a separate agreement with regard to the new doll line which includes a clause that accessories must conform to the order only as to quantity.Toshi's first order of the new line includes a large shipment of dolls and doll purses,but no doll shoes.The first delivery of the new doll line is scheduled to arrive on December 1,however,it arrives on December 2 and includes very few doll shoes and instead includes many doll purses.Yolanda refuses to accept the late shipment and calls Toshi to complain and also tells her that some of the dolls have ugly faces and she is worried they will not sell.Yolanda says that Toshi's been in the doll industry for years and should know that some dolls have flaws on their faces and she has to accept the dolls faces as they are.
-Can Toshi reject the dolls with minor facial flaws?

Accepted Answer

A)  Yes,because they are not perfect,under the perfect tender rule
B)  Yes,because a buyer does not have to accept goods with flaws
C)  Yes,because they do not conform to the contract specifications
D)  No,as long as they substantially conform to the contract specifications
E)  No,if it is the norm in the doll industry not to permit a buyer to reject dolls with minor flawsF) A) and D)
G) B) and C)

Exam 23: Performance and Obligations Under Sales and Leases

What is Yolanda's best defense as to why the doll shoes and purses do not conform perfectly to the order?

Correct Answer
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Correct Answer
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Which of the following is true about the Uniform Computer Information Transactions Act (UCITA) ?

Correct Answer
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Define "course of performance," and discuss its relationship to decisions regarding whether goods conform to contract specifications.

Correct Answer
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Course of performance refers to the hist...
View Answer

The UCC requires that buyers are obligated to accept and pay for ________ in accordance with the contract.

Correct Answer
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The term "reasonable commercial standards of fair dealing" is often called _.

Correct Answer
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Correct Answer
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A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects substantially impair the value of the goods.

Correct Answer
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Which of the following is true under the UCC,regarding the right of a seller or lessor to presume acceptance?

Correct Answer
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________ occurs when all the material elements of a contract are satisfied,even if some nonmaterial requirements may not be satisfied?

Correct Answer
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Troy's failure to cure the problem will most likely have which effect?

Correct Answer
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means good faith in relation to transactions between parties who are not merchants.

Correct Answer
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Which statement is true regarding both the UCC and common law with regard to conforming and nonconforming goods?

Correct Answer
verified

The right to fix errors in a contractual agreement,such as typographical errors,is known as the right to cure.

Correct Answer
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Which statement is correct regarding any right of inspection for buyers?

Correct Answer
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What type of notice must a party who wishes to replace nonconforming goods and cure within the time set for performance give the other party?

Correct Answer
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Good faith in the performance and enforcement of every contract is required by UCC Section ________.

Correct Answer
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Whether goods conform to contract terms is a ________.

Correct Answer
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Which of the following was the result in the "Case Opener" in which Vitol sued Koch Petroleum for delivering oil one day late causing Vitol to sustain a loss based on its sale to another entity?

Correct Answer
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Lui tells Kai the cupcakes can still be sold.Must Kai accept the cupcakes?

Correct Answer
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Exam 23: Performance and Obligations Under Sales and Leases

What is Yolanda's best defense as to why the doll shoes and purses do not conform perfectly to the order?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true about the Uniform Computer Information Transactions Act (UCITA) ?

Correct AnswerverifiedShow Answer

Define "course of performance," and discuss its relationship to decisions regarding whether goods conform to contract specifications.

Correct AnswerverifiedCourse of performance refers to the hist...View AnswerShow Answer

The UCC requires that buyers are obligated to accept and pay for ________ in accordance with the contract.

Correct AnswerverifiedShow Answer

The term "reasonable commercial standards of fair dealing" is often called _.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects substantially impair the value of the goods.

Correct AnswerverifiedShow Answer

Which of the following is true under the UCC,regarding the right of a seller or lessor to presume acceptance?

Correct AnswerverifiedShow Answer

________ occurs when all the material elements of a contract are satisfied,even if some nonmaterial requirements may not be satisfied?

Correct AnswerverifiedShow Answer

Troy's failure to cure the problem will most likely have which effect?

Correct AnswerverifiedShow Answer

means good faith in relation to transactions between parties who are not merchants.

Correct AnswerverifiedShow Answer

Which statement is true regarding both the UCC and common law with regard to conforming and nonconforming goods?

Correct AnswerverifiedShow Answer

The right to fix errors in a contractual agreement,such as typographical errors,is known as the right to cure.

Correct AnswerverifiedShow Answer

Which statement is correct regarding any right of inspection for buyers?

Correct AnswerverifiedShow Answer

What type of notice must a party who wishes to replace nonconforming goods and cure within the time set for performance give the other party?

Correct AnswerverifiedShow Answer

Good faith in the performance and enforcement of every contract is required by UCC Section ________.

Correct AnswerverifiedShow Answer

Whether goods conform to contract terms is a ________.

Correct AnswerverifiedShow Answer

Which of the following was the result in the "Case Opener" in which Vitol sued Koch Petroleum for delivering oil one day late causing Vitol to sustain a loss based on its sale to another entity?

Correct AnswerverifiedShow Answer

Lui tells Kai the cupcakes can still be sold.Must Kai accept the cupcakes?

Correct AnswerverifiedShow Answer

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Course of performance refers to the hist...
View Answer

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