Deck 10: Sales

Question 1

Under the CISG, the acceptance has to be returned via the same medium in which the original offer was sent.

Answer 1

False

Question 2

The doctrine of consideration does not apply to the CISG.

Answer 2

True

Question 3

The price reduction remedy can be claimed by a buyer only if the buyer has accepted nonconforming goods.

Answer 3

True

Question 4

Article 8 of the CISG establishes rules for interpreting the statements and conduct of the parties.

Question 5

Goods do not conform to a contract if they are subject to third-party claims.

Question 6

If a seller cures defects in his nonconforming goods, the buyer loses his or her right to claim any damages under the CISG.

Question 7

In an in-transit contract, the risk of loss passes to the buyer at the time the contract is concluded.

Question 8

CISG deals with the questions related to the legality of a contract.

Question 9

Transactions involving auction sales come under the purview of the CISG.

Question 10

If an offer is oral, the acceptance must be made immediately, unless the circumstances indicate otherwise.

Question 11

Contracts for goods to be manufactured are treated by the CISG as sales of goods unless the buyer undertakes to supply a substantial part of the materials.

Question 12

Investment securities come under the purview of the CISG.

Question 13

CISG may apply even if the buyer's and seller's places of business are not in a contracting state.

Question 14

A rejection becomes effective as soon as it is dispatched by an offeree.

Question 15

The CISG only governs contracts of international sales.

Question 16

The CISG requires that all contracts should be in writing.

Question 17

Offers that do not state that they are irrevocable can be revoked any time before the offeree dispatches an acceptance.

Question 18

The Convention Relating to a Uniform Law on the International Sale of Goods (ULIS) supersedes the United Nations Convention on Contracts for the International Sale of Goods (CISG).

Question 19

According to the CISG, the rules of private international law would be the final source used for deciding legal questions governed by the convention.

Question 20

Sales transactions involving electricity are excluded from the CISG.

Question 21

To determine if CISG applies to a particular contractual issue, one must look to the convention itself. If the convention does apply, domestic law is preempted. This means that ________.

A) the case will be handled by the WTO
B) the remedies provided in CISG are the only remedies available
C) the domestic law will take precedence over the CISG
D) both domestic and the CISG laws are applied together

Question 22

The ________ is a rule that contracts should be interpreted according to the understanding that a reasonable person would have had at the time the agreement was made.

A) objective intent approach
B) parol evidence rule
C) plain meaning rule
D) stabilization clause

Question 23

The CISG differs from the United States Uniform Commercial Code (UCC) in that the CISG ________.

A) does not enforce unconscionable contracts
B) requires that parties act in good faith
C) defines goods as movable and tangible
D) applies sales laws only to merchants

Question 24

The subjective intent approach differs from the objective intent approach in that the subjective intent approach _______.

A) tries to interpret the conduct of the parties involved
B) tries to interpret the intent of the parties involved
C) is considered an inferior form of interpretation
D) is only used when objective intent cannot be interpreted

Question 25

Which of the following features is covered in the CISG?

A) rights of the parties involved in the sale of stocks and shares
B) the remedies available to the buyer
C) the competency of the third parties
D) the rights of third parties

Question 26

Which of the following features of a contract is excluded from the CISG?

A) the rights of third parties
B) the formation of the contract
C) the remedies available to the buyer
D) the remedies available to the seller

Question 27

The ________ states that a statute or treaty is to be interpreted only from the words contained within the statute or treaty.

A) foreseeability test
B) Ultravires rule
C) plain meaning rule
D) per se rule

Question 28

A transaction involving which of the following types of goods is most likely to be governed by CISG?

A) aircraft
B) electricity
C) negotiable instruments
D) agricultural products

Question 29

The ________ is a contractual provision that identifies the law to be applied in the event of a dispute over the terms or the performance of the contract.

A) rule of reciprocity
B) choice-of-law clause
C) per se rule
D) Noerr doctrine

Question 30

The force majeure excuse becomes applicable in the event of a natural disaster.

Question 31

Suspension of performance is a remedy exclusively available to the seller.

Question 32

Which of the following types of transactions would be included in the purview of the CISG?

A) sale of land at a foreclosure
B) sale by an auction
C) sale of patent rights
D) sale of negotiable instrument

Question 33

A(n) ________ is a proposal addressed to specific persons indicating an intention by the person making the proposal to be bound to the sale or purchase of particular goods for a price.

A) agreement
B) advertisement
C) revocation
D) offer

Question 34

Which of the following makes an offer effective?

A) when the offeror makes the proposal
B) when it reaches the offeree
C) when it mentions a fixed price for the goods
D) when it is addressed to the public

Question 35

Using the ________ method of interpreting a statute would require understanding the legislative history leading up to the adoption of that statute.

A) nolo contendere
B) force majeure
C) de minimis
D) travaux préparatoires

Question 36

The ________ comes into effect when a contract describes itself as being complete and final, preliminary or informal agreements made prior to or at the same time the contract was made will be ignored when interpreting it.

A) choice-of-law clause
B) Ultravires rule
C) parol evidence rule
D) per se rule

Question 37

Anticipatory avoidance cannot be claimed if the specific goods promised to the buyer are wrongfully sold to a third party.

Question 38

The UN's Convention on Contracts for the International Sale of Goods (CISG) differs from the Convention Relating to a Uniform Law on the Formation of Contracts for the International Sale of Goods (ULF) in that the CISG ________.

A) does not represent the legal systems of communist nations
B) contains provisions for domestic sales of goods
C) represents all major legal systems
D) does not contain provisions pertaining to the formation of contracts

Question 39

According to the foreseeability test, a breaching party is liable only for those damages that he foresaw or ought to have foreseen.

Question 40

The force majeure excuse can be used only as long as the underlying impediment continues in existence.

Question 41

Which of the following terms refers to a court order directing a party to carry out the obligations he had contractually promised to do?

A) replevin
B) specific performance
C) cease and desist
D) prior restraint

Question 42

The remedy of sending out a notification by a party that he or she is canceling a contract and returning everything already received would constitute a(n) ________.

A) avoidance
B) counteroffer
C) revocation
D) replevin

Question 43

Which of the following is true of the buyer's remedies under the CISG?

A) The right to recover damages is not lost if a buyer exercises any other available remedy.
B) The right to recover can only be availed after the seller is given a period of grace in which to comply.
C) The right to recover does not include reduction in price of the goods.
D) The type of remedy applicable in a case depends on whether the seller's breach affects the whole contract or only a part.

Question 44

If a seller delivers early, ________.

A) the buyer must accept the goods and pay the money immediately
B) the right of the buyer to recover damages is lost
C) the buyer is under no obligation to take delivery
D) the buyer will become entitled to a reduction in price

Question 45

With regard to the promise of irrevocability, the CISG differs from the UCC in that the CISG ________.

A) requires the promise of irrevocability to be signed by both parties
B) requires the promise of irrevocability to be limited by time
C) does not require for the promise of irrevocability to be in writing
D) makes it mandatory only for the offeree, and not for the offeror, to obey the promise of irrevocability

Question 46

In the case of a destination contract, the risk of loss passes to the buyer ________.

A) when the goods are handed over or placed at his disposal at that place
B) as soon as he/she accepts the contract in writing
C) when the goods are handed over to the first carrier for shipment
D) at the time the contract is concluded

Question 47

Which of the following is true of the CISG's risk allocation between parties of a contract?

A) If a seller fails to take delivery, then the buyer has to assume the risk for any damage to the goods after that time.
B) The CISG defines some trade terms, which can be used by the parties to allocate risk among themselves.
C) It allows parties to use Incoterms for risk allocation.
D) The CISG's risk allocation is affected by breach of contact.

Question 48

A contract comes into existence when an offeree communicates his/her ________ to the offeror.

A) acceptance
B) counteroffer
C) revocation
D) firm offer

Question 49

________ are contracts that require the seller to deliver the goods to a carrier for further transfer and do not require the seller to deliver them to a particular place.

A) Destination contracts
B) Transshipment contracts
C) In-transit contracts
D) Shipment contracts

Question 50

A firm offer is an offer ________.

A) in which a fixed price is not mentioned for the goods or the services being sold
B) in which the offeree is an individual and the offeror is an organization
C) which is governed by the laws of the WTO
D) that the offeror promises to keep open for a fixed period of time

Question 51

Which of the following is true under the CISG if the offeree dispatches a rejection and an acceptance to the offeror?

A) both the acceptance and the rejection would be considered void
B) whichever reaches the offeror first would take precedence over the other
C) rejection would take precedence over an acceptance
D) an acceptance would take precedence over a rejection

Question 52

Which of the following is a remedy available to both buyers and sellers?

A) missing specifications
B) avoidance of an installment contract
C) specific performance
D) reduction in price

Question 53

Which of the following is true of the remedy of avoidance used by an injured party of a contract?

A) It can be used without notification to the injuring party.
B) It revokes all the provisions governing the rights and duties of the parties.
C) It cancels out any provisions in the contract concerning the settlement of disputes, once used.
D) It can be used in case a fundamental breach of the contract has been observed.

Question 54

Under the CISG, the fixing by the buyer of an additional reasonable period of time in which the seller may perform is known as ________.

A) délai de grâce
B) de minimis
C) nolo contendere
D) Nachfrist notice

Question 55

Which of the following statements is true regarding the acceptance of an offer?

A) If the offer is oral, the acceptance must be communicated to the offeror within 2 months of receiving the offer.
B) An offeree must express assent in the form of writing.
C) Silence or inactivity, in and of itself, constitute acceptance.
D) Acceptance must be received by the offeror within the time period specified in the offer.

Question 56

Unlike the U.S. Uniform Commercial Code and some other domestic sales laws, the CISG rules on risk of loss are not concerned with breach of contract. Which of the following contracts is an exception to this?

A) a shipment contract
B) an in-transit contract
C) a destination contract
D) a transshipment contract

Question 57

If a contract requires the seller to deliver the goods to a carrier at a named place, who will then carry the goods to the buyer, the risk of loss passes to the buyer ________.

A) when the goods leave the warehouse of the seller
B) as soon as he/she accepts the contract in writing
C) when the goods are handed over to the carrier at that place
D) at the time the contract is concluded

Question 58

Which of the following describes the term "passage of risk"?

A) the period given to the seller to rectify nonconforming goods
B) a period during shipment when neither buyer nor seller bears the risk of loss
C) the period during which the seller is responsible for losses to the goods
D) the point in time when the buyer becomes responsible for losses to the goods

Question 59

________ is a remedy that allows a seller to ascertain requirements himself when the buyer fails to supply them as required by the contract or within a reasonable time after the seller requests them.

A) Missing specifications
B) Special performance
C) Nachfrist notice
D) Suspension of performance

Question 60

Which of the following is necessitated once the passage of risk has been completed?

A) The buyer must pay the agreed-upon price for the goods involved.
B) The seller must pay monetary compensation for nonconforming goods.
C) The seller must absorb the cost of loss of goods.
D) The buyer no longer remains responsible for loss or risk of the goods.

Question 61

Why are auction sales and sales "otherwise by authority of law" excluded from the CISG?

Question 62

How is the place for delivery decided for contracts?

Question 63

How are the general principles of the CISG interpreted when dealing with a dispute?

Question 64

Compare between product liability in domestic law and the CISG.

Question 65

Briefly explain how the CISG is organized.

Question 66

How is "sales" defined in the CISG?

Question 67

Which of the following is true of damages under the CISG?

A) Damages for breach of contract by one party do not include loss of profit suffered by the other party as a consequence of the breach.
B) The party claiming damages is under an obligation to mitigate losses.
C) The foreseeability test cannot be applied in cases involving damage claim.
D) The breaching party is not liable for any foreseeable damages.

Question 68

How does the risk of loss pass when goods are delivered without being transported?

Question 69

Explain the seller's remedy of avoidance of installment contracts.

Question 70

List out the remedies that are unique to a buyer.

Question 71

In which of the following cases can anticipatory avoidance be claimed?

A) if the buyer willingly agrees to accept nonconforming goods
B) if the seller does not get payment from the buyer
C) if the seller's only employee capable of producing the goods dies or is not available
D) if the buyer notices that the goods are defective after accepting the goods

Question 72

What is the buyer's obligation for payment?

Question 73

According to the excuse of ________, a party may not rely on a failure of the other party to perform, to the extent that such failure was caused by the first party's act or omission.

A) nachfrist notice
B) force majeure
C) anticipatory avoidance
D) dirty hands

Question 74

________ is a remedy available to either party when it becomes clear that the other party will commit a fundamental breach.

A) Anticipatory avoidance
B) Missing specifications
C) Special performance
D) Avoidance of an installment contract

Question 75

A party can claim the excuse of ________ if he or she can prove that the failure to perform on his or her part was due to an event or effect that could not be reasonably anticipated or controlled.

A) dirty hands
B) Nachfrist notice
C) force majeure
D) nolo contendere