Deck 26: Obligations and Performance

Question 1

The person on whom a demand for assurance is made must reply in writing for the assurance to be deemed "adequate."

Answer 1

False

Question 2

If a person upon whom the assurance is demanded does not have a good reputation or economic position,a guarantee of performance or a pledge of security may be required.

Answer 2

True

Question 3

A seller's duty to deliver goods requires the seller to transport the goods to the place designated by the buyer.

Answer 3

False

Question 4

The obligation of all parties to perform in good faith is the same because everyone is required to be honest.

Question 5

A buyer always has a right to examine the goods to determine if,in fact,the goods conform to the contract.

Question 6

When a party refuses to perform a contract when the time for performance arises,an anticipatory repudiation has occurred.

Question 7

When a party refuses to perform a contract at the time of performance,a repudiation has occurred.

Question 8

A buyer has a right to insist that all the goods be delivered at one time.

Question 9

Unless otherwise specified,the place of delivery is the seller's place of business.

Question 10

A buyer has the right to accept some commercial units of a shipment and reject other commercial units.

Question 11

When a method of transportation called for by a contract becomes unavailable for any reason,the contract is automatically voided.

Question 12

In a cash sale not requiring the movement of goods,each party has the right to demand that the other perform at the same time.

Question 13

The UCC does not specify the form that the assurance of performance is to take.

Question 14

A delivery is sufficient if it is made in accordance with the terms of the contract to sell.

Question 15

The UCC imposes a higher degree of good faith on a merchant seller or buyer of goods than on a nonmerchant seller or buyer of goods.

Question 16

If adequate assurance of performance is not given within five (5)business days from the time of the demand for assurance,the demanding party may treat the contract as repudiated.

Question 17

When a contract to sell identified goods does not specify a place of delivery,but both parties know that the goods are in a place other than the seller's place of business,that other place is the place of delivery.

Question 18

The statement,"I doubt that I can perform the contract," is a repudiation of the contract.

Question 19

A party to a sales contract may demand at any time that the other party provide adequate assurance of performance.

Question 20

The standard for rejection requires that any defect in the good be material.

Question 21

In a cash sale that does not require the physical moving of the goods,the:

A) parties are required to perform concurrently.
B) seller is required to tender the goods before the buyer must pay for them.
C) buyer must pay for the goods in advance.
D) buyer must actually receive the goods before he or she is required to pay for them.

Question 22

After a proper demand has been made,for assurance of performance to be adequate,it must:

A) include consideration.
B) allow for the additional examination of the goods.
C) be sufficient to assure a reasonable person that the contract will be performed.
D) be written.

Question 23

If appropriate assurance is not given in response to a demand for assurance of performance,the demanding party may:

A) treat the contract as repudiated.
B) sue for libel.
C) file for an insurance payment.
D) not replace the repudiated contract.

Question 24

Unless otherwise agreed by the parties,payment by a buyer requires payment either in cash or by certified check.

Question 25

A party to a sales contract who is afraid that the other party will not perform may seek to gain additional confidence by demanding some form of:

A) bailment.
B) security.
C) assurance.
D) assignment.

Question 26

Which of the following does not constitute an acceptance?

A) An express statement of approval by the buyer.
B) The buyer's examination of the goods.
C) The buyer's retention of goods for an unreasonable period of time.
D) The buyer's modification of the goods.

Question 27

Which method of payment gives the buyer credit by postponing the time for payment?

A) a promissory note
B) a check
C) a draft
D) a certified check

Question 28

When goods are shipped COD:

A) the buyer always has the right to examine them before making payment.
B) the underlying contract must specify when the buyer may inspect the goods.
C) the buyer has no right to examine the goods until payment is made.
D) the buyer gives up all rights to inspection of the goods.

Question 29

If a contractually-specified mode of transportation is not available,the:

A) contract is automatically voided.
B) seller must make delivery by a commercially-reasonable substitute.
C) buyer must arrange to pick up the goods.
D) seller must make personal delivery.

Question 30

Upon a seller's tender of nonconforming goods and the buyer's rejection of them,the transaction has ended.

Question 31

Once goods have been accepted:

A) the buyer may never revoke that acceptance.
B) the buyer may only revoke acceptance if the defect was known at the time of the original acceptance.
C) the buyer may revoke acceptance without cause or reason.
D) none of the above.

Question 32

The standard for determining commercial impracticability is objective,not subjective.

Question 33

An acceptance of goods can be done either expressly or by implication.

Question 34

Substantial impairment requires proof that goods are worthless.

Question 35

Unless otherwise agreed,the proper place for the delivery of goods is:

A) the buyer's place of business.
B) the seller's home.
C) a delivery service selected by the seller.
D) the seller's place of business.

Question 36

The seller's right to cure a defective tender means that the seller will be given a second chance to make a proper tender of conforming goods.

Question 37

The right to ___________ is a second chance for a seller to make a proper tender of conforming goods.

A) rehabilitate
B) repair
C) heal
D) cure

Question 38

When a buyer demonstrates in some way that the goods conform to the contract,the buyer has made a(n):

A) acceptance of the goods.
B) assignment of the goods.
C) substitution of the goods.
D) avoidance of the contract.

Question 39

Substantial impairment:

A) only requires proof that goods do not conform to the contract.
B) requires that the goods are shown to be worthless.
C) requires proof that the use to the buyer is materially different than the contract promised.
D) none of the above.

Question 40

The obligations of the parties to a sales contract include:

A) the seller's duty to deliver the goods to the buyer's place of business.
B) the buyer's duty to always accept the goods.
C) the seller's duty to arrange for appropriate transport.
D) the buyer's duty to pay for the goods.

Question 41

Jared agrees to purchase twelve computers from Zack Enterprises,Inc.for sale in Jared's department store.Twelve boxes from Zack Enterprises have just arrived at the department store.What are Jared's rights and responsibilities?

Question 42

In January,a buyer and a seller agreed on the sale of 10,000 pounds of tomatoes to be delivered on July 1.The contract stated that the seller would set the price on June 15 and that the buyer would pay the price on delivery.On June 15,the market price of tomatoes was approximately 75 cents per pound.The seller set the price at $1.50 per pound and the buyer demanded that the price be lowered.
When the parties could not agree,a lawsuit developed.The key issue was whether the seller had the right to set the $1.50 price.Decide.

Question 43

The standard for commercial impracticability is:

A) hypothetical.
B) conjectural.
C) objective.
D) subjective.