Deck 11: Sales,leases,and E-Contracts

Question 1

UCC Article 2 applies to sales transactions between all buyers and sellers.

Answer 1

True

Question 2

Browse-wrap terms are expressed inside the box in which goods are packaged.

Answer 2

False

Question 3

A lessee is a party who transfers a right to the possession and use of goods under a lease.

Answer 3

False

Question 4

All oral contracts are enforceable under the UCC.

Question 5

Implied warranties can arise as a result of a course of dealing.

Question 6

Express warranties can be found in a seller's brochure

Question 7

Under the UCC,a firm offer for a sale or lease of goods made by a merchant can be revoked at any time before acceptance.

Question 8

In most sales,sellers warrant that they have good and valid title to the goods sold.

Question 9

Goods that are merchantable are fit for any purpose.

Question 10

A seller has an insurable interest in goods as long as the goods are in existence.

Question 11

In a contract between merchants,additional terms in the parties' separate standard forms always automatically become part of the contract.

Question 12

If performance is commercially impractica?ble,the perfect tender rule no longer applies.

Question 13

If a buyer accepts a shipment of goods and later discovers a defect,acceptance can be revoked.

Question 14

If the parties to a sales contract state that a certain remedy is exclusive,then it is the sole remedy.

Question 15

If a buyer breaches a contract and the seller resells the goods to another party,the seller cannot hold the breaching buyer liable for any loss.

Question 16

If goods or tender of delivery fail in any respect to conform to a contract,the buyer or lessee loses the right to accept the goods.

Question 17

A forum-selection clause indicates the forum in which contract disputes will be resolved.

Question 18

A buyer or lessee who has accepted nonconforming goods may keep the goods and recover for any loss resulting in the ordinary course of events.

Question 19

Under a shipment contract,the risk of loss passes to the buyer when the goods are delivered to the carrier.

Question 20

Under federal law,an electronic signature can be as valid as a signature on pa?per.

Question 21

Five Star Flooring orders carpet from Textile Mills Corporation,but Textile does not deliver.Five Star will probably be unable to enforce the agreement if the parties omitted

A)a delivery term.
B)a payment term.
C)a quantity term.
D)a price term.

Question 22

Fresh Harvest,Inc. ,agrees to sell to Gina's Bed & Breakfast Inn a certain amount of locally grown produce each week but no mention is made of where the goods are to be delivered.In general,the UCC requires that the delivery take place at

A)a neutral place of business halfway between the parties' locations.
B)a "reasonable" place of delivery.
C)Fresh Harvest's place of business.
D)Gina's place of business.

Question 23

Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments.Consuelo delivers,but Gabriela does not pay.Consuelo can normally recover as damages

A)any profit lost minus any loss avoided.
B)whatever amount the seller wishes to claim.
C)the purchase price plus incidental damages.
D)the market price at the place at which the seller delivered the goods.

Question 24

Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel,including the land,building,furnishings,shares of stock in Suite Dreams Company,and a contract with Trudy to create an ad campaign.Reba suspects that Quinn may be misrepresenting the facts.The UCC Statute of Frauds governs the sale of

A)any of the property evidenced by a writing.
B)any of the property that may involve fraud.
C)the furnishings priced at $500 or more.
D)the land and the building.

Question 25

Concrete Products,Inc. ,assures Deepwater Construction Company (DCC)that Concrete's cement will not crack within a certain range of pressure.This "assurance" is

A)puffery.
B)an express warranty.
C)an implied warranty.
D)a warranty of title.

Question 26

Sari buys a new sport utility vehicle (SUV)from 'Tastic Cars & Trucks,Inc.The most important factor in determining whether an ex?press war?ranty is created is whether

A)Sari expresses to 'Tastic what she wants warranted.
B)Sari's desire for the SUV becomes part of her motivation to deal.
C)'Tastic expresses to Sari what it expects of its customers.
D)'Tastic's promise becomes part of the basis of the bargain.

Question 27

Pop Culture Clothiers,Inc. ,sells t-shirts to Trendwell Stores,Inc. ,under an existing con?tract.When textile costs increase,Trendwell agrees to a price increase,but later wants to cancel the con?tract.Trendwell may

A)cancel the contract immediately.
B)cancel the contract only after accepting a final shipment.
C)cancel the contract only on reasonable notice.
D)not cancel the contract.

Question 28

Inst-ee Gadgets,Inc. ,and Jolly Outlets Corporation enter into a contract for a sale of kitchenware.The contract requires Inst-ee to deliver the goods to Ladle Carrier Company for transport to Jolly's warehouse in Metro City.Risk of loss passes to Jolly when

A)Inst-ee delivers the goods to Ladle.
B)Inst-ee identifies the goods to the contract.
C)Ladle transports the goods to Jolly's warehouse.
D)the goods arrive in Metro City.

Question 29

Howe enters into a contract with Ida over the Internet to buy soybeans as a hedge against falling prices in corn.Neither party prints out a hard copy.Under the federal Electronic Signatures in Global and National Commerce Act (E-SIGN Act),this contract can

A)be denied effect if it falls under the UCC's Statute of Frauds.
B)be denied effect unless a hard copy is printed.
C)be denied effect until it is executed.
D)not be denied effect because it is only in electronic form.

Question 30

Town Style Stores orders Hidebound-brand leather jackets from Cowhide & Cotton Company (CCC).CCC mistakenly ships denim jackets,which Town re?jects and returns via Valu Transport,Inc.During the return,the jack?ets are lost.The loss is suffered by

A)Town.
B)Hidebound.
C)Valu.
D)CCC.

Question 31

Olga,a salesperson for Pre-owned Cars & Trucks,Inc. ,tells Quincy,"This is the best car I've ever seen." This statement is

A)an express warranty.
B)an implied warranty.
C)a warranty of title.
D)puffery.

Question 32

Recycle Packaging,Inc. ,agrees to sell 50,000 6-ounce yogurt containers to Organic Dairy Company.Recycle can obtain only 20,000 of the 6-ounce contain?ers,but also ships 30,000 more expensive 8-ounce containers for the same price.Organic rejects the 8-ounce containers.With time for performance not yet expired,Recycle can

A)attempt to cure the defect.
B)cancel the contract.
C)recover the purchase price plus incidental damages.
D)resell or dispose of the goods and hold Organic liable for any loss.

Question 33

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks,Inc. ,but refuses to deliver.Due to a spice shortage,Roller Rinks cannot obtain pizza elsewhere.Roller Rinks's right to recover the goods from Cheesy is the right of

A)cover.
B)cure.
C)replevin.
D)specific performance.

Question 34

Mitchell buys 100 bales of hay from New Grain Fields.The parties agree that the hay will be transported "F.O.B.New Grain Fields" via Farm County Trucking Company.Farm County's truck and the hay are lost in a fire following an accident.The loss is suffered by

A)Mitchell.
B)New Grain Fields.
C)Farm County Trucking.
D)all of the parties in equal measure.

Question 35

Woodgrain Products Company and Sylvia enter into a contract for a sale of lumber.Woodgrain knows the purpose for which Sylvia will use the goods.Under the UCC,an implied warranty of fitness of a particular purpose arises

A)if the buyer is relying on the seller to select suitable goods.
B)if the buyer asks for it.
C)if the seller is a merchant who deals in goods of the kind sold.
D)in conjunction with lease contracts,not sales contracts.

Question 36

Over the course of a year,Retail Market,Inc. ,sells goods from its inventory and one of its warehouses.In exchange,Retail receives checks and other items that substitute for cash,which Retail uses to repay a loan from Savers Bank.Article 2 of the UCC governs

A)the checks.
B)the payment of the loan.
C)the sale of the buildings.
D)the sale of the goods.

Question 37

Nature's Foods,Inc. ,orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers.Olive Grove ships "Grade B" oil,which Nature's Foods accepts.To recover damages for the nonconformity,Nature's Foods must give notice of the breach within a reasonable time to

A)Olive Grove.
B)Pic 'N Pay.
C)no one.
D)the appropriate government agency.

Question 38

Overseas Corporation (OC),a U.S.firm,orally agrees to sell six freezers to Pisa Pizza,Ltd. ,in Italy.OC fails to deliver.Under the CISG,Pisa Pizza can

A)enforce the agreement.
B)not enforce the agreement because it is not in writing.
C)not enforce the agreement because the price term is not specified.
D)not enforce the agreement because there is no consideration.

Question 39

Flem,a user of GameCenter.com's Web site,can download gaming software if he first clicks on "I accept" after viewing certain terms.If Flem clicks and downloads,this is

A)a contract that does not include the terms.
B)a contract that includes the terms only if Flem read them.
C)a contract that includes the terms whether or not Flem read them.
D)not a contract.

Question 40

Rachel enters into a contract with State University over the Internet to take an online course titled "Online Law." This is an e-contract because

A)the contract involves an online course.
B)the contract was formed online.
C)the contract will be performed online.
D)the subject matter of the contract is "Online Law."

Question 41

Tune Products,Inc. ,offers to sell to Unlimited Sales Company one hundred MP3 players at $50 a piece,subject to certain specific delivery dates.Unlimited replies with a signed purchase order that reads,"Accept your of?fer for 100 I-appliances at $50 each.Must be delivered to our ware?house." Tune does not respond or deliver the goods.Unlimited files a suit for breach of contract,to which Tune answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Tune.Can Unlimited recover? Explain.

Question 42

Signal Sets Company contracts to deliver one hundred 55-inch 3D HD television sets to a new retail customer,Tuner TV Store,on May 1,with payment to be made on delivery.Signal tenders delivery in its own truck.Tuner's manager notices that some of the cartons have scrape marks.Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded.Signal assures Tuner that the sets are in perfect condition.Tuner tenders Signal a check,which Signal refuses,claiming that the first delivery to new customers is always for cash.Tuner promises to pay the cash within two days.Signal leaves the sets with Tuner,which stores them in its warehouse pending its "Grand Opening Sale" on May 15.Two days later,Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair.Signal claims Tuner has accepted the sets and is in breach by not paying on delivery.Will Signal succeed on these claims? Explain.