Question 1

Edna orders a set of china from Northwestern Catalog.Northwestern sends the dishes by UPS.The contract does not specify when payment is to be made.Edna must pay when:
A)she orders the goods from Northwestern.
B)she gets the goods from UPS.
C)Northwestern takes the goods to UPS.
D)she receives notification that the goods have been shipped..

Accepted Answer

Payment is typically due upon receipt of the goods or services. Therefore, Edna must pay when she gets the goods from UPS.

Question 2

Which of the following is correct with respect to the buyer's obligation of payment?
A)In the absence of agreement, payment is due at the time and place the buyer is to receive the goods.
B)Payment by check is sufficient unless the seller demands currency and allows the buyer a reasonable time in which to obtain it.
C)If the buyer so agrees, he must pay for the goods in advance of delivery.
D)All of these are correct.

Accepted Answer

All of these options are correct with respect to the buyer's obligation of payment.

A) In the absence of agreement, payment is due at the time and place the buyer is to receive the goods. This is known as payment on delivery or cash on delivery (COD).

B) Payment by check is sufficient unless the seller demands currency and allows the buyer a reasonable time in which to obtain it. This means that unless the seller specifies otherwise, payment by check is considered acceptable.

C) If the buyer so agrees, he must pay for the goods in advance of delivery. This is known as payment in advance and usually occurs when the seller has concerns about the buyer's ability to pay, or if the goods are customized or made to order.

Question 3

Which of the following terms indicates a shipment contract?
A)F.A.S.seller's port
B)C.I.F.
C)C.& F.
D)All of these are shipment contracts.

Accepted Answer

All of these terms (F.A.S. seller's port, C.I.F., and C.& F.) indicate shipment contracts, which are used in international trade to define the responsibilities, costs, and risk transfer points between the buyer and seller.

Question 4

Which of the following terms would indicate a destination contract?
A)F.O.B.city of buyer
B)F.O.B.city of seller
C)C.I.F.
D)F.A.S.seller's port

Accepted Answer

The answer of Which of the following terms would indicate...

Question 5

Burnside Roofing contracts to sell asphalt and metal shingles to Faubush Contractors.Burnside, through no fault of its own, is unable to deliver the shingles to Faubush by rail as agreed because that type of carrier is unavailable.Explain what the UCC requires.

Accepted Answer

The answer of Burnside Roofing contracts to sell asphalt and...

Question 6

Under the , a buyer may reject goods for even the slightest defect.
A)revocation of acceptance rule
B)perfect tender rule
C)rules for inspection
D)excuses for nonperformance

Accepted Answer

The perfect tender rule states that goods must meet the contract's specifications in every way. If there is even a slight defect, the buyer may reject the goods.

Question 7

Willingness by the buyer to become the owner of the goods tendered or delivered to him by the seller is:
A)rejection.
B)acceptance.
C)revocation.
D)tender.

Accepted Answer

Acceptance is the willingness of the buyer to become the owner of the goods tendered or delivered by the seller. Rejection is the opposite of acceptance, where the buyer refuses to become the owner of the goods. Revocation is the act of the offeror withdrawing the offer before it is accepted. Tender is the act of offering goods or services for sale.

Question 8

J & J Co.offers a "subscription" for baby toys to be delivered every two months from the birth of a child.Payment must be made within two weeks of delivery.The Markham family accepted the J & J plan when their son, Timmy, was born.When Timmy was four months old, one J & J toy arrived, smashed to pieces.Markham:
A)can treat the whole contract as breached and refuse to pay for past installments as well as future installments.
B)can reject the installment and cancel the contract immediately.
C)can reject the installment and refuse to pay if J & J cannot cure it.
D)cannot reject the installment since it is part of a series.

Accepted Answer

The Markham family can reject the installment and refuse to pay if J & J cannot cure it. This is because J & J has breached their contract by delivering a smashed toy. However, the Markham family cannot treat the entire contract as breached and refuse to pay for past and future installments since this was just one instance of a breach. They also cannot cancel the whole contract immediately as this would be disproportionate to the breach. Option D is also not applicable as the contract allows for payment to be made every two months, indicating that each installment is a separate contract.

Question 9

If destruction or casualty to goods, total or partial, occurs after risk of loss has passed to the buyer, who is responsible for losses?
A)The seller
B)The buyer, who must pay the entire contract price of the goods
C)The buyer if the loss is partial; both parties share the loss if it is total
D)The carrier delivering the goods

Accepted Answer

The buyer is responsible for losses after the risk of loss has passed to them, which includes paying the entire contract price of the goods even if they are damaged or lost.

Question 10

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years.The October shipment consisted of 100 badly defective tires.ZYX Cycle Company:
A)can treat the whole contract as breached.
B)can reject the October shipment if it cannot be cured in a timely manner by Supertread.
C)cannot reject the October shipment since it is part of the installment series.
D)must sell the defective tires for whatever they can get for them and sue Supertread for the difference.

Accepted Answer

According to the UCC (Uniform Commercial Code), installment contracts allow the buyer to reject a specific installment if it doesn't conform to the contract requirements. Therefore, ZYX Cycle Company can reject the October shipment if Supertread fails to cure it within a reasonable time. However, as it is an installment series, the defect in the October shipment does not automatically constitute a breach of the entire contract.

Question 11

Goods are to be sent F.O.B.Buffalo, NY to Raleigh, NC by UPS.Where does tender occur?
A)Where the goods are identified
B)Where the goods are shipped
C)Where the goods are delivered and picked up by the buyer
D)Where the goods are taken by the buyer

Accepted Answer

Tender occurs where the goods are shipped, which in this case is Buffalo, NY. The point of tender is where the seller relinquishes control of the goods to the carrier and the buyer assumes responsibility for any potential loss or damage during transit.

Question 12

Everett is an accountant for a major accounting firm.One day at work, he is discussing his collection of rare coins with one of his co-workers.Everett tells his co-worker that he keeps his collection at home and that he has recently purchased several Chinese gold Panda coins at an exceptional price.The co-worker expresses an interest in buying two of the coins at a price of $250, and a contract is duly formed.If no place for delivery is expressed, where are the coins to be delivered?
A)At the office of the accounting firm where the parties to the contract work
B)At Everett's home
C)At the co-worker's home
D)In the parking lot of the accounting firm

Accepted Answer

Since Everett stated that he keeps his collection at home and the co-worker did not specify a different delivery location, it can be assumed that the coins are to be delivered to Everett's home.

Question 13

Drapery Makers has signed a contract to make and sell to Hyer curtains for 20 windows by March 31.Hyer, however, delays in giving Drapery Makers the dimensions it needs to know in order to do the work.In this case, Drapery Makers:
A)may proceed to do the work when it receives the information if it performs reasonably.
B)will get paid for their availability to perform even if they never make the curtains.
C)has no remedies under the Code.
D)can charge Hyer a per-day penalty for each day of the delay.

Accepted Answer

According to the UCC, if a party delays in providing necessary information for performance of a contract, the other party may proceed with the work if it acts reasonably. Therefore, Drapery Makers may proceed with the work once it receives the dimensions from Hyer, as long as it acts reasonably.

Question 14

Mary allows the seller, Baymore Co., four weeks to repair the defects in her kitchen set.They have tried, but have not done a good job.She may revoke her acceptance as long as she:
A)notifies Baymore of the revocation.
B)does not use the table and chairs.
C)could not discover the defects easily.
D)inspected the goods herself.

Accepted Answer

Mary can revoke her acceptance if she notifies Baymore of the revocation, especially if the defects were not adequately repaired.

Question 15

Which of the following is correct with respect to the Code's approach to impossibility of performance?
A)Ordinarily, a strike by employees of the seller will excuse performance by the seller.
B)Increased production costs alone will excuse performance by the seller.
C)Performance will be excused when it is commercially impractical as a result of one or more unforeseen supervening events that are more than mere hardship or increased cost of performance.
D)All of these are correct.

Accepted Answer

The Code's approach to impossibility of performance is that it will be excused when it is commercially impractical as a result of one or more unforeseen supervening events that are more than mere hardship or increased cost of performance. A strike by employees of the seller or increased production costs alone would not necessarily excuse performance. Therefore, option A and B are incorrect. Option C is the correct statement. Option D is incorrect because not all options are correct.

Question 16

In which of the following situations does the seller have the right to cure?
A)Where the time for performance under the contract has not yet expired
B)After the time for performance has expired if the seller didn't have any conforming items to tender
C)Where the buyer has revoked acceptance
D)All of these.

Accepted Answer

The seller has the right to cure if the time for performance under the contract has not yet expired. This allows the seller an opportunity to correct any defects or non-conformities in the goods before the contract performance period ends.

Question 17

Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700.It is to be delivered to Bill's home on July 7. Under the perfect tender rule, which one of the following cases would be a rightful rejection of the goods?
A)Sam delivered an 18-cubic-foot, blue refrigerator on July 7, and Bill calls Sam to complain.
B)Sam sent an 18-cubic-foot, yellow refrigerator with a dent in it on July 7.Bill refuses delivery but never bothers to call Sam.
C)Sam sent his truck to Bill's home with the 18-cubic-foot, yellow refrigerator on July 7, but Bill was not home.
D)Sam sent an 18-cubic-foot, yellow refrigerator without ice cube trays on July 5 and notifies Bill of the defect.

Accepted Answer

Under the perfect tender rule, the buyer can reject goods if they fail to conform to the contract in any way. Delivering a blue refrigerator instead of a yellow one is a non-conformity, allowing Bill to rightfully reject it.

Question 18

Pedro ordered a custom-made suit from Rooks & Sons to be delivered by Friday at 5 p.m.When it is delivered to his office on Friday afternoon, he is in conference with a client.His secretary hangs the suit in the office closet.When Pedro tries on the suit Saturday evening, he discovers that the pants are cuffed.He had ordered cuffless trousers, so he called Rooks & Sons on Monday and informed them that he was returning the suit.What can he do?
A)He cannot revoke acceptance since the cuffs are not difficult to discover.
B)He can revoke acceptance because the cuffs substantially impair the value of the goods to him.
C)He can reject the goods since he had not yet accepted them prior to inspection.
D)He cannot reject the goods because the cuffs are curable.

Accepted Answer

The answer of Pedro ordered a custom-made suit from Rooks...

Question 19

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?
A)Through a failure to reject after he has had a reasonable opportunity to inspect them
B)Immediately upon delivery
C)Only by conduct that shows the buyer's willingness to become owner of the goods
D)Only after an express acceptance

Accepted Answer

According to the Uniform Commercial Code, a buyer is deemed to have accepted goods if they fail to reject them after having a reasonable opportunity to inspect them. This is known as implied acceptance. The buyer can still reject the goods if there is a defect that was not apparent upon inspection within a reasonable time after the defect is discovered.

Question 20

Under the CISG:
A)the seller has no right to cure a defective delivery.
B)if the seller does not perform on time, the buyer may fix an additional, reasonable period of time for performance.
C)the seller has a limited right to cure a defective performance, but only before the date for delivery specified in the contract.
D)the seller may, even after the date for delivery, cure a defective performance if it can be done without unreasonable delay.The buyer cannot claim damages for delay as long as the cure was within a reasonable time.

Accepted Answer

The answer of Under the CISG:
A)the seller has no right...

Quiz 22: Performance

Edna orders a set of china from Northwestern Catalog.Northwestern sends the dishes by UPS.The contract does not specify when payment is to be made.Edna must pay when:

Which of the following is correct with respect to the buyer's obligation of payment?

Which of the following terms indicates a shipment contract?

Which of the following terms would indicate a destination contract?

Burnside Roofing contracts to sell asphalt and metal shingles to Faubush Contractors.Burnside, through no fault of its own, is unable to deliver the shingles to Faubush by rail as agreed because that type of carrier is unavailable.Explain what the UCC requires.

Under the , a buyer may reject goods for even the slightest defect.

Willingness by the buyer to become the owner of the goods tendered or delivered to him by the seller is:

If destruction or casualty to goods, total or partial, occurs after risk of loss has passed to the buyer, who is responsible for losses?

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years.The October shipment consisted of 100 badly defective tires.ZYX Cycle Company:

Goods are to be sent F.O.B.Buffalo, NY to Raleigh, NC by UPS.Where does tender occur?

Drapery Makers has signed a contract to make and sell to Hyer curtains for 20 windows by March 31.Hyer, however, delays in giving Drapery Makers the dimensions it needs to know in order to do the work.In this case, Drapery Makers:

Mary allows the seller, Baymore Co., four weeks to repair the defects in her kitchen set.They have tried, but have not done a good job.She may revoke her acceptance as long as she:

Which of the following is correct with respect to the Code's approach to impossibility of performance?

In which of the following situations does the seller have the right to cure?

Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700.It is to be delivered to Bill's home on July 7. Under the perfect tender rule, which one of the following cases would be a rightful rejection of the goods?

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

Under the CISG: