Q&A Hero

Q: Priscilla, who worked for a dry cleaner, came up with a great new idea for a type of press that speeded up the process immensely. She quit her job, hired labor and purchased materials, and manufactured a number of the presses. She sold the presses to her friend Phil for resale. Phil began advertising and distributing the press, but was notified by ABC Company that the sales violated its patent. After investigation, Phil determined that ABC had the better argument and demanded that Priscilla refund the purchase price. Priscilla declined on the basis that she had no idea that a patent on a similar press was in existence. Who will likely win the dispute and why? A. Phil will likely win because Priscilla violated the implied warranty of merchantability. B. Phil will likely win because Priscilla violated the implied warranty of fitness for a particular purpose. C. Phil will likely win because Priscilla violated the warranty of title. D. Priscilla will likely win because she had no knowledge of any previous patent. E. Priscilla will likely win both because she had no knowledge of any previous patent and also because the duty was on Phil to investigate whether any patents existed prior to his purchase of the presses.

Q: Mary sells handmade earrings for a living. Susan is a new lawyer and a friend of Mary who gives legal advice to Mary in return for earrings. Susan tells Mary that under the Magnuson-Moss Act she is required to provide all buyers with a written warranty setting forth their rights as consumers. Mary asks if there is not a way around that because she is tired of complaining customers who do not take care of their earrings and that she would love to find a way to provide no warranties whatsoever. Which of the following is true regarding Susa's advice and warranties on the earrings? A. Susan is wrong, and Mary is free to disclaim warranties. B. Susan is partially correct, and Mary must provide a limited written warranty under the Magnuson-Moss Act. C. Susan is correct, and Mary must provide a full written warranty under the Magnuson-Moss Act. D. Susan is partially correct, and Mary must provide a limited written warranty under the Magnuson-Moss Act only if her average gross sales are over $5,000. E. Susan is partially correct, and Mary must provide a full written warranty under the Magnuson-Moss Act only if her average gross sales are over $5,000.

Q: Under which of the following circumstances will a court refuse to uphold modifications or limitations to remedies agreed upon by the parties? A. When they seem unfair. B. When one party is a corporation. C. When neither party is a corporation. D. When one side was not represented by an attorney. E. When the remedies fail in their essential purpose.

Q: Which of the following was the result in Hill v. Gateway 2000, the case in the text in which the purchaser of a computer failed to read a contract requiring arbitration that came packaged with the computer and asked the court to determine that a seller of computers could not limit buyers' remedies or require arbitration by bundling hardware and legal documents? A. That the contract was binding on the purchaser because the purchaser accepted the risk of not reading the contract. B. That the contract was binding on the purchaser because the contract's requirement of arbitration was reasonable. C. That the contract was binding on the purchaser because the contract's requirement of arbitration was actually in the purchaser's favor. D. That the contract was unconscionable and nonbinding. E. That the contract was nonbinding because it should have been provided to the purchaser for review before the computer was shipped.

Q: Stacy, located in Florida, is entering into a contract with Natasha, located in Russia, for the purchase of snow globes to sell to people who do not typically get to see snow. Stacy is familiar with the UCC but uneasy about what law would apply should she have a dispute with Natasha regarding the contract. She would like for Florida law to apply. Which of the following is the best advice to Stacy? A. Stacy should attempt to have a contract clause inserted providing that the law of Florida would govern any dispute. B. While a requirement that Florida law would govern the dispute would likely be deemed unconscionable, Stacy should attempt to have a contract clause inserted providing that international law would govern any dispute. C. There is nothing that Stacy can do because Russian law, the law of the seller, would govern any dispute. D. Stacy does not need to do anything because, as a matter of law, Florida law, the law of the buyer, would govern any dispute. E. It depends on the value of the contract. If it is in an amount over $1,000, Stacy should attempt to obtain a provision in the clause that Florida law governs; otherwise, she has no option but to allow a court to later determine the conflicts issue.

Q: Under the UCC buyers and lessees may recover goods identified in the contract if the seller or lessor becomes insolvent within ______ after receiving the first payment due under the agreement. A. 5 days B. 10 days C. 16 days D. 30 days E. 60 days

Q: Which of the following usually requires that the seller or lessor deliver the particular goods identified in the contract? A. Absolute order B. Absolute performance C. Specific performance D. Specific order E. None of these

Q: When does the UCC allow buyers and lessees to seek the remedy of specific performance? A. Only when goods are unique B. Only when a remedy at law is inadequate C. Only when goods are worth more than $500 D. When goods are unique, when a remedy at law is inadequate, or when goods are worth more than $500 E. When goods are unique or when a remedy at law is inadequate, but not because the goods are worth more than $500

Q: Which of the following is true regarding buyers or lessees who want to accept nonconforming goods and then seek monetary damages? A. Buyers and lessees are allowed to do so in order to receive the benefit of the bargain, but they must give the seller/lessor reasonable notice of the defect. B. Buyers and lessees are allowed to do so in order to receive the benefit of the bargain, and there is no requirement that they give the seller/lessor prior notice of the defect. C. Buyers may do so in order to receive the benefit of the bargain so long as reasonable notice of the defect is given, but lessors may not. D. Lessors may do so in order to receive the benefit of the bargain so long as reasonable notice of the defect is given, but buyers may not. E. Buyers and lessors may do so only if the seller/lessee agrees to the retention of the nonconforming goods and does not request their return.

Q: Which of the following is the right of a buyer and lessee to substitute goods for those due under a sales or lease agreement? A. Swap B. Rearrange C. Cover D. Shift E. Reallocate

Q: Which of the following must a buyer do in obtaining cover? A. Demonstrate good faith in obtaining the substitute goods B. Pay a reasonable amount for the substitute goods C. Act without unreasonable delay in purchasing the substitute goods D. Purchase goods that are reasonable substitutes E. All of these

Q: Which of the following are damages for lost profits a buyer or lessee may recover in the event of a breach? A. Approved damages B. Consequential damages C. Remedial damages D. Approved, consequential, and remedial damages E. Approved and consequential damages, but not remedial damages

Q: What does the UCC provide regarding liquidated damages if the parties do not agree to them? A. That the nonbreaching seller may claim against a breaching buyer 20 percent of the purchase price or $500, whichever is less, as liquidated damages. B. That the nonbreaching seller may claim against a breaching buyer 20 percent of the purchase price or $500, whichever is more, as liquidated damages. C. That the nonbreaching seller may claim against a breaching buyer 30 percent of the purchase price or $1,000, whichever is less, as liquidated damages. D. That the nonbreaching seller may claim against a breaching buyer 30 percent of the purchase price or $1,000, whichever is more, as liquidated damages. E. Nothing

Q: Which of the following means that the seller or lessor has delivered the goods to a carrier or bailee, but the carrier or bailee has not yet turned them over to the buyer? A. In process B. In transit C. In carrier D. Carrier ready E. Transport ready

Q: Assuming a buyer that is insolvent has breached a contract by not paying for goods that are in transit, which of the following may occur? A. The carrier may stop delivery on the entire shipment. B. The carrier may stop delivery only if the quantity shipped is a large shipment. C. The carrier may stop delivery only if a signed writing exists by which the buyer agreed to the remedy of stopping shipment. D. The carrier may stop delivery only if ordered to do so by the bankruptcy judge. E. The carrier may not stop delivery under any circumstances.

Q: The obligations of sellers/lessors and buyers/lessees are determined by which of the following? A. Terms the parties outline in agreements only B. Custom only C. Rules outlined by the Uniform Commercial Code only D. Terms the parties outline in agreements, custom, and rules outlined by the Uniform Commercial Code E. Terms the parties outline in agreements and custom, but not rules outlined by the Uniform Commercial Code

Q: Which of the following damages may a seller receive who resells goods to another buyer when the original buyer is in breach? A. The difference between the resale price and the contract price, plus incidental damages and minus expenses saved. B. The difference between the resale price and the contract price only. C. The difference between the resale price and the contract price minus expenses without any allowance for incidental damages. D. The difference between the resale price and the contract price, plus incidental damages, with no deduction for expenses saved. E. Nominal damages only.

Q: Which of the following are damages identified before the breach occurs? A. Nominal damages B. Compensatory damages C. Reliance damages D. Liquidated damages E. Consequential damages

Q: Which of the following is generally true regarding a liquidated damages provision? A. A provision for liquidated damages is illegal. B. A provision for liquidated damages is void because of public policy. C. A provision for liquidated damages is voidable because of public policy. D. A provision for liquidated damages is enforceable so long as it is not punitive in nature. E. A provision for liquidated damages will be enforced regardless of whether it is punitive in nature.

Q: Which of the following is true under the Magnuson-Moss Act if a written warranty is silent as to whether or not it is a full warranty? A. It is presumed to be a limited warranty. B. It is presumed to be an express, limited warranty. C. It is presumed to be a limited warranty of merchantability. D. It is presumed to be a limited usage of trade warranty. E. It is presumed to be a full warranty.

Q: Under the Magnuson-Moss Act, what is the effect of a full warranty? A. It means that if the good fails or is defective, the good or its defective part will be replaced; and if replacement cannot be timely effected, the buyer has the right to a refund or a full replacement. B. It means only that the good or its defective part will be repaired. The buyer has no other remedy. C. It means that if the good fails or is defective, the good or its defective part will be replaced; and if replacement cannot be timely effected, the buyer has the right to a refund or a full replacement; and also that the buyer will receive extra funds to account for expenses. D. It means that the buyer must be immediately refunded the full purchase price. E. It means that the buyer has the option of an immediate refund of the full purchase price or repair of the good.

Q: Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act? A. A seller must provide an express, full warranty. B. A seller must provide an implied, full warranty. C. A seller must provide at least an express, limited warranty. D. A seller must provide at least an implied, limited warranty. E. The act does not require that the seller provide any warranties.

Q: Assuming adoption of the UCC, which of the following is true regarding whether the buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC? A. The buyer and seller may not negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than two years. B. The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC without any limits. C. The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than one year. D. The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than six months. E. The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than two years.

Q: When was the Magnuson-Moss Act passed? A. 1950 B. 1955 C. 1970 D. 1975 E. 2000

Q: Which of the following is required by the Magnuson-Moss Act when the seller issues a written warranty for a consumer good? A. The seller must indicate whether that warranty is a full warranty or a limited warranty. B. The seller must provide a full warranty and must indicate as such. C. The seller must provide a warranty of merchantability and an express warranty, and must indicate as such. D. The seller must provide an implied warranty of trade usage and must indicate as such. E. The seller must provide an implied warranty of trade usage and an implied warranty of merchantability, and must indicate as such.

Q: How can a buyer waive implied and express warranties? A. By failing to examine goods for which an express warranty was created by a sample or model. B. By failing to comply with the seller's request to inspect the goods. C. By failing to examine goods for which an express warranty was created by a sample or model, and also by failing to comply with the seller's request to inspect the goods. D. By failing to require that warranties be given in writing and also by failing to comply with the seller's request to inspect the goods. E. None of these. A buyer may not waive both implied and express warranties.

Q: What is the effect of a failure to comply with the statute of limitations? A. It operates as a waiver of warranty rights under the contract. B. There is no effect so long as the plaintiff can establish that he or she was not aware of the statute of limitations. C. It operates as a waiver of warranty rights only if the defendant can establish that the plaintiff had actual knowledge of the statute of limitations. D. It results in the plaintiff only having the right to sue for injunctive relief, not damages. E. It results in the plaintiff only having the right to sue for damages, not injunctive relief.

Q: Under the UCC, the statute of limitations is ________ years. A. one B. two C. three D. four E. six

Q: Under the UCC, the seller must bring a lawsuit on a breached contract within ______ years of when the breach occurred or when the seller became aware of it. A. one B. two C. three D. four E. six

Q: Which option have most states adopted regarding the rights of third-party beneficiaries of warranties? A. That seller's warranties extend to the buyer's household members and guests. B. That seller's warranties extend to any reasonable and foreseeable user. C. That seller's warranties extend to anyone injured by the good. D. That seller's warranties do not extend beyond the buyer and the buyer's immediate family. E. That seller's warranties do not extend beyond the buyer and the buyer's immediate family living in the same household.

Q: Between buyers and sellers in the U.S., which of the following is true regarding disclaiming the warranty of merchantability? A. The disclaimer must be in writing. B. Some states require that the term merchantability be used in the disclaimer. C. The disclaimer may be made orally or in writing. D. The disclaimer must be in writing, and some states require that the term merchantability be used in the disclaimer. E. The disclaimer may be made orally or in writing, and some states require that the term merchantability be used in the disclaimer.

Q: Which is true regarding a buyer's right to waive warranties? A. A buyer may not waive warranties. B. A buyer may waive implied warranties but not express warranties. C. A buyer may waive express warranties but not implied warranties. D. A buyer may waive both express warranties and implied warranties. E. A buyer may waive express warranties and the implied warranty of fitness for a particular purpose, but not the implied warranty of merchantability.

Q: Which of the following is needed in order for the implied warranty of merchantability to be applied? A. Both parties must be merchants and a sale must be involved. B. Both parties must be merchants, and either a sale or lease may be involved. C. The seller must be a merchant and a sale must be involved. D. A seller or lessor must be a merchant, and either a sale or lease may be involved. E. The seller must be a merchant, goods valued at over $500 must be involved, and either a sale or lease may be involved.

Q: Which of the following is needed in order for the implied warranty of fitness for a particular purpose to be applied? A. Both parties must be merchants and a sale must be involved. B. Both parties must be merchants, and either a sale or lease may be involved. C. The seller must be a merchant and a sale must be involved. D. The seller or lessor must be a merchant, and either a sale or lease may be involved. E. None of these.

Q: If it is generally accepted in the trade that a certain product is always preassembled and shrink-wrapped, the failure of the seller to deliver the goods in that condition would be a breach of the ______. A. implied warranty of merchantability B. implied warranty of fitness for a particular purpose C. implied warranty of trade usage D. implied warranty of merchantability, implied warranty of fitness for a particular purpose, and implied warranty of trade usage E. implied warranty of merchantability and implied warranty of trade usage, but not the implied warranty of fitness for a particular purpose

Q: Which of the following choices do states have regarding liability of third-party beneficiaries of warranties? A. That seller's warranties extend to the buyer's household members and guests only. B. That seller's warranties extend to any reasonable and foreseeable user only. C. That seller's warranties extend to anyone injured by the good only. D. That seller's warranties extend to the buyer's household members and guests that seller's warranties extend to any reasonable and foreseeable user, and that seller's warranties extend to anyone injured by the good. E. That seller's warranties extend to the buyer's household members and guests and that seller's warranties extend to any reasonable and foreseeable user, but not that seller's warranties extend to anyone injured by the good.

Q: Which of the following are examples of what is needed in order for goods to be merchantable? A. That goods pass without objection in the trade or market for similar goods. B. That goods be fit for the ordinary purposes for which such goods are used. C. That goods be adequately contained, packaged, and labeled as the agreement may require. D. That goods conform to the promises or affirmations made on the container or label, if any. E. All of these.

Q: Which of the following was the result on appeal in the case of Webster v. Blue Ship Tea Room Inc., the case in which the plaintiff sued after getting a bone caught in her throat while eating clam chowder? A. That the plaintiff could recover based upon the implied warranty of merchantability. B. That the plaintiff could recover based upon the implied warranty of fitness for a particular purpose. C. That the plaintiff could recover based on an express warranty. D. That the plaintiff could not recover because she waited too long in which to sue and also because she was not the direct purchaser of the fish. E. That the plaintiff could not recover for reasons including that the bone should not have been unexpected.

Q: Which of the following is true regarding the implied warranty of fitness for a particular purpose? A. It applies in every case in which an express warranty is found. B. It applies in every case in which an implied warranty of merchantability is found. C. It applies in every case in which either an express warranty or an implied warranty of merchantability is found. D. It applies in every sales transaction involving a merchant. E. None of these.

Q: A(n) _____ is any description of the good's physical nature or its use, either in general or specific circumstances that become part of the contract. A. express warranty B. implied warranty C. acknowledged warranty D. claimed warranty E. consequential warranty

Q: Any description of a good's physical nature or its use that becomes part of a contract is a(n) __________________. A. express warranty B. implied warranty C. acknowledged warranty D. claimed warranty E. consequential warranty

Q: Which of the following is true regarding express warranties? A. They may be part of a brochure. B. They may arise from a salesperson's oral promise. C. A sample or model may provide an express warranty. D. They may be part of a brochure, they may arise from a salesperson's oral promise, and a sample or model may provide an express warranty. E. They may be part of a brochure and they may arise from a salesperson's oral promise, but a sample or model may not provide an express warranty.

Q: Which of the following are types of warranties? A. Express and unknown B. Implied and understood C. Acknowledged and express D. Express, implied, and acknowledged E. Express and implied, but not acknowledged

Q: Which of the following types of warranties may be automatically, as a matter of law, injected into a contract? A. Express B. Implied C. Acknowledged D. Express, implied, and acknowledged E. Express and implied, but not acknowledged

Q: Which of the following is true regarding warranties under common law? A. Warranties must be asked for by the buyer. B. Only the implied warranty of assignability automatically arises under common law. C. Only implied warranties of merchantability automatically arise under common law. D. Only warranties of title automatically arise under common law. E. Express warranties, implied warranties of assignability, and warranties of title all automatically arise under common law.

Q: Which of the following are referred to as an implied warranty of quality? A. Implied warranty of fitness for a particular purpose. B. Implied warranty of merchantability. C. Implied warranty of trade usage. D. Implied warranty of fitness for a particular purpose, implied warranty of merchantability, and the implied warranty of trade usage. E. Implied warranty of fitness for a particular purpose and the implied warranty of merchantability, but not the implied warranty of trade usage.

Q: Which of the following is true regarding a buyer's acceptance of goods? A. Goods may be accepted in total even if nonconforming. B. The seller may presume acceptance if the buyer fails to reject goods within a reasonable period of time. C. The buyer may make a partial acceptance of nonconforming goods when the seller has failed to cure defects. D. Goods may be accepted in total even if nonconforming, the seller may presume acceptance if the buyer fails to reject goods within a reasonable period of time, and the buyer may make a partial acceptance of nonconforming goods when the seller has failed to cure defects. E. Goods may be accepted in total even if nonconforming, and the seller may presume acceptance if the buyer fails to reject goods within a reasonable period of time; but the buyer may not make a partial acceptance of nonconforming goods when the seller has failed to cure defects.

Q: UCC Section _____ requires good faith in the performance and enforcement of every contract. A. 1-204 B. 2-205 C. 3-301 D. 3-302 E. None of these

Q: Belinda orders a certain type of hybrid rose for her wedding. A disease sweeps through that type of rose, and the florist could only obtain the roses at great cost if at all. Which of the following is the appropriate term for the florist's best defense? A. Commercial unreasonableness B. Commercial impracticability C. Substantial hardship D. Unforeseen circumstances E. Unreasonable bride

Q: Pursuant to UCC Section 2-608, a buyer may revoke the acceptance of goods if the buyer can show that the defects of the goods caused its value to be __________________. A. reduced in any manner B. reduced by 10% C. reduced by 5% D. substantially impaired E. impaired

Q: Under UCC Sections 2-615(a) and 2A-405(a), a delay in delivery or nondelivery, in whole or in part, is not a breach in circumstances in which performance has been made ______ because a contingency has occurred that was not contemplated when the parties reached the agreement. A. unreasonable B. unprofitable C. less profitable D. impracticable E. more difficult

Q: Under which sections of the UCC are buyers and lessees obligated to accept and pay for conforming goods in accordance with the contract? A. 2-301 and 2A-516(1) B. 2-508 and 2A-513 C. 2-613 and 2A-221 D. 2-612(2) and 2A-510(1) E. 1-205(1) and 208(1)

Q: Under UCC Sections 2-513(1) and 2A-515(1), the seller or lessor must provide _____________. A. the right to cure problems with nonconforming goods B. the right to be excused from performance if the goods are destroyed C. an opportunity for inspection before enforcing payment D. an extension for payment of a destroyed item E. a course of dealing

Q: A breaching party's right to provide conforming goods when nonconforming goods were initially delivered is known as ________________. A. substantial impairment B. usage of trade C. cure D. perfect tender rule E. course of dealing

Q: Under the UCC Sections 2-613 and 2A-221, if goods are identified at the time the parties entered into a contract and these goods are destroyed, through no fault of the parties before risk passes to the buyer, which of the following is true? A. The parties are excused from performance. B. The seller has 7 days in which to cure. C. The seller has 10 days in which to cure. D. The seller has 30 days in which to cure. E. The seller has 45 days in which to cure.

Q: Under the UCC which of the following is true if goods are identified at the time the parties entered into a contract and these goods are partially destroyed through no fault of the parties before risk passes to the buyer? A. The contract is void. B. The buyer may inspect the goods and decide whether to (1) treat the contract as void or (2) ask the seller for a reduction of the contract price and then accept the damaged goods. C. The buyer has five days in order to determine whether to void the contract or proceed under it. D. Unless the parties can agree on a price, the matter must be submitted to arbitration for a determination as to an appropriate price. E. Unless the parties can agree on a price, the contract is voidable at the option of the seller who does not wish to remedy any problems.

Q: Under the UCC Section 1-205(1), any practice that members of an industry expect to be part of their dealings is known as ____________________. A. trade norm B. course of dealing C. anticipated trade dealing D. usage of trade E. course of performance

Q: UCC Section 1-205(1), defines _________ as previous commercial transactions between the same parties. A. trade norm B. course of dealing C. anticipated trade dealing D. usage of trade E. course of performance

Q: Under UCC Section 208(1), which of the following refers to the history of dealings between the parties in the particular contract at issue? A. Trade norm B. Course of dealing C. Anticipated trade dealing D. Usage of trade E. Course of performance

Q: What was the result in the case in the text Alaska Pacific Trading Co. v. Eagon Forest Products Inc. in which the defendant rejected a shipment of logs? A. That by not shipping the logs in a timely manner according to the contract, the seller failed to satisfy the perfect tender rule thereby releasing the defendant buyer from its duty to accept the logs. B. That the seller satisfied the perfect tender rule although the logs were late and that the defendant buyer breached the contract by refusing to accept the logs. C. That the seller was entitled to rely on the common law doctrine of material breach but that the seller did not substantially perform thereby releasing the buyer from contractual duties. D. That the seller was entitled to rely on the common law doctrine of material breach, that the seller substantially performed, and that the buyer was in breach. E. That the seller was entitled to rely on the perfect tender rule and that the buyer materially breached the contract by refusing to accept the logs.

Q: A common law rule known as the ______ required that the seller deliver goods in conformity with the terms of the contract, down to the last detail. A. tender of offer regulation B. superior delivery rule C. certain tender rule D. regulatory rule E. perfect tender rule

Q: What do UCC Sections 2-601 and 2A-509 indicate in reference to the perfect tender rule? A. That if goods or tender of delivery fail in any respect to conform to the contract, the buyer/lessee has the right to accept the goods, reject the entire shipment, or accept part and reject part. B. That if goods or tender of delivery fail in any material respect to conform to the contract, the buyer/lessee has the right to accept the goods, reject the entire shipment, or accept part and reject part. C. That if goods or tender of delivery fail in any respect to conform to the contract, the buyer/lessee has the right to accept the goods or reject the entire shipment, but not the right to accept part and reject part. D. That if goods or tender of delivery fail in any material respect to conform to the contract, the buyer/lessee has the right to accept the goods or reject the entire shipment, but not the right to accept part and reject part. E. That if goods or tender of delivery fail in any respect to conform to the contract, the buyer/lessee only has the right to accept the entire shipment and sue for damages.

Q: The term "reasonable commercial standards of fair dealing" is often called ______. A. commercial standards B. commercial reasonableness C. transactional reasonableness D. good faith standards E. good faith reasonableness

Q: The UCC requires that sellers and lessors tender ______ goods to the buyer or lessee. A. adequate B. transforming C. conforming D. reasonable E. superior

Q: Under the UCC, _____ requires that the seller/lessor have and hold conforming goods at the disposal of the buyer/lessee and give the buyer/lessee reasonable notification to enable him or her to take delivery. A. tender of delivery B. offer of availability C. tender of offer D. offer of delivery E. offer of notification

Q: What law does the courts rely upon to clarify the sellers'/buyers' and the lessors'/lessees' obligations if the agreement is unclear? A. The U.S. Constitution B. Common law C. Restatement of Contracts D. The UCC E. None

Q: Under the UCC, good faith as applied to non-merchants means ______. A. honesty in fact B. honesty in law C. honesty in fact and also reasonable commercial standards of fair dealing D. honesty in law and also reasonable commercial standards of fair dealing E. honesty in fact and honesty in law

Q: When parties are merchants, the UCC requires ______. A. reasonableness in dealing with consumers B. honesty in law when buying or selling goods to consumers C. honesty in fact and also reasonable commercial standards of fair dealing D. honesty in law and also reasonable commercial standards of fair dealing E. honesty in fact and honesty in law when buying or selling goods to consumers

Q: The UCC requires that buyers are obligated to accept and pay for ______ in accordance with the contract. A. reasonably conforming goods B. select conforming goods C. materially conforming goods D. significantly conforming goods E. conforming goods

Q: A buyer may revoke acceptance of nonconforming goods under any circumstances.

Q: If a buyer accepts nonconforming goods, the buyer may not seek damages.

Q: Which of the following determines the obligations of sellers/lessors and buyers/lessees? A. Terms the parties outline in agreements B. Custom C. Rules outlined by the UCC D. Terms the parties outline in agreements, custom, and rules outlined by the UCC E. Terms the parties outline in agreements and custom, but not rules outlined by the UCC

Q: Liquidated damages are identified after a contract breach occurs.

Q: Specific performance is a term of a contract that requires a sum certain for damages.

Q: Specific performance is a court order that requires that a nonbreaching party fulfill the terms of the contract.

Q: A seller or lessor is allowed to resell or dispose of goods when the original buyer is in breach and the goods have not yet been delivered but can still collect damages for any loss.

Q: In the UCC, if the seller or lessor has delivered the goods to a carrier or bailee, but the carrier or bailee has not yet turned them over to the buyer it is referred to as "in transit."

Q: Under the UCC, the term "cover" refers to substituting goods for those due under a sales or lease agreement when a seller or lessor provides nonconforming goods.

Q: An implied warranty of fitness for a particular purpose is the same as an express warranty.

Q: In order to disclaim the implied warranty of fitness for a particular purpose, the seller must disclaim the warranty in writing.