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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 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:
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:
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 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 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 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:
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:
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:
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.
Q:
The Magnuson-Moss Act requires a full warranty on the sale of goods.
Q:
The UCC does not allow a seller to cancel a contract if the buyer is in breach although a lessor may do so.
Q:
An express warranty is any description of the goods' physical nature or its use, either in general or specific circumstances that become part of the contract.
Q:
A sample or model may constitute an express warranty.
Q:
Under the UCC, warranties may not extend to third parties of a contract because of the rule of privity.
Q:
The UCC assumes that the seller has defective title unless the seller proves otherwise.
Q:
The UCC assumes that the seller has the right to transfer title free and clear of intellectual property rights of which the buyer does not have knowledge.
Q:
To invoke the implied warranty of merchantability, the purchaser or lessee must have purchased or leased the good from a merchant.
Q:
All warranties automatically arise under common law.
Q:
The term "express warranties" is found in common law.
Q:
Express warranties may be found in advertisements.
Q:
Under UCC sections 2-301 and 2A-516(1), the basic obligation of the buyers and lessees is to accept and pay for conforming goods in accordance to the contract.
Q:
Under the UCC a delay in delivery is not a breach of contract in circumstances in which performance has been made impracticable because a contingency has occurred that was not contemplated when the parties reached an agreement.
Q:
Under the UCC, the seller or lessor must provide an opportunity to the buyer or lessee for a reasonable inspection before enforcing payment.
Q:
The UCC adopted the common law of warranties in total.
Q:
Under UCC Sections 250 and 2A-513, the right to cure refers to the obligation to fix errors in a contractual agreement, such as typographical errors.
Q:
If goods identified in a contract are destroyed before the risk passes to the buyer, the seller must obtain substitute goods.
Q:
A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects substantially impair the value of the goods.
Q:
Sometimes, language in the parties' agreement limits the rigidity of the perfect tender rule.
Q:
When the buyer alleges that goods fail to conform to contract specifications, the buyer has the automatic right to reject the goods.
Q:
Course of dealing is the history of dealings between the parties in the particular contract at issue.
Q:
Conforming goods are goods that conform to UCC specifications.
Q:
The ideal tender rule requires that the seller deliver goods in conformity with the terms of the contract.
Q:
The perfect tender rule, which requires that the seller deliver the goods in conformity with the contract, is absolute and has no exceptions that reduce the rule's rigidity.
Q:
Under the UCC, sellers and lessors are obligated to accept and pay for conforming goods in accordance with the contract.
Q:
Courts rely upon the UCC rules to clarify seller and lessor obligations when the contract or lease is unclear.
Q:
The UCC requires good faith in the performance and enforcement of every contract.
Q:
List the eight options discussed in the text that may be available to a buyer/lessee when the seller/lessor is in breach.
Q:
Set forth when an implied warranty of fitness for a particular purpose will be found.
Q:
Marge ordered for her soccer team t-shirts with the name of the school shown on the front. The seller requested that Marge come in to inspect the first t-shirt before the others were made. Marge refused because she was too busy and told the seller to go ahead and print the shirts. On receipt of the shirts, Marge discovered that the school name was misspelled. Does Marge have any rights against the seller, and why or why not?
Q:
Discuss the damages a seller or lessor may recover when a buyer or lessee is in breach and the goods are sold or leased to another party.