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Q:
Lewey's Bicycle Store contracts to buy fifty bicycles from Mountain Bikes, Inc. Unless the contract states otherwise, this is
A.a bill of lading.
B.a destination contract.
C.a shipment contract.
D.a warehouse receipt.
Q:
Kip, a representative for Lite-Weight Shipping Company, delivers a bill of lading to Meg, the owner of Capacity Storage Warehouse. A bill of lading is
A.an invoice for payment for loading and carting.
B.an order to ship goods by carrier to a certain destination.
C.a receipt for goods signed by a carrier.
D.a receipt issued by a warehouser for goods in a warehouse.
Q:
Alaskan salmon that fill the hold of Bill and Carla's fishing boat are fungible if the salmon are
A.alike naturally or by agreement or trade usage.
B.fundamentally different.
C.fun, good, and edible.
D.liable to deteriorate over time.
Q:
On behalf of Premier Shipbuilding Corporation (PSC), Rita orders 1,000 cases of 1/4-inch nuts from Steel Parts Company's 10,000-case lot. Steel Parts separates 1,000 cases from the lot. Title and risk of loss
A.remain with Steel Parts until PSC acknowledges tender of delivery.
B.remain with Steel Parts until PSC accepts 1,000 cases.
C.shift to PSC after it accepts the nuts and inspects them for defects.
D.shift to PSC when Steel Parts separates the cases.
Q:
A specific grade of corn that fills BioFuel Cooperative's silo is fungible. This means that the corn is
A.alike naturally or by agreement or trade usage.
B.fundamentally different.
C.fundamentally edible.
D.perishable.
Q:
Office Equipment Leasing, Inc. (OEL), agrees to lease five computer workstations to Product Promotion Corporation (PPC). Before any interest in the workstations can pass from OEL to PPC, they must be
A.in existence and identified as the goods in the contract.
B.in existence only.
C.identified as the specific goods designated in the contract only.
D.none of the choices.
Q:
Uri sells 100 cases of vitamins to Wanda, but before she takes physical possession, the cases are lost. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of
A.physical possession.
B.product liability.
C.risk of loss.
D.title.
Q:
Timber Products, Inc., and Walt, a consumer, enter into a contract for a sale of plywood. If the contract includes a clause that is perceived as grossly unfair to Walt, its enforcement may be challenged under the doctrine of
A.good faith.
B.square dealing.
C.the mere image rule.
D.unconscionability.
Q:
Tasty Pastries, Inc., and other bakers refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. This is an example of
A.course of dealing.
B.course of performance.
C.square dealing.
D.usage of trade.
Q:
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
A.the sale of any of the property evidenced by a writing.
B.the entire deal, including the marketer's services.
C.the sale of the furnishings priced at $500 or more.
D.the sale of the land and the building.
Q:
Doctors Medical Clinic orders 1,000 bandages from Emergency Supplies Company but fails to specify the sizes. The bandages are delivered in an assortment of sizes. Doctors Medical Clinic may
A.accept the bandages "as is" only.
B.accept the bandages "as is" or reject the entire shipment only.
C.accept only the bandages that it wants and reject the rest.
D.reject the entire shipment only.
Q:
VuTech Company agrees to sell digital video equipment to Home & Business Stores, Inc., for Home & Business to market to its customers. Their contract will not be enforceable unless it includes
A.the duration of the deal.
B.the price of the goods.
C.the quantity of the goods.
D.the requirements of Home & Business's customers.
Q:
Metro Daily and New City Newsstand enter into a contract under which Metro agrees to deliver a certain quantity of newspapers to New City each day. The contract does not include a price term. In a suit between the parties over the price, a court will
A.determine a reasonable price.
B.impose the lowest market price.
C.refuse to enforce the agreement.
D.return the parties to the positions they held before the contract.
Q:
Rikki and Sid enter into a sales contract. With respect to the specific contractual provisions set out in the UCC, Rikki and Sid may
A.agree to different terms only to a reasonable extent.
B.agree to different terms unless they "get caught."
C.agree to whatever terms they wish.
D.not agree to different terms.
Q:
Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car. This contract is subject to
A.Article 2 of UCC.
B.Article 2A of the UCC.
C.Article 11 of the CISG.
D.the common law only.
Q:
Expert Stitching Corporation enters into a contract to sell denim clothing to Fine Fashion Company, which in turn sells a pair of jeans to Grady, a consumer. In contrast to standards that apply to consumers, the UCC imposes on merchants
A.less strict legal standards.
B.special business standards.
C.stricter ethical standards.
D.the same overall standards.
Q:
In a dispute over a sale involving a bicycle, Dain argues that as to this deal Elle's Hobby Shop, where Dain bought the bike, is a merchant. A court may determine whether Elle's is a merchant by assessing whether
A.it has sold any bikes within the last year.
B.it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction.
C.its owner enjoys biking.
D.it subscribes to Bike, a biweekly trade magazine.
Q:
Rally Corporation enters into a contract to sell ski gear to SnoSportz Company, which sells a pair of the skis to Tyra, a consumer, who later sells them to Uli, another consumer. Article 2 of the UCC applies to the sales transactions between
A.all of the buyers and sellers.
B.Rally and SnoSportz only.
C.SnoSportz and Tyra only.
D.Tyra and Uli only.
Q:
Over the course of a year, Real Deal Corporation sells appliances to customers to whom it extends credit. Real Deal orders the appliances from Superior Appliance Company's warehouse, from which the items are shipped via common carrier to Real Deal's customers. Article 2 of the UCC governs
A.all of the parties' sales of the goods.
B.Real Deal's extension of credit.
C.Superior's storage of the goods.
D.the common carrier's delivery of the goods.
Q:
Over the course of a year, Retail Marketers, 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 Savings 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.
Q:
Omni Corporation is a Pennsylvania-based firm that does business throughout the United States. With respect to this circumstance, the UCC has been adopted by, and applies in,
A.a few of the states.
B.all of the states, in whole or in part.
C.half of the states.
D.none of the states, to date.
Q:
Bild-Rite, Inc., is a Colorado-based firm that does business with clients throughout North America. Bild-Rite oversees construction projects, and buys and sells commercial buildings, undeveloped land, and construction supplies and other goods. Bild-Rite has had to deal with work-site theft and vandalism. With respect to these circumstances, the Uniform Commercial Code (UCC) provides a framework for
A.commercial transactions for the sale of and payment for goods.
B.international construction contracts.
C.domestic and foreign transactions in real estate.
D.prosecuting crimes against business interests.
Q:
A contract between parties residing in different countries is subject to Article 2A of the UCC.
Q:
A contract between parties residing in different countries is subject to United Nations Convention on Contracts for the International Sale of Goods.
Q:
A buyer has an insurable interest in identified goods.
Q:
When a buyer breaches a contract, the risk of loss immediately shifts to the buyer.
Q:
If a seller is a merchant, and the seller holds the goods, the risk of loss cannot pass to a buyer.
Q:
If a seller is not a merchant, and the seller holds the goods, the risk of loss cannot pass to a buyer.
Q:
A bailee is a buyer or lessee.
Q:
If a seller is a merchant, and the seller holds the goods, the risk of loss passes to a buyer when the buyer takes physical possession of the goods.
Q:
Under a destination contract, if a lessor is a merchant, the risk of loss passes to a lessee when the lessee takes physical possession of the goods.
Q:
A seller with voidable title can transfer good title to a good faith purchaser for value.
Q:
A seller with void title can transfer good title to a good faith purchaser for value.
Q:
A receipt issued by a warehouser for goods stored in a warehouse is a bill of lading.
Q:
Unless a contract provides otherwise, it is assumed to be a destination contract.
Q:
A bill of lading serves as a contract for the transportation of goods.
Q:
"Unless otherwise explicitly agreed," title passes to the buyer at the time and place at which the seller physically delivers the goods.
Q:
Fungible goods are goods that cannot be delivered by physical transport.
Q:
Identification takes place when specific goods are designated as the subject matter of a sales or lease contract.
Q:
The UCC has replaced the common law concept of title in part with the concept of identification.
Q:
Title is one concept that the UCC has substituted for the common law concept of risk of loss.
Q:
An unconscionable contract is a contract so one-sided and unfair at the time it is made that enforcing it would be unreasonable.
Q:
Under the UCC, an oral contract for a sale of goods is enforceable unless payment has been made and accepted.
Q:
No oral contract is enforceable under the UCC.
Q:
The rules governing firm offers apply to all merchants.
Q:
If a contract for a sale of goods does not include a quantity term, it is a requirements contract.
Q:
If a contract for a sale of goods does not include a price term, a reasonable price can be determined by looking at the market for the goods.
Q:
Under the UCC, a contract for a sale of goods that includes open terms is void.
Q:
Under the UCC, the validity of a contract depends on its price term.
Q:
A lessor is a party who acquires a right to the possession and use of goods under a lease.
Q:
A lessee is a party who transfers a right to the possession and use of goods under a lease.
Q:
A consumer lease is exempted from coverage under the UCC.
Q:
The UCC imposes the same rules of conduct on all parties in all circumstances.
Q:
A sale of "things attached" to realty is always considered a sale of goods.
Q:
Article 2 of the UCC governs contracts for sales of services.
Q:
Stocks are an example of property that does not come under UCC Article 2.
Q:
Article 2 of the UCC governs contracts for sales of goods.
Q:
General Equity Corporation enters into a contract with Honi, who agrees to create artwork for General's main office building. Honi delays and eventually refuses to perform. Meanwhile, General contracts to sell the building to Ideal Investments, Inc., but before the transaction is complete, Jewel Funds Company offers to pay a higher price. General refuses to transfer the building to Ideal. In separate suits by General against Honi and by Ideal against General, each plaintiff seeks specific performance. How might the court rule in each case, and why?
Q:
National Drilling Company ships its only pump to American Hydraulics Corporation, the manufacturer, for repair. National hires Overland Transport, Inc., to take the pump to American Hydraulics and to return it to National as soon as the repair is complete. National is forced to suspend operations without a pump, but Overland does not know this. National expects to be without the pump for five days and to lose profits of $5,000. When the pump is not returned by the end of the fifth day, National rents a pump at a cost of $100 per day. Overland delays five more days before returning the pump. National files a suit against Overland, asking for compensatory, consequential, and punitive damages. Will National recover?
Q:
To avoid liability for intentional injuries, Vermont Power Corporation includes in its contracts an exculpatory clause. This is
A.enforceable if the other parties are protected from liability.
B.enforceable if the other parties consent to it.
C.enforceable if the other parties have equal bargaining power.
D.not enforceable.
Q:
Creekside Property Corporation enters into a contract with Downstream Management Associates to manage and maintain Creekside's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is
A.a limitation-of-liability clause.
B.an exculpatory clause.
C.an illegal clause.
D.a quasi contract.
Q:
A contract between E-Debits, Inc., and First Credit Corporation includes a provision excluding liability as a result of fraud. This provision is
A.enforceable because the parties are protected from liability.
B.enforceable because the parties consented to it.
C.enforceable if the parties have equal bargaining power.
D.not enforceable.
Q:
Karson orally agrees to pay Jaime to plant and harvest a quarter of Karson's farm acreage for four corn-planting seasons. After Jaime prepares the land and plants the first crop, Karson says that their deal is off. Jaime can most likely recover
A.in quasi contract.
B.in reformation.
C.in restitution.
D.on the parties' existing contract.
Q:
Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders Corporation. The agreement states that delivery is to be within "3" days, although the parties intend "30" days. Refined cannot convince Select to amend the contract. Refined should seek
A.damages.
B.reformation.
C.rescission.
D.specific performance.
Q:
Dino hires Eve to perform at Dino's Club, but Eve later breaches the agreement to accept a higher-paying job at First Star Arena. Dino files a suit against Eve. The court will most likely
A.award damages to Dino.
B.cancel Dino and Eve's contract.
C.order Eve to perform the contract.
D.reform Dino and Eve's contract.
Q:
Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch. If Hollis breaches the contract, Grady's normal remedy would be
A.damages.
B.quasi contract.
C.reformation.
D.specific performance.
Q:
Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane refuses to ship Ira the collection. Ira should seek
A.damages.
B.reformation.
C.rescission.
D.specific performance.
Q:
Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50. To rescind the contract
A.Lou must return the $50 and Mira must return the player.
B.Lou must return the $50 only.
C.Mira must return the player only.
D.the parties can keep the "benefits" of their bargain.
Q:
Rural Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural's cables in a certain location. Rural advances Shovel 10 percent of its cost. If the parties rescind the contract, Shovel's refund of the payment would be
A.a penalty.
B.liquidated damages.
C.restitution.
D.specific performance.
Q:
Home Delivery Corporation and Interstate Transport, Inc., sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is
A.a liquidated damages clause.
B.a mitigation of damages clause.
C.a nominal damages clause.
D.a penalty clause.
Q:
Drew contracts to sell a residential duplex to Evan. The contract provides that if Drew does not close the deal by September 15, he must pay Evan one-half of the contract price. This provision is not enforceable because it is
A.a liquidated damages clause.
B.a mitigation clause.
C.a nominal damages clause.
D.a penalty clause.
Q:
Mikayla enters into a contract with Logan to provide surface material for Mikayla's tennis courts by April 1 for a tournament to begin May 1. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is
A.an excessive estimate of the loss on a breach.
B.a reasonable estimate of the loss on a breach.
C.designed to penalize the breaching party.
D.intended to quickly provide cash to the nonbreaching party.
Q:
Rig Heli-Pads, Inc., enters into a contract to employ Scott as an on-site project manager for two years. If Rig breaches the contract, Scott has a duty to
A.do nothing.
B.reduce the damages that Scott might otherwise suffer.
C.rescind the contract with Rig.
D.punish Rig and set an example to deter others from similar acts.
Q:
Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corporation. Fresh Food does not pay for the storage. Earl sells the fruit to Green Grocers, Inc. This sale represents
A.a breach of contract.
B.a mitigation of damages.
C.rescission and restitution.
D.specific performance.
Q:
Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to
A.avoid reletting the premises to recover damages from Ray.
B.make reasonable efforts to relet the premises to mitigate damages.
C.relet the premises to recover damages from Ray.
D.sell the premises to recover damages from Ray.
Q:
Kris contracts to work exclusively for Little Manufacturing Company during May for $5,000. On April 30, Little cancels the contract. Kris finds another job during May but earns only $3,000. Kris files a suit against Little. As compensatory damages, Kris can recover
A.$3,000.
B.$2,000.
C.$1,000.
D.$0.
Q:
Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches the contract, Fashion has a duty to
A.reduce the damages that Fashion might otherwise suffer.
B.reduce the loss that Great Promotions might otherwise suffer.
C.punish Great Promotions and deter others from similar acts.
D.take no action.
Q:
Bret contracts to work for City Construction Corporation (CCC) during July for $4,500. On June 30, CCC cancels the contract. Bret declines a similar job with Downtown Builders, Inc., which would have paid $4,000. Bret files a suit against CCC. As compensatory damages, Bret can recover
A.$4,500.
B.$4,000.
C.$500.
D.$0.
Q:
Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office Accounting may recover from Perry
A.compensatory damages.
B.consequential damages.
C.nominal damages.
D.punitive damages.
Q:
Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages toA.establish, as a matter of principle, that QuikBilt acted wrongfully.B.provide Pure with funds for a foreseeable loss beyond the contract.C.provide Pure with funds for its loss of the bargain.D.punish QuikBilt and deter others from similar acts.