law rule
law rule
A common law rule known as the _____ required that the seller deliver goods in conformity with the terms of the contract, right down to the
last detail.
preexisting duty rule
perfect tender rule
parol evidence rule
mirror image rule
2.
value:
2.22 points
Which of the following statements can be inferred from the shipping term free on board (FOB)?
The selling price of the goods excludes transportation costs.
The risk of loss lies with the common carrier till the goods are delivered to the buyer.
The seller passes the title of the goods to the common carrier before the title passes to the buyer.
The seller carries the risk of loss to either the place of shipment or the place of destination.
3.
value:
2.22 points
A _____ occurs when the purchased goods are transferred to a buyer from a seller at either the time of the sale or some time
later by the seller’s delivery.
simple delivery contract
conditional sales contract
common-carrier delivery contract
goods-in-bailment contract
4.
value:
2.22 points
In obtaining cover for a breach of sales contract by a seller or lessor, the buyer must:
demonstrate that the seller or lessor lacks legal capacity.
demonstrate that the seller or lessor is insolvent.
pay a reasonable amount for the substitute goods.
transfer the title of the substitute goods to the seller or lessor.
5.
value:
2.22 points
When a buyer breaches a sales or lease contract before the seller has delivered the goods, Sections 2-703(a) and 2A-523(1)(c) of the Uniform
Commercial Code:
do not consider the breach as a violation of contract laws.
revoke the legal capacity of the buyer to enter into contracts.
do not allow the seller to cancel the contract.
allow sellers to withhold delivery of goods.
6.
value:
2.22 points
Which of the following statements is true of liquidated damages?
Liquidated-damage clauses that are deemed to be punitive in nature are not enforceable.
The Uniform Commercial Code considers liquidated damages as the remedy of last resort available to both parties in case of
breach of a sales contract.
The Uniform Commercial Code provides for liquidated damages only if the parties to a sales contract have expressly negotiated
a liquidated-damage clause.
Liquidated damages are identified after the breach of a sales contract occurs.
7.
value:
2.22 points
Under Section 2-608 of the Uniform Commercial Code (UCC), a buyer who has accepted goods may later revoke the acceptance only if the:
buyer can show that the defects substantially impair the value of the goods.
course of dealing between the seller and buyer has been strong.
goods are valued at $50,000 or more in the market.
defects in the goods can be cured by the seller.
8.
value:
2.22 points
Under Section 208(1) of the Uniform Commercial Code (UCC), _____ refers to the history of dealings between the parties in the particular
contract at issue.
course of performance
usage of trade
balance of trade
course of dealing
9.
value:
2.22 points
When HKP Inc. and Univon Inc. were drafting a sales contract, the contract document mentioned that if either of the parties had to breach the
contract, they were liable to pay $30 million dollars to the injured party. This is an example of _____.
social costs
liquidated damages
equitable charges
slotting allowances
10.
value:
2.22 points
Nathalie, the owner of a designer furniture store in New York, orders some goods from a manufacturer based in China. The
manufacturer hires the services of a shipping company to deliver the goods to Nathalie’s warehouse. This is an example of a:
conditional sales contract.
common-carrier delivery contract.
simple delivery contract.
goods-in-bailment contract.
11.
value:
2.22 points
Which of the following situations that can create a voidable title comes from common law?
The buyer deceiving the seller regarding his true identity
The buyer being a minor
The buyer writing a bad check for the goods
The buyer committing criminal fraud in securing the goods
12.
value:
2.22 points
Under Sections 2-613 and 2A-221 of the Uniform Commercial Code (UCC), if the goods are only partially destroyed in a transaction, the buyer
can:
bring a breach of contract claim against the seller even if the seller can fix the problem within reasonable time.
bring a breach of contract claim against the seller on the grounds of transfer of void title.
inspect the goods and accept the damaged goods without any payment.
inspect the goods and ask the seller for a reduction of the contract price and then accept the damaged goods.
13.
value:
2.32 points
Under the Uniform Commercial Code (UCC), which of the following statements is true of the remedies available to buyers and lessees when a
seller or lessor breaches a sales contract?
When buyers or lessees reject nonconforming goods, they only have the rights to cancel the contract and not seek any cure
from the seller.
Buyers and lessees can recover the goods identified in a contract if the seller or lessor becomes insolvent within 30 days after
receiving the first payment due.
In order to obtain cover in a breach of contract by the seller or lessor, buyers or lessees should avoid purchasing goods that are
substitutes.
Buyers or lessees are allowed to accept nonconforming goods and then seek monetary damages to give them the benefit of the
bargain.
14.
value:
2.22 points
