‘David transfers his voidable title to the third-party good-faith purchaser
Under the Uniform Commercial Code (UCC) Sections 2-613 and 2A-221, when 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 or lessee, the:
parties are excused from performance.
buyer gets a void title to the damaged goods.
seller is bound to replace the destroyed goods.
contract is discharged on the grounds of material breach.
Goods-in-bailment contracts occur when the:
seller allows the buyer to take possession of the goods before deciding whether to complete the contract by
making the purchase.
purchased goods are in some kind of storage under the control of a third party.
purchased goods are transferred to the buyer from the seller at either the time of the sale or some time later by the
goods are delivered to the buyer via a common carrier, such as a trucking line.
Which of the following statements is true of the transfer of interests in a goods-in-bailment contract?
If the document of title is nonnegotiable, the risk of loss passes to the buyer simultaneously with the document of
If the document of title is negotiable, the risk passes to the buyer on notification and acknowledgment by the
custodian of the goods.
Title of goods passes from the seller to the buyer when a document of title is actually endorsed or signed over to
Only the buyer can buy insurance on the goods because the seller cannot transfer physical possession of the
Which of the following requires that a seller/lessor have and hold conforming goods at the disposal of a buyer/lessee and give the buyer/lessee
reasonable notification to enable him or her to take delivery?
Proof of delivery
Deed of conformity
Tender of delivery
As per Section 1-205(1), which of the following is defined by the Uniform Commerical Code (UCC) as previous commercial transactions
between the same parties to a contract?
Usage of trade
Course of dealing
Course of performance
Balance of trade
Uniform Commercial Code (UCC) Section 1-205(2) defines usage of trade as:
previous commercial transactions between the same parties.
the history of dealings between the parties in the particular contract at issue.
any practice that members of an industry expect to be part of their dealings.
the common procedures potential parties to a contract must follow before trading with each other.
Section 2-718 under the Uniform Commercial Code (UCC) allows a nonbreaching seller to claim against a breaching buyer _____, whichever is
less, as liquidated damages.
the lost profits or 30 percent of the purchase price
50 percent of the purchase price or $2,000
20 percent of the purchase price or $500
the resale costs or $1,000
Sections 2-716(1) and 2A-521(1) under the Uniform Commercial Code (UCC) allow nonbreaching buyers and lessees to seek the remedy of
specific performance when:
a breach of contract occurs due to commercial impracticality.
a remedy at law is inadequate.
the goods purchased are commodity goods.
the seller is proven to be insolvent.
Which of the following is the basic performance obligation of sellers and lessors under the Uniform Commercial Code (UCC)?
They are obligated to transfer and deliver conforming goods.
They are obliged to fulfill the terms of a contract to the last detail even if it is commercially impractical.
They are merely required to maintain substantial performance.
They are required to bear the risk of loss even if the goods are destroyed through no fault of theirs.
A(n) _____ is best described as the right to insure the goods against any risk exposure such as damage or destruction.
right of subrogation
When a seller sues a buyer for the breach of a sales contract to get the benefit of the bargain, and nothing more, courts typically:
grant damages to recover the purchase price.
mandate the buyer to pay the opportunity cost incurred by the seller.
ask the buyer to resell the goods on behalf of the seller.
revoke the legal capacity of the buyer to enter into contracts in the future.