Business Law CRN 51884 Week 9 Assignment Quiz 2015
Week 9
1.
value:
2.22
points
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.
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preexisting duty rule |
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perfect tender rule |
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parol evidence rule |
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mirror image rule |
2.
value:
2.22
points
Which of the following statements can be inferred from the shipping term free on board (FOB)?
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The selling price of the goods excludes transportation costs. |
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|
The risk of loss lies with the common carrier till the goods are delivered to the buyer. |
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The seller passes the title of the goods to the common carrier before the title passes to the buyer. |
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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 |
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conditional sales contract |
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common-carrier delivery contract |
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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:
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demonstrate that the seller or lessor lacks legal capacity. |
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|
demonstrate that the seller or lessor is insolvent. |
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pay a reasonable amount for the substitute goods. |
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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:
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do not consider the breach as a violation of contract laws. |
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|
revoke the legal capacity of the buyer to enter into contracts. |
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|
do not allow the seller to cancel the contract. |
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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 |
|
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The Uniform Commercial
Code provides for liquidated damages only if the parties to a sales contract
have expressly negotiated |
|
|
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. |
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course of dealing between the seller and buyer has been strong. |
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goods are valued at $50,000 or more in the market. |
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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 |
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usage of trade |
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balance of trade |
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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 _____.
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social costs |
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liquidated damages |
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equitable charges |
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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:
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conditional sales contract. |
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common-carrier delivery contract. |
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simple delivery contract. |
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goods-in-bailment contract. |
11.
value:
2.22
points
Which of the following situations that can create a voidable title comes from common law?
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The buyer deceiving the seller regarding his true identity |
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The buyer being a minor |
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The buyer writing a bad check for the goods |
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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:
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bring a breach of contract claim against the seller even if the seller can fix the problem within reasonable time. |
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bring a breach of contract claim against the seller on the grounds of transfer of void title. |
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inspect the goods and accept the damaged goods without any payment. |
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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 |
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Buyers and lessees can
recover the goods identified in a contract if the seller or lessor becomes
insolvent within 30 days after |
|
|
In order to obtain
cover in a breach of contract by the seller or lessor, buyers or lessees should
avoid purchasing goods that are |
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|
Buyers or lessees are
allowed to accept nonconforming goods and then seek monetary damages to give
them the benefit of the |
14.
value:
2.22
points
_____ is the preferred
remedy for nonbreaching sellers as it provides an easy means to determine
damages in breach of sales contract by
buyers.
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Suing to get benefit of the bargain |
|
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Revocation of contract |
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Resale of goods |
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Obtaining cover |
15.
value:
2.22
points
When the buyer in a
sales contract is in breach, sellers are allowed to sell the goods to another
buyer or dispose of the goods under the
Uniform Commercial Code (UCC). Which of the following is true of the liability
of the buyer under these circumstances?
|
UCC allows the seller to
recover the difference between the resale price and the contract price, plus
incidental damages and |
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|
UCC allows the seller to claim the difference between the original contract price and the profits made through resale. |
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|
UCC allows the seller
to recover the difference between the resale price and the contract price,
minus the profits the seller |
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|
UCC allows the seller to recover only the incidental damages. |
16.
value:
2.22
points
_____ occurs in certain
situations where the contract between the original parties would be void but
the goods have already
been sold to a third party.
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Voidable title |
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Just title |
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Void title |
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Good title |
17.
value:
2.22
points
According to the Uniform
Commercial Code (UCC), which of the following is the remedy of last resort
available to sellers and lessors in the
case of breach of sales contract by the buyer or lessee?
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Claiming liquidated damages as per the contract |
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Withholding delivery of goods |
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Canceling the contract |
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Reselling the goods |
18.
value:
2.22
points
A person who purchases stolen goods, knowingly or unknowingly, has _____ over the goods.
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voidable deed |
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good title |
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void title |
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title deed |
19.
value:
2.22
points
Under common law, _____
occurs when all the material elements of a contract are satisfied even if some
nonmaterial requirements may not be
satisfied.
|
material breach |
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substantial impairment |
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substantial performance |
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perfect tender |
20.
value:
2.22
points
Sections 2-601 and
2A-509 of the Uniform Commercial Code (UCC) indicate that if goods or tender of
delivery fail in any respect to conform to
the contract, the buyer/lessee has the right to:
|
revoke the contract even if the industry expects such failures to be part of the dealings. |
|
|
accept part and reject part of the goods. |
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|
accept the goods without payment. |
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claim damages for breach of contract even if the seller offers to cure the problems with the nonconforming goods. |
21.
value:
2.22
points
According to the Section
2-725(1) of the Uniform Commercial Code (UCC), the time frame for a plaintiff
to file suit once a cause of action
accrues in contracts involving the sale of goods is:
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five years. |
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twelve months. |
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four years. |
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six months. |
22.
value:
2.22
points
The perfect tender rule:
|
is usually substituted by the doctrine of substantial performance under the Uniform Commercial Code (UCC). |
|
|
is interpreted both in
light of what is expected in an industry and within the context of past
dealings between the parties to |
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recognizes the distinction between material and immaterial contractual requirements. |
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|
requires a lesser standard of contractual performance from sellers in comparison with the doctrine of substantial performance. |
23.
value:
2.22
points
Sections 2-502 and
2a-522 under the Uniform Commercial Code (UCC) allows buyers and lessees to
recover the goods identified in the
contract if the seller or lessor becomes insolvent:
|
immediately after a year from receiving the first payment due under the agreement. |
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15 days before receiving the first payment due under the agreement. |
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within 30 days after receiving the first payment due under the agreement. |
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within 10 days after receiving the first payment due under the agreement. |
24.
value:
2.22
points
Identify the true statement about the transfer of title, risk of loss, and insurable interest in a simple delivery contract.
|
Insurable interest is created in the buyer after the goods are delivered to the buyer. |
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If the seller is a merchant, the risk of loss passes to the buyer under the rule of tender of delivery. |
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Title transfers to the buyer on the goods being identified to the contract, that is, when the contract is executed. |
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|
If the seller is not a
merchant, the risk of loss remains with the seller until the goods are
actually delivered to the |
25.
value:
2.22
points
When a change in
government regulation that neither party to a contract of sale contemplated
forbids the import or export of a particular item
the parties had agreed would be shipped, nonperformance is excused on the
grounds of:
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substantial impairment. |
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mistake of fact. |
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unconscionability. |
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commercial impracticability. |
26.
value:
2.22
points
Identify the true statement in regard to the remedy that allows a seller or lessor to stop delivery of goods that are in transit.
|
If the buyer/lessee is solvent, the carrier or bailee can stop delivery only if the quantity shipped is a large shipment. |
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|
According to the
Uniform Commercial Code (UCC), the title of the goods that are in transit is
with the buyer and hence delivery |
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|
Under the Uniform
Commercial Code (UCC), if the buyer or lessee is insolvent, the carrier or
bailee can stop delivery only if the |
|
|
If the buyer or lessee is insolvent, the carrier or bailee cannot stop delivery regardless of the quantity shipped. |
27.
value:
2.22
points
If a seller allows a
buyer to take possession of the goods before deciding whether to complete the
contract by making the
purchase, it creates a _____.
|
goods-in-bailment contract |
|
|
simple delivery contract |
|
|
conditional sales contract |
|
|
common-carrier delivery contract |
28.
value:
2.22
points
Which of the following statements is true of the specific obligations of buyers and lessees?
|
The right to inspect is seldom waived unless the buyers expressly waive the right. |
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The sellers or lessors should allow the buyers to inspect the goods only after enforcing payment. |
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The buyers’ or lessees’ right to partial acceptance is forbidden under any circumstance. |
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The buyers or lessees may revoke acceptance of conforming goods if it can be proved that they can source the same goods |
29.
value:
2.22
points
Which of the following statements is true of a common-carrier delivery contract?
|
The common carrier in such contracts is an independent contractor and not an agent of the seller. |
|
|
If the delivery
contract is an origin contract, the title remains with the seller till the
common carrier delivers the |
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If the delivery contract is a destination contract, the title passes to the buyer at the time and place of shipment. |
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|
The risk of loss transfers from the seller to the buyer even before the title is transferred to the buyer. |
30.
value:
2.22
points
Under the Uniform
Commercial Code (UCC) Sections 2-508 and 2A-513, sellers and lessors have the
right to cure or fix problems with
nonconforming goods as long as:
|
the goods have not been inspected by the buyer or the lessee. |
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the buyer or the lessee has previously settled to a level of performance that is less than perfect. |
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they can prove that they can cure the problem within 90 days. |
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they give prompt notice of the intent to cure and go ahead and cure within the contract time for performance. |
31.
value:
2.22
points
When nonbreaching buyers or lessees obtain specific performance under the Uniform Commercial Code (UCC), the sellers or lessors:
|
are free from their contractual obligations. |
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|
lose their legal capacity to enter into contracts in the future. |
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have to deliver the particular goods identified in the contract. |
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are required to pay for the substitute goods. |
32.
value:
2.22
points
In a sale-on-approval contract, the:
|
seller allows the buyer to take possession of the goods only after making the purchase. |
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title of the goods passes to the buyer even before the buyer notifies the seller about the approval of the contract. |
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risk of loss remains with the seller until the buyer notifies the seller about the approval of the contract. |
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|
seller cannot transfer
physical possession of the goods, unless the buyer has a document of title
indicating |
33.
value:
2.22
points
With the savings from
his income, Salim purchases a wristwatch from a store at a local mall. In this
scenario, Salim has _____
over the wristwatch.
|
voidable title |
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void title |
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gift title |
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good title |
34.
value:
2.22
points
Emily sells her car to
David, and he pays her with a bad check. Before Emily can reclaim the car,
David sells the car to a
third-party good-faith purchaser for value. Under these circumstances, _____.
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the third-party good-faith purchaser gets a void title |
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Emily can reclaim the car from the third-party purchaser |
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the third-party good-faith purchaser gets a good title |
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David transfers his voidable title to the third-party good-faith purchaser |
35.
value:
2.22
points
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. |
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buyer gets a void title to the damaged goods. |
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seller is bound to replace the destroyed goods. |
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contract is discharged on the grounds of material breach. |
36.
value:
2.22
points
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 |
|
|
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. |
37.
value:
2.22
points
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 |
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Title of goods passes
from the seller to the buyer when a document of title is actually endorsed or
signed over to |
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|
Only the buyer can buy
insurance on the goods because the seller cannot transfer physical possession
of the |
38.
value:
2.22
points
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?
|
Confirmation deed |
|
|
Proof of delivery |
|
|
Deed of conformity |
|
|
Tender of delivery |
39.
value:
2.22
points
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 |
40.
value:
2.22
points
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. |
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any practice that members of an industry expect to be part of their dealings. |
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the common procedures potential parties to a contract must follow before trading with each other. |
41.
value:
2.22
points
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 |
|
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50 percent of the purchase price or $2,000 |
|
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20 percent of the purchase price or $500 |
|
|
the resale costs or $1,000 |
42.
value:
2.22
points
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. |
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|
the seller is proven to be insolvent. |
43.
value:
2.22
points
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. |
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They are merely required to maintain substantial performance. |
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They are required to bear the risk of loss even if the goods are destroyed through no fault of theirs. |
44.
value:
2.22
points
A(n) _____ is best described as the right to insure the goods against any risk exposure such as damage or destruction.
|
insurable interest |
|
|
indemnity claim |
|
|
risk barrier |
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|
right of subrogation |
45.
value:
2.22
points
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. |
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mandate the buyer to pay the opportunity cost incurred by the seller. |
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ask the buyer to resell the goods on behalf of the seller. |
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revoke the legal capacity of the buyer to enter into contracts in the future. |
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Rating:
/5
Solution: Business Law CRN 51884 Week 9 Assignment Quiz 2015 Answers