Indicated the answer choice that best completes the statement or answers the question.
1.Quade is an expert in twentieth-century art. Rachel visits Quade’s gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade’s statement is
a.an express warranty.
b.an implied warranty.
2. Muni Investment Company signs a check payable to Enterprise Lenders, Inc., to buy a
promissory note executed by Fallow Corporation. This check
a.does not constitute sufficient consideration for HDC status.
b.does not satisfy the value requirement for HDC status.
c.satisfies the consideration requirement for HDC status.
d.satisfies the value requirement for HDC status.
3.Almond Farms contracts for the sale of a certain quantity of nuts to Bulk Natural Foods Stores. Almond Farms delivers nonconforming goods. Acceptance will be presumed unless Bulk Natural Foods rejects the goods
a.within a reasonable time after delivery.
b.within a reasonable time after ordering the goods.
c.within any time, since hunting rifles are not perishable.
d.before the last day of the current hunting season.
Fact Pattern 22-B1
Economy Bank issues a letter of credit in favor of Finish & Refining Company, a U.S. firm, to facilitate an international sales contract to buy resources from Global Mining, Ltd., a British company.
4.Refer to Fact Pattern above. Global Mining is entitled to payment when it
a.enters into the contract with Finish & Refining.
b.verifies that Finish & Refining has the money to pay for the purchase.
c.complies with the terms and conditions of the letter of credit.
d.asks to be paid.
5.Drill Markers, Inc., and Edge Mine & Mill Supply Stores enter into a contract for a sale of mining drill bits. The contract indicates that the price includes transportation costs to a specific destination by including the term
b. delivery ex-ship.
6. Moving & Storage Company holds goods for National Distribution Corporation, which contracts to sell them to Omni Stores, Inc. The goods are to be delivered without being moved and are represented by a negotiable bill of lading. The risk of loss passes to Omni Stores
a.if Moving & Storage refuses to honor the bill of lading.
b.if National Distribution gives the bill of lading to Moving & Storage.
c.if the goods are lost due to an “act of God.”
d.when Omni Stores receives the bill of lading.
7. Baxter obtains a check payable to his order from Chanel. For Baxter to negotiate this order instrument to Darlene requires
a.indorsement and delivery.
b.assignment and a promise to pay.
c.presentment and dishonor.
d.good faith and value.
8.Repair Tools Company contracts to deliver fifty heavy-duty steel floor jacks to Serv-UR-Self Auto Stores on May 1 for which Serv-UR-Self agrees to pay. Repair Tools tells Serv-UR-Self on April 15 that delivery will be delayed until June 1. Serv-UR-Self may do all of the following except
a.force Repair Tools to deliver substitute goods before the time for the contract’s performance.
b.await Repair Tools’ performance for a commercially reasonable time.
c.sue Repair Tools for breach of contract.
d.suspend its own performance.