Question 1

If a buyer rightfully rejects nonconforming goods, he or she can resell them and retain the proceeds, without crediting the amount to the seller.

Accepted Answer

A) True 
 B)False

Question 2

Lumber Company agrees to sell a certain quantity of plywood to Metro Builders Inc. under a destination contract. Lumber must

Accepted Answer

A)  allow the buyer to reject the plywood for any reason.
B)  deliver the plywood to a particular destination.
C)  inspect the plywood before tendering its delivery.
D)  place the plywood into the hands of a carrier.E) B) and D)
F) A) and C)

Question 3

Bull & Cow Corporation, a U.S. firm, and Carne Ltd., an Italian company, contract for a sale of beef. Under a letter of credit issued by Fiscal Bank to facilitate the deal, Carne promises to

Accepted Answer

A)  reimburse the bank for the amount paid to the seller.
B)  ascertain whether the seller delivers as contracted.
C)  transmit information and expedite payment.
D)  pay the seller when the bank has complied with the terms of the letter.E) A) and B)
F) B) and D)

Question 4

Construction Inc. contracts to buy some heavy equipment from Dig Machines Inc. Before either party performs, Dig sells its assets to Excavation Corporation. On learning of the sale, Construction is concerned about its contract with Dig. Construction should

Accepted Answer

A)  demand an assurance of performance from the seller.
B)  consider the contract repudiated and sue the seller for breach.
C)  buy the equipment from a different firm and bill the seller for the price.
D)  buy the equipment from a different firm and bill Excavation for the price.E) None of the above
F) C) and D)

Question 5

Granos de Café S.A., a Columbian company, and Hot Drinks Inc., a U.S. firm, contract for a sale of coffee beans. Granos does not deliver. Under the United Nations Convention for the International Sale of Goods, Hot can recover as damages the difference between

Accepted Answer

A)  any loss avoided and any profit gained.
B)  the actual price and the hoped-for price.
C)  the contract price and the market price.
D)  the market prices in the contracting parties' places of business.E) All of the above
F) None of the above

Question 6

Under shipment contract for the sale of a certain quantity of solar panels, the seller is required to deliver conforming goods at a particular destination.

Accepted Answer

A) True 
 B)False

Question 7

The use of a letter of credit in a transaction for the international sale of goods greatly reduces costs in the deal because the issuer

Accepted Answer

A)  must determine whether the contract conditions have been satisfied.
B)  does not inquire into whether the contract conditions have been met.
C)  pays only against the facts reflected in documents presented by the beneficiary.
D)  has the obligation to police the underlying contract.E) All of the above
F) A) and C)

Question 8

A buyer is required to cover-a failure to do so will bar the buyer from using any other remedies available under the UCC.

Accepted Answer

A) True 
 B)False

Question 9

Merchant Mart accepts a shipment of nonconforming goods from Nabob Inc. Under the applicable statute of limitations, with respect to pursuing a remedy against the seller for the shipment, the buyer

Accepted Answer

A)  must warrant that the goods will be returned.
B)  is limited to a certain amount of damages.
C)  is barred from seeking damages.
D)  has a reasonable time to notify the seller of the breach.E) C) and D)
F) A) and B)

Question 10

Loading Ramps Inc. contracts to sell sixteen loading ramps to Moving Service Inc. Loading ships the ramps, which Moving accepts but does not pay for. Loading can

Accepted Answer

A)  sue to recover the purchase price plus incidental damages.
B)  sue to recover the purchase price minus incidental damages.
C)  resell the ramps to any buyer willing to repossess them from Moving.
D)  require Moving to revoke its acceptance of the ramps.E) C) and D)
F) A) and B)

Question 11

Colby contracts in writing to sell his Dodge-brand pick-up truck to Efrem for $10,500. Colby agrees to deliver the truck on Friday, and Efrem promises to pay the $10,500 on the following Monday. On Thursday, Efrem tells Colby that he changed his mind and will not buy the truck. Over the weekend, Efrem changes his mind again and tenders $10,500 to Colby on Monday. Colby has not sold the truck to another party but refuses the tender and refuses to deliver. Efrem claims that Colby has breached their contract. Colby contends that Efrem's repudiation released him from his duty to perform under the contract. Who is correct, and why?

Accepted Answer

Efrem is correct. Colby's refusal to del...

Question 12

Commercial impracticability arises only when the parties-at the time the contract was made-had reason to foresee a certain event that could make performance "impracticable."

Accepted Answer

A) True 
 B)False

Exam 22: Performance and Breachapter of Sales and Lease Contracts

Under shipment contract for the sale of a certain quantity of solar panels, the seller is required to deliver conforming goods at a particular destination.

Correct Answer
verified

Commercial impracticability arises only when the parties-at the time the contract was made-had reason to foresee a certain event that could make performance "impracticable."

Correct Answer
verified

The use of a letter of credit in a transaction for the international sale of goods greatly reduces costs in the deal because the issuer

Correct Answer
verified

A buyer is required to cover-a failure to do so will bar the buyer from using any other remedies available under the UCC.

Correct Answer
verified

Loading Ramps Inc. contracts to sell sixteen loading ramps to Moving Service Inc. Loading ships the ramps, which Moving accepts but does not pay for. Loading can

Correct Answer
verified

Bull & Cow Corporation, a U.S. firm, and Carne Ltd., an Italian company, contract for a sale of beef. Under a letter of credit issued by Fiscal Bank to facilitate the deal, Carne promises to

Correct Answer
verified

Merchant Mart accepts a shipment of nonconforming goods from Nabob Inc. Under the applicable statute of limitations, with respect to pursuing a remedy against the seller for the shipment, the buyer

Correct Answer
verified

Granos de Café S.A., a Columbian company, and Hot Drinks Inc., a U.S. firm, contract for a sale of coffee beans. Granos does not deliver. Under the United Nations Convention for the International Sale of Goods, Hot can recover as damages the difference between

Correct Answer
verified

Lumber Company agrees to sell a certain quantity of plywood to Metro Builders Inc. under a destination contract. Lumber must

Correct Answer
verified

If a buyer rightfully rejects nonconforming goods, he or she can resell them and retain the proceeds, without crediting the amount to the seller.

Correct Answer
verified

Correct Answer
verified
Efrem is correct. Colby's refusal to del...
View Answer

Construction Inc. contracts to buy some heavy equipment from Dig Machines Inc. Before either party performs, Dig sells its assets to Excavation Corporation. On learning of the sale, Construction is concerned about its contract with Dig. Construction should

Correct Answer
verified

Exam 22: Performance and Breachapter of Sales and Lease Contracts

Under shipment contract for the sale of a certain quantity of solar panels, the seller is required to deliver conforming goods at a particular destination.

Correct AnswerverifiedShow Answer

Commercial impracticability arises only when the parties-at the time the contract was made-had reason to foresee a certain event that could make performance "impracticable."

Correct AnswerverifiedShow Answer

The use of a letter of credit in a transaction for the international sale of goods greatly reduces costs in the deal because the issuer

Correct AnswerverifiedShow Answer

A buyer is required to cover-a failure to do so will bar the buyer from using any other remedies available under the UCC.

Correct AnswerverifiedShow Answer

Loading Ramps Inc. contracts to sell sixteen loading ramps to Moving Service Inc. Loading ships the ramps, which Moving accepts but does not pay for. Loading can

Correct AnswerverifiedShow Answer

Bull & Cow Corporation, a U.S. firm, and Carne Ltd., an Italian company, contract for a sale of beef. Under a letter of credit issued by Fiscal Bank to facilitate the deal, Carne promises to

Correct AnswerverifiedShow Answer

Merchant Mart accepts a shipment of nonconforming goods from Nabob Inc. Under the applicable statute of limitations, with respect to pursuing a remedy against the seller for the shipment, the buyer

Correct AnswerverifiedShow Answer

Granos de Café S.A., a Columbian company, and Hot Drinks Inc., a U.S. firm, contract for a sale of coffee beans. Granos does not deliver. Under the United Nations Convention for the International Sale of Goods, Hot can recover as damages the difference between

Correct AnswerverifiedShow Answer

Lumber Company agrees to sell a certain quantity of plywood to Metro Builders Inc. under a destination contract. Lumber must

Correct AnswerverifiedShow Answer

If a buyer rightfully rejects nonconforming goods, he or she can resell them and retain the proceeds, without crediting the amount to the seller.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedEfrem is correct. Colby's refusal to del...View AnswerShow Answer

Construction Inc. contracts to buy some heavy equipment from Dig Machines Inc. Before either party performs, Dig sells its assets to Excavation Corporation. On learning of the sale, Construction is concerned about its contract with Dig. Construction should

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
Efrem is correct. Colby's refusal to del...
View Answer

Correct Answer
verified