Question 1

If a buyer wrongfully refuses to accept goods, the seller can bring an action to recover the damages sustained.

Accepted Answer

This is true under the UCC (Uniform Commercial Code). The seller can seek damages for the cost of the goods, any additional costs incurred due to the buyer's refusal, and any lost profits that resulted from the refusal. However, the seller must have made a reasonable effort to mitigate their damages by attempting to resell the goods.

Question 2

Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is​
A)an express warranty.
B)an implied warranty.
C)a warranty of title.
D)puffery.

Accepted Answer

The statement made by Phoenix is an express warranty, as it explicitly guarantees that the shipment will match the samples presented.

Question 3

Acceptance of goods precludes the buyer or lessee from exercising the right of rejection.

Accepted Answer

Acceptance of goods by the buyer or lessee means that they are satisfied with the quality and condition of the goods. Once acceptance is made, the right of rejection no longer applies unless there is a breach of contract or warranty.

Question 4

Implied warranties can arise from a "usage of trade."​

Accepted Answer

Implied warranties may arise from a usage of trade, which means a customary practice or method of dealing in a particular industry that implies certain warranties or guarantees.

Question 5

A warranty of infringement only arises by express representation of the seller of lessor.

Accepted Answer

A warranty of infringement can arise by operation of law, not just by express representation, meaning it can be implied in certain transactions.

Question 6

Revocation of acceptance is not effective until notice is given to the seller or lessor.

Accepted Answer

According to Section 2-608(2) of the Uniform Commercial Code (UCC), revocation of acceptance by a buyer or lessee is not effective until the buyer or lessee notifies the seller or lessor of the revocation.

Question 7

If a lessee breaches a contract, the lessor can cancel the contract.

Accepted Answer

If the lessee breaches a contract, the lessor can cancel the contract as a legal remedy.

Question 8

If a buyer repudiates a contract, the seller can bring an action to recover damages.

Accepted Answer

If a buyer repudiates a contract, the seller can consider it as a breach of contract and bring an action to recover damages.

Question 9

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached​
A)the merchant's implied duty of inspection.
B)the implied warranty of merchantability.
C)no duty or warranty because Beginners Run knew nothing about the defect that made the goods unsafe.
D)no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted.

Accepted Answer

If the skis broke when used properly, then the implied warranty of merchantability was breached. This means that the product was not fit for its ordinary purpose and could be returned. Since Beginner's Run could not have discovered the problem, they did not breach the duty of inspection. The other two options are not applicable in this situation.

Question 10

On May 1, Garage Prefabricators, Inc., agrees to sell four portable garages to Hiway Truck Service Center. Five days later, Hiway refuses delivery and cancels the contract. Garage Prefabricators is entitled to
A)force Hiway to accept the garages.
B)recover any damages from Hiway but not resell the garages.
C)resell the garages and recover any damages from Hiway.
D)resell the garages but not recover any damages from Hiway.

Accepted Answer

Garage Prefabricators can resell the garages and recover any damages from Hiway because when a buyer breaches a contract, the seller is typically entitled to resell the goods and seek damages for any loss incurred due to the breach.

Question 11

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.

Accepted Answer

According to the Uniform Commercial Code (UCC), a seller or lessor can disclaim all oral express warranties by including a written disclaimer in the contract. This disclaimer must be conspicuous and written in plain language.

Question 12

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact, but may not seek damages.

Accepted Answer

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contract AND seek damages.

Question 13

A shipment contract requires or authorizes a seller to ship goods by a carrier.

Accepted Answer

A shipment contract involves the seller's obligation to deliver goods to a carrier for transportation to the buyer, thus authorizing shipment by a carrier.

Question 14

If goods in every respect conform to a contract, the buyer or lessee does not have a right to reject the goods.

Accepted Answer

According to the Uniform Commercial Code (UCC), if goods meet the specifications outlined in a contract, the buyer or lessee cannot return or reject these goods. However, there may be exceptions to this rule, such as if the buyer or lessee discovers hidden defects or errors that were not apparent upon initial inspection.

Question 15

Statements of opinion and value usually create express warranties.

Accepted Answer

Statements of opinion and value are generally not considered to create express warranties in the context of sales law; express warranties are typically created by factual claims about a product or service.

Question 16

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

Accepted Answer

The seller's right to cure under the Uniform Commercial Code allows the seller to make right any defect in the goods delivered, which can affect the buyer's or lessee's right to reject the goods if the cure meets the contract specifications within the agreed time frame.

Question 17

Roadway Paving Company contracts to buy some paving equipment from Stonework Earthmovers, Inc. Before either party performs, Stonework sells its assets to T-Square Corporation. On learning of the sale, Roadway is concerned about its contract with Stonework. Roadway should​
A)demand assurances of performance from Stonework.
B)consider the contract repudiated and sue Stonework for breach.
C)buy the equipment from a different firm and bill Stonework for the price.
D)buy the equipment from a different firm and bill T-Square for the price.

Accepted Answer

Roadway should first seek assurances of performance from Stonework, as the sale of the company's assets does not necessarily relieve it of its contractual obligations. If Stonework is unable to perform, Roadway may consider other options such as purchasing from a different firm or pursuing legal action, but it is best to first attempt to resolve the issue with Stonework.

Question 18

Express warranties can be found in a seller's brochure.

Accepted Answer

Express warranties are typically found in a seller's brochure, advertisement or packaging.

Question 19

Hydro Source Company contracts to sell pumps, tanks, and water storage systems to In Flo Irrigation, Inc. Before the goods are delivered, In Flo indicates that it will not be able to pay. Hydro Source can pursue the following relief
A)force In Flo to accept and pay for the goods.
B)require In Flo to find a buyer for the goods.
C)resell the goods and recover any damages from InFlo.
D)None of these answers are correct.

Accepted Answer

Hydro Source can resell the goods and recover any damages from In Flo because In Flo has indicated an inability to pay, which constitutes an anticipatory breach of contract.

Question 20

In sales law, failing to examine the goods and refusing to examine the goods are considered the same thing.

Accepted Answer

The answer of In sales law, failing to examine the...

Quiz 12: Performance and Breach in Sales and Lease Contracts

If a buyer wrongfully refuses to accept goods, the seller can bring an action to recover the damages sustained.

Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is​

Acceptance of goods precludes the buyer or lessee from exercising the right of rejection.

Implied warranties can arise from a "usage of trade."​

A warranty of infringement only arises by express representation of the seller of lessor.

Revocation of acceptance is not effective until notice is given to the seller or lessor.

If a lessee breaches a contract, the lessor can cancel the contract.

If a buyer repudiates a contract, the seller can bring an action to recover damages.

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached​

On May 1, Garage Prefabricators, Inc., agrees to sell four portable garages to Hiway Truck Service Center. Five days later, Hiway refuses delivery and cancels the contract. Garage Prefabricators is entitled to

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact, but may not seek damages.

A shipment contract requires or authorizes a seller to ship goods by a carrier.

If goods in every respect conform to a contract, the buyer or lessee does not have a right to reject the goods.

Statements of opinion and value usually create express warranties.

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

Roadway Paving Company contracts to buy some paving equipment from Stonework Earthmovers, Inc. Before either party performs, Stonework sells its assets to T-Square Corporation. On learning of the sale, Roadway is concerned about its contract with Stonework. Roadway should​

Express warranties can be found in a seller's brochure.

Hydro Source Company contracts to sell pumps, tanks, and water storage systems to In Flo Irrigation, Inc. Before the goods are delivered, In Flo indicates that it will not be able to pay. Hydro Source can pursue the following relief

In sales law, failing to examine the goods and refusing to examine the goods are considered the same thing.

Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is

Implied warranties can arise from a "usage of trade."

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached

Roadway Paving Company contracts to buy some paving equipment from Stonework Earthmovers, Inc. Before either party performs, Stonework sells its assets to T-Square Corporation. On learning of the sale, Roadway is concerned about its contract with Stonework. Roadway should