Question 1

Acceptance of a part of any commercial unit constitutes rejection of the entire unit.

Accepted Answer

Acceptance of a part of a commercial unit does not necessarily constitute rejection of the entire unit. The buyer may still accept the rest of the unit or negotiate a partial refund or replacement for the rejected part.

Question 2

If the goods conform to the contract,the seller pays for the inspection.

Accepted Answer

Typically, the buyer is responsible for the cost of inspecting the goods to ensure they conform to the contract specifications.

Question 3

A commercial unit is a unit of goods that commercial usage deems is a single whole for purpose of sale.

Accepted Answer

A commercial unit is considered a single entity for the purpose of sale, as determined by commercial usage.

Question 4

Because acceptance of goods triggers the obligation to pay for them,acceptance can occur only by an affirmative statement of the buyer that the buyer has accepted the goods.

Accepted Answer

Acceptance of goods can occur through actions such as using the goods, failing to reject them within a reasonable time, or any conduct that indicates ownership, not just an affirmative statement.

Question 5

Acceptance occurs when the buyer or lessee fails to effectively reject the goods within a reasonable time after their delivery or tender by the seller or lessor.

Accepted Answer

According to the UCC (Uniform Commercial Code), acceptance occurs when the buyer or lessee fails to effectively reject the goods within a reasonable time after their delivery or tender by the seller or lessor.

Question 6

If the seller requires cash payment,the buyer must be given an extension of time necessary to procure the cash.

Accepted Answer

This is true. The seller must be willing to give the buyer an extension of time necessary to procure the cash if they require cash payment. This is because it is unfair to expect the buyer to have immediate access to cash, and it may take some time for them to obtain it.

Question 7

Unless otherwise agreed,payment for goods must be in cash at the time of delivery.

Accepted Answer

The statement says "Unless otherwise agreed", which means that payment terms can be negotiated and agreed upon between the parties involved. Therefore, payment for goods may not always have to be in cash at the time of delivery, and can be made through alternate means such as credit, check, or electronic transfer.

Question 8

Unless otherwise agreed,the buyer or lessee has the right to inspect goods that are tendered,delivered,or identified in a sales or lease contract prior to accepting or paying for them.

Accepted Answer

This statement is true according to the Uniform Commercial Code (UCC) which provides the legal framework for commercial transactions in the United States.

Question 9

The UCC provides that if goods identified in a sales or lease contract are totally destroyed without the fault of either party before the risk of loss passes to the buyer or the lessee,the contract is voidable.

Accepted Answer

The UCC states that if goods are destroyed without fault before the risk of loss passes, the contract is void, not voidable.

Question 10

Acceptance of goods can be revoked in fewer circumstances than goods can be initially rejected.

Accepted Answer

Once goods are accepted, revocation can only occur in very limited circumstances such as fraud or mistake. On the other hand, initial rejection of goods can occur for various reasons such as nonconformity to the contract, damage during transit, or incorrect quantity.

Question 11

A buyer or lessee can revoke acceptance of goods only if the nonconformity is one that substantially impairs the value of the goods to the buyer.

Accepted Answer

According to the UCC 2-608, a buyer or lessee can revoke acceptance of goods if the nonconformity substantially impairs the value of the goods to the buyer.

Question 12

Buyers and lessees may only accept delivery of a "commercial unit."

Accepted Answer

Buyers and lessees may only accept delivery of a "commercial unit." This means that they cannot accept delivery of a residential property if they are looking for a commercial property.

Question 13

If the goods are rejected for nonconformance,the cost of inspection can be recovered from the seller.

Accepted Answer

As per the standard terms of delivery, if the goods are rejected due to nonconformance, the cost of inspection can be recovered from the seller.

Question 14

An installment contract is one in which payment for the goods is made over time in a series of agreed-upon payments.

Accepted Answer

The answer of An installment contract is one in which...

Question 15

An installment contract is a contract that requires or authorizes goods to be delivered and accepted in separate lots.

Accepted Answer

An installment contract is a type of contract that allows for the delivery and acceptance of goods in separate installments or lots. This type of contract is often used in situations where the goods are large or complex, such as when buying a car, where payment can be made in periodic installments.

Question 16

If the buyer pays by check,payment is conditional on the check being honored when it is presented to the bank for payment.

Accepted Answer

When a buyer pays by check, the payment is not final until the check is honored by the bank, meaning that the funds are available and transferred to the seller's account. Therefore, payment is conditional on the check being honored.

Question 17

Generally,a buyer may take physical possession of the goods and inspect them within a reasonable time without having accepted the goods.

Accepted Answer

According to the Uniform Commercial Code (UCC), a buyer has the right to inspect the goods within a reasonable time after delivery, and this does not constitute acceptance of the goods. Acceptance occurs when the buyer indicates to the seller that the goods conform to the contract, or when the buyer fails to reject the goods within a reasonable time after inspecting them.

Question 18

Acceptance occurs when the buyer or lessee signifies to the seller or lessor in words or by conduct that the goods are conforming or that the buyer or lessee will take or retain the goods despite their nonconformity.

Accepted Answer

This statement accurately describes the legal concept of acceptance of goods under the Uniform Commercial Code (UCC), which is a set of laws governing commercial transactions in the United States. Acceptance occurs when the buyer or lessee indicates to the seller or lessor that they are willing to keep the goods, even if they are not entirely conforming to the agreed-upon standards. This can happen either through explicit words or through the buyer's conduct (e.g. by using or keeping the goods without complaint). Once acceptance occurs, the buyer loses the right to cancel the contract or claim damages for the nonconformity of the goods, although they may still have some recourse if the defect is particularly severe.

Question 19

Goods can be paid for in any manner currently acceptable in the ordinary course of business (e.g.,check,credit card)unless the seller demands payment in cash or unless the contract names a specific form of payment.

Accepted Answer

The statement accurately reflects the legal principle that governs the payment for goods in the ordinary course of business, as long as there is no specific agreement or demand by the seller for a particular form of payment.

Question 20

If inspected goods do not conform to the contract,the buyer or lessee may reject them without paying for them.

Accepted Answer

This is stated in the Uniform Commercial Code (UCC) Section 2-601, which allows buyers to reject non-conforming goods before accepting them and making payment.

Quiz 18: Remedies for Breach of Sales and Lease Contracts