Question 1

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Beau's Bistros,Inc. ,but refuses to deliver.Due to a rice shortage,Beau's cannot obtain the noodles elsewhere.The buyer's right to recover the goods from the seller is the right of​

Accepted Answer

The answer of Asian Noodle Company contracts to sell 1,000...

Question 2

TackMaker,Inc. ,and Silver Stallion Stables enter into a contract for a sale of bridles,saddlery,and other equine equipment.TackMaker delivers,but Silver does not pay.TackMaker can normally recover as damages​

Accepted Answer

The UCC provides that a seller can recover the purchase price plus any incidental damages when the buyer breaches the contract and fails to pay for goods that have been delivered. Therefore, TackMaker can recover the purchase price of the goods plus any incidental damages.

Question 3

Langston steals from MindGames,Inc. ,ten game players,which Langston sells to Nu2U Games store.Unaware that the players are stolen,Nu2U reconditions them and sells them to Online Distributors,Inc.With the reconditioned drives,Nu2U gives Online Distributors a written statement that disclaims "any and all warranties." MindGames learns that Online Distributors has the players and demands their return.Online Distributors gives the equipment to MindGames and files a suit against Nu2U.Will Online Distributors succeed in its suit? Why or why not?​

Accepted Answer

The answer of Langston steals from MindGames,Inc. ,ten game players,which...

Question 4

Owen and Pablo enter into a contract for a sale of well-drilling equipment.Pablo pays,but Owen does not deliver.Pablo can normally recover as damages the difference between​

Accepted Answer

The normal measure of damages for breach of contract is the difference between the contract price and the market price at the time and place of delivery. This is because the purpose of awarding damages is to put the non-breaching party in the same financial position they would be in if the contract had been performed as agreed. Therefore, option C is the best choice as it reflects this general rule.

Question 5

Grande Floors,Inc. ,and Home Decor Stores enter into a contract for a sale of carpeting.Grande Floors,a merchant who deals in goods of the kind sold,makes express warranties in connection with the sale.Under the UCC,at the time a contract is formed,an express warranty can be disclaimed or modified​

Accepted Answer

Under the UCC, an express warranty can be disclaimed or modified by clear, conspicuous language called to the buyer's attention. This means that the seller must clearly and conspicuously state that they are disclaiming or modifying the warranty, and bring the buyer's attention to this statement.

Question 6

ReQwest LLC agrees to sell one hundred servers to Social Media Networks,Inc. The servers,which Social Media Networks expressly requires to have certain amounts of memory,are to be shipped "F.O.B.Social Media Networks distribution center in Tampa,FL." When the servers arrive,Social Media Networks rejects them and informs ReQwest,claiming that the servers do not conform to Social Media Networks' memory requirement.A few hours later,the servers are destroyed in a fire at Social Media Networks' distribution center. Will ReQwest succeed in a suit against Social Media Networks for the cost of the goods?​

Accepted Answer

The answer of ReQwest LLC agrees to sell one hundred...

Question 7

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce.After Field ships the lettuce but before the restaurant receives it,the buyer declares bankruptcy.The seller can stop delivery of the goods in transit​

Accepted Answer

According to the Uniform Commercial Code (UCC), a seller can stop delivery of goods in transit if the buyer becomes insolvent or declares bankruptcy, regardless of the quantity or unit of the goods. This is known as the seller's right of stoppage in transit.

Question 8

Band Instruments,Inc. ,sells seventy-six trombones to Community & School Band Source,Inc.To avoid liability for most implied warranties,Band Instruments should state in writing that the trombones are sold​

Accepted Answer

By stating that the trombones are sold "as is," Band Instruments is indicating that they are disclaiming any implied warranties, such as the implied warranty of merchantability or fitness for a particular purpose. This would limit their liability for any defects or issues with the trombones.

Question 9

Eliza buys a new motorcycle from Fab Cycles,Inc.The most important factor in determining whether an express warranty is created is whether​

Accepted Answer

An express warranty is created when the seller's promise becomes part of the basis of the bargain. This means that the buyer relies on the seller's promise in choosing to purchase the product. In this case, if Fab Cycles makes a promise to Eliza about the motorcycle and Eliza relies on that promise when deciding to buy the motorcycle, an express warranty is created. Therefore, choice D is the correct answer.

Question 10

River Gear Company and Scenic Trips,Inc. ,enter into a contract on August 1 for the sale of fifty inflatable river rafts.Scenic cancels the contract ten days later.River Gear is unable to sell the rafts to another buyer.River Gear can​

Accepted Answer

Scenic Trips, Inc. breached the contract by cancelling it ten days later. River Gear Company has a duty to mitigate their damages by attempting to resell the rafts to another buyer. However, if they are unable to do so, they can recover the contract price from Scenic Trips, Inc. but must hold the rafts for the buyer. This is because the rafts were specifically made for Scenic Trips, Inc. and may not have any value in the market. Holding on to the rafts ensures that Scenic Trips, Inc. still receives the goods they contracted for, but River Gear Company is not left with unsellable inventory.

Question 11

The 1980 United Nations Convention on Contracts for the International Sale of Goods (CISG)has been adopted by eighty-four countries,including the United States and China.Glide Ride Inc.in the U.S.and Hangzhou Bikes Ltd.in China enter into a contract for a sale of bicycle parts.A dispute arises that leads to a conflict between the CISG and the UCC.In this situation,the CISG applies because​

Accepted Answer

The answer of The 1980 United Nations Convention on Contracts...

Question 12

Home Remodelers,Inc. ,and Imogen enter into a contract for a sale of cabinets and countertops.Home Remodelers,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability.Under the UCC,this means that the goods are reasonably​

Accepted Answer

Implied warranty of merchantability means that the goods are fit for the ordinary purpose for which such goods are used. Choice A (fit for the buyer's particular purpose) would apply if the seller had knowledge of the buyer's specific purpose for the goods and the buyer relied on the seller's expertise. Choice C (suitable for resale at an acceptable price) is not a requirement for merchantability. Choice D (the best quality that money can buy) is not a requirement for merchantability, but rather a requirement for an express warranty.

Quiz 14: Sales and Lease Contracts

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Beau's Bistros,Inc. ,but refuses to deliver.Due to a rice shortage,Beau's cannot obtain the noodles elsewhere.The buyer's right to recover the goods from the seller is the right of​

TackMaker,Inc. ,and Silver Stallion Stables enter into a contract for a sale of bridles,saddlery,and other equine equipment.TackMaker delivers,but Silver does not pay.TackMaker can normally recover as damages​

Owen and Pablo enter into a contract for a sale of well-drilling equipment.Pablo pays,but Owen does not deliver.Pablo can normally recover as damages the difference between​

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce.After Field ships the lettuce but before the restaurant receives it,the buyer declares bankruptcy.The seller can stop delivery of the goods in transit​

Band Instruments,Inc. ,sells seventy-six trombones to Community & School Band Source,Inc.To avoid liability for most implied warranties,Band Instruments should state in writing that the trombones are sold​

Eliza buys a new motorcycle from Fab Cycles,Inc.The most important factor in determining whether an express warranty is created is whether​

River Gear Company and Scenic Trips,Inc. ,enter into a contract on August 1 for the sale of fifty inflatable river rafts.Scenic cancels the contract ten days later.River Gear is unable to sell the rafts to another buyer.River Gear can​

Home Remodelers,Inc. ,and Imogen enter into a contract for a sale of cabinets and countertops.Home Remodelers,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability.Under the UCC,this means that the goods are reasonably​

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Beau's Bistros,Inc. ,but refuses to deliver.Due to a rice shortage,Beau's cannot obtain the noodles elsewhere.The buyer's right to recover the goods from the seller is the right of

TackMaker,Inc. ,and Silver Stallion Stables enter into a contract for a sale of bridles,saddlery,and other equine equipment.TackMaker delivers,but Silver does not pay.TackMaker can normally recover as damages

Owen and Pablo enter into a contract for a sale of well-drilling equipment.Pablo pays,but Owen does not deliver.Pablo can normally recover as damages the difference between

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce.After Field ships the lettuce but before the restaurant receives it,the buyer declares bankruptcy.The seller can stop delivery of the goods in transit

Band Instruments,Inc. ,sells seventy-six trombones to Community & School Band Source,Inc.To avoid liability for most implied warranties,Band Instruments should state in writing that the trombones are sold

Eliza buys a new motorcycle from Fab Cycles,Inc.The most important factor in determining whether an express warranty is created is whether

River Gear Company and Scenic Trips,Inc. ,enter into a contract on August 1 for the sale of fifty inflatable river rafts.Scenic cancels the contract ten days later.River Gear is unable to sell the rafts to another buyer.River Gear can

Home Remodelers,Inc. ,and Imogen enter into a contract for a sale of cabinets and countertops.Home Remodelers,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability.Under the UCC,this means that the goods are reasonably