Question 1

Which of the following requires a written contract to be enforceable?

Accepted Answer

A) Only the puppy is a tangible good subject to a UCC sale. Rentals, loans, and
services are not subject to UCC statute of frauds requirements.
B) Only the puppy is a tangible good subject to a UCC sale. Rentals, loans, and services are not subject to UCC statute of frauds requirements.
C) Only the puppy is a tangible good subject to a UCC sale. Rentals, loans, and services are not subject to UCC statute of frauds requirements.
D) Only the puppy is a tangible good subject to a UCC sale. Rentals, loans, and services are not subject to UCC statute of frauds requirements.

Question 2

Explain how the UCC "battle of the forms" is resolved in nonmerchant and in merchant transactions.

Accepted Answer

The answer of Explain how the UCC "battle of the...

Question 3

The statute of frauds provides that certain sales contracts be evidenced by a written agreement.What type of sales contract does this requirement apply to,and what constitutes a writing sufficient to evidence an enforceable contract?

Accepted Answer

The answer of The statute of frauds provides that certain...

Question 4

Acme Rocket Company is to ship 500 toy rockets by boat to Rockets R Us.Acme is located in Miami,and Rockets R Us is located in Boston.Who bears the risk of loss if goods are to be shipped FOB Miami?

Accepted Answer

A) The risk of loss transfers when the goods reach the FOB city and are delivered
"over the ship's rail" to the freighter.
w) The risk of loss transfers when the goods reach the FOB city and are delivered "over the ship's rail" to the freighter.
x) The risk of loss transfers when the goods reach the FOB city and are delivered "over the ship's rail" to the freighter.
y) The risk of loss transfers when the goods reach the FOB city and are delivered "over the ship's rail" to the freighter.

Question 5

Mackey Pharmacy Corp.ordered 5,000 cases of regular-strength aspirin from MAK Pharmaceuticals.When the order was delivered,an inspection showed that while the delivery conformed to the contract terms with regard to the quantity and quality of the aspirin,none of the aspirin was in childproof bottles.The contract was silent regarding the packaging of aspirin in childproof bottles.Mackey rejected the delivery,and MAK sued for breach of contract.How should the courts analyze and resolve this matter?

Accepted Answer

The answer of Mackey Pharmacy Corp.ordered 5,000 cases of regular-strength...

Question 6

In a destination contract,risk of loss passes to the buyer when the goods

Accepted Answer

A) In a destination contract, risk of loss passes to the buyer when the conforming goods are tendered at the destination specified in the contract.
B) In a destination contract, risk of loss passes to the buyer when the conforming goods are tendered at the destination specified in the contract.
C) In a destination contract, risk of loss passes to the buyer when the conforming goods are tendered at the destination specified in the contract.
D) In a destination contract, risk of loss passes to the buyer when the

Question 7

Plastic Enterprises sent a purchase order to Felt Industries to buy recycled soda bottles for delivery at a town called Steven's Point,Wisconsin.Felt sent an acknowledgment form confirming all of the terms in the purchase order but designating delivery to be at Johnson's Point,2 miles down the coast from Steven's Point.Do the parties have a contract,and where will the delivery be?

Accepted Answer

The answer of Plastic Enterprises sent a purchase order to...

Question 8

The International Chamber of Commerce abbreviation indicating that goods are to be picked up by the buyer and not delivered is

Accepted Answer

A) The International Chamber of Commerce abbreviation indicating that goods are to
be picked up by the buyer and not delivered is EXW.
B) The International Chamber of Commerce abbreviation indicating that goods are to be picked up by the buyer and not delivered is EXW.
C) The International Chamber of Commerce abbreviation indicating that goods are to be picked up by the buyer and not delivered is EXW.
D) The International Chamber of Commerce abbreviation indicating that goods are to be picked up by the buyer and not delivered is EXW.

Question 9

What is the underlying goal and function of the UCC,and why is it crucial to business?

Accepted Answer

The answer of What is the underlying goal and function...

Question 10

Which of the following items would be properly subject to a UCC sales contract?

Accepted Answer

A) Goods must be tangible and movable. A Christmas tree sold in a parking lot is
tangible and movable.
A) Goods must be tangible and movable. A Christmas tree sold in a parking lot is tangible and movable.
B) Goods must be tangible and movable. A Christmas tree sold in a parking lot is tangible and movable.
C) Goods must be tangible and movable. A Christmas tree sold in a parking lot is tangible and movable.

Question 11

What is the United Nations Convention on Contracts for the International Sale of Goods rule with regard to cure?

Accepted Answer

A) The UNCISG allows an absolute right and obligation for a seller to cure, which the buyer must honor.
t) The UNCISG allows an absolute right and obligation for a seller to cure, which the buyer must honor.
u) The UNCISG allows an absolute right and obligation for a seller to cure, which the buyer must honor.
v) The UNCISG allows an absolute right and obligation for a seller to cure, which the buyer must honor.

Question 12

Veggie Time,Inc.,is a distributor of canned vegetables.It has been dealing with Fresh Farmer for 10 years,purchasing Fresh Farmer's entire corn crop.Fresh Farmer's farm is so large and productive that Veggie Time has exclusively bought all of its corn from Fresh Farmer alone.Once again,Veggie Time has entered into a contract with Fresh Farmer to purchase its entire crop this season and has no other corn sellers under contract.For the past 10 years,Fresh Farmer has delivered 100,000 bushels of corn to Veggie Time.Unfortunately,due to an extraordinary amount of rain,Fresh Farmer's fields are now flooded and most of its crop is destroyed.Fresh Farmer can deliver only 10,000 bushels this season,and Veggie Time is about to suffer a huge loss.Does Veggie Time have any rights against Fresh Farmer to recover for its losses? What could Veggie Time do to mitigate its damages?

Accepted Answer

The answer of Veggie Time,Inc.,is a distributor of canned vegetables.It...

Question 13

Which of the following is true of open-price-term contracts?

Accepted Answer

A) The UCC requires that the reasonable price at the time of delivery be used.
B) The UCC requires that the reasonable price at the time of delivery be used.
C) The UCC requires that the reasonable price at the time of delivery be used.
D) The UCC requires that the reasonable price at the time of delivery be used.

Question 14

Lon's GPS,Inc.,orders 500 Class A widgets to be installed in GPS units it is manufacturing.When delivery is made on Monday,the widgets delivered are Class B.Lon's signs a receipt accepting the nonconforming shipment.The next day,Lon's installs some of the Class B widgets and finds that they perform with half the accuracy of the Class A widgets.What,if any,options does Lon's have?

Accepted Answer

The answer of Lon's GPS,Inc.,orders 500 Class A widgets to...

Question 15

Jordan ordered encyclopedias and the contract specified that delivery was to be made to Jordan's home.Instead,the encyclopedias were delivered to her post office box and she never received them.She refuses to pay for them and the encyclopedia company sues her.How would a court likely rule?

Accepted Answer

A) This was a destination contract and the goods were not tendered properly, so risk of loss never passed to Jordan.
z) This was a destination contract and the goods were not tendered properly, so risk of loss never passed to Jordan.
{) This was a destination contract and the goods were not tendered properly, so risk of loss never passed to Jordan.
|) This was a destination contract and the goods were not tendered properly, so risk of loss never passed to Jordan.

Question 16

Cat's Coaster Company uses cork in all of the protective drink coasters that it manufactures.If Cat's enters into an agreement with a cork exporter from Portugal to purchase all of the cork it needs to produce its products,this would be

Accepted Answer

A) A requirements contract occurs when a purchaser agrees to purchase all of the
goods that it needs from a particular seller.
A) A requirements contract occurs when a purchaser agrees to purchase all of the goods that it needs from a particular seller.
B) A requirements contract occurs when a purchaser agrees to purchase all of the goods that it needs from a particular seller.
C) A requirements contract occurs when a purchaser agrees to purchase all of the goods that it needs from a particular seller.

Question 17

Anna agrees to purchase a television from Huge Buy,a merchant electronics seller.Her agreement states that she will pick the television up on Friday at Huge Buy.On Friday morning Huge Buy calls to verify that they have marked the television with her name and it is available for pickup.Anna tells Huge Buy that she can't come until Saturday.Friday evening a huge storm damages the Huge Buy facility,caving in the roof and destroying her television.Huge Buy demands payment from Anna,claiming that it tendered the goods and if she had picked up the television on Friday as originally agreed,there would not have been a loss.Does Anna have to pay? Why or why not.

Accepted Answer

The answer of Anna agrees to purchase a television from...

Question 18

In what ways does the United Nations Convention on Contracts for the International Sale of Goods differ from the UCC in terms of coverage and application?

Accepted Answer

The answer of In what ways does the United Nations...

Question 19

Home Gardening Corp.,a hardware and gardening chain,ordered 1,000 bags of red cedar mulch from Mulch Masters,Inc.Delivery was to be made at the Home Gardening warehouse in Sioux City,Iowa.When the goods arrived in Sioux City,Home Gardening discovered that Mulch Masters had delivered 1,000 bags of black licorice mulch.What option or options does Home Gardening have?

Accepted Answer

The answer of Home Gardening Corp.,a hardware and gardening chain,ordered...

Question 20

Normally,the buyer's offer in a commercial transaction takes the form of

Accepted Answer

A) Normally, the offer in a commercial transaction takes the form of a purchase
order.
B) Normally, the offer in a commercial transaction takes the form of a purchase order.
C) Normally, the offer in a commercial transaction takes the form of a purchase order.
D) Normally, the offer in a commercial transaction takes the form of a purchase order

Quiz 8: Contracts for the Sale of Goods