Question 1

The UCC assumes that the seller has defective title unless the seller proves otherwise.

Accepted Answer

A) True 
 B)False

Question 2

Under the UCC buyers and lessees may recover goods identified in the contract if the seller or lessor becomes insolvent within _____________ after receiving the first payment due under the agreement.

Accepted Answer

A)   5 days
B)   10 days
C)   15 days
D)   30 days
E)   60 daysF) B) and E)
G) A) and B)

Question 3

UCC Section ________________ requires good faith in the performance and enforcement of every contract.

Accepted Answer

A)   1-204
B)   2-205
C)   3-301
D)   3-302
E)   None of theseF) A) and B)
G) None of the above

Question 4

Which is true regarding a buyer's right to waive warranties?

Accepted Answer

A)   A buyer may not waive warranties.
B)   A buyer may waive implied warranties but not express warranties.
C)   A buyer may waive express warranties but not implied warranties.
D)   A buyer may waive both express warranties and implied warranties.
E)   A buyer may waive express warranties and the implied warranty of fitness for a particular purpose, but not the implied warranty of merchantability.F) A) and D)
G) A) and C)

Question 5

Because of the rule of privity, under the UCC warranties may not extend to third parties to a contract.

Accepted Answer

A) True 
 B)False

Question 6

Reference - Refused Furniture. Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments. Selina was to deliver the furniture by February 7. Roland did not pay Selina as promised on February 1. He asked her to wait until March 1, but she refused. She also refused to deliver the furniture. Selina was able to sell the furniture for only $2,500 because of a downturn in the economy. Roland told Selina that she had no right to withhold or sell his furniture and that he was suing. Selina incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased. Selina saved $40 in delivery costs because the subsequent purchaser picked up her own furniture. Which of the following is true regarding Roland's claim that Selina had no right to withhold his furniture?

Accepted Answer

A)   Roland is correct. Selina was required to deliver the furniture, but she retained the right to sue him for any deficiency.
B)   Roland is correct but only because of the special UCC exception for consumer goods.
C)   Roland is incorrect. Selina had a right to withhold the furniture.
D)   Roland is incorrect but only if Selina can prove that she had no reason to believe that he was a credit risk prior to signing the contract of sale.
E)   Roland is correct because of federal consumer protection laws.F) B) and C)
G) All of the above

Question 7

Which option have most states adopted regarding the rights of third-party beneficiaries of warranties?

Accepted Answer

A)   That seller's warranties extend to the buyer's household members and guests.
B)   That seller's warranties extend to any reasonable and foreseeable user.
C)   That seller's warranties extend to anyone injured by the good.
D)   That seller's warranties do not extend beyond the buyer and the buyer's immediate family.
E)   That seller's warranties do not extend beyond the buyer and the buyer's immediate family living in the same household.F) B) and C)
G) None of the above

Question 8

Reference - Hot Toaster. Rebecca bought a toaster from Super Store and brought it home. A friend of hers, Greg, was at her house making toast. The toaster malfunctioned and shocked Greg resulting in a small burn to his hand requiring medical attention. At a garage sale, Rebecca also purchased a blender from a friend, Samantha. When she paid for the blender, Rebecca said that it would be great for making smoothies. Samantha said nothing and just smiled while taking Rebecca's money. Unfortunately, the blender was not powerful enough to make smoothies. Which of the following rights, if any, does Greg have against Super Store in most states?

Accepted Answer

A)   None because he did not buy the toaster.
B)   None because he is not married to Rebecca.
C)   None because he was not married to Rebecca nor was he a relative of Rebecca.
D)   He may sue but only if Rebecca joins in the suit with him.
E)   He may sue Super Store for his injuries.F) C) and D)
G) None of the above

Question 9

Stacy, located in Florida, is entering into a contract with Natasha, located in Russia, for the purchase of snow globes to sell to people who do not typically get to see snow. Stacy is familiar with the UCC but uneasy about what law would apply should she have a dispute with Natasha regarding the contract. She would like for Florida law to apply. Which of the following is the best advice to Stacy?

Accepted Answer

A)   Stacy should attempt to have a contract clause inserted providing that the law of Florida would govern any dispute.
B)   While a requirement that Florida law would govern the dispute would likely be deemed unconscionable, Stacy should attempt to have a contract clause inserted providing that international law would govern any dispute.
C)   There is nothing that Stacy can do because Russian law, the law of the seller, would govern any dispute.
D)   Stacy does not need to do anything because, as a matter of law, Florida law, the law of the buyer, would govern any dispute.
E)   It depends on the value of the contract. If it is in an amount over $1,000, Stacy should attempt to obtain a provision in the clause that Florida law governs; otherwise, she has no option but to allow a court to later determine the conflicts issue.F) A) and E)
G) A) and D)

Question 10

What do UCC sections 2-601 and 2A-509 indicate in reference to the perfect tender rule?

Accepted Answer

A)   That if goods or tender of delivery fail in any respect to conform to the contract, the buyer/lessee has the right to accept the goods, reject the entire shipment, or accept part and reject part.
B)   That if goods or tender of delivery fail in any material respect to conform to the contract, the buyer/lessee has the right to accept the goods, reject the entire shipment, or accept part and reject part.
C)   That if goods or tender of delivery fail in any respect to conform to the contract, the buyer/lessee has the right to accept the goods or reject the entire shipment, but not the right to accept part and reject part.
D)   That if goods or tender of delivery fail in any material respect to conform to the contract, the buyer/lessee has the right to accept the goods or reject the entire shipment, but not the right to accept part and reject part.
E)   That if goods or tender of delivery fail in any respect to conform to the contract, the buyer/lessee only has the right to accept the entire shipment and sue for damages.F) B) and D)
G) None of the above

Question 11

Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

Accepted Answer

A)   A seller must provide an express, full warranty.
B)   A seller must provide an implied, full warranty.
C)   A seller must provide at least an express, limited warranty.
D)   A seller must provide at least an implied, limited warranty.
E)   The act does not require that the seller provide any warranties.F) A) and D)
G) C) and D)

Question 12

When does the UCC allow buyers and lessees to seek the remedy of specific performance?

Accepted Answer

A)   Only when goods are unique
B)   Only when a remedy at law is inadequate
C)   Only when goods are worth more than $500
D)   When goods are unique, when a remedy at law is inadequate, or when goods are worth more than $500
E)   When goods are unique or when a remedy at law is inadequate, but not because the goods are worth more than $500F) C) and E)
G) A) and B)

Question 13

Which of the following are types of warranties?

Accepted Answer

A)   Express
B)   Implied
C)   Acknowledged
D)   Express, implied, and acknowledged
E)   Express and implied, but not acknowledgedF) B) and D)
G) A) and C)

Question 14

Under the UCC, the seller must bring a lawsuit on a breached contract within _____________ years of when the breach occurred or when the seller became aware of it.

Accepted Answer

A)   One
B)   Two
C)   Three
D)   Four
E)   SixF) A) and B)
G) A) and C)

Question 15

If goods identified to a contract are destroyed before risk passes to the buyer, the seller must obtain substitute goods.

Accepted Answer

A) True 
 B)False

Question 16

List the exceptions to title warranties.

Accepted Answer

The only exceptions to title warranties ...

Question 17

Which of the following are referred to as an implied warranty of quality?

Accepted Answer

A)   Implied warranty of fitness for a particular purpose.
B)   Implied warranty of merchantability.
C)   Implied warranty of trade usage.
D)   Implied warranty of fitness for a particular purpose, implied warranty of merchantability, and the implied warranty of trade usage.
E)   Implied warranty of fitness for a particular purpose and the implied warranty of merchantability, but not the implied warranty of trade usage.F) None of the above
G) All of the above

Question 18

Reference - Hot Toaster. Rebecca bought a toaster from Super Store and brought it home. A friend of hers, Greg, was at her house making toast. The toaster malfunctioned and shocked Greg resulting in a small burn to his hand requiring medical attention. At a garage sale, Rebecca also purchased a blender from a friend, Samantha. When she paid for the blender, Rebecca said that it would be great for making smoothies. Samantha said nothing and just smiled while taking Rebecca's money. Unfortunately, the blender was not powerful enough to make smoothies. Which of the following is true regarding whether Samantha made an express warranty to Rebecca that the blender would make smoothies?

Accepted Answer

A)   Samantha made an express warranty by not speaking up regarding problems with blender.
B)   Samantha made an express warranty by not speaking up regarding problems with the blender only if Rebecca can prove that Samantha knew about the problems.
C)   Samantha made an express warranty by not speaking up regarding problems with the blender only if Rebecca cannot prove that Samantha knew about the problems.
D)   Samantha made an express warranty by not speaking up regarding problems with the blender only if Samantha can prove that she did not know about the problems.
E)   Samantha did not make an express warranty.F) A) and C)
G) A) and D)

Question 19

The UCC assumes that the seller has the right to transfer title free and clear of intellectual property rights of which the buyer does not have knowledge.

Accepted Answer

A) True 
 B)False

Question 20

A buyer may revoke acceptance of nonconforming goods under any circumstances.

Accepted Answer

A) True 
 B)False

Exam 15: Formation and Performance of Sales and Lease Contracts

Which is true regarding a buyer's right to waive warranties?

Correct Answer
verified

Which of the following are types of warranties?

Correct Answer
verified

Under the UCC buyers and lessees may recover goods identified in the contract if the seller or lessor becomes insolvent within _____________ after receiving the first payment due under the agreement.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Under the UCC, the seller must bring a lawsuit on a breached contract within _____________ years of when the breach occurred or when the seller became aware of it.

Correct Answer
verified

UCC Section ________________ requires good faith in the performance and enforcement of every contract.

Correct Answer
verified

Which option have most states adopted regarding the rights of third-party beneficiaries of warranties?

Correct Answer
verified

If goods identified to a contract are destroyed before risk passes to the buyer, the seller must obtain substitute goods.

Correct Answer
verified

The UCC assumes that the seller has defective title unless the seller proves otherwise.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following are referred to as an implied warranty of quality?

Correct Answer
verified

The UCC assumes that the seller has the right to transfer title free and clear of intellectual property rights of which the buyer does not have knowledge.

Correct Answer
verified

Because of the rule of privity, under the UCC warranties may not extend to third parties to a contract.

Correct Answer
verified

Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

Correct Answer
verified

When does the UCC allow buyers and lessees to seek the remedy of specific performance?

Correct Answer
verified

List the exceptions to title warranties.

Correct Answer
verified
The only exceptions to title warranties ...
View Answer

A buyer may revoke acceptance of nonconforming goods under any circumstances.

Correct Answer
verified

What do UCC sections 2-601 and 2A-509 indicate in reference to the perfect tender rule?

Correct Answer
verified

Exam 15: Formation and Performance of Sales and Lease Contracts

Which is true regarding a buyer's right to waive warranties?

Correct AnswerverifiedShow Answer

Which of the following are types of warranties?

Correct AnswerverifiedShow Answer

Under the UCC buyers and lessees may recover goods identified in the contract if the seller or lessor becomes insolvent within _____________ after receiving the first payment due under the agreement.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Under the UCC, the seller must bring a lawsuit on a breached contract within _____________ years of when the breach occurred or when the seller became aware of it.

Correct AnswerverifiedShow Answer

UCC Section ________________ requires good faith in the performance and enforcement of every contract.

Correct AnswerverifiedShow Answer

Which option have most states adopted regarding the rights of third-party beneficiaries of warranties?

Correct AnswerverifiedShow Answer

If goods identified to a contract are destroyed before risk passes to the buyer, the seller must obtain substitute goods.

Correct AnswerverifiedShow Answer

The UCC assumes that the seller has defective title unless the seller proves otherwise.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following are referred to as an implied warranty of quality?

Correct AnswerverifiedShow Answer

The UCC assumes that the seller has the right to transfer title free and clear of intellectual property rights of which the buyer does not have knowledge.

Correct AnswerverifiedShow Answer

Because of the rule of privity, under the UCC warranties may not extend to third parties to a contract.

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

Correct AnswerverifiedShow Answer

When does the UCC allow buyers and lessees to seek the remedy of specific performance?

Correct AnswerverifiedShow Answer

List the exceptions to title warranties.

Correct AnswerverifiedThe only exceptions to title warranties ...View AnswerShow Answer

A buyer may revoke acceptance of nonconforming goods under any circumstances.

Correct AnswerverifiedShow Answer

What do UCC sections 2-601 and 2A-509 indicate in reference to the perfect tender rule?

Correct AnswerverifiedShow Answer

Correct Answer
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The only exceptions to title warranties ...
View Answer

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Correct Answer
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