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A seller may not make repairs or adjustments after the goods have been tendered, even if that action will bring the goods into conformity in order to "cure" nonconforming goods.

A) True
B) False

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If applicable, course of dealing will


A) limit the buyer's right to reject for relatively routine defects.
B) allow the seller to replace defective goods with conforming goods if time permits.
C) permit a buyer to reject accepted goods if they substantially impair its value.
D) allow either the buyer or the seller to void a contract.

E) B) and D)
F) C) and D)

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Leonna orders five table settings of china from Elite China. Each set includes a dinner plate, cup & saucer, bowl, and dessert plate. The china is sold only in sets. When the delivery arrives, Leonna discovers that Elite China sent the wrong pattern. Leonna immediately calls Elite China and is instructed to send the shipment back. While repacking the shipment, Leonna changes her mind and decides to keep the cups and saucers. She returns everything else. Can she do this?

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Probably not. If the set is seen as a co...

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Neon orders one thousand 25-foot nylon ropes from Hang'em High Co. Upon inspection of the delivery, Neon learns that Hang'em sent five hundred 25-foot ropes and five hundred 20-foot ropes. Neon may


A) demand that Hang'em send 500 additional 25-foot ropes and get to keep the 20-foot ropes as well.
B) accept the 500 conforming ropes and reject the 500 nonconforming ropes.
C) seek an installment contract.
D) immediately "cure" by finding a substitute product.

E) B) and C)
F) A) and B)

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A buyer who is unable to obtain cover


A) will be limited to the remedy of incidental damages.
B) will be limited to the remedy of consequential damages.
C) will lose the money or goods invested in the breached contract.
D) may be allowed the remedy of specific performance.

E) B) and C)
F) A) and D)

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D

If a seller cures within a reasonable amount of time, the contract


A) has been performed.
B) is breached.
C) is void.
D) is voidable.

E) A) and B)
F) A) and C)

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Liquidated damages are not permitted under the UCC.

A) True
B) False

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If a buyer does not receive goods by the contract deadline, remedies available include all of the following EXCEPT


A) incidental and consequential damages.
B) cover.
C) damages for non-delivery.
D) cure.

E) All of the above
F) A) and B)

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Identify the possible remedies for a buyer when the seller breaches a contract.

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If a seller breaches a contract, the buy...

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If a contract does not provide for a time for inspection, the UCC allows inspection to take place


A) within a reasonable time.
B) the same day as delivery.
C) within 3 days of delivery.
D) within 10 days of delivery.

E) A) and C)
F) B) and C)

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Which of the following statements is NOT TRUE regarding the buyer's right to cover?


A) The buyer must cover.
B) The measure of damages in a cover is the difference between the cover price and the contract price.
C) Cover must be done by reasonably obtaining substitute goods.
D) Consequential damages can be recovered in addition to the cover damages.

E) A) and B)
F) A) and C)

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The term tender means to physically deliver the goods to the buyer.

A) True
B) False

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Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each. If the first installment arrives with 5 pounds of spoilage, then Dessert World may


A) reject the installment shipment because of the perfect tender rule.
B) not reject the installment if those in the food industry expect a small percentage of spoilage with fresh fruits or vegetables.
C) reject the entire contract.
D) declare a breach and "cover."

E) A) and B)
F) A) and C)

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Reba orders a pair of custom-made cowboy boots, C.O.D. from Home on the Range Western Wear. When the boots arrive, Reba pays the carrier for the boots, then opens the package, only to discover that the boots are the wrong snake skin color and three sizes too big. At this point


A) Reba is entitled to inspect the goods after payment (due to the C.O.D. terms) and she can reject the boots because they are nonconforming.
B) Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments.
C) Home on the Range can allege that Reba did not conduct a proper inspection; therefore, Home on the Range owes Reba nothing.
D) Reba has no recourse; she should have known to inspect the goods before paying the C.O.D. amount.

E) B) and C)
F) A) and C)

Correct Answer

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Turtle World orders 200 small sea turtles from Reptile World. After the sea turtles had been identified to the contract but before the risk of loss had passed to Turtle World, the turtles were released into the ocean by a militant animal rights group who broke into Reptile World to set the animals free. Under this scenario


A) Turtle World cannot successfully sue because the contract is void.
B) Turtle World can cover, then win a judgment against Reptile World for the difference between the contract price and the cover price, plus incidental and consequential damages, minus expenses saved.
C) Turtle World can successfully sue for specific performance because sea turtles are everywhere.
D) Turtle World is entitled to a judgment for compensatory damages, but not consequential damages.

E) B) and D)
F) B) and C)

Correct Answer

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A

Meister Bros. shipped 250 radiator belts to fill Braybon's order. Quality control measures had been in place in Meister's factory when the belts were manufactured. When Braybon received the order one day before it was due, it notified Meister that it rejected the belts because of a variation from the contract specifications. Meister, although it believed the original belts met the contract specifications, notified Braybon that it would supply conforming goods within one week. When the conforming goods arrive in one week,


A) Braybon must accept them, but does not have to pay the full price because the contract deadline has passed.
B) Braybon does not have to accept them because Meister Bros. only has one chance to fill the order correctly.
C) Braybon should accept them because Meister Bros. has a right to cure even after the contract deadline under these circumstances.
D) Braybon does not have to accept them because Meister Bros. failed to meet its UCC requirement to deal in good faith.

E) A) and B)
F) None of the above

Correct Answer

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If Chuck buys frozen cheese from Cheese, Inc., then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment, Chuck has accepted the shipment even if there is non-conformity.

A) True
B) False

Correct Answer

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A buyer has an absolute right to reject non-conforming goods as long as the rejection is timely.

A) True
B) False

Correct Answer

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Master Glue Hairspray, Inc. contracts to purchase 100 umbrellas with its logo and slogan, "A spray a day keeps the rain and wind away!" specially printed on the umbrellas and its 1-800 telephone number on the umbrella handle. After the seller completes the order, Master Glue refuses to accept or pay for the umbrellas. Because of the special logo and telephone number, the seller has been unable to find a new buyer. If the seller sues Master Glue, what is the proper measure of the seller's damages?


A) contract price minus market value of the goods at the time of delivery
B) contract price
C) lost profits
D) cover price minus contract price

E) A) and C)
F) A) and D)

Correct Answer

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B

Bryson Hardware accepted delivery of the 50 door handles it ordered. If it later finds the handles do not conform to the contract specifications and it wants to revoke its acceptance, it may return the goods only if


A) it shows the original acceptance of the goods never occurred.
B) it shows that the defects substantially impair their value.
C) it can prove it is commercially impracticable for it to keep the goods.
D) the documents of title are in order.

E) All of the above
F) None of the above

Correct Answer

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