Combo with Business Law Chpt 21 Performance and Breach of Lease and Contract and 3 others
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Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company. Food can obtain only 20,000 of the 6-ounce containers, but also ships 30,000 more expensive 8-ounce containers for the same price. Under these circumstances, Golden a. cannot reject delivery, and Food cannot later replace the containers. b. cannot reject delivery, but Food can later replace the containers. c. may reject delivery, and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers. d. may reject delivery, but Food cannot later replace the containers.
answer
c. may reject delivery, and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers.
question
Super Resources, Inc., sells unprocessed minerals to commercial processors in Texas. With regard to the UCC's good faith requirement, Super can a. avoid it only by a conspicuous written disclaimer. b. avoid it only by oral disclaimer. c. avoid it with or without a disclaimer. d. not disclaim it.
answer
d. not disclaim it.
question
Price-Cut Discount Stores are open to consumers. The UCC requirement of good faith imposes a. a higher duty on consumers than Price-Cut. b. a higher duty on Price-Cut than on consumers. c. no duty on either Price-Cut or consumers. d. the same duty on Price-Cut and consumers.
answer
b. a higher duty on Price-Cut than on consumers.
question
International Gem Corporation agrees to sell Jewelry Outlets, Inc. (JOI), fifty new diamonds, but the contract does not specify a place of delivery. JOI is expected to pick up the goods. The place of delivery is a. International's place of business. b. JOI's place of business. c. the Annual Gems and Jewels Convention. d. the U.S. Postal Service office nearest to JOI's place of business.
answer
a. International's place of business.
question
Rocky and Slim enter into a contract for a sale of five rowboats. Circumstance make it difficult for Rocky to perform, and the contract is breached. Slim looks for remedies. Unlike the common law, under the UCC, remedies are a. cumulative. b. exclusive. c. limited. d. unlimited.
answer
a. cumulative.
question
Genuine Seed Company and Hillside Farmers Cooperative enter into a contract for a sale of hybrid seeds. Under the perfect tender rule, Genuine Seed must ship or tender seeds to Hillside that a. approximately conform to all of the details of the contract. b. entirely conform to the contract except in one or two details. c. exactly conform to the contract in every detail. d. substantially conform to the contract in most details.
answer
c. exactly conform to the contract in every detail.
question
Clear Day Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Great Vu, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of delivery is in a. California. b. Delaware. c. Florida. d. Hawaii.
answer
c. Florida.
question
Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipment contract, the seller must a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. inspect the goods before shipping them. d. place the goods into the hands of a carrier.
answer
d. place the goods into the hands of a carrier.
question
Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that a. approximately conform to all of the details of the contract. b. entirely conform to the contract except in one or two details. c. exactly conform to the contract in every detail. d. substantially conform to the contract in most details.
answer
c. exactly conform to the contract in every detail.
question
Vehicle Leasing Agency (VLA) and Wander Trucking Company enter into a contract for a lease of eight cargo vans. VLA delivers eight vans, but they are not cargo-sized. Wander a. cannot reject the entire shipment. b. can reject the entire shipment. c. must accept the entire shipment. d. must reject the entire shipment.
answer
b. can reject the entire shipment.
question
Screen Perfect, Inc., and TV Stores enter into a contract for a sale of high-definition television sets. Screen Perfect ships goods that do not exactly conform to the contract in some details. TV Stores a. cannot reject the entire shipment. b. can reject the entire shipment. c. must accept the entire shipment. d. must reject the entire shipment.
answer
b. can reject the entire shipment.
question
Timber Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of plywood. Under a destination contract, the seller must a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. inspect the goods before tendering their delivery. d. place the goods into the hands of a carrier.
answer
b. deliver the goods to a particular destination.
question
Primo Pools Company and Aquatic Recreation, Inc., enter into a contract for a sale of prefabricated swimming pools. Under either a shipment contract or a destination contract, the seller must a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. place the goods into the hands of a carrier. d. provide the buyer with any necessary documents of title.
answer
d. provide the buyer with any necessary documents of title.
question
Pep Paints agrees to sell to Quality Painters Grade A-1 latex outdoor paint to be delivered May 8. On May 7, Pep tenders Grade B-2 paint. Quality rejects the Grade B-2 paint. Two days later, Pep tenders Grade C-3 paint with an offer of a price allowance. Pep has a. additional, unlimited time to cure. b. a reasonable, additional time to cure. c. one more day to cure. d. no more time to cure.
answer
d. no more time to cure.
question
According the court in Case 22.1, Maple Farms, Inc. v. City School District of Elmira, the defense of commercial impracticability will not excuse the performance of a contractual obligation when there is an increase in the seller's costs while the contract is in force a. unless the increase in the seller's costs is substantial. b. under any circumstances. c. unless the increase in the seller's costs makes it impossible for the seller to perform without losing money. d. unless the increase in the seller's costs was not foreseeable at the time the contract was formed.
answer
d. unless the increase in the seller's costs was not foreseeable at the time the contract was formed.
question
Relax Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay. Relax tells Stuffy on April 15 that delivery will be delayed until June 1. Stuffy may a. await performance, sue Relax, or suspend its own performance. b. only await Relax's performance for a commercially reasonable time. c. only sue Relax for breach of contract. d. only suspend its own performance
answer
a. await performance, sue Relax, or suspend its own performance.
question
Sid and Tony enter a contract for a sale of Sid's collection of electric guitars. Before the time for performance, Sid tells Tony that he does not want to deliver the guitars. Anticipatory repudiation is a. a breach of contract. b. a compromise between two parties who are unable to perform. c. a remedy available only to a breaching party. d. a remedy available only to a nonbreaching party.
answer
a. a breach of contract.
question
On May 1, City Auto & Truck Sales agrees to sell a car to Dino. Five days later, Dino refuses delivery and cancels the contract. City is entitled to a. force Dino to accept the car. b. recover any damages from Dino but not resell the car. c. resell the car and recover any damages from Dino. d. resell the car but not recover any damages from Dino.
answer
c. resell the car and recover any damages from Dino.
question
Design Architects, Inc., and Excel Supply Company contract for a sale of office furniture. Design Architects, which is insolvent, breaches the contract. Excel can stop delivery of the goods in transit a. only if the quantity is at least a carload. b. only if the quantity is at least a planeload. c. only if the quantity is at least a truckload. d. regardless of the quantity.
answer
d. regardless of the quantity.
question
Text Publishers, Inc., contracts for a sale of textbooks to University Bookstores, Inc. Vital Shipping Corporation, the carrier, transports the books to Warehouse Storage Company. Text's right to stop delivery is lost when University's rights to the goods are acknowledged by a. the appropriate government agency only. b. Vital Shipping only. c. Vital Shipping or Warehouse Storage. d. Warehouse Storage only.
answer
d. Warehouse Storage only.
question
Regal Manufacturing Company contracts to sell sweaters to Superb Styles Store. Before the sweaters are delivered, Superb indicates that it will not be able to pay. Regal can resell the goods a. either after finishing the job (and identifying the goods), or after stopping the job. b. only after finishing the job and identifying the goods. c. only if Regal immediately stops the job. d. under no circumstances.
answer
a. either after finishing the job (and identifying the goods), or after stopping the job.
question
Hi-Tech Company contracts to sell fiber optic cable to Internet Services, Inc. Hi-Tech may bring an action to recover the purchase price and incidental damages if Internet a. accepts the cable and pays for it. b. accepts the cable but does not pay for it. c. rejects the cable. d. revokes acceptance of the cable.
answer
b. accepts the cable but does not pay for it.
question
Loni and Myra enter into a contract for a sale of clarinets and other wind instruments. Loni delivers, but Myra does not pay. Loni can normally recover as damages the difference between a. any loss avoided and any profit gained. b. the actual price and the hoped-for price. c. the contract price and the market price. d. the current prices in the parties' locations.
answer
c. the contract price and the market price.
question
Delta Boats, Inc., and Eventide Fishing Tours enter into a contract for a sale of seven custom-made swamp boats. Eventide pays for the goods, but Delta does not deliver. Eventide can use replevy as a remedy if a. Delta is lawfully withholding the goods. b. Eventide cannot effectively cure the defect. c. Eventide is unable to cover for the goods. d. the goods have not been identified to the contract.
answer
c. Eventide is unable to cover for the goods.
question
Amble Country Stables contracts to buy 1,000 horseshoes from Blacksmith, Inc., for $1 per shoe. When the market price decreases to 50 cents per shoe, Amble refuses to go through with the deal. Blacksmith can recover a. $1,500. b. $1,000. c. $500. d. 0.
answer
c. $500.
question
Leather Products Stores, Inc., rejects a shipment of goods that does not conform to its contract with Manufactured Cowhide Corporation, but is unable to obtain instructions from the seller. Leather Products may a. resell or return the goods only. b. resell or store the goods only. c. return or store the goods only. d. resell, return, or store the goods.
answer
d. resell, return, or store the goods.
question
Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle. Esau cancels the contract ten days later. Double D is unable to sell the cattle to another buyer. Double D is entitled to a. force Esau to accept the cattle and recover the contract price. b. keep the cattle and recover the contract price from Esau. c. keep the cattle only. d. recover the contract price from Esau but must destroy the cattle.
answer
b. keep the cattle and recover the contract price from Esau.
question
BBQ, Inc., makes and sells grills to Grill Mart, a retailer, which sells one of the grills to Hope, a consumer. BBQ and Grill Mart include in their contracts a limitation on consequential damages for personal injuries arising from a breach of warranty. This is prima facie unconscionable with respect to a. all of these parties. b. BBQ and Grill Mart, but not Hope. c. Hope only. d. none of these parties.
answer
c. Hope only.
question
Field Gardens and Gourmet Restaurant, Inc., enter into a contract for a sale of lettuce before Gourmet declares bankruptcy. Field can stop delivery of the goods in transit a. only if the quantity is at least a carload. b. only if the quantity is at least a planeload. c. only if the quantity is at least a truckload. d. regardless of the quantity.
answer
d. regardless of the quantity.
question
Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks, Inc., but refuses to deliver. Due to a spice shortage, Roller Rinks cannot obtain pizza elsewhere. Roller Rinks's right to recover the goods from Cheesy is the right of a. cover. b. cure. c. replevin. d. specific performance.
answer
c. replevin.
question
Owen and Pablo enter into a contract for a sale of fifty Western saddles. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between a. any loss avoided and any profit gained. b. the actual price and the hoped-for price. c. the contract price and the market price. d. the current prices in the parties' locations.
answer
c. the contract price and the market price.
question
Natural Foods, Inc., orders \"Grade A\" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers. Olive Grove ships \"Grade B\" oil, which Natural Foods accepts. To recover damages for the nonconformity, Natural Foods must give notice of the breach within a reasonable time to a. Olive Grove only. b. Olive Grove, Pic 'N Pay, and the appropriate government agency. c. Pic 'N Pay only. d. the appropriate government agency only.
answer
a. Olive Grove only.
question
Quincy buys a car under a warranty from Ride Motors. Quincy soon discovers that the car has a defect that significantly affects its value and use. In all states and the District of Columbia, Quincy may have remedies under a. a lemon law. b. Article 74 of the CISG. c. a transit law. d. the Automobile Dealers' Day in Court Act.
answer
a. a lemon law.
question
Ghangzhou, Ltd., in China and Hot Togs, Inc., in the United States enter into a contract for a sale of casual clothing. Under the United Nations Convention on Contracts for the International Sale of Goods (CISG), on a breach of the contract, the nonbreaching party can normally recover as damages the difference between a. any loss avoided and any profit gained. b. the actual price and the hoped-for price. c. the contract price and the market price. d. the current prices in the parties' two countries.
answer
c. the contract price and the market price.
question
Uri sells 100 cases of vitamins to Wanda, but before she takes physical possession, the cases are lost. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of a. physical possession. b. product liability. c. risk of loss. d. title.
answer
c. risk of loss.
question
EZ Equipment Corporation leases six forklifts to Faulty Refining Company, but as the forklifts are delivered, they are lost in an explosion. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of a. physical possession. b. product liability. c. risk of loss. d. title.
answer
c. risk of loss.
question
Office Equipment Leasing, Inc. (OEL), agrees to lease five computer workstations to Product Promotion Corporation (PPC). Before any interest in the workstations can pass from OEL to PPC, they must be a. in existence and identified as the goods in the contract. b. in existence only. c. identified as the specific goods designated in the contract only. d. none of the choices.
answer
a. in existence and identified as the goods in the contract.
question
A specific grade of corn that fills Dean and Ethel's silo is fungible. This means that the corn is a. alike naturally or by agreement or trade usage. b. fundamentally different. c. fundamentally edible. d. perishable.
answer
a. alike naturally or by agreement or trade usage.
question
Alaskan salmon that fill the hold of Bill and Carla's fishing boat are fungible if the salmon are a. alike naturally or by agreement or trade usage. b. fundamentally different. c. fun, good, and edible. d. liable to deteriorate over time.
answer
a. alike naturally or by agreement or trade usage.
question
Rita orders 1,000 cases of 1/4-inch nuts from Steel Parts Company's 10,000-case lot. Steel Parts separates 1,000 cases from the lot. Title and risk of loss a. remain with Steel Parts until Rita acknowledges tender of delivery. b. remain with Steel Parts until Rita accepts 1,000 cases. c. shift to Rita after she accepts the nuts and inspects them for defects. d. shift to Rita when Steel Parts separates the cases.
answer
d. shift to Rita when Steel Parts separates the cases.
question
Kip, a representative for Little Shipping Company, delivers a bill of lading to Meg, the owner of Normal Warehouse. A bill of lading is a. an invoice for payment for loading and carting. b. an order to ship goods by carrier to a certain destination. c. a receipt for goods signed by a carrier. d. a receipt issued by a warehouser for goods in a warehouse.
answer
c. a receipt for goods signed by a carrier.
question
XL Electronics orders thirty hard drives from Yang Computers, Inc. The hard drives are stored in City Warehouse. Under the terms of the order, Yang must give XL a warehouse receipt for the goods, which XL will then pick up. Title to the goods passes to XL when a. City Warehouse stores the goods. b. XL orders the goods. c. XL picks up the goods. d. Yang gives XL a warehouse receipt for the goods.
answer
d. Yang gives XL a warehouse receipt for the goods.
question
Rani leaves a pair of new shoes at Soles Shoe Store to be dyed. Soles sells the shoes to Tia, who does not know that the shoes belong to Rani. Rani can recover from a. neither Tia nor Soles Shoe Store. b. Soles Shoe Store only. c. Soles Shoe Store or Tia. d. Tia only.
answer
b. Soles Shoe Store only
question
Lou's Bicycle Store contracts to buy fifty bicycles from Mountain Bikes, Inc. Unless the contract states otherwise, this is a. a bill of lading. b. a destination contract. c. a shipment contract. d. a warehouse receipt.
answer
c. a shipment contract.
question
Ideal Gadgets, Inc., and Jolly Outlets Corporation enter into a contract for a sale of kitchenware. The contract requires Ideal to deliver the goods to Ladle Carrier Company for transport to Jolly's warehouse in Metro City. Risk of loss passes to Jolly when a. Ideal delivers the goods to Ladle. b. Ideal identifies the goods to the contract. c. Ladle transports the goods to Jolly's warehouse. d. the goods arrive in Metro City.
answer
a. Ideal delivers the goods to Ladle.
question
Dan steals Eve's necklace and sells it to Fiona. Eve can recover the necklace from Fiona a. only if Fiona did not know that the necklace was stolen. b. only if Fiona gave legally sufficient consideration for the necklace. c. only if Fiona knew that the necklace was stolen. d. under any circumstances.
answer
d. under any circumstances.
question
Home Products Store buys furniture from Ideal Furniture, Inc. The parties agree that the furniture will be shipped \"F.O.B. Ideal's warehouse\" to Home Products via Jiffy Shipping Corporation. The furniture is lost in transit. The loss is suffered by a. Home Products and Ideal Furniture, but not Jiffy Shipping. b. Home Products, Ideal Furniture, and Jiffy Shipping. c. Home Products only. d. Ideal Furniture only.
answer
c. Home Products only.
question
Quiet Soles, Inc., and Retail Footwear Stores enter into a contract for the sale of shoes. The contract indicates that the price includes transportation costs to a specific destination by including the term a. C.I.F. b. delivery ex-ship. c. F.A.S. d. F.O.B.
answer
d. F.O.B.
question
Real Tea Company and Savory Stores, Inc., enter into a contract for a sale of tea. The contract includes the term \"F.O.B. Upriver City,\" which is Savory's location. This means that the contract is a. a bailment contract. b. a destination contract. c. a shipment contract. d. a transportation contract.
answer
b. a destination contract.
question
With a bill of lading, Cartage Common Carrier Company acknowledges possession of certain goods and contracts to deliver them. Cartage is a. a bailee. b. a buyer in the ordinary course of business. c. a good faith purchaser for value. d. an F,O,B.
answer
a. a bailee.
question
Fine Material Corporation in New Jersey sells fifty tons of fabric to Great Clothing, Inc., in Ohio, F.O.B. New Jersey. The cost of transporting the fabric to Ohio will be paid by a. Fine Material. b. Great Clothing. c. New Jersey. d. Ohio.
answer
b. Great Clothing.
question
Raw Material, Inc., and Sewn Fabric Corporation enter into a contract for a sale of muslin. The terms do not clearly indicate whether it is a destination or shipment contract. A court would most likely presume that it is a. a bailment contract. b. a destination contract. c. a shipment contract. d. a transportation contract.
answer
c. a shipment contract.
question
Martin buys 1,000 bales of hay from Nuevo Farms. The parties agree that the hay will be transported F.A.S. via Overland Transport Company. Nuevo Farms' truck carrying the hay explodes before reaching Overland Transport. The loss is suffered by a. Martin and Nuevo Farms, but not Overland Transport. b. Martin, Nuevo Farms, and Overland Transport. c. Martin only. d. Nuevo Farms only.
answer
d. Nuevo Farms only.
question
Brothers Cafe buys 100 bags of oranges from Sisters Citrus Company. The parties agree to ship the oranges \"F.O.B. Brothers Cafe\" via Tonnage Trucking Company. The oranges rot in transit. The loss is suffered by a. Brothers Cafe and Sisters Citrus, but not Tonnage Trucking. b. Brothers Cafe only. c. Brothers Cafe, Sisters Citrus, and Tonnage Trucking. d. Sisters Citrus only.
answer
d. Sisters Citrus only.
question
Perfect Furnishings, Inc., agrees to lease a desk to Research Resources, Inc. (RRI), which requests that the desk be left outside Streetside Warehouse for RRI to pick up. Before RRI retrieves the desk, it is stolen. The loss is suffered by a. Perfect Furnishings and RRI, but not Streetside Warehouse. b. Perfect Furnishings only. c. Perfect Furnishings, RRI, and Streetside Warehouse. d. RRI only.
answer
d. RRI only.
question
Leo buys a bicycle from his brother, Mike, who is a used car dealer. Mike agrees to keep the bike at his house until Leo picks it up. A tree falls on Mike's garage and destroys the bike. The loss is suffered by a. Leo and Mike. b. Leo only. c. Mike only. d. neither Leo nor Mike.
answer
b. Leo only.
question
Twyla buys a bicycle from U-Pik-It Bike Store, which agrees to keep the bike for Twyla until she picks it up. Before Twyla gets the bike, a fire destroys the store and the bike. The loss is suffered by a. neither Twyla nor U-Pik-It b. Twyla and U-Pik-It. c. Twyla only. d. U-Pik-It only.
answer
d. U-Pik-It only.
question
Commercial Storage (CS), a bailee, holds goods for Delta Distributors, Inc., which has contracted to sell them to Eagle Company. The goods are to be delivered without being moved. The risk of loss will pass to Eagle when Eagle receives a. a copy of Delta's contract with CS. b. a copy of Delta's contract with Eagle. c. a negotiable document of title. d. a notice that Eagle's payment for the goods has cleared.
answer
c. a negotiable document of title.
question
Delta Products Corporation contracts with Excel Trucking Company to take goods to Flight Airlines, Inc., with Flight to transport the goods to a Geo Storage Company warehouse. Excel, Flight, and Geo each acknowledge possession of the goods by a document of title. Excel, Flight, and Geo are a. bailees. b. consignees. c. lessees. d. sellers.
answer
a. bailees.
question
City Storage Company holds goods for Downtown Sales Corporation, which contracts to sell them to eStores, Inc. The goods are to be delivered without being moved and are represented by a negotiable bill of lading. The risk of loss passes to eStores a. if City refuses to honor the bill of lading. b. if Downtown gives the bill of lading to City. c. if the goods are lost due to an \"act of God.\" d. when eStores receives the bill of lading.
answer
d. when eStores receives the bill of lading.
question
My-Tee Purchasing Corporation orders from National Sales, Inc., goods that are stored in a Outstate Properties, Inc., warehouse. My-Tee pays for the goods, delivery is via the transfer of a negotiable warehouse receipt, and My-Tee moves the goods out of the warehouse. The risk of loss passes to My-Tee when it a. orders the goods. b. pays for the goods. c. receives the negotiable warehouse receipt. d. moves the goods out of the warehouse.
answer
c. receives the negotiable warehouse receipt.
question
Relax Recreation Toys, Inc., allows Sandy to take a Relax boat for a \"test run.\" Sandy tries the boat for a few hours, returns, and buys it. This is a. a bailment. b. a consignment. c. a sale on approval. d. a sale or return.
answer
c. a sale on approval.
question
Great Workouts, Inc., offers to sell a home gym to Ida and sends it to her on a trial basis. This is a. a consignment. b. a delivery ex-ship. c. a sale on approval. d. a sale or return.
answer
c. a sale on approval.
question
Eagle Company sells new and used motorcycles. Some of the motorcycles are held on consignment, including six consigned by Fine Cycles, Inc. While the Fine cycles are in Eagle's possession, title to them is held by a. Eagle and Fine jointly. b. Eagle only. c. Eagle's creditors only. d. Fine only.
answer
b. Eagle only
question
Diamond Camera Shop receives lenses from Excel Optical, Inc., under a sale or return agreement. While the lenses are in Diamond's possession, title is held by a. Diamond and Excel jointly. b. Diamond only. c. Diamond's creditors only. d. Excel only.
answer
b. Diamond only.
question
Town Style Stores orders leather jackets from Unique Clothing Company. Unique mistakenly ships denim jackets, which Town rejects and returns via Value Transport, Inc. During the return, the jackets are lost. The loss is suffered by a. Town and Unique, but not Value. b. Town only. c. Town, Unique, and Value. d. Unique only.
answer
d. Unique only.
question
Diner's Cafe orders five gallons of transfat-free olive oil from EZ Distributors, Inc. EZ mistakenly ships soy oil, which Diner's keeps, despite the nonconformity. The oil is destroyed in a fire. The loss is suffered by a. Diner's and EZ, but not Diner's customers. b. Diner's, EZ, and Diner's customers. c. Diner's only. d. EZ only.
answer
c. Diner's only.
question
NuStores accepts a shipment of DVD players from Open-Ur-Eyes Video, Inc. NuStores later discovers a defect in the players, revokes acceptance, and returns the players via Playback, Inc. During the return, the players are lost. The loss is suffered by a. NuStores only. b. NuStores and Open-Ur-Eyes, but not Playback. c. NuStores, Open-Ur-Eyes, and Playback. d. Open-Ur-Eyes only.
answer
d. Open-Ur-Eyes only.
question
Little Jewelry Store orders display racks from Marketing Supplies, Inc. (MSI). MSI mistakenly ships racks of the wrong size and color, which Little rejects and returns via New Shipping Company. During the return, the racks are lost. The loss is suffered by a. Little only. b. Little and MSI, but not New Shipping. c. Little, MSI, and New Shipping. d. MSI only.
answer
d. MSI only.
question
Essen Corporation buys from Fallow Farms, Inc., a rice crop that Fallow plans to plant and harvest during the next growing season. Essen plans to sell the rice to Gourmet Grocery Stores. After the rice is planted, but before it is harvested, an insurable interest in the rice exists in a. Essen and Fallow, but not Gourmet Grocery. b. Essen, Fallow, and Gourmet Grocery. c. Essen only. d. Fallow only.
answer
a. Essen and Fallow, but not Gourmet Grocery.
question
Office Corporation (OC) orders five inkjet printers from Print Products, Inc. (PPI), to be delivered by PPI. Before PPI's truck arrives with the goods, OC tells PPI it will not pay. The printers are destroyed in transit. The loss is suffered by a. OC and PPI equally. b. OC only. c. OC to the extent of a deficiency in PPI's insurance coverage only. d. PPI only.
answer
c. OC to the extent of a deficiency in PPI's insurance coverage only.
question
Quik Sales Corporation orders goods from Re Stock Company. Re plans to market the goods to consumers generally. Re identifies the goods. Before they are shipped to Quik, an insurable interest in the goods exists in a. Quik and Re, but not consumers generally. b. Quik only. c. Quik, Re, and consumers generally. d. Re only.
answer
a. Quik and Re, but not consumers generally.
question
Orange Computer Corporation sells Pad-brand MP3 players to Quik Discount Stores and other retailers. Orange will have an insurable interest in the players as long as a. Orange remains in business. b. Orange retains title to the goods. c. the goods are in existence. d. there is no risk of loss.
answer
b. Orange retains title to the goods.
question
Bild-Rite, Inc., is a Colorado-based firm that does business with clients throughout North America. Bild-Rite oversees construction projects, and buys and sells commercial buildings, undeveloped land, and construction supplies and other goods. Bild-Rite has had to deal with work-site theft and vandalism. With respect to these circumstances, the Uniform Commercial Code (UCC) provides a framework for a. commercial transactions for the sale of and payment for goods. b. international construction contracts. c. domestic and foreign transactions in real estate. d. prosecuting crimes against business interests.
answer
a. commercial transactions for the sale of and payment for goods.
question
Stardust Coffee Company is a Texas-based firm that does business throughout the world. Stardust manages retail and wholesale operations, buys and sells commercial venues, undeveloped land, and coffee beans, and other goods. Stardust has had to deal with employee and customer theft. With respect to these circumstances, the Uniform Commercial Code (UCC) provides a framework for a. commercial transactions for the sale of and payment for goods. b. international distribution agreements. c. domestic and foreign transactions in real estate. d. prosecuting crimes against business interests.
answer
a. commercial transactions for the sale of and payment for goods.
question
Omni Corporation is a Pennsylvania-based firm that does business throughout the United States. With respect to this circumstance, the UCC has been adopted by, and applies in, a. a few of the states. b. all of the states, in whole or in part. c. half of the states. d. none of the states, to date.
answer
b. all of the states, in whole or in part.
question
High n' Mighty Mart, Inc., is an Illinois-based firm that does business throughout the United States. With respect to this circumstance, the UCC has been adopted by, and applies in, a. all of the states, in whole or in part. b. most of the states on the Atlantic and Pacific coasts. c. none of the states, to date. d. only the states on the Mississippi, Missouri, and Ohio Rivers.
answer
a. all of the states, in whole or in part.
question
Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs a. the checks. b. the payment of the loan. c. the sale of the buildings. d. the sale of the goods.
answer
d. the sale of the goods.
question
Over the course of a year, Real Deal Corporation sells appliances to customers to whom it extends credit. Real Deal orders the appliances from Superior Appliance Company's warehouse, from which the items are shipped via common carrier to Real Deal's customers. Article 2 of the UCC governs a. all of the parties' sales of the goods. b. Real Deal's extension of credit. c. Superior's storage of the goods. d. the common carrier's delivery of the goods.
answer
a. all of the parties' sales of the goods.
question
Nemo pays Office Supply Company $1,500 for a laptop computer. Under the UCC, this is a. a gift. b. a lease. c. a sale. d. not a gift, a lease, or a sale.
answer
c. a sale.
question
Expert Stitching Corporation enters into a contract to sell denim clothing to Fine Fashion Company, which in turn sells a pair of jeans to Grady, a consumer. In contrast to standards that apply to consumers, the UCC imposes on merchants a. less strict legal standards. b. special business standards. c. stricter ethical standards. d. the same overall standards.
answer
b. special business standards.
question
In a dispute over a sale involving a bicycle, Dain argues that as to this deal Elle's Hobby Shop, where Dain bought the bike, is a merchant. A court may determine whether Elle's is a merchant by assessing whether a. it has sold any bikes within the last year. b. it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction. c. its owner enjoys biking. d. it subscribes to Bike, a biweekly trade magazine.
answer
b. it holds itself out by occupation as having knowledge or skill unique to the bike in the transaction.
question
Rikki and Sid enter into a sales contract. With respect to the specific contractual provisions set out in the UCC, Rikki and Sid may a. agree to different terms only to a reasonable extent. b. agree to different terms unless they \"get caught.\" c. agree to whatever terms they wish. d. not agree to different terms.
answer
c. agree to whatever terms they wish.
question
Cleo sells kitchen appliances, and occasionally cleaning supplies, to persons who come into her store, Discount Appliances. One afternoon, Cleo sells a used display shelf to Earl. Under the UCC, Cleo is a merchant of a. cleaning supplies and kitchen appliances only. b. cleaning supplies, display shelves, and kitchen appliances. c. cleaning supplies only. d. kitchen appliances only.
answer
a. cleaning supplies and kitchen appliances only.
question
Excel Autos & Trucks, Inc., contracts to sell five trucks to First Leasing Corporation, which contracts to lease the trucks to General Delivery Company. Article 2A of the UCC applies to a. neither the lease nor the sale. b. the lease and the sale. c. the lease only. d. the sale only.
answer
c. the lease only.
question
Rally Corporation enters into a contract to sell ski gear to SnoSportz Company, which sells a pair of the skis to Tyra, a consumer, who later sells them to Uli, another consumer. Article 2 of the UCC applies to the sales transactions between a. all of the buyers and sellers. b. Rally and SnoSportz only. c. SnoSportz and Tyra only. d. Tyra and Uli only.
answer
a. all of the buyers and sellers.
question
American Products Company and Best Manufacturing, Inc. (BMI), enter into a contract for the sale of a certain quantity of machine parts, with BMI to determine the price. The price must be fixed according to the concept of a. good faith. b. square dealing. c. the mere image rule. d. unconscionability.
answer
a. good faith.
question
Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car. This contract is subject to a. Article 2 of UCC. b. Article 2A of the UCC. c. Article 11 of the CISG. d. the common law only.
answer
b. Article 2A of the UCC.
question
Cathy and Dave sign a contract for a sale of goods. Cathy is to set the price for the goods at the time of delivery, but on delivery, refuses to do so. Dave may only a. fix a reasonable price. b. fix a reasonable price or treat the contract as canceled. c. treat the contract as canceled. d. wait for Cathy to set the price.
answer
b. fix a reasonable price or treat the contract as canceled.
question
Standard Office Corporation pays Tech Products $1,000 to use a Tech computer for a month. For purposes of the UCC, this is a. a bailment. b. a consignment. c. a lease. d. a sale.
answer
c. a lease.
question
Variety Goods, Inc., and World Sales Corporation enter into a contract that does not specify the payment terms. Payment may be made in a. any commercially acceptable means except cash. b. cash only. c. cash or any commercially acceptable substitute. d. cash or check only.
answer
c. cash or any commercially acceptable substitute.
question
Metro Daily and New City Newsstand enter into a contract under which Metro agrees to deliver a certain quantity of newspapers to New City each day. The contract does not include a price term. In a suit between the parties over the price, a court will a. determine a reasonable price. b. impose the lowest market price. c. refuse to enforce the agreement. d. return the parties to the positions they held before the contract.
answer
a. determine a reasonable price.
question
NuTech Company agrees to sell computer equipment to Office Stores, Inc. (OSI) for OSI to market to its customers. Their contract will not be enforceable unless it includes a. the duration of the deal. b. the price of the goods. c. the quantity of the goods. d. the requirements of OSI's customers.
answer
c. the quantity of the goods.
question
Regional Products, Inc., agrees to sell to Quantity Dealers Corporation a certain amount of goods but no mention is made of where the goods are to be delivered. In general, the UCC requires that the delivery take place at a. a neutral place of business halfway between the parties' locations. b. a UCC-designated warehouse. c. Regional's place of business. d. Quantity's place of business.
answer
c. Regional's place of business.
question
Doctors Medical Clinic orders 1,000 bandages from Emergency Supplies Company but fails to specify the sizes. The bandages are delivered in an assortment of sizes. Doctors Medical Clinic may a. accept the bandages \"as is\" only. b. accept the bandages \"as is\" or reject the entire shipment only. c. accept only the bandages that it wants and reject the rest. d. reject the entire shipment only.
answer
c. accept only the bandages that it wants and reject the rest.
question
Roy's Chick'n Shack orders chicken from Standard Food Supplier, but Standard does not deliver. Roy's will probably be unable to enforce the agreement if the parties a. did not limit the duration of the deal. b. did not specify a payment term. c. did not specify a quantity term. d. have not begun to perform.
answer
c. did not specify a quantity term.
question
Contractors Construction Corporation offers to buy from Dandy Cement Company a certain quantity of cement for a certain price. Dandy can accept the offer by a. doing nothing. b. promising to ship or promptly shipping the cement. c. promising to ship the cement only. d. promptly shipping the cement only.
answer
b. promising to ship or promptly shipping the cement.
question
Desktop Company offers to sell eRetail, Inc., 1,000 computers for a $500,000, states that the offer will be open for six days, and asks for a response by fax. On the fourth day, eRetail sends an acceptance to Desktop via the mail, which is received on the sixth day. In this deal a. a contract is formed. b. no contract is formed, because Desktop asked for a response by fax. c. no contract is formed, because Desktop received the acceptance late. d. no contract is formed, because eRetail sent the acceptance late.
answer
a. a contract is formed.
question
Best Sales, Inc., is the offeror and City Goods Corporation is the offeree under a unilateral sales contract in which Delta Products Company is also interested. Best is not notified of City's performance within a reasonable time. Best a. may treat the offer as having lapsed. b. must assume that City has started to perform. c. must contact City. d. must contract with Delta.
answer
a. may treat the offer as having lapsed.
question
Retail Music, Inc., offers to buy from Super Products Corporation (SPC) 1,000 blank CDs of a certain brand. Without notifying Retail, SPC timely ships CDs of a different brand. This shipment is a. an acceptance of the offer and a breach of the parties' contract. b. an acceptance of the offer and a fulfillment of the parties' contract. c. a refusal of the offer and a breach of the parties' contract. d. a refusal of the offer and a fulfillment of the parties' contract.
answer
a. an acceptance of the offer and a breach of the parties' contract.
question
Equipment Rental Corporation and Family Farm, Inc., are parties to an oral agreement for a lease of goods with payments in excess of $10,000. They may satisfy the Statute of Frauds by a. mutually agreeing not to commit fraud. b. restating the terms in a phone call. c. setting out the terms in an e-mail. d. shaking hands on the deal.
answer
c. setting out the terms in an e-mail.
question
United Farms offers to sell Valu Bakeries, Inc., fifty bushels of wheat. Valu's representative Wendy responds, \"We agree to buy fifty bushels only if the wheat is Grade A quality.\" Wendy's statement is a. a breach of the parties' contract. b. a counteroffer. c. a fulfillment of the parties' contract. d. an acceptance.
answer
b. a counteroffer.
question
Kelly offers to buy cooking oil from Jim. Jim believes Kelly asks for 10,000 gallons and orally agrees to the sale. When the parties later dispute the deal in court, Jim's claim of 10,000 gallons and Kelly's testimony that she ordered only 1,000 gallons a. prevents the enforcement of any contract between these parties. b. supports an enforceable contract for 10,000 gallons. c. supports an enforceable contract for 5,500 gallons. d. supports an enforceable contract for 1,000 gallons.
answer
d. supports an enforceable contract for 1,000 gallons.
question
Rite Clothiers, Inc., sells t-shirts to Brand Name Stores, Inc., under an existing contract. When textile costs increase, Brand agrees to a price increase, but later wants to cancel the contract. Brand may a. cancel the contract immediately. b. cancel the contract only after accepting a final shipment. c. cancel the contract only on reasonable notice. d. not cancel the contract.
answer
d. not cancel the contract.
question
Recreation Supplies, Inc. (RSI), and Sam, the owner of a Tourist Time shop, orally agree to a sale of beach balls and seashells for $1,000. Sam gives RSI a check for $400 as a partial payment. This contract is a. enforceable to the extent of $400. b. fully enforceable because it is for specially made goods. c. fully enforceable because it is oral. d. not enforceable.
answer
a. enforceable to the extent of $400.
question
Quinn enters into a series of agreements with Reba involving a sale of a Suite Dreams Motel, including the land, building, furnishings, shares of stock in Suite Dreams Company, and a contract with Trudy to create an ad campaign. Reba suspects that Quinn may be misrepresenting the facts. The UCC Statute of Frauds governs the sale of a. any of the property evidenced by a writing. b. any of the property that may involve fraud. c. the furnishings priced at $500 or more. d. the land and the building.
answer
c. the furnishings priced at $500 or more.
question
Fruits & Vegetables, Inc., and Great Grocery Stores dispute the interpretation of an ambiguous phrase in their contract. In a suit between the parties to construe the contract, a court may accept evidence of a. consistent additional terms only. b. consistent additional terms and contradictory terms only. c. contradictory terms only. d. anything extrinsic to the contract.
answer
a. consistent additional terms only.
question
Tasty Pastries, Inc., and other bakers refer to a \"baker's dozen\" as consisting of a collection of thirteen baked goods. This is an example of a. course of dealing. b. course of performance. c. square dealing. d. usage of trade.
answer
d. usage of trade.
question
Timber Products, Inc., and Walt, a consumer, enter into a contract for a sale of plywood. If the contract includes a clause that is perceived as grossly unfair to Walt, its enforcement may be challenged under the doctrine of a. good faith. b. square dealing. c. the mere image rule. d. unconscionability.
answer
d. unconscionability.
question
ail enters into a contract with Hi-Price Appliances, Inc. In a suit between the parties over payment under the contract, Gail claims that a certain clause is unconscionable. If the court agrees, it may a. enforce, limit, or refuse to enforce the contract or the disputed clause. b. enforce the contract without the disputed clause only. c. limit the application of the disputed clause only. d. refuse to enforce the entire contract only.
answer
a. enforce, limit, or refuse to enforce the contract or the disputed clause.
question
In Case 20.3, Jones v. Star Credit Corp., which of the following factors was not considered by the court when it declared a contract for the purchase of a freezer unconscionable a. The price the plaintiffs were charged was more than four times the freezer's retail value. b. The credit charges alone exceeded the freezer's retail value. c. The seller knew of the buyers' limited resources. d. The freezer was not merchantable.
answer
d. The freezer was not merchantable.
question
Overseas Corporation (OC), a U.S. firm, orally agrees to sell six freezers to Pisa Pizza, Ltd., in Italy. OC fails to deliver. Under the CISG, Pisa Pizza can a. enforce the agreement. b. not enforce the agreement because it is not in writing. c. not enforce the agreement because the price term is not specified. d. not enforce the agreement because there is no consideration.
answer
a. enforce the agreement.
question
Rodeo, S.A., which is based in Spain, enters into a contract for the sale of seven hydraulic lifts to Tonnage Shipping Company, which is based in the United States. This contract is governed by a. Spanish law. b. the provisions in the laws of both countries that are similar. c. the UCC. d. the United Nations Convention on Contracts for the International Sale of Goods.
answer
d. the United Nations Convention on Contracts for the International Sale of Goods.
question
Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant. If Even-Flo breaches the contract, Fiesta can a. do nothing but make a deal with .a different service provider. b. do nothing but temporarily suspend operations and wait. c. file a criminal complaint against Even-Flo. d. sue Even-Flo for damages.
answer
D.sue Even-Flo for damages.
question
Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week. When Handy cancels the contract, Ilsa spends $100 to obtain a similar job that pays $450 per week for a year. Ilsa is entitled to recover a. the amount of the wages that Handy promised only. b. the difference between the wages at the two jobs only. c. the difference between the wages at the two jobs plus $100. d. $100 only.
answer
C. the difference between the wages at the two jobs plus $100.
question
Carol pays Dick $10,000 to design an ad campaign for Carol's Coffee Stand chain. The next day, Dick tells Carol that he has accepted a job in New York and cannot design her campaign. Carol files a suit against Dick. As compensatory damages, Carol can recover a. $100,000. b. $10,000. c. $1,000. d. $0.
answer
B. $10,000.
question
Beachside Pools, Inc., agrees to build a swimming pool for Candy, but fails to build it according to the contract specifications. Candy hires Do-We Fix-It Company to finish the project. Candy may recover from Beachside a. the contract price less costs of materials and labor. b. the contract price. c. the costs needed to complete construction. d. profits plus the costs incurred up to the time of the breach.
answer
c. the costs needed to complete construction.
question
Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside fails to go through with the deal on the agreed date, when the market price of the land is $17,000. DA may recover a. $17,000. b. $15,000. c. $2,000. d. $0.
answer
c. $2,000.
question
Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover a. the contract price less costs of materials and labor. b. the contract price. c. the costs needed to complete construction. d. profits plus the costs incurred up to the time of the breach.
answer
d. profits plus the costs incurred up to the time of the breach.
question
Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pam buys the computer elsewhere for $6,500. Pam's measure of damages is a. $1,500 only. b. $1,500 plus incidental damages. c. incidental damages only. d. $0.
answer
b. $1,500 plus incidental damages.
question
Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is awarded compensatory damages, the purpose would be to a. establish, as a matter of principle, that ISI acted wrongfully. b. provide Hybrid with funds for a foreseeable loss beyond the contract. c. provide Hybrid with funds for its loss of the bargain. d. punish ISI and set an example to deter others from similar acts.
answer
c. provide Hybrid with funds for its loss of the bargain.
question
Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover a. $13,000. b. $10,000. c. $3,000. d. $0.
answer
b. $10,000.
question
Mona contracts to repair a computer for NuData, Inc. (NDI). Mona knows that without the computer, NDI will lose a sale. Mona does not perform as promised. NDI files a suit against Mona. As consequential damages, NDI can recover a. the cost of a new computer. b. the difference between Mona's price and the actual cost of repair. c. the loss of profit from the lost sale. d. nothing.
answer
c. the loss of profit from the lost sale.
question
Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corporation. Fresh Food does not pay for the storage. Earl sells the fruit to Green Grocers, Inc. This sale represents a. a breach of contract. b. a mitigation of damages. c. rescission and restitution. d. specific performance.
answer
b. a mitigation of damages.
question
Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to a. establish, as a matter of principle, that QuikBilt acted wrongfully. b. provide Pure with funds for a foreseeable loss beyond the contract. c. provide Pure with funds for its loss of the bargain. d. punish QuikBilt and deter others from similar acts.
answer
d. punish QuikBilt and deter others from similar acts.
question
Bret contracts to work for City Construction Corporation (CCC) during July for $4,500. On June 30, CCC cancels the contract. Bret declines a similar job with Downtown Builders, Inc., which would have paid $4,000. Bret files a suit against CCC. As compensatory damages, Bret can recover a. $4,500. b. $4,000. c. $500. d. $0.
answer
c. $500.
question
Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches the contract, Fashion has a duty to a. reduce the damages that Fashion might otherwise suffer. b. reduce the loss that Great Promotions might otherwise suffer. c. punish Great Promotions and deter others from similar acts. d. take no action.
answer
a. reduce the damages that Fashion might otherwise suffer.
question
Kris contracts to work exclusively for Little Manufacturing Company during May for $5,000. On April 30, Little cancels the contract. Kris finds another job during May but earns only $3,000. Kris files a suit against Little. As compensatory damages, Kris can recover a. $3,000. b. $2,000. c. $1,000. d. $0.
answer
b. $2,000.
question
Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office Accounting may recover from Perry a. compensatory damages. b. consequential damages. c. nominal damages. d. punitive damages.
answer
c. nominal damages.
question
A enters into a contract with B Fitness Club for discounted memberships for A's employees. If B breaches the contract and A enters into a contract with D Sports for the same service at a lower price, A might be awarded nominal damages to a. establish, as a matter of principle, that B acted wrongfully. b. provide A with funds for a foreseeable loss beyond the contract. c. provide A with funds for its loss of the bargain. d. punish B and set an example to deter others from similar acts.
answer
a. establish, as a matter of principle, that B acted wrongfully.
question
Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to a. avoid reletting the premises to recover damages from Ray. b. make reasonable efforts to relet the premises to mitigate damages. c. relet the premises to recover damages from Ray. d. sell the premises to recover damages from Ray.
answer
b. make reasonable efforts to relet the premises to mitigate damages
question
Rig Heli-Pads, Inc., enters into a contract to employ Scott as an on-site project manager for two years. If Rig breaches the contract, Scott has a duty to a. do nothing. b. reduce the damages that Scott might otherwise suffer. c. rescind the contract with Rig. d. punish Rig and set an example to deter others from similar acts.
answer
b. reduce the damages that Scott might otherwise suffer.
question
Home Delivery Corporation and Interstate Transport, Inc., sign an agreement that provides for the payment of \"$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000.\" This is a. a liquidated damages clause. b. a mitigation of damages clause. c. a nominal damages clause. d. a penalty clause.
answer
a. a liquidated damages clause.
question
A enters into a contract with B to provide surface material for A's tennis courts by April 1 for a tournament to begin May 1. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is a. an excessive estimate of the loss on a breach. b. a reasonable estimate of the loss on a breach. c. designed to penalize the breaching party. d. intended to quickly provide cash to the nonbreaching party.
answer
b. a reasonable estimate of the loss on a breach.
question
Rural Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural's cables in a certain location. Rural advances Shovel 10 percent of its cost. If the parties rescind the contract, Shovel's refund of the payment would be a. a penalty. b. liquidated damages. c. restitution. d. specific performance.
answer
b. liquidated damages.
question
Drew contracts to sell a residential duplex to Evan. The contract provides that if Drew does not close the deal by September 15, he must pay Evan one-half of the contract price. This provision is not enforceable because it is a. a liquidated damages clause. b. a mitigation clause. c. a nominal damages clause. d. a penalty clause.
answer
d. a penalty clause.
question
Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50. To rescind the contract a. Lou must return the $50 and Mira must return the player. b. Lou must return the $50 only. c. Mira must return the player only. d. the parties can keep the \"benefits\" of their bargain.
answer
a. Lou must return the $50 and Mira must return the player.
question
Roy contracts to sell his Double-R Ranch to Sam on May 1. On April 20, Roy tells Sam that he will not go through with the deal. Sam files a suit against Roy. Sam can recover a. the cost of any ranch that would suit him. b. the cost of a similar, nearby ranch. c. the Double-R Ranch. d. nothing.
answer
c. the Double-R Ranch.
question
Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane refuses to ship Ira the collection. Ira should seek a. damages. b. reformation. c. rescission. d. specific performance.
answer
d. specific performance.
question
For Petra to recover the benefit of her bargain from a breached real estate contract with Quality Properties, Inc., the most appropriate remedy is a. damages. b. quasi-contractual recovery. c. rescission. d. specific performance.
answer
d. specific performance.
question
Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch. If Hollis breaches the contract, Grady's normal remedy would be a. damages. b. quasi contract. c. reformation. d. specific performance.
answer
d. specific performance.
question
A orally agrees to pay B to plant and harvest a quarter of A's farm acreage for four corn-planting seasons. After B prepares the land and plants the first crop, A says that their deal is off. B can most likely recover a. in quasi contract. b. in reformation. c. in restitution. d. on the parties' existing contract.
answer
a. in quasi contract.
question
Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders Corporation. The agreement states that delivery is to be within \"3\" days, although the parties intend \"30\" days. Refined cannot convince Select to amend the contract. Refined should seek a. damages. b. reformation. c. rescission. d. specific performance.
answer
b. reformation.
question
Dino hires Eve to perform at Dino's Club, but Eve later breaches the agreement to accept a higher-paying job at First Star Arena. Dino files a suit against Eve. The court will most likely a. award damages to Dino. b. cancel Dino and Eve's contract. c. order Eve to perform the contract. d. reform Dino and Eve's contract.
answer
a. award damages to Dino.
question
Outdoor Properties, Inc. (OPI), agrees to sell certain acreage to Pia. OPI repudiates the deal. Pia sues OPI and recovers damages. Pia can now obtain a. an amount in a quasi-contractual recovery. b. damages representing restitution. c. specific performance of the deal. d. nothing more.
answer
d. nothing more.
question
A contract for a sale of land from United Properties, Inc., to Variety Investments Corporation contains an erroneous legal description. The most appropriate remedy for these parties is a. damages. b. reformation. c. rescission. d. specific performance.
answer
b. reformation.
question
Creekside Property Corporation enters into a contract with Delta Management Associates to manage and maintain Creekside's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is a. a limitation-of-liability clause. b. an exculpatory clause. c. an illegal clause. d. a quasi contract.
answer
a. a limitation-of-liability clause.
question
Value Acquisitions, Inc., contracts to buy Wobbling Corporation's assets. Wobbling breaches the contract. Value files a suit against Wobbling, seeking various remedies. The doctrine of election of remedies has been eliminated in contracts involving sales of a. goods. b. intellectual property. c. real property. d. services.
answer
a. goods.
question
To avoid liability for intentional injuries, Vermont Power Corporation includes in its contracts an exculpatory clause. This is a. enforceable if the other parties are protected from liability. b. enforceable if the other parties consent to it. c. enforceable if the other parties have equal bargaining power. d. not enforceable.
answer
d. not enforceable.
question
A contract between E-Debits, Inc., and First Credit Corporation includes a provision excluding liability as a result of fraud. This provision is a. enforceable because the parties are protected from liability. b. enforceable because the parties consented to it. c. enforceable if the parties have equal bargaining power. d. not enforceable.
answer
d. not enforceable.
