164. Under UCC Article 2, the buyer has an obligation to:
a. accept conforming goods
b. pay for the goods according to the contract
c. keep the goods for at least 3 months
d. both a and b are correct
e. both a and c are correct
165. Northwest is a micro-brewery. It orders bottles from M that must have crests inscribed on the bottles. To be sure
the bottles meet specifications, Northwest hires someone to check them as they were produced at M. With respect
to the expenses of hiring the inspector:
a. Northwest pays the expenses but may recover them if the bottles do not conform
b. Northwest must pay the expenses under any circumstances
c. M must pay the expenses because the bottles are a unique item
d. M must pay the expenses since Northwest is not liable for any expenses until the bottles are accepted
e. none of the other choices
166. Northwest is a micro-brewery. It orders bottles from M that must have crests inscribed on the bottles. To be sure
the bottles meet specifications, Northwest hires someone to check them as they were produced at M. With respect
to the expenses of hiring the inspector:
a. Northwest must pay the expenses initially but deduct from their bill from M
b. Northwest must pay the expenses under any circumstances
c. M must pay the expenses because the bottles are a unique item
d. M must pay the expenses since Northwest is not liable for any expenses until the bottles are accepted
e. none of the other choices
167. Buyer is obligated to pay damages under Article 2 for a breach of contract if:
a. the seller delivered conforming goods to the buyer
b. the seller delivered goods to an independent carrier and carrier has delivered to the buyer
c. the seller delivered the goods to an independent carrier
d. the seller delivered conforming goods to the buyer or delivered goods to an independent carrier that delivered
to the buyer
e. the seller delivered conforming goods to the buyer or delivered the goods to an independent carrier
168. A buyer who receives goods that are nonconforming may reject them as a breach of contract and withhold
payment. This is referred to as:
a. buyer‘s right of rejection
b. buyer‘s right of return
c. buyer’s right of inspection
d. buyer‘s right of return
e. buyer’s duty of acceptance
169. A buyer who receives goods that are nonconforming may reject them as a breach of contract and withhold
payment. This is referred to as:
a. buyer’s duty of acceptance
b. buyer‘s right of return
c. buyer’s right of inspection
d. buyer‘s right of return
e. none of the other choices are correct
170. When the seller has delivered conforming goods, the buyer has a duty to accept them. This is referred to as:
a. buyer’s duty of acceptance
b. buyer’s duty of rejection
c. buyer‘s duty of compliance
d. buyer‘s duty of contract
e. buyer‘s duty of inspection
171. When the seller has delivered conforming goods, the buyer has a duty to accept them. This is referred to as:
a. buyer‘s duty of inspection
b. buyer’s duty of rejection
c. buyer‘s duty of compliance
d. buyer‘s duty of contract
e. none of the other choices are correct
172. If the buyer is willing to accept nonconforming goods:
a. the goods must only be paid for if the nonconformance does not interfere with function
b. the goods need not be paid for
c. the goods must be paid for
d. buyers may never accept nonconforming goods
e. the contract must be rewritten
173. If the buyer is willing to accept nonconforming goods:
a. the goods must only be paid for if the nonconformance does not interfere with function
b. the goods need not be paid for
c. the contract must be rewritten
d. buyers may never accept nonconforming goods
e. none of the other choices are correct
174. A warranty may be generally defined as a statement:
a. of guarantee of payment by the seller
b. of guarantee of payment by the buyer
c. by the seller that its goods conform to certain quality, safety, performance or title standards
d. by the seller that its goods conform to buyer’s expectations
e. by the buyer that it accepts responsibility for any harms it causes
175. A warranty may be generally defined as:
a. a guarantee of payment by the seller
b. a guarantee of payment by the buyer
c. a statement by the buyer that it accepts responsibility for any harms it causes
d. a statement by the seller that its goods conform to buyer’s expectations
e. none of the other choices
176. A(n) is a statement or representation made by a seller that goods conform to certain standards of quality,
safety, performance, and title.
a. warranty
b. easement
c. duty
d. obligation
e. quality assurance
177. A(n) is a statement or representation made by a seller that goods conform to certain standards of quality,
safety, performance, and title.
a. quality assurance
b. easement
c. duty
d. obligation
e. none of the other choices are correct
178. If goods do not conform to the standards created by the warranty:
a. the seller cannot be held liable for damages for breach of warranty
b. the seller can be held liable for damages for breach of warranty
c. the seller can be held liable for breach of quality
d. the seller can be held liable for failure to maintain quality
e. the seller can be held liable for failure of warranty
179. If goods do not conform to the standards created by the warranty:
a. the seller cannot be held liable for damages for breach of warranty
b. the seller can be held liable for failure of warranty
c. the seller can be held liable for breach of quality
d. the seller can be held liable for failure to maintain quality
e. none of the other choices are correct
180. A warranty of title means:
a. a buyer’s goods are fit for a particular purpose
b. a buyer’s goods are merchantable
c. a seller is the rightful owner of the goods being sold
d. a buyer is legally capable of owning the goods for sale
e. any of the other choices
181. A warranty of title means:
a. a buyer’s goods are fit for a particular purpose
b. a buyer’s goods are merchantable
c. a buyer is legally capable of owning the goods for sale
d. any of the other specific choices
e. none of the other choices
182. Warranty of title includes the warrant that:
a. the goods being sold can be sold overseas without any tariff penalties
b. the goods being sold are marketable
c. the goods being sold are free of any claim of infringement
d. the goods being sold might be copyrighted
e. the goods being sold are capable of being copyrighted
183. Warranty of title includes the warrant that:
a. the goods being sold can be sold overseas without any tariff penalties
b. the goods being sold are marketable
c. the goods being sold are capable of being copyrighted
d. the goods being sold might be copyrighted
e. none of the other choices are correct
184. An express warranty may be created by all but which of the following:
a. a seller‘s promise about goods being sold
b. a seller’s guarantee regarding the safety of a good
c. the sample the buyer received from the seller
d. the guarantee the buyer reasonably expects for the product
e. any of the other choices
185. An express warranty may be created by all but which of the following:
a. a seller‘s promise about goods being sold
b. a seller’s guarantee regarding the safety of a good
c. the sample the buyer received from the seller
d. the description of the goods provided by the seller
e. any of the other choices
186. A(n)
being sold.
is created by a seller’s promise or guarantee as to the quality, safety, performance, or durability of goods
a. final warranty
b. warranty to title
c. implied warranty of merchantability
d. express warranty
e. fitness for a particular purpose
187. A(n)
being sold.
is created by a seller’s promise or guarantee as to the quality, safety, performance, or durability of goods
a. final warranty
b. warranty to title
c. implied warranty of merchantability
d. fitness for a particular purpose
e. none of the other choices are correct
188. Unlike express warranties, implied warranties:
a. are not automatically imposed on sellers unless they specifically disclaim them
b. are automatically imposed on sellers unless they specifically disclaim them
c. cannot be automatically imposed on sellers
d. are imposed by the buyer
e. are imposed by the seller
189. Unlike express warranties, implied warranties:
a. are not automatically imposed on sellers unless they specifically disclaim them
b. are imposed by the seller
c. cannot be automatically imposed on sellers
d. are imposed by the buyer
e. none of the other choices are correct
190. means that the good “must be of a quality comparable to that generally acceptable in that line or trade.”
a. Warrantable
b. Profitable
c. Merchantable
d. Marketable
e. Acceptable
191. means that the good “must be of a quality comparable to that generally acceptable in that line or trade.”
a. Warrantable
b. Profitable
c. Acceptable
d. Marketable
e. none of the other choices are correct
192. Article 2 provides minimum requirements that goods must satisfy to be merchantable, including that the goods must
be:
a. of the highest quality reasonably possible under the contract
b. reasonably fit for the purposes for which they are being sold
c. of fair, average, merchantable quality
d. reasonably fit for the purposes for which they are being sold and of fair, average, merchantable quality
e. of the highest quality reasonably possible under the contract and of fair, average, merchantable quality
193. Under the UCC, merchantable means that goods must be of a quality comparable to:
a. that generally acceptable in that line or trade
b. the median standard of industry
c. the highest recent quality of the trade
d. defect-free goods in the industry
e. none of the other choices
194. Under the UCC, merchantable means that goods must be of a quality comparable to:
a. U.S. government safety or quality standards
b. the median standard of industry
c. the highest recent quality of the trade
d. defect-free goods in the industry
e. none of the other choices
195. If the buyer relies on the seller’s skill or judgment to select the goods for that purpose, an implied warranty is
created.
a. no implied warranty is created in this situation
b. that the goods are not suited for that purpose
c. that the goods are suited for that purpose
d. that the goods will last for at least a year
e. that the goods will be reasonably priced
196. If the buyer relies on the seller’s skill or judgment to select the goods for that purpose, an implied warranty is
created.
a. no implied warranty is created in this situation
b. that the goods are not suited for that purpose
c. that the goods will be reasonably priced
d. that the goods will last for at least a year
e. none of the other choices are correct
197. If the buyer relies on the seller’s skill or judgment to select the goods for that purpose, a(n)
suited for that purpose is created.
a. explicit warranty
b. implied warranty
c. extra warranty
d. express warranty
e. none of the other choices are correct
that the goods are
198. If the buyer relies on the seller’s skill or judgment to select the goods for that purpose, a(n)
suited for that purpose is created.
a. explicit warranty
b. quality warranty
c. extra warranty
d. express warranty
e. none of the other choices are correct
that the goods are
199. Miller needs to paint his metal workshop. He tells the paint store what he needs and says he is concerned about
peeling. The seller recommends Pitts, which the company advertises as good for such use. If Miller buys Pitts
based on the recommendation, and it peels right away, with respect to fitness for a particular purpose, there is:
a. a breach of implied warranty; Miller relied on the maker’s judgment and claims
b. no breach of implied warranty; sellers are not obligated to supply high quality goods
c. no breach of implied warranty; the maker did not have reason to know of Miller’s particular use for the paint
d. no breach of implied warranty; there were not written warranty terms
e. none of the other choices
200. It is customary for new car dealers to clean and check new cars prior to delivery to customers. Danver Chevrolet
fails to do those checks before delivering a new car to a buyer. A check would have revealed that the exhaust was
going into the passenger compartment. While driving, the buyer is overcome by carbon monoxide and crashes.
a. if the buyer can demonstrate “actual reliance” on the seller’s expertise, the dealer may be held liable for a
breach of an implied warranty of merchantability
b. the dealer may be liable to a buyer for damages under a breach of an implied warranty arising from trade
usage
c. the dealer may be liable to a buyer for damages for breach of an implied warranty arising from
merchantability
d. since the new car was under warranty, the seller has the right to cure the problem in a reasonable manner
e. the dealer cannot be held liable; the problem is with the manufacturer
201. QD representatives met with EDS managers. They discussed plans for a conference room with Persian carpets,
quality furniture, and nice art. The parties agreed that the job would be done for $100,000, the final bill to be subject
to review. QD delivered a room with ordinary carpet and furniture and posters of dogs. They sent a bill for $85,000.
EDS sues QD:
a. EDS should win based on the UCC’s perfect tender rule
b. EDS should win based on the UCC’s provisions providing express and implied warranties of quality and
merchantability
c. QD should win because the terms of the contract were vague, based on oral discussions, and the price was
cut
d. QC should win on the basis of the seller’s right to cure defects
e. QD should win on the basis of contract law because the UCC does not apply to real estate dealings
202. QD representatives met with EDS managers. They discussed plans for a conference room with Persian carpets,
quality furniture and nice art. The parties agreed that the job would be done for $100,000, the final bill to be subject
to review. QD delivered a room with ordinary carpet and furniture and posters of dogs. They sent a bill for $85,000.
EDS sues QD:
a. EDS should win based on the UCC’s perfect tender rule
b. QD should win on the basis of contract law because the UCC does not apply to real estate dealings
c. QD should win because the terms of the contract were vague, based on oral discussions
d. QD should win on the basis of the seller’s right to cure defects
e. none of the other choices
203. A computer store that one of HJ‘s friends owned went broke. HJ bought some disk drives from the friend. HJ sold
the equipment. Some buyers are mad because the equipment has problems. HJ told them no refunds. If buyers sue
him based on the UCC, they are likely to:
a. win on the basis of the UCC‘s implied warranty of merchantability
b. win on the basis of contract law because computers are outside of the UCC
c. win on the basis of the UCC‘s implied warranty of quality
d. lose because HJ does not regularly deal in these goods
e. lose since the goods involved were sold by a third party beneficiary (the bankrupt business)
204. A computer store that one of HJ‘s friends owned went broke. HJ bought some disk drives from the friend. HJ sold
the equipment. Some buyers are mad because the equipment has problems. HJ told them no refunds. If buyers sue
him based on the UCC, they are likely to:
a. win on the basis of the UCC‘s implied warranty of merchantability
b. win on the basis of contract law because computers are outside of the UCC
c. win on the basis of the UCC‘s implied warranty of quality
d. lose since the goods involved were sold by a third party beneficiary (the bankrupt business)
e. none of the other choices
205. Because the UCC’s warranty requirements create a tough standard, sellers may wish to reduce their liability by
issuing:
a. limits of liability
b. disclaimers
c. disclosures
d. denunciations
e. revocations of liability
206. Because the UCC’s warranty requirements create a tough standard, sellers may wish to reduce their liability by
issuing:
a. limits of liability
b. revocations of liability
c. disclosures
d. denunciations
e. none of the other choices are correct
207. Language that attempts to dismiss an express warranty is
warranty.
a. effective
b. effective in some states, but not others
c. not effective
d. allowed under certain circumstances
e. illegal and immoral
when the disclaimer is inconsistent with the
208. Language that attempts to dismiss an express warranty is
warranty.
a. effective
b. effective in some states, but not others
when the disclaimer is inconsistent with the
c. effective only if the buyer is aware of the inconsistency before the deal goes through
d. allowed under certain circumstances
e. none of the other choices are correct
209. With respect to warranty disclaimers, under the UCC a seller:
a. may never disclaim a warranty
b. may only disclaim implied warranties
c. may disclaim only express warranties
d. may disclaim any warranty except a warranty of title
e. may disclaim any warranty so long as the disclaimer follows UCC rules
210. With respect to warranty disclaimers, under the UCC a seller:
a. may never disclaim a warranty
b. may only disclaim implied warranties
c. may disclaim only express warranties
d. may disclaim any warranty except a warranty of title
e. none of the other choices
211. A disclaimer of an implied warranty is permitted if the disclaimer uses the word merchantability and the disclaimer:
a. specifies the alternatives
b. includes a mail-in form
c. does not attempt to disclaim safety issues
d. is conspicuous
e. none of the other choices; such disclaimers are not allowed
212. A disclaimer of an implied warranty is permitted if the disclaimer uses the word merchantability and the disclaimer:
a. specifies the alternatives
b. includes a mail-in form
c. does not attempt to disclaim safety issues
d. meets Uniform Warranty Act standards
e. none of the other choices
213. The UCC’s definition of “conspicuous” for a disclaimer is that the disclaimer is:
a. is the first thing on the page
b. is written by hand
c. is written so that a reasonable person would notice it
d. is written so that an educated person would notice it
e. is in smaller text than the rest of the contract
214. The UCC’s definition of “conspicuous” for a disclaimer is that the disclaimer is:
a. is the first thing on the page
b. is written by hand
c. is in smaller text than the rest of the contract
d. is written so that an educated person would notice it
e. none of the other choices are correct
215. In Lee v. R&K Marine, where a boat that Lee bought became unusable after only three years when it fell apart,
and the seller had expressly disclaimed all warranties, the court held:
a. Lee was out of luck as warranties do not apply to personal watercraft
b. Lee was out of luck because the seller properly disclaimed warranties
c. the seller could not disclaim warranties for reasonable repairs
d. the seller could not disclaim warranties that evade industry standards of quality
e. none of the other choices
216. In Lee v. R&K Marine, where a boat that Lee bought became unusable after only three years when it fell apart,
and the seller had expressly disclaimed all warranties, the court held:
a. Lee was out of luck as warranties do not apply to personal watercraft
b. Lee was out of luck because the manufacturer also disclaimed warranties
c. the seller could not disclaim warranties for reasonable repairs
d. the seller could not disclaim warranties that evade industry standards of quality
e. none of the other choices
217. In Lee v. R&K Marine, where a boat that Lee bought became unusable after only three years when it fell apart,
and the seller had expressly disclaimed all warranties, the court held:
a. Lee had no case because all the warranties on the boat expired after 2 years
b. Lee had no case because boats are one of the types of goods not covered by warranties
c. Lee had no case because the retailer’s disclaimer met all the UCC requirements
d. Lee had a case because the retailer’s disclaimer did not meet all the UCC requirements
e. Lee had a case because the defective boat endangered his life