61. Under the UCC, parol evidence may be admitted to clarify customary trade practices.
a. True
b. False
62. With respect to parol evidence, the common law of contracts and Article 2 are the same.
a. True
b. False
63. The UCC operates the same as the common law in how it allows courts to fill the gaps left of contracts that have
open terms.
a. True
b. False
64. In Griffith v. Clear Lakes Trout, where a dispute arose over “market size” trout, the court held that the buyer
(Clear Lakes) had the right to expect the seller to grow the trout to a larger size than he had been doing.
a. True
b. False
65. In Griffith v. Clear Lakes Trout, where a dispute arose over “market size” trout, the court held that it would look
to the history of the dealings between the parties to see what they believed, in practice, to be the proper size of the
fish.
a. True
b. False
66. In Griffith v. Clear Lakes Trout, where a dispute arose over trout, the court held that the buyer, Clear Lakes, had
to accept small fish despite their not being “market size,” because otherwise Griffith would go bankrupt.
a. True
b. False
67. Under the UCC, the court will determine a reasonable price in case a contract is unclear about price and the parties
cannot agree.
a. True
b. False
68. If the parties to a contract failed to include a critical term, such as price or quantity, the court may look to normal
trade usage to determine what that term should be.
a. True
b. False
69. The UCC generally requires that a contract specify in writing a quantity to be purchased.
a. True
b. False
70. When a buyer agrees to purchase all the goods produced by a seller, it is called an output contract.
a. True
b. False
71. When a buyer agrees to purchase all the goods produced by a seller, it is called a requirements contract.
a. True
b. False
72. When a seller agrees to supply all of the goods needed by a buyer, it is called an output contract.
a. True
b. False
73. When a seller agrees to supply all of the goods needed by a buyer, it is called a requirements contract.
a. True
b. False
74. If the delivery terms are not specified in a contract, it must be “reasonable” which is determined by industry custom
and intent of the parties.
a. True
b. False
75. If the delivery terms are not specified in a contract, the normal usage that the courts impose is for the seller to pay
for shipping to the buyer’s place of business.
a. True
b. False
76. If the parties to a contract failed to establish a delivery date in their contract, if a dispute arises over delivery, both
parties have the right to abandon the contract.
a. True
b. False
77. In meeting her obligation under the UCC, the seller must be concerned about the appropriate manner and timeliness
of delivery, the place of tender, and the quality of tender.
a. True
b. False
78. Under the common law, the seller‘s tender of delivery is required to conform in detail to the terms of the agreement
between the parties. In the absence of perfect tender, the buyer can reject that part of shipment that does not
conform and accept the remainder.
a. True
b. False
79. Under the common law, buyers may reject goods that do not conform to the contract. The UCC provides the seller
with opportunities (limited) to cure the problem.
a. True
b. False
80. If a buyer rejects a shipment of goods as non-conforming, under the UCC the seller may have a right to cure the
problem.
a. True
b. False
81. If a seller delivers defective good, under the UCC the buyer may not cancel the contract if the seller repairs the
goods or replaces them before the deadline in the contract.
a. True
b. False
82. If a seller delivers defective good, under the UCC the buyer may not cancel the contract if the seller repairs the
goods or replaces the goods in a “timely” fashion.
a. True
b. False
83. Unless the parties have otherwise agreed, the buyer has a right to inspect the goods at the seller’s expense before
accepting or paying for them.
a. True
b. False
84. If a seller delivers goods that do not conform to the contract, the buyer must accept the goods but may reduce
payment by the change in value.
a. True
b. False
85. The buyer’s payment for the goods under Article 2 is due when the goods leave the seller’s facilities.
a. True
b. False
86. A warranty is a statement or representation made by a seller that the goods being sold conform to the specified
standards of quality, safety, performance and title.
a. True
b. False
87. Under Article 2, a warranty of title is assumed when an innocent buyer purchases stolen goods from a seller.
a. True
b. False
88. If a supplier delivered goods that violated a trademark or patent, there would be a violation of the warranty of title.
a. True
b. False
89. During negotiations, the seller may induce the buyer to buy goods by making claims or by taking other actions.
When those statements or actions relate to the quality, condition, or performance of the goods, the seller creates an
implied warranty.
a. True
b. False
90. During negotiations, the seller may induce the buyer to buy goods by making claims or by taking other actions.
When those statements or actions relate to the quality, condition, or performance of the goods, the seller creates an
express warranty.
a. True
b. False
91. Article 2 provides that unless the parties expressly agree otherwise, an implied warranty of merchantability
accompanies sales by merchants.
a. True
b. False
92. The UCC extends express warranties made to buyers to designated third parties.
a. True
b. False
93. Article 2 imposes an obligation on a merchant/seller that goods being sold are reasonably fit for the purpose for
which they are being sold and that they are of fair merchantable quality.
a. True
b. False
94. Under the UCC, for good to be merchantable means that they must be “of exceptional quality expected of an
expert.”
a. True
b. False
95. If the buyer relies on the seller’s skill or judgment to select the goods for a unique purpose, an express warranty of
merchantability may be created.
a. True
b. False
96. If a seller knows that a buyer has a particular purpose for purchasing a good, and the buyer relies on the seller’s
skill or judgment in selecting a good, an implied warranty of fitness for a particular purpose may be created.
a. True
b. False
97. Under Article 2, a seller can exclude any express or implied warranty, as long as those limits follow the rules of
Article 2.
a. True
b. False
98. Boilerplate language in a contract that excludes a warranty, and is inconsistent with other warranty discussion, is
invalid.
a. True
b. False
99. In Lee v. R&K Marine, where Lee bought a new boat from R&K that fell apart in three years, the court held the
warranty disclaimer invalid because the boat failed to meet normal expectations.
a. True
b. False
100. In Lee v. R&K Marine, where Lee bought a new boat from R&K that fell apart in three years, the court held the
seller not liable because the problem with the boat was caused by the manufacturer, not the seller.
a. True
b. False