101. 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 had properly disclaimed all warranties, so was not liable for the problem.
a. True
b. False
102. The seller has the right to default on contractual obligations by rejecting tender of goods that conforms to the
contract.
a. True
b. False
103. After a buyer breaches a contract for the sale of goods, the seller can resell the goods (or the remaining balance of
the goods) to another buyer.
a. True
b. False
104. The UCC’s general damage measures are designed to put the seller in as good a position as if the buyer had
performed contractual obligations.
a. True
b. False
105. The UCC allows the buyer of goods that are not delivered to cancel the contract and buy from another supplier.
a. True
b. False
106. The buyer may recover damages from a non-performing seller equal to the difference between the contract price
and the cover price, plus incidental and consequential damages.
a. True
b. False
107. The difference between the contract price and the price a buyer must pay for replacement goods when a seller is in
breach is called cover.
a. True
b. False
108. “Cover” is the profit a buyer expected to earn from the sale of merchandise.
a. True
b. False
109. Incidental damages include all reasonable costs or expenses associated with the delay in receiving goods from a
breaching seller.
a. True
b. False
110. Incidental damages include such things as mental distress that results from breach of contract.
a. True
b. False
111. Incidental damages include all reasonable costs or expenses associated with the delay in receiving goods from a
breaching seller.
a. True
b. False
112. Consequential damages differ from incidental damages in that consequential damages result from the buyer’s
relations with parties other than the seller.
a. True
b. False
113. Consequential damages can include lost profits from sales that did not occur due to the breach of a contract.
a. True
b. False
114. Consequential damages can include punitive damages due to fraud in the making of a contract.
a. True
b. False
115. In Kramer v. ATW Axtell Tech, where Kramer bought Internet service equipment from ATW that did not work as
well as advertised, the courts held that the award of lost profits was not justified under the UCC definitions
governing that.
a. True
b. False
116. In Kramer v. ATW Axtell Tech, where Kramer bought Internet service equipment from ATW that did not work as
well as advertised, the courts held that the award of repair costs, consequential damages, and lost profits were all
justified.
a. True
b. False
117. In Kramer v. ATW Axtell Tech, where Kramer bought Internet service equipment from ATW that did not work as
well as advertised, the courts held that the award of “cover” expenses was not justified since all equipment “was off
the shelf.”
a. True
b. False
118. In international sales of goods, concerns about differences in contract rules between countries can be managed to
some extent by stating that the contract is governed by the CISG.
a. True
b. False
119. If a tire maker in the U.S. purchases tire rims from a company in France, the contract is automatically under the
CISG unless the parties state otherwise.
a. True
b. False
120. If a tire maker in the U.S. purchases tire rims from a company in France, the contract will be under U.S. or French
law, unless the parties pick the CISG to govern it.
a. True
b. False
121. The CISG looks to the citizenship of the owners of a business, not where the business may happen to have an
operation, to determine nationality in commercial contracts.
a. True
b. False
122. Goods bought for household uses, such as a refrigerator bought by a consumer, are not covered by the CISG.
a. True
b. False
123. If you order a guitar from Mexico over the Internet, from a seller in Mexico, unless otherwise stated, the sale is
under the CISG.
a. True
b. False
124. China‘s Uniform Contract Law applied to foreign contracts, not domestic contracts.
a. True
b. False
125. China‘s Uniform Contract Law essentially copies the UCC.
a. True
b. False
126. The sale of ships and aircraft are excluded from coverage by the CISG.
a. True
b. False
127. The sale of stocks and bonds are excluded from coverage by the CISG.
a. True
b. False
128. Services are excluded from the CISG.
a. True
b. False
129. Because of the extra complexities in international sales, the CISG requires a formal written and signed contract.
a. True
b. False
130. Under the CISG both oral and written contracts can be enforced; the judge looks to the past dealings of the parties
when there is confusion.
a. True
b. False
131. If some term in a contract is unclear or in dispute, the courts are instructed by the CISG to look to industry or trade
practices for guidance.
a. True
b. False
132. If, in a contract under the CISG, a response to an offer contains material terms that are different, then the offer is
held to be rejected and there is no contract.
a. True
b. False
133. If, in a contract under the CISG, a seller delivers goods that the buyer believes do not conform to the terms of the
contract, the buyer must notify the seller and give a chance to perform properly.
a. True
b. False
134. In Dingxi Lonhai Dairy v. Becwood Technology, Dingxi agreed to send four shipments to Becwood.
Becwood received the first two shipments but refused to pay for the second one because of mold on the
packaging. Dingxi sued for breach. The appeals court held that the CISG did not apply to the contract as China
was not a party to the UN Convention that created the CISG.
a. True
b. False
135. In Dingxi Lonhai Dairy v. Becwood Technology, Dingxi agreed to send four shipments to Becwood.
Becwood received the first two shipments but refused to pay for the second one because of mold on the
packaging. Dingxi sued for breach. The appeals court held that under the CISG Dingxi may have a right to
recover damages.
a. True
b. False
136. In Dingxi Lonhai Dairy v. Becwood Technology, Dingxi agreed to send four shipments to Becwood.
Becwood received the first two shipments but refused to pay for the second one because of mold on the
packaging. Dingxi sued for breach. The appeals court held that under the CISG Dingxi may have a right to
recover damages.
a. True
b. False
137. In Dingxi Lonhai Dairy v. Becwood Technology, Dingxi agreed to send four shipments to Becwood.
Becwood received the first two shipments but refused to pay for the second one because of mold on the
packaging. Dingxi sued for breach. The appeals court held that Dingxi was liable to Becwood for the cost of
covering the purchase of alternative supplies due to the defect.
a. True
b. False
138. The U.N., which sponsored the CISG, discourages the use of arbitration of disputes that occur under the CISG.
The parties must choose the courts of one of the parties to the contract.
a. True
b. False
139. Modern international commercial law is now dominated by a set of rules agreed upon by merchants around the
world and by private resolution of most disputes.
a. True
b. False