253. In QVC v. MJC America, where QVC sued for breach of contract after electric heaters delivered by MJC
were shown to have defects, the trial court held that:
a. MJC was liable to QVC for a number of kinds of damages
b. MJC was liable to QVC only for lost profits (expectancy damages) due to waiver of other kinds of damages
in the contract
c. MJC did not make the heaters, a supplier in China did, so QVC would have to sue the maker for damages
d. MJC did not make the heaters, a supplier named Soleus obtained them from China, so QVC would have to
sue Soleus
e. none of the other choices are correct
254. In QVC v. MJC America, where QVC sued for breach of contract after electric heaters delivered by MJC
were shown to have defects, the trial court:
a. MJC was liable to QVC for a number of kinds of damages
b. MJC was liable to QVC for a number of kinds of damages
c. MJC did not make the heaters, a supplier in China did, so QVC would have to sue the maker for
damages
d. MJC did not make the heaters, a supplier named Soleus obtained them from China, so QVC would have
to sue Soleus
e. none of the other choices are correct
255. The was adopted by the United Nations to have a commercial code that parties would think unbiased.
a. Uniform Commercial Code
b. International Uniform Commercial Code
c. Convention on Contracts for the International Sale of Goods
d. Convention on the International Commercial Code
e. Convention on Contracts for International Business
256. The was adopted by the United Nations to have a commercial code that parties would think unbiased.
a. Uniform Commercial Code
b. International Uniform Commercial Code
c. Convention on Contracts for International Business
d. Convention on the International Commercial Code
e. none of the other choices are correct
257. In international contracts for the sale of goods:
a. managers must apply the UCC’s international provisions
b. sellers generally must apply the commercial code of the country of the buyer
c. most managers write contracts that are interpreted as service, rather than goods, contracts
d. concerns about differences in contract rules can be managed by use of the CISG
e. buyers generally must apply the commercial code from the country of the seller
258. In international contracts for the sale of goods:
a. managers must apply the UCC’s international provisions
b. sellers generally must apply the commercial code of the country of the buyer
c. most managers write contracts that are interpreted as service, rather than goods, contracts
d. buyers must apply the commercial code from the country of the seller
e. none of the other choices
259. Suppose a company in North Carolina contracts to buy toys from a company in China. The firms must use:
a. the UCC because it requires U.S. buyers to use the UCC
b. the CISG because it is an international sale of goods
c. Chinese law because, under the CISG, the law of the seller is used
d. the law of a neutral nation to avoid bias
e. none of the other choices are required; they may pick any relevant law
260. If a North Carolina firm contracts to buy toys from China, and the contract does not specify which law applies, in
case of dispute, which law will apply:
a. the law of the buyer (North Carolina)
b. the law of the buyer‘s nation (federal law)
c. the law of the seller nation
d. the UCC
e. the CISG
261. If a North Carolina firm contracts to buy toys from China, and the contract does not specify which law applies, in
case of dispute, which law must apply:
a. the law of the buyer (North Carolina)
b. the law of the buyer‘s nation (federal law)
c. the law of the seller nation
d. the UCC
e. none of the other choices
262. If a North Carolina firm contracts to buy toys from a seller in China, if there is a dispute:
a. North Carolina courts have jurisdiction because the buyer is from there
b. U.S. federal courts have jurisdiction because of diversity of citizenship
c. Chinese courts have jurisdiction because the seller is from there
d. the parties can choose in their contract where the dispute will be resolved
e. the U.N. Court of International Trade has jurisdiction, as it has in all such cases
263. Baumer, a North Carolina resident, orders some furniture for his home directly from an Internet-based seller in
China. No law is specified to control in case of dispute. The furniture turns out to be garbage and Baumer sues the
seller. The law that will be applied is:
a. the CISG, since this is an international sale of goods
b. the law of China, since the Sino-American treaty requires that
c. the law of the U.S., since the Sino-American treaty requires that
d. the U.N. Convention on Foreign Arbitral Awards
e. none of the other choices
264. The CISG applies to contracts for commercial sale of goods made by parties who have
that have ratified the CISG.
a. citizenship
b. places of business
c. significant relations
d. all of the other specific choices are correct
e. none of the other specific choices are correct
265. Unlike the UCC, the CISG governs:
a. only commercial sales or sales between merchants
b. only sales to the consuming public
c. only sales of intangible goods
d. only sales involving goods worth more than $10,000
e. only sales involving electronics
266. Unlike the UCC, the CISG governs:
a. only sales involving electronics
b. only sales to the consuming public
c. only sales of intangible goods
d. only sales involving goods worth more than $10,000
e. none of the other choices are correct
in different countries
267. Which of the following sales could not fall under the CISG:
a. electricity
b. aircraft
c. negotiable instruments
d. labor services
e. none of the other choices could fall under the CISG
268. Which of the following commercial sales could not fall under the CISG:
a. furniture
b. looms to make cloth
c. automobiles
d. ships
e. all of the other choices would fall under the CISG
269. The Convention on the International Sale of Goods (CISG):
a. was developed to manage the contract problems inherent in the sale of good to Third World nations
b. does not contain a statute of frauds provision so that either oral or written contracts in international markets
may be enforceable
c. does not apply to civil law countries
d. relies heavily on common law contract law principles developed in the United States
e. provides that the commercial laws of the seller’s country always apply
270. The Convention on the International Sale of Goods (CISG):
a. was developed to manage the contract problems inherent in the sale of good to Third World nations
b. provides that the commercial laws of the seller’s country always apply
c. does not apply to civil law countries
d. relies heavily on common law contract law principles developed in the United States
e. none of the other choices
271. Under the CISG, contracts:
a. must be formally written
b. need not be formally written
c. cannot be proved by witnesses
d. are not binding
e. cannot be for goods produced in one country and sold in another
272. Under the CISG, contracts:
a. must be formally written
b. cannot be for goods produced in one country and sold in another
c. cannot be proved by witnesses
d. are not binding
e. none of the other choices are correct
273. Suppose a contract to buy chickens is under the CISG, but the contract does not state what the age of the chickens
should be. In a dispute, the courts would look to:
a. the intent of the parties
b. industry practice
c. the practice in the nation of the seller
d. the practice in the nation of the buyer
e. none of the other choices; the contract would be void
274. Under the CISG, advertisements:
a. are not offers that can be accepted to form a contract
b. are offers that can be accepted to form a contract
c. are illegal
d. are binding
e. take the place of negotiations
275. Under the CISG, advertisements:
a. take the place of negotiations
b. are offers that can be accepted to form a contract
c. are illegal
d. are binding
e. none of the other choices are correct
276. Under the CISG, advertisements:
a. take the place of negotiations
b. are offers that can be accepted to form a contract
c. are illegal
d. are binding
e. are offers to enter into negotiations
277. Under the CISG, offers made to are valid offers to make a contract.
a. “the general public”
b. “a broad audience”
c. “one or more specific persons”
d. “the international business community”
e. “the international merchant community”
278. Under the CISG, offers made to are valid offers to make a contract.
a. “the general public”
b. “a broad audience”
c. “the international merchant community”
d. “the international business community”
e. none of the other choices are correct
279. Under the CISG, an offer becomes effective when:
a. received by the offeree; it may be withdrawn any time before acceptance is communicated
b. sent by the offeror; it may be withdrawn any time before acceptance is communicated
c. received by the offeree; it may be withdrawn any time after 30 days
d. sent by the offeror; it may be withdrawn any time after 30 days
e. sent by the offeror; it may be withdrawn any time, but only in writing
280. Under the CISG, an offer becomes effective when:
a. sent by the offeror; it may be withdrawn any time, but only in writing
b. sent by the offeror; it may be withdrawn any time before acceptance is communicated
c. received by the offeree; it may be withdrawn any time after 30 days
d. sent by the offeror; it may be withdrawn any time after 30 days
e. none of the other choices
281. Comparing the UCC to the CISG, when it comes to giving judges authority to fill in terms that are not complete in a
contract:
a. they are very much the same
b. the CISG is more generous about filling in unclear or unstated terms
c. the UCC is more generous about filling in unclear or unstated terms
d. neither law allows any terms to be “filled in”
e. no comparison is possible because the scope of the laws is so different
282. Under the CISG, in the event of breach, the parties:
a. may immediately move for damage remedies
b. may move for damages after a 30–day rectification period
c. must be given a notice of breach and a chance to cure the problem
d. may not sue for damages, only cease dealings
e. none of the other choices
283. Comparing the UCC to the CISG, when it comes to giving judges authority to fill in terms that are not complete in a
contract:
a. they are very much the same
b. the CISG is more generous about filling in unclear or unstated terms
c. no comparison is possible because the scope of the laws is so different
d. neither law allows any terms to be “filled in”
e. none of the other choices
284. 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 courts held that:
a. the CISG did not cover the international contract because the parties named the UCC; under the UCC,
Dingxi‘s claim may proceed
b. the CISG did not cover the international contract because the parties specified the Commercial Law of
China; under it, Dingxi has no claim due to product defect
c. the CISG did not cover the international contract because the parties specified the Commercial Law of
China; under it, Dingxi has no claim due to product defect
d. the CISG governed the contract and, under it, Dingxi could not recover due to defects in the goods
shipped
e. none of the other choices are correct
285. 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 held that:
a. the CISG did not cover the international contract because the parties named the UCC; under the UCC,
Dingxi‘s claim may proceed
b. the CISG did not cover the international contract because the parties specified the Commercial Law of
China; under it, Dingxi has no claim due to product defect
c. the CISG governed the contract and, under it, Dingxi must compensate Becwood for the costs it suffered
in finding substitute goods
d. the CISG governed the contract and, under it, Dingxi could not recover due to defects in the goods
shipped
e. none of the other choices
286. Commercial sales contracts that use the CISG:
a. must litigate disputes in the country of the seller
b. must litigate disputes in the country of the buyer
c. must litigate disputes in a neutral nation that has signed the CISG
d. must take disputes to the U.N. Commission on Foreign Awards
e. usually go to arbitration
287. Commercial sales contracts that use the CISG:
a. must litigate disputes in the country of the seller
b. must litigate disputes in the country of the buyer
c. must litigate disputes in a neutral nation that has signed the CISG
d. must take disputes to the U.N. Commission on Foreign Awards
e. none of the other choices
288. If a country has adopted the United Nations‘ Convention on the Recognition and Enforcement of Foreign Arbitrable
Awards then:
a. its courts are bound to recognize and enforce arbitration decisions that have followed proper procedure
b. its courts are not bound to recognize and enforce arbitration decisions that have followed proper procedure
c. its courts are unlikely to recognize and enforce arbitration decisions
d. its courts will charge a nominal fee to hear cases
e. damage awards from cases tried in its courts cannot exceed $10,000
289. If a country has adopted the United Nations‘ Convention on the Recognition and Enforcement of Foreign Arbitrable
Awards then:
a. damage awards from cases tried in its courts cannot exceed $10,000
b. its courts are not bound to recognize and enforce arbitration decisions that have followed proper procedure
c. its courts are unlikely to recognize and enforce arbitration decisions
d. its courts will charge a nominal fee to hear cases
e. none of the other choices are correct
290. In Paramount Contracting Co. v. DPS Industries, DPS claimed there was a contract to deliver hundreds of
truckloads of dirt for Paramount, which claimed no contract had come into existence. The courts held that:
a. the contract fell under the common law and no contract existed because there was no meeting of the minds
b. the contract fell under the common law and the terms were sufficiently clear for a binding contract to have
been formed
c. the contract fell under Article 2 of the UCC and the court would determine the price for the dirt as it was
clear the parties intended to deal with each other
d. the contract fell under Article 2 of the UCC as it was a contract for goods and Paramount breached the
contract
e. none of the other choices are correct