39. A buyer in Atlanta enters into a sales contract with a seller in Chicago. If the contract does not mention the place for
delivery of the goods, the place of delivery will be:
a. at the seller‘s business or residence in Chicago.
b. as stated in all destination contracts.
c. at the buyer’s business or residence in Atlanta.
d. irrelevant, since the contract is void.
40. If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may:
a. reject the whole.
b. accept the whole.
c. accept any commercial unit(s) and reject the rest.
d. Any of these.
41. If destruction or casualty to goods, total or partial, occurs after risk of loss has passed to the buyer, who is
responsible for losses?
a. The seller
b. The buyer, who must pay the entire contract price of the goods
c. The buyer if the loss is partial; both parties share the loss if it is total
d. The carrier delivering the goods
42. Which of the following terms indicates a shipment contract?
a. F.A.S. seller’s port
b. C.I.F.
c. C.& F.
d. All of these are shipment contracts.
43. Which of the following terms would indicate a destination contract?
a. F.O.B. city of buyer
b. F.O.B. city of seller
c. C.I.F.
d. F.A.S. seller’s port
44. When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?
a. Through a failure to reject after he has had a reasonable opportunity to inspect them
b. Immediately upon delivery
c. Only by conduct that shows the buyer’s willingness to become owner of the goods
d. Only after an express acceptance
45. Willingness by the buyer to become the owner of the goods tendered or delivered to him by the seller is:
a. rejection.
b. acceptance.
c. revocation.
d. tender.
46. Under the CISG:
a. the seller has no right to cure a defective delivery.
b. if the seller does not perform on time, the buyer may fix an additional, reasonable period of time for
performance.
c. the seller has a limited right to cure a defective performance, but only before the date for delivery specified in
the contract.
d. the seller may, even after the date for delivery, cure a defective performance if it can be done without
unreasonable delay. The buyer cannot claim damages for delay as long as the cure was within a reasonable
time.
47. Under the , a buyer may reject goods for even the slightest defect.
a. revocation of acceptance rule
b. perfect tender rule
c. rules for inspection
d. excuses for nonperformance
48. In which of the following situations does the seller have the right to cure?
a. Where the time for performance under the contract has not yet expired
b. After the time for performance has expired if the seller didn‘t have any conforming items to tender
c. Where the buyer has revoked acceptance
d. All of these.
49. Everett is an accountant for a major accounting firm. One day at work, he is discussing his collection of rare coins
with one of his co-workers. Everett tells his co-worker that he keeps his collection at home and that he has recently
purchased several Chinese gold Panda coins at an exceptional price. The co-worker expresses an interest in buying
two of the coins at a price of $250, and a contract is duly formed. If no place for delivery is expressed, where are
the coins to be delivered?
a. At the office of the accounting firm where the parties to the contract work
b. At Everett’s home
c. At the co-worker’s home
d. In the parking lot of the accounting firm
50. Goods are to be sent F.O.B. Buffalo, NY to Raleigh, NC by UPS. Where does tender occur?
a. Where the goods are identified
b. Where the goods are shipped
c. Where the goods are delivered and picked up by the buyer
d. Where the goods are taken by the buyer
51. Which of the following is correct with respect to the buyer‘s obligation of payment?
a. In the absence of agreement, payment is due at the time and place the buyer is to receive the goods.
b. Payment by check is sufficient unless the seller demands currency and allows the buyer a reasonable time in
which to obtain it.
c. If the buyer so agrees, he must pay for the goods in advance of delivery.
d. All of these are correct.
52. Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700. It is to be delivered to Bill’s home on July 7.
Under the perfect tender rule, which one of the following cases would be a rightful rejection of the goods?
a. Sam delivered an 18–cubic-foot, blue refrigerator on July 7, and Bill calls Sam to complain.
b. Sam sent an 18–cubic-foot, yellow refrigerator with a dent in it on July 7. Bill refuses delivery but never
bothers to call Sam.
c. Sam sent his truck to Bill’s home with the 18-cubic-foot, yellow refrigerator on July 7, but Bill was not home.
d. Sam sent an 18–cubic-foot, yellow refrigerator without ice cube trays on July 5 and notifies Bill of the defect.
53. J & J Co. offers a “subscription” for baby toys to be delivered every two months from the birth of a child. Payment
must be made within two weeks of delivery. The Markham family accepted the J & J plan when their son, Timmy,
was born. When Timmy was four months old, one J & J toy arrived, smashed to pieces. Markham:
a. can treat the whole contract as breached and refuse to pay for past installments as well as future installments.
b. can reject the installment and cancel the contract immediately.
c. can reject the installment and refuse to pay if J & J cannot cure it.
d. cannot reject the installment since it is part of a series.
54. Pedro ordered a custom-made suit from Rooks & Sons to be delivered by Friday at 5 p.m. When it is delivered to his
office on Friday afternoon, he is in conference with a client. His secretary hangs the suit in the office closet. When
Pedro tries on the suit Saturday evening, he discovers that the pants are cuffed. He had ordered cuffless trousers, so
he called Rooks & Sons on Monday and informed them that he was returning the suit. What can he do?
a. He cannot revoke acceptance since the cuffs are not difficult to discover.
b. He can revoke acceptance because the cuffs substantially impair the value of the goods to him.
c. He can reject the goods since he had not yet accepted them prior to inspection.
d. He cannot reject the goods because the cuffs are curable.
55. Mary allows the seller, Baymore Co., four weeks to repair the defects in her kitchen set. They have tried, but have
not done a good job. She may revoke her acceptance as long as she:
a. notifies Baymore of the revocation.
b. does not use the table and chairs.
c. could not discover the defects easily.
d. inspected the goods herself.
56. Edna orders a set of china from Northwestern Catalog. Northwestern sends the dishes by UPS. The contract does
not specify when payment is to be made. Edna must pay when:
a. she orders the goods from Northwestern.
b. she gets the goods from UPS.
c. Northwestern takes the goods to UPS.
d. she receives notification that the goods have been shipped..
57. Which of the following is correct with respect to the Code’s approach to impossibility of performance?
a. Ordinarily, a strike by employees of the seller will excuse performance by the seller.
b. Increased production costs alone will excuse performance by the seller.
c. Performance will be excused when it is commercially impractical as a result of one or more unforeseen
supervening events that are more than mere hardship or increased cost of performance.
d. All of these are correct.
58. On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company
at $30 per tire for the next two years. The October shipment consisted of 100 badly defective tires. ZYX Cycle
Company:
a. can treat the whole contract as breached.
b. can reject the October shipment if it cannot be cured in a timely manner by Supertread.
c. cannot reject the October shipment since it is part of the installment series.
d. must sell the defective tires for whatever they can get for them and sue Supertread for the difference.
59. Drapery Makers has signed a contract to make and sell to Hyer curtains for 20 windows by March 31. Hyer,
however, delays in giving Drapery Makers the dimensions it needs to know in order to do the work. In this case,
Drapery Makers:
a. may proceed to do the work when it receives the information if it performs reasonably.
b. will get paid for their availability to perform even if they never make the curtains.
c. has no remedies under the Code.
d. can charge Hyer a per-day penalty for each day of the delay.
60. Speedy Stop sells necessities to neighborhood shoppers until 1 a.m. every day. Dairyland delivered its order of milk
products as usual around 6 a.m. while Mary, the shopkeeper, was busy with the early coffee and donut crowd. The
Dairyland driver left 12 crates in the refrigerator compartment and went on to the rest of his route. At 7:30 a.m.,
Mary went into the freezer to shelve the milk products and discovered that all 12 crates contained buttermilk rather
than the usual mix of containers of whole milk, 2%, skim milk, and cream variety she had ordered. What is her
obligation with regard to the goods?
61.
a. Distinguish between a rejection of goods and a revocation of acceptance of goods.
b. What is the effect of a rejection? What is the effect of a revocation of acceptance?
c. Does the buyer have any obligations to the seller once she has rejected the goods?
62. The Elm Street Accounting Partnership has ordered two maroon office chairs for its waiting room from the Quality
Office Supply Company. Quality sends two burgundy-red office chairs that the Elm Street partnership rejects. What,
if any, rights does Quality have under the circumstances? Explain.
63.
a. What are the obligations of the seller under a shipment contract?
b. What are the obligations of the seller under a destination contract?
64. Burnside Roofing contracts to sell asphalt and metal shingles to Faubush Contractors. Burnside, through no fault of
its own, is unable to deliver the shingles to Faubush by rail as agreed because that type of carrier is unavailable.
Explain what the UCC requires.