WEEK 10- UCC/SALES/WARRANTIES

Business Law and Ethics

A merchant promises in writing to keep an offer to sell goods open for 30 days without payment. Under the UCC this is:
A) An implied warranty
B) A firm offer
C) A voidable contract
D) Promissory estoppel

A) An implied warranty

A buyer relies on a seller’s skill to pick goods for a special purpose. The warranty created is:
A) Warranty of title
B) Disclaimer warranty
C) Implied warranty of fitness
D) Express guarantee

C) Implied warranty of fitness

A seller guarantees specific written qualities of goods. This creates:
A) Implied warranty of merchantability
B) Express warranty
C) Disclaimer by conduct
D) Void warranty

B) Express warranty

Goods fail to perform their ordinary purpose. This breaches:
A) Warranty of title
B) Implied warranty of merchantability
C) Limited liability
D) Disclaimer warranty

B) Implied warranty of merchantability

A seller ships nonconforming goods. The buyer may:
A) Reject the goods
B) Pay full price
C) Waive all remedies
D) Transfer title

A) Reject the goods

A buyer keeps defective goods and later discovers the issue. The buyer may:
A) Recover damages for breach
B) Be forced to pay double
C) Cancel all UCC protections
D) Demand criminal penalties

A) Recover damages for breach

A merchant’s acceptance can include different terms and still form a contract. This is:
A) Mirror image rule
B) Battle of the forms
C) Parol evidence
D) Accord

B) Battle of the forms

A seller promises valid ownership of goods. This is:
A) Warranty of title
B) Implied warranty of fitness
C) Warranty of silence
D) Limited disclaimer

A) Warranty of title

A buyer has the right to check goods before acceptance. This is the:
A) Duty of tender
B) Right to inspect
C) Performance right
D) Risk-free title rule

B) Right to inspect

A seller must deliver goods that meet the contract terms. This duty is known as:
A) Perfect tender rule
B) Tort duty
C) Merchantability doctrine
D) Risk-of-loss rule

A) Perfect tender rule

A seller fails to deliver goods. The buyer’s remedy is to:
A) Cover
B) Enforce warranty disclaimers
C) Waive all damages
D) Use strict liability

A) Cover

A buyer keeps defective goods without timely rejection. The buyer is considered to:
A) Accept the goods
B) Void the contract
C) Extend the warranty
D) Avoid risk of loss

A) Accept the goods

A merchant’s offer to sell goods can be accepted through conduct. This is:
A) UCC acceptance by conduct
B) Mirror image doctrine
C) Revocation acceptance
D) Specific performance

A) UCC acceptance by conduct

A written disclaimer of implied warranties is enforceable only if it is:
A) Conspicuous
B) Oral
C) Hidden
D) Unstated

A) Conspicuous

A seller resells goods after the buyer wrongfully cancels the contract. The seller may:
A) Recover damages
B) Demand strict liability
C) Force delivery
D) Waive UCC rights

A) Recover damages

Goods destroyed before risk of loss passes to the buyer cause the contract to be:
A) Void
B) Accepted
C) Executed
D) Revoked

A) Void

A seller substitutes conforming goods before the deadline after a defect. This is called:
A) Cure
B) Disclaimer
C) Cover
D) Revocation

A) Cure

Specially manufactured goods are enforceable even if not in writing because:
A) They are not suitable for resale
B) They are public domain
C) They are intangible property
D) They are warranty protected

A) They are not suitable for resale

Risk of loss passes to the buyer upon tender of delivery in a:
A) Destination contract
B) Shipment contract
C) Bailment contract
D) Lease contract

A) Destination contract

A buyer receives nonconforming goods but keeps them. The buyer may:
A) Recover damages for reduced value
B) Cancel all warranties
C) Demand criminal sanctions
D) Enforce strict liability

A) Recover damages for reduced value

A seller fails to cure a defective shipment by the deadline. The buyer may:
A) Reject and recover damages
B) Accept without remedies
C) Extend the warranty by default
D) Waive all objections

A) Reject and recover damages

A merchant offers goods and signs a written agreement. The offer remains open without consideration because of:
A) Firm offer rule
B) Mirror image rule
C) Duty of performance
D) Caveat emptor

A) Firm offer rule

A seller must deliver goods to the agreed location before risk transfers. This applies to:
A) Destination contracts
B) Shipment contracts
C) Bailment agreements
D) Warranty deliveries

A) Destination contracts

A buyer relies on a seller’s promise that goods will match a model. This creates:
A) Express warranty
B) Disclaimer warranty
C) Warranty of title
D) Merchantability warranty

A) Express warrant