BLAW Exam 5 MindTap Questions

Which of the following is required for tender of delivery?

That the seller give the buyer reasonable notice of the tender.

Goods are to be sent from Buffalo, NY to Raleigh, NC by UPS using the delivery terms F.O.B. Buffalo, NY. Where does tender occur?

Where the goods are shipped.

Under the perfect tender rule, the buyer may reject the goods upon the seller's failure to comply with all of the following

an agreement between the parties limiting the buyer's right to reject non-conforming goods.

b. cure by the seller.

c. the existence of an installment contract

In which of the following situations does the seller NOT have the right to cure?

Where the buyer has revoked acceptance of nonconforming goods.

A buyer in a contract for the sale of goods:

must bear the expenses of inspection, but may recover these costs from the seller if the goods are rightfully rejected.

If a buyer rejects nonconforming goods and the seller provides no instruction within a reasonable time, the buyer may do all of the following

store the goods

reship them to the seller

resell them for the seller’s account

A manifestation by the buyer of his unwillingness to become the owner of the goods is called:

rejection

The concept of the "right to cooperation" is:

where one party's required cooperation is not timely, the other party is excused from any resulting delay in her own performance.

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may:

await performance for a commercially reasonable time

resort to any appropriate remedy for breach

In a shipment contract what initials mean place of shipment

F.O.B

In a shipment contract, what initials mean port of shipment

F.A.S

Title cannot pass from the seller to the buyer unless existing goods have been:

identified

Under the UCC, for a contract or policy of insurance to be valid, the insured must have:

an insurable interest

When delivery is to be made without moving the goods, unless otherwise agreed, title passes:

on delivery of a document of title, when the contract calls for delivery of such document.

a sale of goods is defined as

the transfer of title to the goods

in a sale on approval

possession, but not title, is transferred to the buyer for a stated period of time.

The UCC provides that a good faith purchaser for value obtains title from one possessing voidable title even if that person obtained voidable title by all of the following

mistake

duress

fraud

When goods are sold and delivered to the buyer with an option to return them to the seller, a(n) __________ has occurred

sale or return

A(n) __________ is a delivery of possession of personal property to an agent for sale by the agent.

consignment

Which of the following is correct with regard to risk of loss, where the goods are in the possession of a bailee and are covered by a negotiable document of title

risk of loss passes when the buyer receives the document

A transfer, not in the ordinary course of the transferor's business, of a major part of inventory is known as

bulk sales

A warranty may rise out of all of the following except:

from a disclaimer

An express warranty within the meaning of the Code is created by which of the following?

1. a sample

2. a description

3. a promise

Which of the following is true with regard to implied warranties under the Code

they depend on the type of contract or sale entered into

An obligation of the merchant-seller that the goods are reasonably fit for the ordinary purposes for which they are manufactured and sold, and the goods are of fair average quality is known as:

a warranty of merchantability

Whether an implied warranty arises out of the circumstances under which the parties enter into a contract may depend on:

1. the type of contract entered into

2. the seller’s merchant or non-merchant status

3. applicability of other statutes

Which of the following is NOT included within the Code definition of merchantability

In the case of fungible goods that they be of a quality that exceeds the description and be above average.

Leslie purchased 100 flower pots from a local merchant. Warranties which are not included in her sales contract, but exist by "operation of law," are the

implied warranties

strict liability in tort imposes liability on

a manufacturer of a defective component used in a larger product if the manufacturer of the finished product made no essential change in the component

Which of the following is generally NOT a defense to a claim against a manufacturer under 402A

contributory negligence on the part of the plantiff

__________ exists by a product failing to meet manufacturing specifications thus not made properly

manufacturing defect