Question

1)If a buyer discovers that a tender is nonconforming, the buyer may do which of the following EXCEPT?

		Accept the entire tender
		Reject the entire tender
		Reject a commercially reasonable portion of the tender and accept the rest
		Reject any portion of the tender.

2)

If goods are sold under a negotiable document of title, such as a bill of lading, when does risk of loss pass to the buyer?

		When the document is tendered to the buyer
		When the goods are tendered to the buyer
		When the buyer takes possession of the goods
		When the buyer pays for the goods

3)

Which of the following is required to create an express warranty?

		The term "guarantee" must be used.
		The term "warrant" must be used.
		The guarantee must be in writing.
		A statement of fact by the seller can create an express warranty.

4)

In which of the following circumstances is a seller allowed to stop goods in transit to the buyer?

		The buyer is insolvent.
		The buyer made a partial payment before the delivery date.
		The buyer repudiated the contract under which the goods were shipped.
		The buyer sues for replevin.

5)

Which of the following statements about an express warranty is true?

		The seller must have intended to make the express warranty.
		The warranty must be in writing.
		The words "express" or "warrants" must be used to create the warranty.
		The description of a product in a catalog will create an express warranty.

6)

If an implied warranty of fitness for a particular purpose is violated, which of the following remedies can be pursued?

		Punitive damages
		Disaffirm the contract
		Dollar damages
		Suit based on injury or economic loss

7)

A buyer who does NOT cover after a seller's breach may recover ______ damages from the seller.

		punitive
		consequential
		incidental
		no

8)

Which of the following would NOT be reasonable grounds for a seller to feel insecure?

		Buyer's last two payments to the seller were thirty days late.
		Buyer is making late payments to other suppliers in the business.
		Buyer's check to the seller was returned for insufficient funds.
		Buyer has not immediately returned an email.

9)Jack and Betty Smith were attending an anniversary party at the Jones's house when a newly installed gas fireplace, which had been defectively manufactured, exploded. Both Smiths were injured. The law of their state allowed the Smiths to sue the retailer who sold the defective fireplace to the Joneses. Their state had abolished which traditional common-law doctrine?

		Horizontal privity of contract
		Vertical privity of contract
		Caveat emptor
		Respondeat superior

10)

Which of the following is an advantage of suing for breach of warranty rather than in strict liability for a defective product?

		The statute of limitations for filing suit is longer for breach of warranty claims.
		Economic damages can be recovered in strict liability but not in breach of warranty suits
		Warranty disclaimers are seldom, if ever, enforced in breach of warranty suits.
		Breach of warranty suits can recover attorney fees.

11)

Maurice and LaTonya have a one-year contract that calls for Maurice to make four deliveries of flour a month to LaTonya's bakery. What does the pattern of repeated deliveries under this one contract establish?

		A course of performance
		A course of dealing
		A usage of the trade
		A business condition

12)

If a buyer is aware that the goods do NOT conform with CISG warranty provisions at the time of conclusion of the contract, which of the following is true?

		They can hold the seller liable.
		They cannot hold the seller liable.
		They can hold the seller liable with sixty-day notice.
		They must return the nonconforming goods.

13)

When a buyer exercises the right to cover, the buyer can still sue the seller for all EXCEPT which of the following?

		Incidental damages
		Consequential damages
		The difference between the cover cost of the goods and the contract cost of the goods
		Punitive damages

14)

In many states, bone and organ transplants are covered by _______.

		Article 2A
		common law
		state statute
		Article 2

Answer 1

1. Option B. Reject the entire tender.
2. Option A. When the document is tendered to the buyer.
3. Option C. The guarantee must be in writing
4. The buyer is insolvent          
5. The warranty must be in writing.
6. Punitive damages
7. No recovery
8. Buyer has not immediately returned an email.
9. Caveat emptor
10. Breach of warranty suits can recover attorney fees.
11. A business condition
12. They can hold the seller liable.
13. Punitive damages
14. state statute