Question

Which of the following is true regarding a sale or return as compared to a sale on approval?

Multiple Choice

• In a sale on approval, unless the parties agree to the contrary, title and risk of loss rest with the buyer on delivery.

• In a sale or return, title and risk of loss rest with the buyer on delivery; and the parties have no option to change the rule by agreement.

• In a sale on approval, title and risk of loss rest with the buyer on delivery; and the parties have no option to change the rule by agreement.

• In a sale or return, unless the parties agree to the contrary, title and risk of loss rest with the buyer on delivery.

Under the UCC, a "buyer in the ordinary course of business:"

Multiple Choice

• takes the goods subject to a security interest.

• pays market price.

• buys goods typically sold in commercial transactions.

• does not know that a sale violates the ownership rights of any third party.

Rusty, a soybean farmer, contracts with Organic Foods to sell it all the soybeans he can grow. This is an example of:

Multiple Choice

• A contract that is not governed by the UCC because it involves farm products.

• An output contract.

• A requirements contract.

• An illusory promise.

Rusty, a soybean farmer, contracts with Organic Foods to sell it all the soybeans he can grow. This is an example of:

Multiple Choice

• A contract that is not governed by the UCC because it involves farm products.

• An output contract.

• A requirements contract.

• An illusory promise.

• Connor contracted with Sean to rent the rooftop of Sean's two-story commercial building for a party. Connor told Sean that the building was along the route of the annual Thanksgiving Day Parade, and he wanted to have a party to watch the parade. Due to inclement weather, the parade was cancelled. Which of the following is Connor’s best argument that he should not have to pay Sean?

  Multiple Choice

• That the contract was waived.

• That Sean committed a material breach.

• That the theory of commercial frustration applies.

• That the subject matter of the contract was destroyed.

Substantial performance:

Multiple Choice

• requires only an honest attempt to perform.

• allows the promisor to be compensated for the full contractual price.

• is performance that falls short of complete performance in minor respects but does not deprive the promisee of a material part of the consideration that was bargained for.

• is invoked when a party fully performs as to the quality of work, but the time element of the contract is not met.

Answer 1

Q 1.Which of the following is true regarding a sale or return as compared to a sale on approval?

Ans:In a sale or return, unless the parties agree to the contrary, title and risk of loss rest with the buyer on delivery.

Q 2.Under the UCC, a "buyer in the ordinary course of business:"

Ans:Does not know that a sale violates the ownership rights of any third party.

Q 3.Rusty, a soybean farmer, contracts with Organic Foods to sell it all the soybeans he can grow. This is an example of:

Ans:An illusory promise.

Q 4: Connor contracted with Sean to rent the rooftop of Sean's two-story commercial building for a party. Connor told Sean that the building was along the route of the annual Thanks giving Day Parade, and he wanted to have a party to watch the parade. Due to inclement weather, the parade was cancelled. Which of the following is Connor’s best argument that he should not have to pay Sean?

Ans:That the theory of commercial frustration applies.

Q 5.Substantial performance:

Ans:is performance that falls short of complete performance in minor respects but does not deprive the promisee of a material part of the consideration that was bargained for.