PRACTICE QUESTIONS FOR EXAM 4
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
1. Northwest Wood Products Company agrees to buy the timber on Owen's
land. Northwest is to cut and haul away the timber. This deal is governed
by
a. real property law only.
b. the UCC only.
c. real property law and the UCC.
d. none of the above.
2. Fred, the owner of Fred's Bicycle Store, sells a preowned motorcycle to
Gail. Fred is a merchant for purposes of the UCC if he
a. enjoys riding motorcycles on weekends.
b. has sold bicycles for at least one year.
c. holds himself out by occupation as having knowledge and
skill unique to motorcycles.
d. subscribes to Motorcycle Monthly magazine.
3. Bart and Paula enter into a sales contract. As seller and buyer, Bart and
Paula
a. are bound to the specific contractual provisions set out in
the UCC.
b. may alter the specific contractual provisions set out in the
UCC only to a reasonable degree.
c. may alter the specific contractual provisions set out in the
UCC to whatever degree they wish as long as they don't
get caught.
d. may establish whatever terms they wish.
4. Amy and Builders Corporation enter into a contract in which Amy agrees
to deliver cement to Builders at a construction site. They neglect to
include a price in the agreement. A court will
a. determine a reasonable price for the cement and insert it
into the contract.
b. leave the parties in the position in which it found them.
c. refuse to enforce the agreement.
d. select the lowest quoted price for cement and insert it into
the contract.
5. Carl and Donna sign a contract for a sale of goods. Carl is to set the price
for the goods at the time of delivery, but on delivery, refuses to do so.
Donna may
a. fix a reasonable price only.
b. treat the contract as canceled only.
c. fix a reasonable price or treat the contract as canceled.
d. none of the above.
6. Ron and Wolf form a contract in which no mention is made of how the
goods are to be delivered. In general, the UCC will require that the
delivery take place at
a. the seller's place of business.
b. the buyer's place of business.
c. either the seller's or the buyer's place of business.
d. none of the above.
7. Kate contracts to buy tea from Tasty Tea Company but does not specify
an exact amount of tea. Tasty later breaches the contract. Kate will
probably be
a. able to enforce the agreement against Tasty for failing to
sell Kate its output.
b. able to enforce the agreement against Tasty for failing to
supply Kate's requirements.
c. unable to enforce the agreement only if Tasty's breach is
material.
d. unable to enforce the agreement under any circumstances.
8. Best Music, Inc. offers to buy from Sound Products Corporation (SPC)
1,000 blank CDs of a certain brand. Without notifying Best, SPC timely
ships CDs of a different brand. This shipment is
a. an acceptance of Best's offer.
b. a breach of the parties' contract.
c. an acceptance and a breach.
d. none of the above.
9. Lois offers to sell Clark fifty bushels of corn. Clark responds, "I agree to
purchase fifty bushels only if the corn is Grade A quality." In these
circumstances
a. a contract is formed.
b. a contract is formed only if Lois can secure fifty bushels
of Grade A corn quickly.
c. Clark's statement is a counteroffer.
d. Clark's statement is an acceptance.
10. National Products, Inc. sends its standard order form to Interstate
Distribution Corporation (IDC) to evidence a sale of packing materials.
IDC responds with its own standard purchase order form. Additional
terms in the purchase order automatically become part of the contract
unless
a. they materially alter the original contract.
b. the original offer expressly required acceptance of its
terms.
c. the offeror objects to the new terms within a reasonable
period of time.
d. any of the above.
11. Standard Clothing, Inc. sells coats to Town Styles under an existing
contract. Due to increasing textile costs, Standard asks Town to agree to a
10 percent increase in the price. Town agrees but later tries to cancel the
contract. Town
a. may cancel the contract on reasonable notice.
b. may cancel the contract without notice.
c. will be liable for breaching the contract if Town cancels it.
d. none of the above.
12. Bakers refer to a "baker's dozen" as consisting of a collection of thirteen
baked goods. This is an example of
a. course of dealing.
b. usage of trade.
c. course of performance.
d. none of the above.
13. Best Foods Company agrees to sell Consolidated Grocery Stores, Inc.
1,000 cases of beans. Before any interest in specific cases of beans can
pass from Best to Consolidated, the beans must be
a. in existence only.
b. identified as the specific goods designated in the contract
only.
c. in existence and identified as the goods in the contract.
d. none of the above.
14. Mountain Bikes, Inc. and Local Bicycle Store contract for a sale of
seventy bicycles from Mountain to Local. Unless the contract states
otherwise, it is assumed this is
a. a shipment contract.
b. a destination contract.
c. a shipment contract and a destination contract.
d. none of the above.
15. A contract between Fresh Fruit Corporation and Green Grocer, Inc.
requires Fresh Fruit to deliver goods to Green Grocer's place of business.
This is
a. a bill of lading.
b. a destination contract.
c. a shipment contract.
d. a warehouse receipt.
16. Dick steals Jane's watch and later sells the watch to Sally. Jane can
recover the watch from Sally
a. under any circumstances.
b. only if Sally knew that the watch was stolen.
c. only if Sally did not know that the watch was stolen.
d. only if Sally gave legally sufficient consideration for the
watch.
17. Fran leaves a pair of recently purchased shoes at a shoe store so that they
might be dyed for a wedding. The shoe store accidentally sells Fran's
shoes to Jan, who has no knowledge that the shoes belong to someone
else. Fran can recover from
a. Jan for the return of the shoes but she cannot recover from
the shoe store because it made an honest mistake.
b. the shoe store for the purchase price of the shoes but
cannot recover from Jan because she had no knowledge
that the shoes were owned by Fran.
c. both the shoe store and Jan.
d. none of the above.
18. Chris in New York purchases chocolate from Sweet Candies in Los
Angeles. The parties agree that Sweet will bear the risk of loss while the
goods are in transit. The chocolate is destroyed near Chicago while aboard
a carrier. The loss is suffered by
a. Chris.
b. Sweet.
c. the carrier.
d. both a and b.
19. Home Furnishings Store buys furniture from National Furniture
Company. The parties agree that the furniture will be shipped F.O.B.
National's warehouse. The furniture is destroyed after being put aboard
Open Transport Corporation, a carrier. The loss is suffered by
a. Home Furnishings.
b. National Furniture.
c. Open Transport.
d. none of the above.
20. Fresh Breakfast Restaurant buys 100 bags of oranges from Sweet Citrus
Company. The parties agree to ship the oranges F.O.B. Fresh Breakfast
via Total Trucking Company. The oranges rot in transit. The loss is
suffered by
a. Fresh Breakfast.
b. Sweet Citrus.
c. Total Trucking.
d. none of the above.
21. Fine Textiles Corporation in New Jersey sells fifty tons of fabric to Good
Clothing, Inc., in Ohio, F.O.B. New Jersey. The cost of transporting the
fabric to Ohio will be paid by
a. Fine Textiles.
b. Good Clothing.
c. New Jersey.
d. none of the above.
22. Lee purchases a bicycle from his brother, Kim, who is a used car dealer.
Kim agrees to keep the bike at his house until Lee picks it up. A tree falls
on Kim's garage and destroys the bike. The loss is suffered by
a. Lee.
b. Kim.
c. both a and b.
d. none of the above.
23. Alan buys a bicycle from Bike-a-Rama. Bike-a-Rama agrees to keep the
bike for Alan until he picks it up. Bike-a-Rama is burned to the ground by
an arsonist and the bike is destroyed. The loss is suffered by
a. Alan only.
b. Bike-a-Rama only.
c. Alan and Bike-a-Rama.
d. none of the above.
24. Richie Diamonds ships an assortment of high-grade gems to Pell, a
retailer, with the understanding that Pell will be billed for any gems that
are not returned within three months. The agreement between Richie and
Pell is
a. a sale on approval.
b. a sale or return.
c. a consignment.
d. none of the above.
25. Ron orders a shipment of black coats from Burley Clothing. Burley ships
blue coats instead. Ron rejects the coats, but they are destroyed in a fire
on their return to Burley. The loss is suffered by
a. Ron because he wrongfully rejected the shipment.
b. Ron because he selected the carrier on which the coats
were destroyed.
c. Burley because it shipped nonconforming goods.
d. Burley because Ron never accepted the blue coats.
26. Circuit Electronics, Inc. accepts a shipment of CD players from Delta
Devices, Inc. When Circuit later discovers a defect in the players, it
revokes acceptance. The players are destroyed before they are returned to
Delta. The loss is suffered by
a. Circuit.
b. Delta.
c. Circuit and Delta equally.
d. none of the above.
27. Business Office Corporation (BOC) orders five inkjet printers from
Computer Products, Inc. (CPI), to be delivered by CPI. Before CPI's truck
arrives with the goods, BOC tells CPI it will not pay. The printers are
destroyed in transit. The loss is suffered by
a. BOC only.
b. BOC to the extent of a deficiency in CPI's insurance
coverage only.
c. BOC and CPI equally.
d. CPI only.
28. Tasty Restaurant orders five gallons of butter from Discount Suppliers.
Discount ships five gallons of margarine by mistake. Tasty decides to
keep the margarine, in spite of its nonconformity with the contract. The
destruction of the margarine in a fire at Tasty that same day will result in
a. Discount bearing the loss, because it shipped
nonconforming goods.
b. Discount bearing the loss, because it failed to notify Tasty
of the nonconformity before shipping the margarine.
c. Tasty bearing the loss, because it accepted delivery of the
margarine.
d. Tasty bearing the loss, because it had the power to send
the margarine back before it was destroyed.
29. Medico contracts for a sale of medical equipment to Children's Hospital.
For Medico to tender delivery of goods, Medico must
a. only give the hospital notice to enable it to take delivery.
b. only hold conforming goods at the hospital's disposal.
c. give the hospital notice and hold the goods at its disposal.
d. none of the above.
30. Sue agrees to sell Tad fifty bales of cotton, but they fail to specify in the
contract where the goods are to be delivered. If Tad is expected to pick the
goods up, then the place of delivery is
a. Sue's place of business.
b. Tad's place of business.
c. a third party's place of business.
d. none of the above.
31. Carl contracts for a sale of restaurant supplies to Diners Cafe under a
shipment contract. Carl must
a. only make a reasonable contract for the transportation of
the goods.
b. only tender to Diners whatever documents are needed to
obtain possession of the goods.
c. make a reasonable contract for the transportation of the
goods and tender to Diners documents needed to obtain
possession.
d. none of the above.
32. National Cable Company delivers to International Communications
Corporation goods that are slightly nonconforming to their contract. If the
time for performance has passed, International can reject the goods
a. entirely, due to the perfect tender rule.
b. only if International honestly believes that the
nonconformity is significant.
c. only if prompt notice is given in writing to National.
d. only with National's consent.
33. Food Packages, Inc. agrees to sell 50,000 6-ounce yogurt containers to
Great Dairy Company. Food can obtain only 20,000 of the 6-ounce
containers, but also ships 30,000 more expensive 8-ounce containers for
the same price. Under these circumstances
a. notice to Great of Food's intent to cure will give it a
reasonable time to obtain the other 6-ounce containers.
b. Great may reject the delivery.
c. both a and b.
d. none of the above.
34. Professional Products Company contracts to deliver emergency medical
supplies to Rescue & Relief Corporation using only Sky Airways. If Sky
declares bankruptcy, then
a. only Rescue& Relief may elect to perform the contract.
b. Professional may deliver the goods in any reasonable
manner.
c. Sky must designate a substitute carrier.
d. the entire contract is void.
35. Construction Supplies, Inc. sells to companies around the world. Which of
the following events would probably not excuse Construction Supplies
from a contract on the grounds of commercial impracticability?
a. Armed insurrection
b. Increased cost resulting from inflation
c. Sudden, severe shortage of raw material
d. Tornado
36. Gamma Company contracts to provide several manufacturers with tin. A
cartel of tin-producing countries embargoes future shipments of tin to
Gamma so that it cannot fulfill its contracts. Gamma
a. can substitute some other material for the tin.
b. is excused from the performance of its contracts.
c. is liable for breach of contract.
d. must still supply the tin needs of its customers.
37. Orchard Farms contracts with four food companies to sell its entire crop
of oranges. Orchard loses half of the crop to an unexpected insect
infestation. Orchard must
a. apportion its surviving crop fairly among its customers.
b. breach some of its contracts.
c. buy elsewhere as many oranges as needed to satisfy its
contracts.
d. substitute other fruit for the oranges.
38. National Costume Company (NCC) agrees to sell theatrical costumes to
the Shakespeare Drama Festival. After the goods are identified to the
contract but before the risk of loss passes to the Festival, the costumes are
partially destroyed by fire. Neither NCC nor the Festival was responsible
for the fire. The Festival may
a. accept the goods at a reduced price.
b. cancel the contract.
c. either a or b.
d. none of the above.
39. Alex agrees to sell Tina a certain quantity of unique glassware that is
identified to the contract. The glass is destroyed, through no fault of either
party, before the risk of loss passes to Tina. Who is excused from further
performance?
a. Alex only
b. Tina only
c. Both Alex and Tina
d. None of the above
40. Eagle Manufacturing Company prepares to ship goods to Fine E-tailers,
Inc. per Fine's purchase order. Fine is generally required to
a. accept the goods if they conform to the contract.
b. demand adequate assurances if Eagle indicates that it may
be unable to perform.
c. inspect the goods that Fine receives.
d. reject the goods if they do not conform to the contract.
41. ABC Games Company orders plastic game pieces from Best Plastics, Inc.
If some of the pieces conform, and some do not conform, to the terms of
the contract, ABC
a. must accept the entire shipment.
b. must reject the entire shipment of goods.
c. may accept part of the shipment and reject part.
d. none of the above.
42. Eve contracts for a sale of surveying tools to Cambridge Company. If the
tools fail to conform to the terms and conditions of the contract,
Cambridge may
a. accept the entire shipment.
b. reject the entire shipment.
c. accept any part of the shipment and reject any other part.
d. all of the above.
43. Margaret contracts to deliver fifty tables to the Furniture Warehouse on
May 1. She calls Furniture on April 15 to notify them that she is going to
cancel the contract because her workers have gone on strike. Furniture
may
a. for a commercially reasonable time await Margaret's
performance.
b. sue Margaret for breach of contract.
c. suspend its own performance.
d. all of the above.
44. Best Products, Inc. agrees to ship seven cases of CDs to Computer City. A
valid acceptance of the goods occurs if Computer City
a. expressly accepts the CDs by words or conduct.
b. fails to reject the CDs after having had a reasonable time
to inspect them.
c. performs an act inconsistent with Best's ownership of the
CDs.
d. all of the above.
45. Quality Equipment Company contracts for a sale of goods to Regional
Sales Corporation. Quality can enforce its right to payment
a. only after Regional has actually inspected the goods.
b. only after Regional has had an opportunity to inspect the
goods.
c. only before Regional has inspected the goods.
d. whether or not Regional has had the chance to inspect the
goods.
46. American Goods, Inc. contracts to sell t-shirts to All-Mart Outlet Stores.
American Goods can cancel the contract
a. only if All-Mart wrongfully rejects or revokes acceptance
of the goods.
b. only if All-Mart fails to make payment or repudiates the
contract.
c. both a and b.
d. none of the above.
47. Alan contracts with Burt for the sale of fifty cases of soft drinks. If either
party breaches the contract, the nonbreaching party is entitled to
a. the amount that could be recouped through cover, without
more.
b. the benefits he would have received if the contract had
been performed.
c. the cost to restore him to the position he was in before the
contract.
d. the lost profits, plus the profits that would have been
earned by the breaching party.
48. Lyle contracts to sell sweaters to Style Clothing Stores. Before the
sweaters are delivered, Style indicates that it will not be able to pay. Lyle
can
a. only complete the job, identify the goods to the contract,
and resell them.
b. only stop manufacturing the goods and sell them for scrap.
c. complete the job, identify the goods to the contract, and
resell them, or stop manufacturing the goods and sell them
for scrap.
d. none of the above.
49. Due to a rapid decline in the price of horseshoes, which can now be
bought and sold for 50 cents each, Mark refuses to buy 1,000 horseshoes
from Clark for $1 per shoe and thus breaches an existing contract. Clark is
entitled to recover
a. $1,500.
b. $1,000.
c. $500.
d. $0.
50. Olympic Steel contracts for a sale of steel to A&B Machines, Inc. After
Olympic ships the steel, A&B breaches the contract. Incidental damages
arising from the breach include the costs to Olympic of
a. designing the goods.
b. manufacturing the goods.
c. marketing the goods.
d. transporting the goods.
51. Fred and Barney enter into a contract in which Fred agrees to sell Barney
fifty crates of explosives even though Barney, unknown to Fred, is
insolvent. Barney sells the explosives to a good faith purchaser. Fred may
a. reclaim the goods if the demand is made in a timely
manner.
b. reclaim the goods if the good faith purchaser pays for the
explosives on credit.
c. not reclaim the goods even if the demand is made in a
timely manner.
d. none of the above.
52. Local Salvage Company is a good faith purchaser in a resale from United
Manufacturers, Inc. Local Salvage takes the goods subject to the rights of
a. the carrier from whom the goods were reclaimed only.
b. the original buyer only.
c. the carrier from whom the goods were reclaimed and the
original buyer.
d. none of the above.
53. CPA Accounting Services contracts to buy goods from Office Supplies,
Inc. (OSI). When OSI delivers the goods, CPA wrongfully refuses to
accept them. OSI files a suit against CPA. OSI can recover damages equal
to the difference between the contract price and the market price
a. at the time the contract was made.
b. at the time and place of tender.
c. when OSI learned of the breach.
d. when OSI filed a suit against CPA.
54. Victor contracts to sell diving equipment to Bay Diving Company. Victor
may bring an action to recover the purchase price and incidental damages
if Bay
a. accepts the equipment but does not pay for it.
b. pays for the equipment but rejects it.
c. pays for the equipment and later revokes acceptance.
d. all of the above.
55. Specific performance of a sales contract is the most appropriate remedy
on the breach of a contract for the sale of
a. oil.
b. land.
c. grain.
d. cement.
56. Tasty Chocolate Company contracts to sell chocolate to Sweet Candy,
Inc. Tasty has the chocolate in its warehouse, but refuses to deliver it to
Sweet, which, due to a sugar shortage, is unable to obtain cover. Sweet's
right to recover the goods from Tasty is the right to
a. novation.
b. replevin.
c. rescission.
d. specific performance.
57. Air Transport Company contracts to buy goods from Flight Engines, Inc.
Flight Engines wrongfully fails to deliver the goods. Air Transport can
recover damages equal to the difference between the contract price and
the market price
a. at the time the contract was made.
b. at the time and place of tender.
c. when Air Transport learned of the breach.
d. when Air Transport filed a suit against Flight Engines.
58. A-One Computer Store orders one hundred computers from Business
Supplies, Inc. (BSI). BSI delivers the computers, but half of them are
defective. Despite customers' complaints, A-One orders more computers,
but does not pay for them. In BSI's suit for payment, the court will most
likely rule in favor of
a. A-One, because BSI should have known that A-One's
failure to pay constituted a rejection.
b. A-One, because the computers were defective.
c. BSI, because A-One accepted the computers by selling
and continuing to order them.
d. BSI, because A-One owed BSI for the computers once
they were sent.
59. For General Construction Corporation to revoke acceptance of a shipment
of tools from Ace Tool Company, General Construction must
a. give notice of the revocation to Ace.
b. revoke before the tools undergo a substantial change not
caused by their own defects.
c. revoke within a reasonable time after General
Construction either discovers or should have discovered
the grounds for revocation.
d. all of the above.
60. Walter, a merchant, rightfully rejects a shipment of razorblades but is
unable to obtain instructions from the seller. Walter may
a. store the razorblades for the seller's account.
b. reship the razorblades to the seller at the seller's expense.
c. resell the razorblades and receive a commission on the
sale.
d. all of the above.
61. Bentley orders a carload of "Grade A winter wheat" from Graham, but
Graham ships "Grade B winter wheat" to Bentley. Bentley accepts the
nonconforming wheat but wishes to recover damages. Bentley must
a. notify Graham of the breach within a reasonable time after
the defect was discovered.
b. notify Graham of the breach within one week of using or
reselling the wheat.
c. keep the nonconforming wheat until any dispute is
resolved.
d. none of the above.
62. American Products Company orders twenty-two hard drives from
Gateplex, Inc. For American Products to revoke acceptance of the hard
drives
a. notice of the revocation must be given to Gateplex.
b. revocation must occur within a reasonable time after
American Products either discovers or should have
discovered the grounds for revocation.
c. revocation must occur before the goods have undergone
any substantial change not caused by their own defects.
d. all of the above.
63. Jane accepts a commercial unit of goods before discovering that the goods
do not substantially conform to the contract. Jane can revoke her
acceptance of the goods if the nonconformity substantially impairs the
value of the goods and
a. acceptance was predicated on the reasonable assumption
that the nonconformity would be cured and it has not been
seasonably cured.
b. Jane did not discover the nonconformity, and her
acceptance was reasonably induced by the difficulty of
discovery before acceptance or by the seller's assurances
that the goods conform.
c. either a or b.
d. none of the above.
64. Don contracts to buy timber from Northwest Lumber Company. Only half
of the shipment conforms to the contract. Timber that conforms to the
contract is in short supply. Don should probably
a. accept the entire shipment.
b. accept the timber that conforms to the contract and sue
Northwest for the difference between the contract price
and the cost of obtaining the rest of the conforming timber
elsewhere.
c. reject the entire shipment.
d. sue Northwest for specific performance.
65. Eagle Manufacturing Company includes in all of its contracts a limitation
on consequential damages resulting from the company's breach of
warranty. This is prima facie unconscionable if the damages include
personal injuries and the party with whom Eagle contracts is
a. a consumer only.
b. a merchant only.
c. either a consumer or a merchant.
d. none of the above.
66. Lisa steals Rachel's computer and resells it to Nicholas. In Rachel's suit to
recover the computer from Nicholas, Rachel will
a. lose, because Nicholas has title to the computer.
b. lose, because Nicholas has possession of the computer.
c. win, because Lisa could not lawfully convey title to the
computer to Nicholas.
d. win, because Lisa did not give consideration for the
computer.
67. Great Video Corporation sells high-definition televisions. Under most
circumstances, Great Video will be presumed to have warranted that its
title to the TVs is
a. bad.
b. fair.
c. good.
d. the best that money can buy at the list price.
68. Farmers Warehouse Corporation sells sixty cases of canned corn to Green
Grocery Stores, Inc. under a contract that does not include a disclaimer of
a title warranty. In this situation, Farmers warrants that its transfer of title
is
a. rightful.
b. subject to a third person's security interest.
c. the best that money can buy at the list price.
d. wrongful.
69. Gerry, the owner of an appliance store, sells a vacuum cleaner to Adam
and declares, prior to the parties' signing a sales contract, that the vacuum
cleaner "will clean wool rugs so that they look like new." Gerry's
statement is
a. an express warranty.
b. an implied warranty.
c. a statement of fact.
d. puffing.
70. Sara sells a car to Fred but does not tell him that Quigley holds a lien on
the car as security for a loan he made to Sara. Quigley repossesses the car
from Fred. Fred
a. has no recourse against Sara because he should have made
sure the car was unencumbered by a lien.
b. may recover damages from Sara due to her breach of
warranty of title.
c. may recover damages from Quigley for wrongful
interference with his possessory interest in the car.
d. may recover damages from Quigley for slander of title.
71. Perry, a buyer for Superior Products Company, a manufacturer of bulletin
boards and other office supplies, visits a lumberyard and is shown
samples of cork by Monica, a salesperson. Perry agrees to buy a certain
quantity based on Monica's statement that the shipment will match a
selected sample. The statement is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffing.
72. Joseph visits an auto dealer and declares that he will only buy a car that
gets at least thirty miles to the gallon. The salesperson considers Joseph's
statement before recommending a car that he declares gets "at least forty
miles to the gallon." The salesperson's statement is
a. an express warranty.
b. an implied warranty of merchantability.
c. an implied warranty of fitness for a particular purpose.
d. a warranty of title.
73. In a transaction between Retail Products Corporation and Standard Stores,
Inc., the most important factor in determining whether an express
warranty is created is whether
a. the seller intends to create a warranty.
b. the seller makes a promise.
c. the seller's promise becomes part of the basis of the
bargain.
d. the seller's promise is in writing.
74. Nick, a door-to-door salesperson tells potential customers that his
products are "the best that money can buy." This is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffing.
75. Boyd purchases Clean 'n' Bright toothpaste from a grocery store. His
house guest, Rita, tries the toothpaste and suffers burns in her mouth due
to its improper preparation. Rita may recover from Clean 'n' Bright
because
a. Clean 'n' Bright breached its implied warranty of
merchantability.
b. it was foreseeable that she could be injured by Boyd's
purchase of the toothpaste.
c. Clean 'n' Bright has the resources to pay for her injuries.
d. none of the above.
76. Business Mart, Inc. sells office furniture. To be merchantable, the
furniture must
a. be of average, fair, or medium-grade quality.
b. be of even quality and quantity in each unit and among all
units.
c. conform to promises or affirmations of fact made on the
containers and labels.
d. all of the above.
77. Alpha Communications, Inc. makes and sells cell phones. In deciding
whether the cell phones are merchantable, a court would focus on whether
a. Alpha's products are fit for the ordinary purpose for which
such goods are used.
b. Alpha's products are made according to the best
manufacturing methods.
c. Alpha's products are quality products.
d. Alpha violated any laws or regulations.
78. Molly goes to a gas station and has the oil in her car changed. The service
technician learns that Molly plans to take a long trip and advises the use
of a particular type of oil to which Molly agrees. The oil breaks down
while Molly is on her trip, causing damage to her car's engine. Molly may
recover from the gas station for breaching
a. an express warranty.
b. an implied warranty of merchantability.
c. an implied warranty of fitness for a particular purpose.
d. a warranty of title.
79. Stan wishes to sell his sport utility vehicle (SUV). To avoid liability for
any implied warranties, the sales agreement should note that the SUV is
being sold
a. "as is."
b. by a nonmerchant.
c. for cash.
d. in mint condition.