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Exam 12: Sales and Lease Law

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Question 21

Multiple Choice

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Trucks & Trailers,Inc.(T&T) ,and United Express Service enter into a contract for a lease of trucks.T&T is a merchant who deals in goods of the kind leased.Under the UCC,an implied warranty of merchantability arises

A) automatically.
B) only if the lessee asks for it.
C) only if the lessor expresses such a warranty.
D) only in conjunction with sales,not lease,contracts.

E) All of the above
F) A) and D)

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Question 22

Multiple Choice

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Containers Inc.sends its standard order form to Distribution Corporation to evidence a sale of packing materials.Distribution responds with its own standard purchase order form.Additional terms in Distribution's form automatically become part of the contract unless

A) the terms materially alter the original contract.
B) the original offer expressly required acceptance of its terms.
C) Containers objects to the new terms within a reasonable time.
D) any of the choices.

E) None of the above
F) B) and C)

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Question 23

True/False

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If a buyer wrongfully refuses to pay for goods,the seller can reclaim them and resell them,without crediting the sale proceeds to the buyer.

A bar of soap is unmerchantable if stepping on it would cause its user to slip and fall.

A contract for a sale of natural gas is a contract for a sale for goods.

Sara and Tim enter into a contract for a sale of orchids that requires payment within thirty days of delivery.The UCC provides that when parties do not specify payment terms,payment is due at the time and place of delivery.Under the UCC,the specific payment term in the parties' contract

Home Redo,Inc. ,and Ivy enter into a contract for a sale of cabinets and countertops.Home Redo,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability.Under the UCC,this means that the goods are reasonably

Text & Talk Corporation sells phones.Under most circumstances,Text & Talk will be presumed to have warranted that its title to the goods is

Riverside Mill and Standard Contractors enter into a contract for a sale of lumber.The mill knows the purpose for which the buyer will use the goods.Under the UCC,an implied warranty of fitness of a particular purpose arises if

Rancho Stables orders ten saddles from Saddles,Inc.The sales contract states that if the tack is defective,Rancho will allow Saddles to repair or replace it instead of rejecting the shipment.When the gear arrives,it is defective.In this case,the perfect tender rule

A merchant who is in the business of selling certain goods makes an implied warranty of merchantability every time she sells any type of merchandise.

If a contract for a sale of goods leaves the quantity term open,there is a basis for determining a remedy.

Any use of delivered goods by the buyer-even for the limited purpose of testing them-constitutes acceptance.

Generally,when an acceptance to a sales contract between merchants includes terms additional to those in the offer,the terms automatically become part of the deal.

Acceptance of an offer to lease goods can be made by any means reasonable under the circumstances,including a prompt shipment of the goods.

Nature's Eggs,Inc.agrees to supply Omelet Express with five hundred eggs.Nature's Eggs can reasonably ask Omelet Express to pick up the eggs at

Cruisin' Autos,Inc. ,sells cars to consumers.To avoid liability for oral express warranties,each sales agreement should note that a car is sold

In response to an order for a hundred baseballs,the shipment of a hundred basketballs is both an acceptance of the offer and a breach of the contract.

Tune Products,Inc. ,offers to sell to Unlimited Sales Company one hundred MP3 players at $50 a piece,subject to certain specific delivery dates.Unlimited replies with a signed purchase order that reads,"Accept your offer for 100 I-appliances at $50 each.Must be delivered to our warehouse." Tune does not respond or deliver the goods.Unlimited files a suit for breach of contract,to which Tune answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Tune.Can Unlimited recover? Explain.

In an action based on breach of implied warranty,a buyer must show that the warranty existed and its breach proximately caused the damage sustained.