Chapter 13- Sales

Question 1

Conforming Goods

Answer 1

Goods that conform to contract specifications

Question 2

Cover

Answer 2

Remedy that allows the buyer to purchase or lease the goods from another seller and substitute them for the goods due under the contract that was breached

Question 3

Cure

Answer 3

party who tenders nonconforming performance to correct that performance within the contract period

Question 4

Express Warranty

Answer 4

Seller’s oral or written promise underlying the quality, description, or performance of the goods being sold or leased.

Question 5

Firm Offer

Answer 5

Merchant offer that is irrevocable without the necessity of consideration (not to exceed three months); must be in writing and must be signed by the offeror.

Question 6

Implied Warranty

Answer 6

Warranty derived from either the situation of the parties or the nature of the transaction.

Question 7

Implied Warranty of Fitness for a Particular Purpose

Answer 7

Seller knows the particular purpose the buyer will use the goods and knows that the buyer is relying on their skill and judgment to select suitable goods

Question 8

Implied Warranty of Merchantability

Answer 8

Goods are reasonably fit for the general purpose for which they are sold or leased.

Question 9

Installment Contract

Answer 9

Payments are made periodically.

Question 10

Lease

Answer 10

Transfer of the right to possess or use goods for a period of time in exchange for payment.

Question 11

Lessee

Answer 11

Person who acquires the right to the possession/use of another’s goods in exchange for rental payments

Question 12

Lessor

Answer 12

Person who transfers the right to the possession/use of goods to another in exchange for rental payments

Question 13

Merchant

Answer 13

Person who is engaged in the purchase and sale of goods

Question 14

Perfect Tender Rule

Answer 14

Seller is required to deliver goods that conform to the contract requirements

Question 15

Sale

Answer 15

Passing of title from the seller to the buyer for a price

Question 16

Sales Contract

Answer 16

Contract for the sale of goods where ownership of goods is transferred from a seller to a buyer

Question 17

Seasonably

Answer 17

Within a specified time period or within a reasonable time.

Question 18

Tangible Property

Answer 18

Property can be distinguished by the senses of touch and sight.

Question 19

Tender of Delivery

Answer 19

Seller’s act of placing conforming goods at the disposal of the buyer and giving the buyer notification to enable the buyer to take delivery.

Question 20

The Uniform Commercial Code (UCC) attempts to provide

Answer 20

consistent and integrated framework of rules to deal with all aspects of commercial sales transactions

Question 21

Article 2 of the UCC governs

Answer 21

contracts for the sale of goods

Question 22

The effect of open terms on a contract covered by the UCC is that

Answer 22

the contract will be valid if the parties intended to form a contract and there is a reasonable basis for a court to grant a remedy

Question 23

The implied warranty of merchantability applies to food. Merchantable food would include

Answer 23

A container of fresh cherry juice with a cherry pit inside

Question 24

Under the UCC’s perfect tender rule, what options does a buyer have when the seller tenders nonconforming goods?

Answer 24

The buyer may accept all, part, or none of the goods

Question 25

What does NOT create an express warranty?

Answer 25

The seller states that the goods were purchased from a disreputable manufacturer

Question 26

What can a nonbreaching party do when faced with an anticipatory repudiation by the other party?

Answer 26

Wait and hope that the repudiating party will perform

Question 27

Assume that after the CDs have been loaded onto a truck and are en route to Karen, Larry discovers that Karen is bankrupt (insolvent). Larry may

Answer 27

Stop the delivery