Chapter 14 Quiz Flashcards
Household Products Corporation sells Ideal-brand vacuum cleaners to Jolly Discount Stores and other retailers. Household will have an insurable interest in the cleaners as long as
a. Household retains title to the goods.
b. the goods are in existence.
c. Household remains in business.
d. there is no risk of loss.
a
Owen and Pablo enter into a contract for a sale of well-drilling equipment. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between
a. the contract price and the market price.
b. the current prices in the parties’ locations.
c. any loss avoided and any profit gained.
d. the actual price and the hoped-for price.
a
Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should
a. buy the equipment from a different firm and bill the seller for the price.
b. consider the contract repudiated and sue the seller for breach.
c. buy the equipment from a different firm and bill Excavation for the price.
d. demand assurances of performance from the seller.
d
Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc. The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality must give Pipes & Culverts a warehouse receipt for the goods, which Pipes will then pick up. Title to the goods passes to Pipes & Culverts when
a. Pipes & Culverts picks up the pumps.
b. Quality gives Pipes & Culverts a warehouse receipt for the pumps.
c. Pipes & Culverts orders the pumps.
d. Quality stores the pumps.
b
Lucy owns a condominium that she leases to Marie, gives her son Neal $450 on his sixteenth birthday, and sells her car to her neighbor Odalles for $1,500. UCC Article 2 covers
a. the sale to Odalles.
b. all of the choices.
c. the lease with Marie.
d. the gift to Neal.
a
Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold
a. with no known defects.
b. as is.
c. by a merchant.
d. in perfect condition.
a
Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that
a. entirely conform to the contract description except in one or two details.
b. conform to the contract description in every way.
c. approximately conform to the contract description.
d. substantially conform to the contract description in most details.
b
Clean Mouth Clinic offers to buy from Dental Supplies Company a certain quantity of floss and other items for a certain price. Dental can accept the offer by
a. a shipment of nonconforming goods with a notice of accommodation.
b. a promise to ship or a prompt shipment of the goods.
c. a material alteration of the terms within a reasonable time.
d. a prompt shipment of the goods only.
b
Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting to be delivered under a shipment contract. This contract requires Elegant Carpets, the seller, to
a. deliver the goods to a particular destination.
b. inspect the goods before shipping them.
c. place the goods into the hands of a carrier.
d. allow the buyer to reject the goods for any reason.
c
Quest Outdoor Store orders RiverRun-brand kayaks from Sports Merchandise, Inc. Sports Merchandise mistakenly ships kayaks of the wrong size, which Quest rejects and returns via Trans-State Shipping Company. During the return, the kayaks are lost. The loss is suffered by
a. Quest.
b. Trans-State.
c. Sports Merchandise.
d. RiverRun.
c
