1) X Company manufactures bicycles. X Company shipped a group of bicycles to Y Sporting Goods in a small town. Johnny purchased one of the bicycles manufactured by X Company from the Sporting Goods store. While he was riding the bicycle the day after purchasing it, the front wheel fell off, and Johnny fell and broke his arm. The cause of the accident was a defect that existed when X Company shipped it to Y Sporting Goods. Will Johnny be successful if he files a lawsuit alleging strict liability?
A. Yes, each of the requirements for an action in strict liability is met.
B. No, the goods must not have been substantially changed from the time the product was sold to the time the injury was sustained.
C. No, the defendant must normally be engaged in the business of selling or distributing the product.
D. No, the product must be unreasonably dangerous to the user or consumer because of its defective condition.
2) Mary and George enter a contract in which George agrees to sell Mary vases made in his vase factory in
Bedford Falls, New York. XXXXX XXXXXves in Los Angeles, California. The contract expressly states that the sale is F.O.B. (free on board) Los Angeles. The vases are damaged during transport between Bedford Falls and Los Angeles. Who bears the risk of loss?
A. George
B. Mary
C. Both George and Mary
D. Mary's insurance carrier
3) Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due on November 15. On November 6, Peter delivers 20 pairs of sky blue pants. Lulu phones Peter and tells him he is in breach because the pants are the wrong color. Which of the following statements is true?
A. Peter is in breach, and the contract is automatically cancelled.
B. Peter has the right to be paid for the pants that were delivered under the doctrine of substantial compliance.
C. Peter has the right to cure the breach by delivering 20 pairs of navy blue pants on or before November 15.
D. Peter is in breach, and Lulu may cancel the contract.
4) In August, wholesaler Terrence contracts with retailer Elmer to sell Elmer 500 pairs of blue pants for
$5,000 in December. Then, in October, the price of pants drops due to a deal Terrence has made with the
manufacturer. Terrence, seeking to get more business from Elmer, agrees in writing to drop the price of the
pants due in December from $5,000 to $3,500. Then, in November, the deal Terrence made with the
manufacturer falls through, and Terrence calls Elmer and tells him the original price of $5,000 will be
charged. Elmer sues, seeking damages based on the lower purchase price. The most likely result is
A. the court will award damages based on an average of the two prices.
B. Terrence wins because the price modification was made without Elmer's consideration.
C. Elmer wins because the modification was effective.
D. Terrence wins because Elmer originally agreed to $5,000.
5) Lulu orders 20 pairs of navy blue pants from Peter for $4,000. On receipt of 20 pairs of sky blue pants,
Lulu begins offering the pants for sale in her store. After a few days, when no one buys the pants, Lulu
ships them back to Peter, claiming that the pants aren't the color that was specified in the contract and
claiming that Peter needs to ship her conforming goods. Peter claims he doesn't have to do anything and
that Lulu owes him $4,000. Which of the following statements is true?
A. Lulu owes Peter $4,000 because the pants approximate what was required under the contract.
B. Peter must ship to Lulu 20 pairs of navy blue pants.
C. Lulu owes Peter nothing because she hasn't accepted the pants until she either pays or signifies that the pants conform to the requirements of the contract.
D. Lulu owes Peter $4,000 because she accepted the pants.
6) Clementine, a debt collector, phones the home of Herschel for the purpose of collecting a debt owed by
Herschel. Herschel isn't at home and Herschel's wife Edith answers. Clementine tells Edith that Herschel
owes $500 on the debt Clementine is trying to collect. Which of the following statements is true?
A. Clementine has violated the Fair Debt Collection Practices Act by communicating by phone rather than in writing.
B. Clementine has violated the Fair Debt Collection Practices Act by telling Edith how much Herschel owes on the debt.
C. Clementine has violated the Fair Debt Collection Practices Act by phoning Herschel's home.
D. Clementine hasn't violated the Fair Debt Collection Practices Act.
7) Dacia is working out the terms of a contract to purchase Reed's paintings. Reed submits an offer in writing, which states that Dacia may have the first option to purchase each of his paintings within 30 days
after completion, at $1,000 per painting. Dacia submits an offer in writing that indicates her acceptance, but stipulates that if she is unsatisfied with a painting after purchase, she may return the painting for a full refund within 10 days of delivery. Reed makes no objection. Dacia and Reed are considered merchants under the UCC. What is the result of these events?
A. A contract is formed, and Dacia's additional terms don't become part of the contract.
B. No contract is formed, and Dacia's offer is treated as a rejection of Reed's offer.
C. A contract is formed, and Dacia's additional terms become part of the contract if they don't materially alter the contract.
D. No contract is formed, and Dacia's offer is a counteroffer.
8) Tom agrees to sell 500 pairs of pants to Sally for $5,000. Tom delivers the pants. Sally hands Tom a
check. Tom demands cash and refuses to accept the check. Which of the following statements is true?
A. Sally is in breach because Tom is permitted to demand cash.
B. Tom is in breach as the UCC gives him no right to demand cash.
C. Sally must pay cash but is entitled to a reasonable time to come up with the cash.
D. Sally will be in breach if she doesn't immediately give Tom $5,000 in cash.
9) Sal, who owns and operates an appliance store, comes to Diana's house and convinces her to purchase a
vacuum cleaner for $50. Two days later, Diana changes her mind. Diana can avoid the contractual obligation under the __________ rule.
A. cooling-off
B. antislamming
C. telemarketing
D. negative option
10) Sam bought a new suit. The first time Sam took the suit to the cleaners, it disintegrated through no fault
of the cleaners. What theory is best for recovering the price of the suit from the seller?
A. Breach of implied warranty of merchantability
B. Contributory negligence
C. Unfair trade practices
D. Breach of warranty of title
11) Tom contracts to sell goods to Velia. The contract isn't C.O.D. and doesn't provide for payment against
a document of title. Tom delivers the goods. Which of the following statements is true?
A. Velia must accept the goods but may inspect before paying.
B. Velia must pay for the goods but may inspect before accepting.
C. Velia must accept the goods.
D. Velia has a right to inspect the goods before accepting or paying for the goods.
12) Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due no later than November 15. On November 6, Peter phones to say that he won't deliver the pants because he has gone out of business.
A. Peter isn't in breach because going out of business makes it impossible for Peter to perform.
B. Lulu can declare Peter in breach on November 6.
C. Peter will be in breach only if Lulu is unable to find an alternate supplier who can deliver by November 15.
D. Lulu can declare Peter in breach on November 15 if Peter hasn't delivered the pants.
13) Bob enters into a contract to sell a furnace to Carl and also agrees to install it. Bob and Carl have a dispute over the contract. The contract will be governed by
A. non-UCC law because the contract failed to expressly state whether the UCC would govern the transaction.
B. UCC law because the dominant element of the contract is sale of goods.
C. non-UCC law because it includes the service of installation.
D. UCC law because the contract failed to expressly state that the UCC wouldn't govern the transaction.
14) Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due no later than
November 15. On November 15, Peter delivers 20 pairs of navy dresses. Lulu may
A. keep the goods and seek adjustment.
B. sue for specific performance.
C. cover the sale.
D. sue for breach.
15) Tom wants to change the oil in his automobile, and to do so, he needs to purchase an oil filter. He goes to the auto supply store and tells the clerk that he needs to change the oil in his vehicle and wants an appropriate oil filter for his make and model of vehicle. The clerk recommends oil filter XYZ-2. Tom purchases the oil filter, takes it home, and puts it on his vehicle. The oil filter isn't suited for the vehicle and, as a result, the vehicle is damaged. Tom can sue successfully based on breach of
A. implied warranty of merchantability.
B. implied warranty of fitness for a particular purpose.
C. implied warranty of title.
D. express warranty.
16) Elmer contracts with Racketware, Inc., a company in France, to purchase 5,000 tennis rackets. The
rackets will be shipped by boat to a warehouse in New Jersey. Elmer and Racketware enter into the
contract on November 1. The boat containing the rackets leaves France on November 2. The boat
containing the rackets sinks on November 3. The documents necessary to claim the rackets are received by
Elmer in the mail on November 4. The risk of loss shifted from the seller to the buyer on what date?
A. November 3
B. November 4
C. November 1
D. November 2
17) Carl goes to a store to buy a television. At the store, there's a television playing. Carl thinks the picture
and sound on that television is good, so he buys the same model. He takes it home, plugs it in, and finds
that the picture and sound, while reasonably good, aren't as good as what he saw in the store. He sues for
breach of warranty. If he wins, it will be because
A. there's a breach of warranty of merchantability.
B. there's a breach of warranty of fitness for a particular purpose.
C. there's a failure of consideration.
D. the demonstration of the model constituted a warranty that proved false.
18) At the beginning of November, Bob offered to sell to Sally pants at a price of $20 per pair. Sally said she wanted to see how much shopping traffic her store enjoyed on Black Friday, the day after Thanksgiving, before deciding. Bob agreed in writing to hold the offer open for the rest of the month. Sally had a lot of shoppers come to the store on Black Friday and decided she could sell a lot of pants, so she phoned Bob the next day to order several dozen pairs of pants. Bob told her the offer had been revoked. Sally sues, claiming breach of contract. The most likely result will be that
A. Bob wins because Sally had no right to rely on Bob's promise.
B. Sally wins because Bob doesn't have the right to revoke a firm offer.
C. Bob wins because the offer is unenforceable due to lack of consideration.
D. Sally wins because the offer was revoked.
19) Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due no later than
November 15. On November 6, Peter delivers the goods to a common carrier for shipment. Two minutes
later, Lulu phones to say that she won't be able to pay for the goods because she has gone out of business. Peter may
A. resell the goods.
B. sue for the price of the goods.
C. recover damages from the goods.
D. stop delivery of the goods.
20) Dennis contracts with Racketware, Inc., a company in France, to purchase 5,000 tennis rackets. The rackets will be shipped by airplane to a warehouse in New Jersey. Dennis and Racketware enter into a contract on November 1, and the contract identified the rackets being purchased. The airplane containing the rackets leaves France on November 2. The documents necessary to claim the rackets are received by Dennis in the mail on November 3. Dennis claimed the goods at the warehouse on November 4. Dennis acquired an insurable interest in the rackets on what date?
A. November 3
B. November 4
C. November 2
D. November 1
A. Yes, each of the requirements for an action in strict liability is met.
B. No, the goods must not have been substantially changed from the time the product was sold to the time the injury was sustained.
C. No, the defendant must normally be engaged in the business of selling or distributing the product.
D. No, the product must be unreasonably dangerous to the user or consumer because of its defective condition.
2) Mary and George enter a contract in which George agrees to sell Mary vases made in his vase factory in
Bedford Falls, New York. XXXXX XXXXXves in Los Angeles, California. The contract expressly states that the sale is F.O.B. (free on board) Los Angeles. The vases are damaged during transport between Bedford Falls and Los Angeles. Who bears the risk of loss?
A. George
B. Mary
C. Both George and Mary
D. Mary's insurance carrier
3) Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due on November 15. On November 6, Peter delivers 20 pairs of sky blue pants. Lulu phones Peter and tells him he is in breach because the pants are the wrong color. Which of the following statements is true?
A. Peter is in breach, and the contract is automatically cancelled.
B. Peter has the right to be paid for the pants that were delivered under the doctrine of substantial compliance.
C. Peter has the right to cure the breach by delivering 20 pairs of navy blue pants on or before November 15.
D. Peter is in breach, and Lulu may cancel the contract.
4) In August, wholesaler Terrence contracts with retailer Elmer to sell Elmer 500 pairs of blue pants for
$5,000 in December. Then, in October, the price of pants drops due to a deal Terrence has made with the
manufacturer. Terrence, seeking to get more business from Elmer, agrees in writing to drop the price of the
pants due in December from $5,000 to $3,500. Then, in November, the deal Terrence made with the
manufacturer falls through, and Terrence calls Elmer and tells him the original price of $5,000 will be
charged. Elmer sues, seeking damages based on the lower purchase price. The most likely result is
A. the court will award damages based on an average of the two prices.
B. Terrence wins because the price modification was made without Elmer's consideration.
C. Elmer wins because the modification was effective.
D. Terrence wins because Elmer originally agreed to $5,000.
5) Lulu orders 20 pairs of navy blue pants from Peter for $4,000. On receipt of 20 pairs of sky blue pants,
Lulu begins offering the pants for sale in her store. After a few days, when no one buys the pants, Lulu
ships them back to Peter, claiming that the pants aren't the color that was specified in the contract and
claiming that Peter needs to ship her conforming goods. Peter claims he doesn't have to do anything and
that Lulu owes him $4,000. Which of the following statements is true?
A. Lulu owes Peter $4,000 because the pants approximate what was required under the contract.
B. Peter must ship to Lulu 20 pairs of navy blue pants.
C. Lulu owes Peter nothing because she hasn't accepted the pants until she either pays or signifies that the pants conform to the requirements of the contract.
D. Lulu owes Peter $4,000 because she accepted the pants.
6) Clementine, a debt collector, phones the home of Herschel for the purpose of collecting a debt owed by
Herschel. Herschel isn't at home and Herschel's wife Edith answers. Clementine tells Edith that Herschel
owes $500 on the debt Clementine is trying to collect. Which of the following statements is true?
A. Clementine has violated the Fair Debt Collection Practices Act by communicating by phone rather than in writing.
B. Clementine has violated the Fair Debt Collection Practices Act by telling Edith how much Herschel owes on the debt.
C. Clementine has violated the Fair Debt Collection Practices Act by phoning Herschel's home.
D. Clementine hasn't violated the Fair Debt Collection Practices Act.
7) Dacia is working out the terms of a contract to purchase Reed's paintings. Reed submits an offer in writing, which states that Dacia may have the first option to purchase each of his paintings within 30 days
after completion, at $1,000 per painting. Dacia submits an offer in writing that indicates her acceptance, but stipulates that if she is unsatisfied with a painting after purchase, she may return the painting for a full refund within 10 days of delivery. Reed makes no objection. Dacia and Reed are considered merchants under the UCC. What is the result of these events?
A. A contract is formed, and Dacia's additional terms don't become part of the contract.
B. No contract is formed, and Dacia's offer is treated as a rejection of Reed's offer.
C. A contract is formed, and Dacia's additional terms become part of the contract if they don't materially alter the contract.
D. No contract is formed, and Dacia's offer is a counteroffer.
8) Tom agrees to sell 500 pairs of pants to Sally for $5,000. Tom delivers the pants. Sally hands Tom a
check. Tom demands cash and refuses to accept the check. Which of the following statements is true?
A. Sally is in breach because Tom is permitted to demand cash.
B. Tom is in breach as the UCC gives him no right to demand cash.
C. Sally must pay cash but is entitled to a reasonable time to come up with the cash.
D. Sally will be in breach if she doesn't immediately give Tom $5,000 in cash.
9) Sal, who owns and operates an appliance store, comes to Diana's house and convinces her to purchase a
vacuum cleaner for $50. Two days later, Diana changes her mind. Diana can avoid the contractual obligation under the __________ rule.
A. cooling-off
B. antislamming
C. telemarketing
D. negative option
10) Sam bought a new suit. The first time Sam took the suit to the cleaners, it disintegrated through no fault
of the cleaners. What theory is best for recovering the price of the suit from the seller?
A. Breach of implied warranty of merchantability
B. Contributory negligence
C. Unfair trade practices
D. Breach of warranty of title
11) Tom contracts to sell goods to Velia. The contract isn't C.O.D. and doesn't provide for payment against
a document of title. Tom delivers the goods. Which of the following statements is true?
A. Velia must accept the goods but may inspect before paying.
B. Velia must pay for the goods but may inspect before accepting.
C. Velia must accept the goods.
D. Velia has a right to inspect the goods before accepting or paying for the goods.
12) Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due no later than November 15. On November 6, Peter phones to say that he won't deliver the pants because he has gone out of business.
A. Peter isn't in breach because going out of business makes it impossible for Peter to perform.
B. Lulu can declare Peter in breach on November 6.
C. Peter will be in breach only if Lulu is unable to find an alternate supplier who can deliver by November 15.
D. Lulu can declare Peter in breach on November 15 if Peter hasn't delivered the pants.
13) Bob enters into a contract to sell a furnace to Carl and also agrees to install it. Bob and Carl have a dispute over the contract. The contract will be governed by
A. non-UCC law because the contract failed to expressly state whether the UCC would govern the transaction.
B. UCC law because the dominant element of the contract is sale of goods.
C. non-UCC law because it includes the service of installation.
D. UCC law because the contract failed to expressly state that the UCC wouldn't govern the transaction.
14) Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due no later than
November 15. On November 15, Peter delivers 20 pairs of navy dresses. Lulu may
A. keep the goods and seek adjustment.
B. sue for specific performance.
C. cover the sale.
D. sue for breach.
15) Tom wants to change the oil in his automobile, and to do so, he needs to purchase an oil filter. He goes to the auto supply store and tells the clerk that he needs to change the oil in his vehicle and wants an appropriate oil filter for his make and model of vehicle. The clerk recommends oil filter XYZ-2. Tom purchases the oil filter, takes it home, and puts it on his vehicle. The oil filter isn't suited for the vehicle and, as a result, the vehicle is damaged. Tom can sue successfully based on breach of
A. implied warranty of merchantability.
B. implied warranty of fitness for a particular purpose.
C. implied warranty of title.
D. express warranty.
16) Elmer contracts with Racketware, Inc., a company in France, to purchase 5,000 tennis rackets. The
rackets will be shipped by boat to a warehouse in New Jersey. Elmer and Racketware enter into the
contract on November 1. The boat containing the rackets leaves France on November 2. The boat
containing the rackets sinks on November 3. The documents necessary to claim the rackets are received by
Elmer in the mail on November 4. The risk of loss shifted from the seller to the buyer on what date?
A. November 3
B. November 4
C. November 1
D. November 2
17) Carl goes to a store to buy a television. At the store, there's a television playing. Carl thinks the picture
and sound on that television is good, so he buys the same model. He takes it home, plugs it in, and finds
that the picture and sound, while reasonably good, aren't as good as what he saw in the store. He sues for
breach of warranty. If he wins, it will be because
A. there's a breach of warranty of merchantability.
B. there's a breach of warranty of fitness for a particular purpose.
C. there's a failure of consideration.
D. the demonstration of the model constituted a warranty that proved false.
18) At the beginning of November, Bob offered to sell to Sally pants at a price of $20 per pair. Sally said she wanted to see how much shopping traffic her store enjoyed on Black Friday, the day after Thanksgiving, before deciding. Bob agreed in writing to hold the offer open for the rest of the month. Sally had a lot of shoppers come to the store on Black Friday and decided she could sell a lot of pants, so she phoned Bob the next day to order several dozen pairs of pants. Bob told her the offer had been revoked. Sally sues, claiming breach of contract. The most likely result will be that
A. Bob wins because Sally had no right to rely on Bob's promise.
B. Sally wins because Bob doesn't have the right to revoke a firm offer.
C. Bob wins because the offer is unenforceable due to lack of consideration.
D. Sally wins because the offer was revoked.
19) Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due no later than
November 15. On November 6, Peter delivers the goods to a common carrier for shipment. Two minutes
later, Lulu phones to say that she won't be able to pay for the goods because she has gone out of business. Peter may
A. resell the goods.
B. sue for the price of the goods.
C. recover damages from the goods.
D. stop delivery of the goods.
20) Dennis contracts with Racketware, Inc., a company in France, to purchase 5,000 tennis rackets. The rackets will be shipped by airplane to a warehouse in New Jersey. Dennis and Racketware enter into a contract on November 1, and the contract identified the rackets being purchased. The airplane containing the rackets leaves France on November 2. The documents necessary to claim the rackets are received by Dennis in the mail on November 3. Dennis claimed the goods at the warehouse on November 4. Dennis acquired an insurable interest in the rackets on what date?
A. November 3
B. November 4
C. November 2
D. November 1
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