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Business Law: County Farm Supply, Inc., Home Furnishings Store, National Furniture Company, Precision Tools, Inc., and Farm & Ranch Equipment Corporation

0. Local Delivery Service contracts to sell its business to Regional Transport
Corporation (RTC). Before the deal is completed, they contract to sell
RTC's rights in the deal to National Distribution, Inc. This new contract
will discharge the original contract if the new contract is supported by
a. a mutual agreement to rescind.
b. consideration.
c. performance by all of the parties.
d. none of the above.

1. Helen contracts to sell her land to Mike on July 1. On June 30, Helen tells
Mike that she will not go through with the deal. Mike files a suit against
Helen. Mike can recover
a. the difference between the contract price and the market price of the
land only.
b. the land only.
c. either the difference between the contract price and the market price of
the land or the land itself.
d. nothing.

2. National Expeditions needs a tent for a mountain-climbing trip and orders
one for $500 from Outdoor Supplies. National does not tell Outdoor about
the trip, or that it must receive the tent by July 1 or it will lose $10,000.
Outdoor ships the tent July 15. National can recover
a. $10,500.
b. $10,000.
c. $500.
d. nominal damages.

3. A contract between National Supplies Company and Omega
Manufacturing Corporation includes a provision excluding liability as a
result of fraud. This provision is
a. enforceable because the parties are protected from liability.
b. enforceable because the parties consented to it.
c. enforceable if the parties have equal bargaining power.
d. not enforceable.

4. Eve agrees to sell a pump on her ranch to Farm & Ranch Equipment Corporation.The pump can be removed by disconnecting two pipes. 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.

5. Adams and Jefferson disagree about the way in which an ambiguous
phrase in their contract can be interpreted. In a suit between the parties
to construe the contract, a court may accept evidence of
a. consistent additional terms only.
b. contradictory terms only.
c. consistent additional terms and contradictory terms.
d. none of the above.

6. County Farm Supply, Inc., sells farming machinery and tools to local
grain farmers. Of these products, fungible goods include
a. farming machinery.
b. grain.
c. tools.
d. all of the above.

7. 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.

8. Precision Tools, Inc. (PTI), wants to make a bulk transfer of its equipment
and inventory to Quality Equipment Company (QEC). In some states, for
the transfer to be effective against PTI's creditors
a. PTI must furnish QEC with a list of PTI's creditors.
b. PTI and QEC must prepare a schedule of the property transferred.
c. QEC must preserve the list and the schedule for a specific period.
d. all of the above.

Solution Preview

0. Local Delivery Service contracts to sell its business to Regional Transport
Corporation (RTC). Before the deal is completed, they contract to sell
RTC's rights in the deal to National Distribution, Inc. This new contract
will discharge the original contract if the new contract is supported by
Answer: a mutual agreement to rescind

1. Helen contracts to sell her land to Mike on July 1. On June 30, Helen tells
Mike that she will not go through with the deal. Mike files a suit against
Helen. Mike can recover
Answer : a . the difference between the contract price and the market price of the
land only.

If the seller or buyer breaches the contract, the measure of damages is the difference between the land's contract price and its market price.

2. ...

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