Sellers, Buyers and UCC

1. If goods identified to a contract are destroyed before risk passes to the buyer, the seller must obtain substitute goods.
True or false
2. A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects substantially impair the value of the goods.
True or False
4. A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects _____________ the value of the goods and the buyer had a legitimate reason for the initial acceptance.

 Reduced in any manner

 Reduced by 10%

 Reduced by 5%

 Substantially impaired

 A buyer who has accepted may later revoke so long as the buyer does so within 24 hours of the acceptance.
5. Belinda orders a certain type of hybrid rose for her wedding. A disease sweeps through that type of rose, and the florist could only obtain the roses at great cost if at all. Which of the following is the appropriate term for the florist's best defense?

 Commercial unreasonableness

 Commercial impracticability

 Substantial hardship

 Unforeseen circumstances

 Unreasonable bride
6. Which of the following is needed in order for the implied warranty of merchantability to be applied?

 Both parties must be merchants and a sale must be involved.

 Both parties must be merchants, and either a sale or lease may be involved.

 The seller must be a merchant and a sale must be involved.

 A seller or lessor must be a merchant, and either a sale or lease may be involved.

 The seller must be a merchant, goods valued at over $500 must be involved, and either a sale or lease may be involved.
7. Which of the following is needed in order for the implied warranty of fitness for a particular purpose to be applied?

 Both parties must be merchants and a sale must be involved.

 Both parties must be merchants, and either a sale or lease may be involved.

 The seller must be a merchant and a sale must be involved.

 The seller or lessor must be a merchant, and either a sale or lease may be involved.

 None of these.
9. Between buyers and sellers in the U.S., which of the following is true regarding disclaiming the warranty of merchantability?

 The disclaimer must be in writing.

 Some states require that the term merchantability be used in the disclaimer.

 The disclaimer may be made orally or in writing.

 The disclaimer must be in writing, and some states require that the term merchantability be used in the disclaimer.

 The disclaimer may be made orally or in writing, and some states require that the term merchantability be used in the disclaimer.
10. Assuming a buyer that is insolvent has breached a contract by not paying for goods that are in transit, which of the following may occur?

 The carrier may stop delivery on the entire shipment.

 The carrier may stop delivery only if the quantity shipped is a large shipment.

 The carrier may stop delivery only if a signed writing exists by which the buyer agreed to the remedy of stopping shipment.

 The carrier may stop delivery only if ordered to do so by the bankruptcy judge.

 The carrier may not stop delivery under any circumstances
11. Which of the following is the right of a buyer and lessee to substitute goods for those due under a sales or lease agreement?

 Swap

 Rearrange

 Cover

 Shift

 Reallocate
12. Stacy, located in Florida, is entering into a contract with Natasha, located in Russia, for the purchase of snow globes to sell to people who do not typically get to see snow. Stacy is familiar with the UCC but uneasy about what law would apply should she have a dispute with Natasha regarding the contract. She would like for Florida law to apply. Which of the following is the best advice to Stacy?

 Stacy should attempt to have a contract clause inserted providing that the law of Florida would govern any dispute.

 While a requirement that Florida law would govern the dispute would likely be deemed unconscionable, Stacy should attempt to have a contract clause inserted providing that international law would govern any dispute.

 There is nothing that Stacy can do because Russian law, the law of the seller, would govern any dispute.

 Stacy does not need to do anything because, as a matter of law, Florida law, the law of the buyer, would govern any dispute.

 It depends on the value of the contract. If it is in an amount over $1,000, Stacy should attempt to obtain a provision in the clause that Florida law governs; otherwise, she has no option but to allow a court to later determine the conflicts issue.