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Exam 14: Sales

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Question 1

True/False

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Mark, a power tool salesman, promises Jill, a customer, that the Turbo Power Hedge Trimmer 1000 will easily cut through bamboo up to 3 inches thick. Mark's statement constitutes an express warranty if Jill purchases the hedge trimmer.

A) True
B) False

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Question 2

Multiple Choice

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If a buyer does not receive goods by the contract deadline, remedies available include all of the following EXCEPT

A) incidental and consequential damages.
B) cover.
C) damages for non-delivery.
D) cure.

E) A) and B)
F) C) and D)

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Question 3

Multiple Choice

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Which of the following is a stated purpose of Article 2 of the UCC?

Pizazz, Inc. sold a condo on the 34^th floor in a building in downtown Chicago. The condo is considered a "good" and the contract will be  governed by Article 2 of the UCC.

Mason bought a rotisserie in preparation for a party he was planning. When he put a chicken on the rotisserie, it would not rotate, but stayed in one position where it burned the chicken on one side and left it raw on the other. When he returned the rotisserie to the store, the salesperson disclaimed any responsibility because he had never told Mason the rotisserie would rotate the food as it cooked. Does Mason have any recourse?

Jones contracts to buy a computer from Martin for $1,500. The contract calls for Martin to service the computer quarterly for the first year and to tutor Jones on how to use the software. Is this contract covered by the UCC or common law?

If a seller cures within a reasonable amount of time, the contract

In a mixed contract involving the sale of both goods and services, Article 2 of the UCC will govern if the predominant purpose is the sale of goods.

In which of the following cases is the predominant purpose the sale of goods?

A buyer has an absolute right to reject non-conforming goods as long as the rejection is timely.

Implied warranties are created by

Which of the following would be a breach of the implied warranty of merchantability?

Tu-thumbs buys a used paint sprayer from the local paint store. The sprayer had a large sign on it that said "AS IS." The dealer made no promises or statements concerning the performance of the paint sprayer. When Tu-thumbs attempts to spray paint his house, the trigger on the sprayer sticks in the "on" position and before Tu-thumbs can pull the electrical cord to cut the power, paint is sprayed all over his prize Borzoi dog that is scheduled to be shown in a dog show the next day. Tu-thumbs sues the dealership. Who wins?

Rachel Retailer sends a preprinted purchase order offering to buy goods from Snidley Supplier. Snidley acknowledges Rachel's offer with a preprinted acceptance form. The terms of the two forms do not mirror each other. To analyze whether an enforceable contract exists, one must first determine whether the new language in the acceptance is an additional term or a different term.

If a seller includes an express warranty in the written sales contract, any disclaimer is invalid.

Lian contracted for financial services from E-wise. This contract is governed by Article 2 of the UCC.

UCC Section 2-204 provides three important rules that enable parties to make a contract quickly and informally. Which of the following is NOT one of these rules?

Sean of Sean's Shrimp House was enjoying a cup of cappuccino while visiting with Ollie at Ollie's Ocean Front Bar & Grill. During the course of their conversation, Sean agreed to supply 100 pounds of shrimp per month for the next year to Ollie's restaurant at the price of $2.50 per pound. When Sean got back to his office, he sent a written confirmation of the agreement to Ollie. Six weeks after receiving the confirmation Ollie wrote back, stating that he had not agreed to the price of $2.50 per pound. Is Ollie bound to the confirmation?

Which of the following statements is NOT TRUE regarding the buyer's right to cover?

Oxtren, Inc. is a tools wholesaler. Oxtren sent M&E Tools a purchase order offering to buy 200 Model 308 milling and drilling machines with R-8 spindles. The purchase order stated the credit term to be 2% discount if payment was made in 10 days, with the full amount due in 30 days. M&E responded with an acceptance form accepting the offer. The acceptance form, however, stated that full payment was due on delivery and that disputes under the contract would be settled by arbitration. (A)Do the parties have an agreement? (B)What is the payment term? (C)Is the arbitration clause part of the agreement?