Question 1: If a buyer breaches a contract while the seller is still in possession of the goods, the seller can resell the goods and hold the buyer liable for any loss.

True

False

Question 2: Tender must occur at a reasonable hour and in a reasonable manner.

True

False

Question 3: Under the UCC, a seller's tender of goods that do not conform in every way to a contract is still a valid tender.

True

False

Question 4: The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.

True

False

Question 5: Kirk receives an unsolicited credit card in the mail and tosses it on his desk. Without Kirk's permission, his roommate Leif uses the card to buy a new laptop for $1,800. Kirk is

A. liable for $1,000.

B. liable for $500.

C. liable for $50.

D. not liable for any amount.

Question 6: Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to

A. no federal law.

B. the Consumer Leasing Act.

C. the Consumer Product Safety Act.

D. the Truth-in-Lending Act.

Question 7: The credit department of Metro-Mart calls Nikki at work about an overdue bill. Nikki's employer objects. Metro-Mart continues to call Nikki at work. This is a violation of

A. no federal law.

B. the Fair and Accurate Credit Transactions Act.

C. the Fair Debt Collection Practices Act.

D. the Truth-in-Lending Act.

Question 8: Paltry Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim. Paltry is most likely liable for

A. a commonly known danger.

B. fraud.

C. privity.

D. puffery.

Question 9: Mitch and Nadine enter into a contract for a sale of seventy-six specially made motion detectors. When Nadine does not deliver within a reasonable time after the agreed delivery date, Mitch files a suit for breach. Nadine asserts the doctrine of commercial impracticability. This doctrine extends only to problems that are

A. foreseen.

B. preventable.

C. unforeseen.

D. ordinarily assumed by a seller or lessor.

Question 10: Text Publishers, Inc., contracts for a sale of textbooks to University Bookstores, Inc. Viable Shipping Corporation, the carrier, transports the books to Warehouse Storage Company. Text's right to stop delivery is lost when University's rights to the goods are acknowledged by

A. the appropriate government agency.

B. the students who opt to buy the books.

C. University Bookstores.

D. Warehouse Storage.

Question 11: Summer Breeze, Inc., contracts for the sale of fifty ceiling fans to Island Décor store. If Summer Breeze fails to deliver the goods, Island Décor must commence a suit for breach of contract within

A. four years.

B. not more than one year.

C. not less than four years.

D. thirty days.

Question 12: Shane's Auto Parts orders twenty tires from Tough Tires, Inc. The truck delivering the tires to Shane's is in an accident and ten of the tires are damaged. Shane's Auto Parts

A. cannot reject the entire shipment.

B. must still pay for all twenty tires at the original contract price.

C. may inspect the tires and accept the shipment with a reduction in price.

D. must reject the entire shipment.

Question 13: Puffery creates an express warranty.

True

False

Question 14: A warranty against infringement is a promise by the seller that the product is free from any patent, trademark, or copyright claims of a third person.

True

False

Question 15: Merchants must ship orders within the time promised in their ads.

True

False

Question 16: Goods must be of the highest quality possible to be merchantable.

True

False