PRACTICE QUESTIONS FOR EXAM 4
PRACTICE QUESTIONS FOR EXAM 4
Multiple ChoiceIdentify the letter of the choice that best
completes the statement or answers the question.
1.Northwest Wood Products Company agrees to buy the timber on
Owen's land. Northwest is to cut and haul away the timber. This
deal is governed bya.real property law only.b.the UCC only.c.real
property law and the UCC.d.none of the above.
2.Fred, the owner of Fred's Bicycle Store, sells a preowned
motorcycle to Gail. Fred is a merchant for purposes of the UCC if
hea.enjoys riding motorcycles on weekends.b.has sold bicycles for
at least one year.c.holds himself out by occupation as having
knowledge and skill unique to motorcycles.d.subscribes to
Motorcycle Monthly magazine.
3.Bart and Paula enter into a sales contract. As seller and
buyer, Bart and Paulaa.are bound to the specific contractual
provisions set out in the UCC.b.may alter the specific contractual
provisions set out in the UCC only to a reasonable degree.c.may
alter the specific contractual provisions set out in the UCC to
whatever degree they wish as long as they don't get caught.d.may
establish whatever terms they wish.
4.Amy and Builders Corporation enter into a contract in which
Amy agrees to deliver cement to Builders at a construction site.
They neglect to include a price in the agreement. A court
willa.determine a reasonable price for the cement and insert it
into the contract.b.leave the parties in the position in which it
found them.c.refuse to enforce the agreement.d.select the lowest
quoted price for cement and insert it into the contract.
5.Carl and Donna sign a contract for a sale of goods. Carl is to
set the price for the goods at the time of delivery, but on
delivery, refuses to do so. Donna maya.fix a reasonable price
only.b.treat the contract as canceled only.c.fix a reasonable price
or treat the contract as canceled.d.none of the above.
6.Ron and Wolf form a contract in which no mention is made of
how the goods are to be delivered. In general, the UCC will require
that the delivery take place ata.the seller's place of
business.b.the buyer's place of business.c.either the seller's or
the buyer's place of business.d.none of the above.
7.Kate contracts to buy tea from Tasty Tea Company but does not
specify an exact amount of tea. Tasty later breaches the contract.
Kate will probably bea.able to enforce the agreement against Tasty
for failing to sell Kate its output.b.able to enforce the agreement
against Tasty for failing to supply Kate's requirements.c.unable to
enforce the agreement only if Tasty's breach is material.d.unable
to enforce the agreement under any circumstances.
8.Best Music, Inc. offers to buy from Sound Products Corporation
(SPC) 1,000 blank CDs of a certain brand. Without notifying Best,
SPC timely ships CDs of a different brand. This shipment isa.an
acceptance of Best's offer.b.a breach of the parties' contract.c.an
acceptance and a breach.d.none of the above.
9.Lois offers to sell Clark fifty bushels of corn. Clark
responds, "I agree to purchase fifty bushels only if the corn is
Grade A quality." In these circumstancesa.a contract is formed.b.a
contract is formed only if Lois can secure fifty bushels of Grade A
corn quickly.c.Clark's statement is a counteroffer.d.Clark's
statement is an acceptance.
10.National Products, Inc. sends its standard order form to
Interstate Distribution Corporation (IDC) to evidence a sale of
packing materials. IDC responds with its own standard purchase
order form. Additional terms in the purchase order automatically
become part of the contract unlessa.they materially alter the
original contract.b.the original offer expressly required
acceptance of its terms.c.the offeror objects to the new terms
within a reasonable period of time.d.any of the above.
11.Standard Clothing, Inc. sells coats to Town Styles under an
existing contract. Due to increasing textile costs, Standard asks
Town to agree to a 10 percent increase in the price. Town agrees
but later tries to cancel the contract. Towna.may cancel the
contract on reasonable notice.b.may cancel the contract without
notice.c.will be liable for breaching the contract if Town cancels
it.d.none of the above.
12.Bakers refer to a "baker's dozen" as consisting of a
collection of thirteen baked goods. This is an example ofa.course
of dealing.b.usage of trade.c.course of performance.d.none of the
above.
13.Best Foods Company agrees to sell Consolidated Grocery
Stores, Inc. 1,000 cases of beans. Before any interest in specific
cases of beans can pass from Best to Consolidated, the beans must
bea.in existence only.b.identified as the specific goods designated
in the contract only.c.in existence and identified as the goods in
the contract.d.none of the above.
14.Mountain Bikes, Inc. and Local Bicycle Store contract for a
sale of seventy bicycles from Mountain to Local. Unless the
contract states otherwise, it is assumed this isa.a shipment
contract.b.a destination contract.c.a shipment contract and a
destination contract.d.none of the above.
15.A contract between Fresh Fruit Corporation and Green Grocer,
Inc. requires Fresh Fruit to deliver goods to Green Grocer's place
of business. This isa.a bill of lading.b.a destination contract.c.a
shipment contract.d.a warehouse receipt.
16.Dick steals Jane's watch and later sells the watch to Sally.
Jane can recover the watch from Sallya.under any
circumstances.b.only if Sally knew that the watch was stolen.c.only
if Sally did not know that the watch was stolen.d.only if Sally
gave legally sufficient consideration for the watch.
17.Fran leaves a pair of recently purchased shoes at a shoe
store so that they might be dyed for a wedding. The shoe store
accidentally sells Fran's shoes to Jan, who has no knowledge that
the shoes belong to someone else. Fran can recover froma.Jan for
the return of the shoes but she cannot recover from the shoe store
because it made an honest mistake.b.the shoe store for the purchase
price of the shoes but cannot recover from Jan because she had no
knowledge that the shoes were owned by Fran.c.both the shoe store
and Jan.d.none of the above.
18.Chris in New York purchases chocolate from Sweet Candies in
Los Angeles. The parties agree that Sweet will bear the risk of
loss while the goods are in transit. The chocolate is destroyed
near Chicago while aboard a carrier. The loss is suffered
bya.Chris.b.Sweet.c.the carrier.d.both a and b.
19.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 bya.Home Furnishings.b.National Furniture.c.Open
Transport.d.none of the above.
20.Fresh Breakfast Restaurant buys 100 bags of oranges from
Sweet Citrus Company. The parties agree to ship the oranges F.O.B.
Fresh Breakfast via Total Trucking Company. The oranges rot in
transit. The loss is suffered bya.Fresh Breakfast.b.Sweet
Citrus.c.Total Trucking.d.none of the above.
21.Fine Textiles Corporation in New Jersey sells fifty tons of
fabric to Good Clothing, Inc., in Ohio, F.O.B. New Jersey. The cost
of transporting the fabric to Ohio will be paid bya.Fine
Textiles.b.Good Clothing.c.New Jersey.d.none of the above.
22.Lee purchases a bicycle from his brother, Kim, who is a used
car dealer. Kim agrees to keep the bike at his house until Lee
picks it up. A tree falls on Kim's garage and destroys the bike.
The loss is suffered bya.Lee.b.Kim.c.both a and b.d.none of the
above.
23.Alan buys a bicycle from Bike-a-Rama. Bike-a-Rama agrees to
keep the bike for Alan until he picks it up. Bike-a-Rama is burned
to the ground by an arsonist and the bike is destroyed. The loss is
suffered bya.Alan only.b.Bike-a-Rama only.c.Alan and
Bike-a-Rama.d.none of the above.
24.Richie Diamonds ships an assortment of high-grade gems to
Pell, a retailer, with the understanding that Pell will be billed
for any gems that are not returned within three months. The
agreement between Richie and Pell isa.a sale on approval.b.a sale
or return.c.a consignment.d.none of the above.
25.Ron orders a shipment of black coats from Burley Clothing.
Burley ships blue coats instead. Ron rejects the coats, but they
are destroyed in a fire on their return to Burley. The loss is
suffered bya.Ron because he wrongfully rejected the shipment.b.Ron
because he selected the carrier on which the coats were
destroyed.c.Burley because it shipped nonconforming goods.d.Burley
because Ron never accepted the blue coats.
26.Circuit Electronics, Inc. accepts a shipment of CD players
from Delta Devices, Inc. When Circuit later discovers a defect in
the players, it revokes acceptance. The players are destroyed
before they are returned to Delta. The loss is suffered
bya.Circuit.b.Delta.c.Circuit and Delta equally.d.none of the
above.
27.Business Office Corporation (BOC) orders five inkjet printers
from Computer Products, Inc. (CPI), to be delivered by CPI. Before
CPI's truck arrives with the goods, BOC tells CPI it will not pay.
The printers are destroyed in transit. The loss is suffered bya.BOC
only.b.BOC to the extent of a deficiency in CPI's insurance
coverage only.c.BOC and CPI equally.d.CPI only.
28.Tasty Restaurant orders five gallons of butter from Discount
Suppliers. Discount ships five gallons of margarine by mistake.
Tasty decides to keep the margarine, in spite of its nonconformity
with the contract. The destruction of the margarine in a fire at
Tasty that same day will result ina.Discount bearing the loss,
because it shipped nonconforming goods.b.Discount bearing the loss,
because it failed to notify Tasty of the nonconformity before
shipping the margarine.c.Tasty bearing the loss, because it
accepted delivery of the margarine.d.Tasty bearing the loss,
because it had the power to send the margarine back before it was
destroyed.
29.Medico contracts for a sale of medical equipment to
Children's Hospital. For Medico to tender delivery of goods, Medico
musta.only give the hospital notice to enable it to take
delivery.b.only hold conforming goods at the hospital's
disposal.c.give the hospital notice and hold the goods at its
disposal.d.none of the above.
30.Sue agrees to sell Tad fifty bales of cotton, but they fail
to specify in the contract where the goods are to be delivered. If
Tad is expected to pick the goods up, then the place of delivery
isa.Sue's place of business.b.Tad's place of business.c.a third
party's place of business.d.none of the above.
31.Carl contracts for a sale of restaurant supplies to Diners
Cafe under a shipment contract. Carl musta.only make a reasonable
contract for the transportation of the goods.b.only tender to
Diners whatever documents are needed to obtain possession of the
goods.c.make a reasonable contract for the transportation of the
goods and tender to Diners documents needed to obtain
possession.d.none of the above.
32.National Cable Company delivers to International
Communications Corporation goods that are slightly nonconforming to
their contract. If the time for performance has passed,
International can reject the goodsa.entirely, due to the perfect
tender rule.b.only if International honestly believes that the
nonconformity is significant.c.only if prompt notice is given in
writing to National.d.only with National's consent.
33.Food Packages, Inc. agrees to sell 50,000 6-ounce yogurt
containers to Great Dairy Company. Food can obtain only 20,000 of
the 6-ounce containers, but also ships 30,000 more expensive
8-ounce containers for the same price. Under these
circumstancesa.notice to Great of Food's intent to cure will give
it a reasonable time to obtain the other 6-ounce containers.b.Great
may reject the delivery.c.both a and b.d.none of the above.
34.Professional Products Company contracts to deliver emergency
medical supplies to Rescue & Relief Corporation using only Sky
Airways. If Sky declares bankruptcy, thena.only Rescue& Relief
may elect to perform the contract.b.Professional may deliver the
goods in any reasonable manner.c.Sky must designate a substitute
carrier.d.the entire contract is void.
35.Construction Supplies, Inc. sells to companies around the
world. Which of the following events would probably not excuse
Construction Supplies from a contract on the grounds of commercial
impracticability?a.Armed insurrectionb.Increased cost resulting
from inflationc.Sudden, severe shortage of raw
materiald.Tornado
36.Gamma Company contracts to provide several manufacturers with
tin. A cartel of tin-producing countries embargoes future shipments
of tin to Gamma so that it cannot fulfill its contracts. Gammaa.can
substitute some other material for the tin.b.is excused from the
performance of its contracts.c.is liable for breach of
contract.d.must still supply the tin needs of its customers.
37.Orchard Farms contracts with four food companies to sell its
entire crop of oranges. Orchard loses half of the crop to an
unexpected insect infestation. Orchard musta.apportion its
surviving crop fairly among its customers.b.breach some of its
contracts.c.buy elsewhere as many oranges as needed to satisfy its
contracts.d.substitute other fruit for the oranges.
38.National Costume Company (NCC) agrees to sell theatrical
costumes to the Shakespeare Drama Festival. After the goods are
identified to the contract but before the risk of loss passes to
the Festival, the costumes are partially destroyed by fire. Neither
NCC nor the Festival was responsible for the fire. The Festival
maya.accept the goods at a reduced price.b.cancel the
contract.c.either a or b.d.none of the above.
39.Alex agrees to sell Tina a certain quantity of unique
glassware that is identified to the contract. The glass is
destroyed, through no fault of either party, before the risk of
loss passes to Tina. Who is excused from further performance?a.Alex
onlyb.Tina onlyc.Both Alex and Tinad.None of the above
40.Eagle Manufacturing Company prepares to ship goods to Fine
E-tailers, Inc. per Fine's purchase order. Fine is generally
required toa.accept the goods if they conform to the
contract.b.demand adequate assurances if Eagle indicates that it
may be unable to perform.c.inspect the goods that Fine
receives.d.reject the goods if they do not conform to the
contract.
41.ABC Games Company orders plastic game pieces from Best
Plastics, Inc. If some of the pieces conform, and some do not
conform, to the terms of the contract, ABCa.must accept the entire
shipment.b.must reject the entire shipment of goods.c.may accept
part of the shipment and reject part.d.none of the above.
42.Eve contracts for a sale of surveying tools to Cambridge
Company. If the tools fail to conform to the terms and conditions
of the contract, Cambridge maya.accept the entire shipment.b.reject
the entire shipment.c.accept any part of the shipment and reject
any other part.d.all of the above.
43.Margaret contracts to deliver fifty tables to the Furniture
Warehouse on May 1. She calls Furniture on April 15 to notify them
that she is going to cancel the contract because her workers have
gone on strike. Furniture maya.for a commercially reasonable time
await Margaret's performance.b.sue Margaret for breach of
contract.c.suspend its own performance.d.all of the above.
44.Best Products, Inc. agrees to ship seven cases of CDs to
Computer City. A valid acceptance of the goods occurs if Computer
Citya.expressly accepts the CDs by words or conduct.b.fails to
reject the CDs after having had a reasonable time to inspect
them.c.performs an act inconsistent with Best's ownership of the
CDs.d.all of the above.
45.Quality Equipment Company contracts for a sale of goods to
Regional Sales Corporation. Quality can enforce its right to
paymenta.only after Regional has actually inspected the
goods.b.only after Regional has had an opportunity to inspect the
goods.c.only before Regional has inspected the goods.d.whether or
not Regional has had the chance to inspect the goods.
46.American Goods, Inc. contracts to sell t-shirts to All-Mart
Outlet Stores. American Goods can cancel the contracta.only if
All-Mart wrongfully rejects or revokes acceptance of the
goods.b.only if All-Mart fails to make payment or repudiates the
contract.c.both a and b.d.none of the above.
47.Alan contracts with Burt for the sale of fifty cases of soft
drinks. If either party breaches the contract, the nonbreaching
party is entitled toa.the amount that could be recouped through
cover, without more.b.the benefits he would have received if the
contract had been performed.c.the cost to restore him to the
position he was in before the contract.d.the lost profits, plus the
profits that would have been earned by the breaching party.
48.Lyle contracts to sell sweaters to Style Clothing Stores.
Before the sweaters are delivered, Style indicates that it will not
be able to pay. Lyle cana.only complete the job, identify the goods
to the contract, and resell them.b.only stop manufacturing the
goods and sell them for scrap.c.complete the job, identify the
goods to the contract, and resell them, or stop manufacturing the
goods and sell them for scrap.d.none of the above.
49.Due to a rapid decline in the price of horseshoes, which can
now be bought and sold for 50 cents each, Mark refuses to buy 1,000
horseshoes from Clark for $1 per shoe and thus breaches an existing
contract. Clark is entitled to
recovera.$1,500.b.$1,000.c.$500.d.$0.
50.Olympic Steel contracts for a sale of steel to A&B
Machines, Inc. After Olympic ships the steel, A&B breaches the
contract. Incidental damages arising from the breach include the
costs to Olympic ofa.designing the goods.b.manufacturing the
goods.c.marketing the goods.d.transporting the goods.
51.Fred and Barney enter into a contract in which Fred agrees to
sell Barney fifty crates of explosives even though Barney, unknown
to Fred, is insolvent. Barney sells the explosives to a good faith
purchaser. Fred maya.reclaim the goods if the demand is made in a
timely manner.b.reclaim the goods if the good faith purchaser pays
for the explosives on credit.c.not reclaim the goods even if the
demand is made in a timely manner.d.none of the above.
52.Local Salvage Company is a good faith purchaser in a resale
from United Manufacturers, Inc. Local Salvage takes the goods
subject to the rights ofa.the carrier from whom the goods were
reclaimed only.b.the original buyer only.c.the carrier from whom
the goods were reclaimed and the original buyer.d.none of the
above.
53.CPA Accounting Services contracts to buy goods from Office
Supplies, Inc. (OSI). When OSI delivers the goods, CPA wrongfully
refuses to accept them. OSI files a suit against CPA. OSI can
recover damages equal to the difference between the contract price
and the market pricea.at the time the contract was made.b.at the
time and place of tender.c.when OSI learned of the breach.d.when
OSI filed a suit against CPA.
54.Victor contracts to sell diving equipment to Bay Diving
Company. Victor may bring an action to recover the purchase price
and incidental damages if Baya.accepts the equipment but does not
pay for it.b.pays for the equipment but rejects it.c.pays for the
equipment and later revokes acceptance.d.all of the above.
55.Specific performance of a sales contract is the most
appropriate remedy on the breach of a contract for the sale
ofa.oil.b.land.c.grain.d.cement.
56.Tasty Chocolate Company contracts to sell chocolate to Sweet
Candy, Inc. Tasty has the chocolate in its warehouse, but refuses
to deliver it to Sweet, which, due to a sugar shortage, is unable
to obtain cover. Sweet's right to recover the goods from Tasty is
the right toa.novation.b.replevin.c.rescission.d.specific
performance.
57.Air Transport Company contracts to buy goods from Flight
Engines, Inc. Flight Engines wrongfully fails to deliver the goods.
Air Transport can recover damages equal to the difference between
the contract price and the market pricea.at the time the contract
was made.b.at the time and place of tender.c.when Air Transport
learned of the breach.d.when Air Transport filed a suit against
Flight Engines.
58.A-One Computer Store orders one hundred computers from
Business Supplies, Inc. (BSI). BSI delivers the computers, but half
of them are defective. Despite customers' complaints, A-One orders
more computers, but does not pay for them. In BSI's suit for
payment, the court will most likely rule in favor ofa.A-One,
because BSI should have known that A-One's failure to pay
constituted a rejection.b.A-One, because the computers were
defective.c.BSI, because A-One accepted the computers by selling
and continuing to order them.d.BSI, because A-One owed BSI for the
computers once they were sent.
59.For General Construction Corporation to revoke acceptance of
a shipment of tools from Ace Tool Company, General Construction
musta.give notice of the revocation to Ace.b.revoke before the
tools undergo a substantial change not caused by their own
defects.c.revoke within a reasonable time after General
Construction either discovers or should have discovered the grounds
for revocation.d.all of the above.
60.Walter, a merchant, rightfully rejects a shipment of
razorblades but is unable to obtain instructions from the seller.
Walter maya.store the razorblades for the seller's account.b.reship
the razorblades to the seller at the seller's expense.c.resell the
razorblades and receive a commission on the sale.d.all of the
above.
61.Bentley orders a carload of "Grade A winter wheat" from
Graham, but Graham ships "Grade B winter wheat" to Bentley. Bentley
accepts the nonconforming wheat but wishes to recover damages.
Bentley musta.notify Graham of the breach within a reasonable time
after the defect was discovered.b.notify Graham of the breach
within one week of using or reselling the wheat.c.keep the
nonconforming wheat until any dispute is resolved.d.none of the
above.
62.American Products Company orders twenty-two hard drives from
Gateplex, Inc. For American Products to revoke acceptance of the
hard drivesa.notice of the revocation must be given to
Gateplex.b.revocation must occur within a reasonable time after
American Products either discovers or should have discovered the
grounds for revocation.c.revocation must occur before the goods
have undergone any substantial change not caused by their own
defects.d.all of the above.
63.Jane accepts a commercial unit of goods before discovering
that the goods do not substantially conform to the contract. Jane
can revoke her acceptance of the goods if the nonconformity
substantially impairs the value of the goods anda.acceptance was
predicated on the reasonable assumption that the nonconformity
would be cured and it has not been seasonably cured.b.Jane did not
discover the nonconformity, and her acceptance was reasonably
induced by the difficulty of discovery before acceptance or by the
seller's assurances that the goods conform.c.either a or b.d.none
of the above.
64.Don contracts to buy timber from Northwest Lumber Company.
Only half of the shipment conforms to the contract. Timber that
conforms to the contract is in short supply. Don should
probablya.accept the entire shipment.b.accept the timber that
conforms to the contract and sue Northwest for the difference
between the contract price and the cost of obtaining the rest of
the conforming timber elsewhere.c.reject the entire shipment.d.sue
Northwest for specific performance.
65.Eagle Manufacturing Company includes in all of its contracts
a limitation on consequential damages resulting from the company's
breach of warranty. This is prima facie unconscionable if the
damages include personal injuries and the party with whom Eagle
contracts isa.a consumer only.b.a merchant only.c.either a consumer
or a merchant.d.none of the above.
66.Lisa steals Rachel's computer and resells it to Nicholas. In
Rachel's suit to recover the computer from Nicholas, Rachel
willa.lose, because Nicholas has title to the computer.b.lose,
because Nicholas has possession of the computer.c.win, because Lisa
could not lawfully convey title to the computer to Nicholas.d.win,
because Lisa did not give consideration for the computer.
67.Great Video Corporation sells high-definition televisions.
Under most circumstances, Great Video will be presumed to have
warranted that its title to the TVs isa.bad.b.fair.c.good.d.the
best that money can buy at the list price.
68.Farmers Warehouse Corporation sells sixty cases of canned
corn to Green Grocery Stores, Inc. under a contract that does not
include a disclaimer of a title warranty. In this situation,
Farmers warrants that its transfer of title isa.rightful.b.subject
to a third person's security interest.c.the best that money can buy
at the list price.d.wrongful.
69.Gerry, the owner of an appliance store, sells a vacuum
cleaner to Adam and declares, prior to the parties' signing a sales
contract, that the vacuum cleaner "will clean wool rugs so that
they look like new." Gerry's statement isa.an express warranty.b.an
implied warranty.c.a statement of fact.d.puffing.
70.Sara sells a car to Fred but does not tell him that Quigley
holds a lien on the car as security for a loan he made to Sara.
Quigley repossesses the car from Fred. Freda.has no recourse
against Sara because he should have made sure the car was
unencumbered by a lien.b.may recover damages from Sara due to her
breach of warranty of title.c.may recover damages from Quigley for
wrongful interference with his possessory interest in the car.d.may
recover damages from Quigley for slander of title.
71.Perry, a buyer for Superior Products Company, a manufacturer
of bulletin boards and other office supplies, visits a lumberyard
and is shown samples of cork by Monica, a salesperson. Perry agrees
to buy a certain quantity based on Monica's statement that the
shipment will match a selected sample. The statement isa.an express
warranty.b.an implied warranty.c.a warranty of title.d.puffing.
72.Joseph visits an auto dealer and declares that he will only
buy a car that gets at least thirty miles to the gallon. The
salesperson considers Joseph's statement before recommending a car
that he declares gets "at least forty miles to the gallon." The
salesperson's statement isa.an express warranty.b.an implied
warranty of merchantability.c.an implied warranty of fitness for a
particular purpose.d.a warranty of title.
73.In a transaction between Retail Products Corporation and
Standard Stores, Inc., the most important factor in determining
whether an express warranty is created is whethera.the seller
intends to create a warranty.b.the seller makes a promise.c.the
seller's promise becomes part of the basis of the bargain.d.the
seller's promise is in writing.
74.Nick, a door-to-door salesperson tells potential customers
that his products are "the best that money can buy." This isa.an
express warranty.b.an implied warranty.c.a warranty of
title.d.puffing.
75.Boyd purchases Clean 'n' Bright toothpaste from a grocery
store. His house guest, Rita, tries the toothpaste and suffers
burns in her mouth due to its improper preparation. Rita may
recover from Clean 'n' Bright becausea.Clean 'n' Bright breached
its implied warranty of merchantability.b.it was foreseeable that
she could be injured by Boyd's purchase of the toothpaste.c.Clean
'n' Bright has the resources to pay for her injuries.d.none of the
above.
76.Business Mart, Inc. sells office furniture. To be
merchantable, the furniture musta.be of average, fair, or
medium-grade quality.b.be of even quality and quantity in each unit
and among all units.c.conform to promises or affirmations of fact
made on the containers and labels.d.all of the above.
77.Alpha Communications, Inc. makes and sells cell phones. In
deciding whether the cell phones are merchantable, a court would
focus on whethera.Alpha's products are fit for the ordinary purpose
for which such goods are used.b.Alpha's products are made according
to the best manufacturing methods.c.Alpha's products are quality
products.d.Alpha violated any laws or regulations.
78.Molly goes to a gas station and has the oil in her car
changed. The service technician learns that Molly plans to take a
long trip and advises the use of a particular type of oil to which
Molly agrees. The oil breaks down while Molly is on her trip,
causing damage to her car's engine. Molly may recover from the gas
station for breachinga.an express warranty.b.an implied warranty of
merchantability.c.an implied warranty of fitness for a particular
purpose.d.a warranty of title.
79.Stan wishes to sell his sport utility vehicle (SUV). To avoid
liability for any implied warranties, the sales agreement should
note that the SUV is being solda."as is."b.by a nonmerchant.c.for
cash.d.in mint condition.
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