Test Ch 11 and 12

Topics: Contract law, Warranty, Implied warranty Pages: 54 (7741 words) Published: April 25, 2015
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Week 3 Exam #1 (Chapters 11 & 12)
Started:
Nov 6, 2013 8:52 PM
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Nov 6, 2013 11:22 PM - auto
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Week 3 Exam #1 (Chapters 11 & 12)     Total Grade: 108   (of possible 140 points) Question 1 of 140     Score: 0   (of possible 1 point) Ramblin' Country Stables contracts to buy 1,000 horseshoes from Blacksmith, Inc., for $1 per shoe. When the market price decreases to 50 cents per shoe, Ramblin' refuses to go through with the deal. Blacksmith can recover  

A.
$1,500.

B.
$1,000.

C.
$500.
 
 

D.
$0.
Answer Key: C
Question 2 of 140     Score: 1   (of possible 1 point) Under the UCC, there are no exceptions to the perfect tender rule.  
True
False
Answer Key: False
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Check to review before finishing (will be flagged in Table of Contents) Question 3 of 140     Score: 0   (of possible 1 point) Corner Market sells groceries. Delite Food & Drug Store sells groceries and fills prescriptions. The chief responsibility to prevent unsafe food and drugs from being sold rests with  

A.
the Consumer Product Safety Commission.
 

B.
no single federal agency.
 

C.
the Federal Trade Commission.
 

D.
the Food and Drug Administration.
Answer Key: D
Question 4 of 140     Score: 0   (of possible 1 point) Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on  

A.
intelligence.
 

B.
education.
 

C.
income.
 

D.
race.
Answer Key: D
Question 5 of 140     Score: 0   (of possible 1 point) If a seller asks a buyer to store nonconforming goods overnight, then the buyer is entitled to reimbursement for the costs involved.  
True
 
False
Answer Key: True
Question 6 of 140     Score: 0   (of possible 1 point) Jean buys a bike from Mike's Bike Shop. She wants to make sure that there is a warranty of title. Jean
A.
does not need to do anything because warranties of title arise automatically in most sales contracts.  

B.
must request a written warranty of title.
 

C.
must request an oral warranty of title.
 
 

D.
must request both a written and an oral warranty of title.
Answer Key: A
Question 7 of 140     Score: 0   (of possible 1 point) SurgeStop Company makes electrical cords and other connectors for electronic devices. Rollo files a product liability suit against SurgeStop, alleging a warning defect. In deciding whether to hold SurgeStop liable, the court may consider  

A.
consumers' general lack of desire to read the product's warnings.  

B.
the plaintiff's specific lack of desire to read the product warnings.  

C.
the obvious risks of other products.
 

D.
the obvious risks of this product.
Answer Key: D
Question 8 of 140     Score: 0   (of possible 1 point) A credit-cardholder is liable for all unauthorized charges made before the creditor is notified that the card has been lost.  
True
 
False
Answer Key: False
Question 9 of 140     Score: 0   (of possible 1 point) Fun Toyz Corporation makes skateboards, which it sells to consumers, including Holly and Ira. Due to a defect, Holly is injured while using her new board. Ira's board has the same defect, but he is not injured. In a product liability suit based on strict product liability, Fun Toyz may be liable to  

A.
Holly and Ira.
 

B.
Holly only.
 

C.
Ira only.
 

D.
no one.
Answer Key: D
Question 10 of 140     Score: 0   (of possible 1 point) Under the perfect tender rule, if tender is not perfect, the seller is obligated to try again.  
True
 
False
Answer Key: False
Question 11 of 140     Score: 0   (of possible 1 point) The term cure refers to the right of the buyer to reject, adjust, or replace nonconforming goods.  
True
 
False
Answer Key: False
Question 12 of 140     Score: 0   (of possible 1 point)...
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