TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) The UCC requires the seller to use a commercially reasonable substitute manner of delivery if the agreed-upon manner becomes unavailable or fails. 


2) The right to cure refers to the buyer's right to make good on a check or other form of payment that has been dishonored. 


3) The warranty of title also covers any third-party claim to the goods such as liens. 


4) It is necessary to use formal words such as "warrant" or "guarantee" in order to create an express warrant. 


MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
5) A destination contract requires that the seller: 
A) deliver the goods to the buyer. 
B) deliver the goods to a common carrier. 
C) give proper and adequate notice to the buyer. 
D) A and C 
E) B and C 


6) Assuming that goods are nonconforming and that the nonconformity substantially impairs their value to this buyer, which of the following additional factors must be present for a valid revocation of the acceptance of goods? 
A) Nothing else is needed. 
B) The goods must have been accepted on the reasonable assumption that the seller could and would cure the nonconformity. 
C) The goods must have been accepted before the nonconformity was discovered, and the nonconformity must have been difficult to discover. 
D) Both B and C are required to revoke the acceptance of the goods. 
E) If either B or C is present, the acceptance of the goods can be revoked. 


7) If the buyer breaches the contract before the goods are completed, the seller can: 
A) complete the goods and resell them. 
B) recover damages from the buyer. 
C) stop work on the goods and resell them as scrap. 
D) A, B, and C 
E) A and B only 


8) The doctrine of caveat emptor means: 
A) let the seller beware. 
B) let the seller be liable for all damages. 
C) that the legal remedy must be just and fair. 
D) let the buyer beware. 


9) The term "warranty" may be defined as: 
A) a contractual promise. B) a contractual default. 
C) a tender of performance. D) caveat emptor. 


10) Which of the following is not necessary in order for the implied warranty of fitness for a particular purpose to apply? 
A) The seller states that the goods will serve the purpose of the buyer's intended use. 
B) The seller is a merchant. 
C) The buyer buys in reliance on the seller's skill and judgment. 
D) The seller knows or has reason to know of the buyer's intended use of the good. 





TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) TRUE 


2) FALSE 


3) TRUE 


4) FALSE 


MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
5) E 


6) E 


7) D 


8) D 


9) A 


10) B