Chapter Examination # 5 (Chapters 16, 19 & 20)
Acct 275 Spring 2004
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is
false.
1) When there is substantial performance of a contract with a minor breach, the
other nonbreaching party may sue to recover the cost to repair the defect.
2) A breach of a contract cannot occur until the time for performance of the
duty in question.
3) Mitigation of damages is a doctrine that requires a nonbreaching party to
minimize damages.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
4) Under which kind(s) of performance by the other party can a party rescind a
contract?
A) inferior performance B) substantial performance
C) both A and B D) neither A nor B
5) What distinguishes an anticipatory breach from other breaches?
A) It entitles the nonbreaching party to consequential damages.
B) It involves a breach by each party to the contract.
C) It occurs in connection with substantial performance.
D) It is a foreseeable breach.
E) It occurs prior to the time that performance is due.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is
false.
6) Article 2 of the UCC applies to transactions in goods.
7) The UCC applies to contracts for services as well as well as to contracts for
the sale of goods.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
8) The UCC applies to a mixed sale:
A) only if the contract provides that the UCC applies.
B) only if there is no service involved.
C) if the sale of the goods is the predominant part of the transaction.
D) whenever a sale of goods is a part of the transaction.
9) Under Article 2 of the UCC, a contract is usually enforceable even if which
of the following terms is omitted:
A) price.
B) price or quantity.
C) quantity.
D) neither price nor quantity may be omitted.
10) Under the UCC, firm offers can be made:
A) orally or in writing by either merchants or nonmerchants.
B) orally or in writing by merchants.
C) orally or in writing by merchants, but only in writing by nonmerchants.
D) in writing by merchants.
E) in writing by either merchants or nonmerchants.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is
false.
11) If no document of title is needed and the goods are identified at the time
of contracting, title passes at the time of contracting.
12) The general rule for passage of title is that title passes when the buyer
acquires possession of the goods.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
13) Identification of goods is significant because:
A) It determines when the implied warranties become effective.
B) It determines when a document of title is needed.
C) It allows the contract to be a destination contract.
D) It is the earliest that risk of loss can pass.
14) What would a seller of goods use to assure payment from the sale of goods
overseas?
A) warehouse receipt B) bill of lading
C) negotiable draft D) letter of credit
15) When a buyer (who acquires title to the goods) may return goods to a seller
if the buyer does not resell them within a stated period of time, this is known
under the UCC as:
A) a sale contingent upon no return.
B) a sale or return.
C) a consignment sale.
D) a preliminary sale.
E) a sale on approval.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is
false.
1) TRUE
2) FALSE
3) TRUE
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
4) A
5) E
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is
false.
6) TRUE
7) FALSE
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
8) C
9) A
10) D
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is
false.
11) TRUE
12) FALSE
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
13) D
14) D
15) B