Sales Contracts: Performance and Breach - Interactive Learning Quizzes

Question 1

What is the legal consequence of a buyer's anticipatory breach of a sales contract under the UCC?

Accepted Answer

The seller can immediately terminate the contract and seek damages.

Answer

The seller can suspend their performance until the buyer demonstrates a willingness to fulfill their obligations.

Answer

The seller cannot take any legal action until the buyer actually fails to perform.

Answer

The buyer is entitled to demand specific performance of the contract.

Question 2

Which of the following is NOT an implied warranty that automatically arises in every sales contract under the UCC?

Accepted Answer

Warranty of authenticity

Answer

Warranty of merchantability

Answer

Warranty of fitness for a particular purpose

Answer

Warranty of title

Question 3

In a 'sale on approval' transaction under the UCC, which of the following is true?

Accepted Answer

The buyer has the option to return the goods within a reasonable time for a full refund.

Answer

Ownership of the goods passes to the buyer upon delivery.

Answer

The seller retains ownership of the goods until the buyer formally accepts them.

Answer

The buyer becomes the legal owner of the goods when the contract is formed.

Question 4

What is the primary purpose of the Statute of Frauds with respect to sales contracts under the UCC?

Accepted Answer

To prevent fraud by requiring certain contracts to be in writing

Answer

To provide a means of resolving disputes over the terms of oral contracts

Answer

To protect buyers from unfair or deceptive sales practices

Answer

To encourage the formation of written contracts

Question 5

Which of the following is NOT a valid method of accepting an offer to purchase goods under the UCC?

Accepted Answer

By promising to accept the offer at a later time

Answer

By written confirmation

Answer

By performing an action consistent with the offer

Answer

By remaining silent after receiving the offer

Question 6

According to the UCC, which of the following is NOT a relevant factor in determining the appropriate measure of damages for breach of warranty?

Accepted Answer

Seller's expenses in curing the breach

Answer

Nature of the breach

Answer

Foreseeability of damages

Answer

Buyer's consequential damages

Question 7

Reworded Question: According to the Uniform Commercial Code, which of the following is not an implied warranty that is included in all sales contracts?

Accepted Answer

Warranty of durability

Answer

Warranty of merchantability

Answer

Warranty of title

Answer

Warranty of fitness for a particular purpose

Question 8

Reworded Question: Which of the following remedies is not available to a buyer who has suffered a breach of a sales contract?

Accepted Answer

Reformation

Answer

Damages

Answer

Specific performance

Answer

Rescission

Question 9

Reworded Question: According to the Uniform Commercial Code, a seller's obligation to deliver goods under a sales contract arises:

Accepted Answer

Upon formation of the contract

Answer

Upon payment for the goods by the buyer

Answer

Upon receipt of shipping instructions from the buyer

Answer

Upon manufacture of the goods

Question 10

Reworded Question: Under the Uniform Commercial Code, the perfect tender rule primarily applies to:

Accepted Answer

Sales contracts for goods

Answer

All sales contracts

Answer

Sales contracts for services

Answer

Sales contracts involving merchants

Question 11

According to the Uniform Commercial Code (UCC), when does the risk of loss for goods sold transfer from the seller to the buyer?

Accepted Answer

Upon the buyer's taking possession of the goods

Answer

Upon formation of the contract

Answer

Upon shipment of the goods to the buyer

Answer

Upon the buyer's payment for the goods

Question 12

Which of the following is NOT an obligation of a seller under a sales contract?

Accepted Answer

Accepting payment from the buyer

Answer

Delivering conforming goods

Answer

Providing a warranty of merchantability

Answer

Replacing nonconforming goods

Question 13

What is the primary legal remedy available to a buyer who receives nonconforming goods?

Accepted Answer

Damages

Answer

Specific performance

Answer

Rescission of the contract

Answer

Injunction

Question 14

Which of the following is NOT a potential defense to a claim for breach of a sales contract?

Accepted Answer

Lack of consideration

Answer

Mutual rescission of the contract

Answer

Statute of limitations

Answer

Unforeseen circumstances

Question 15

What is the primary purpose of the implied warranty of merchantability?

Accepted Answer

To ensure that the goods are fit for their ordinary intended purpose

Answer

To guarantee that the goods are free from defects

Answer

To protect the buyer from personal injury

Answer

To create an express warranty

Question 16

In a sales contract, what is the term for the delivery of goods by a seller to a carrier for shipment to the buyer?

Accepted Answer

Tender of delivery

Answer

Actual delivery

Answer

Constructive delivery

Answer

Formal delivery

Question 17

In a sales contract, the buyer's obligation to pay for the goods is generally due:

Accepted Answer

Upon the seller's tender of delivery

Answer

Upon delivery of the goods

Answer

Upon the buyer's acceptance of the goods

Answer

Upon the buyer's receipt of the invoice

Question 18

Which of the following is a breach of warranty under the UCC?

Accepted Answer

The goods do not conform to the specifications in the contract

Answer

The seller fails to deliver the goods on time

Answer

The buyer refuses to accept the goods

Answer

The goods are damaged during shipment

Question 19

Under the Uniform Commercial Code (UCC), what is a primary obligation of a seller?

Accepted Answer

To deliver goods that conform to the contract

Answer

To pay for the goods

Answer

To accept delivery of the goods

Answer

To provide a warranty for the goods

Question 20

In the context of sales contracts, what is the legal consequence of an anticipatory breach?

Accepted Answer

The non-breaching party may cancel the contract and seek damages.

Answer

The non-breaching party must continue to perform the contract.

Answer

The breaching party can avoid liability by curing the breach before performance is due.

Answer

The contract is void from the outset.

Question 21

Which of the following is NOT a factor considered when determining whether a breach of contract is material?

Accepted Answer

The subjective intentions of the breaching party.

Answer

The extent to which the breach prevents the other party from achieving its purpose under the contract.

Answer

The cost to cure the breach.

Answer

The type of goods involved in the contract.

Question 22

Under the Uniform Commercial Code (UCC), what is an open price term?

Accepted Answer

An agreement to determine the price later

Answer

A price explicitly stated in the contract

Answer

A term only applicable to goods sales contracts

Question 23

In a sales contract, the seller's primary obligation is to:

Accepted Answer

Deliver the goods in accordance with the terms of the contract

Answer

Pay for the goods upon delivery

Answer

Provide a warranty for the goods

Answer

Accept the return of the goods if the buyer is dissatisfied

Question 24

Which of the following is NOT a remedy available to the buyer in the event of a breach of contract by the seller?

Accepted Answer

Repudiation

Answer

Damages

Answer

Specific performance

Answer

Replacement of non-conforming goods

Question 25

Under the Uniform Commercial Code (UCC), the risk of loss for goods in transit generally passes to the buyer when:

Accepted Answer

The goods are shipped by the seller

Answer

The goods are delivered to the buyer's premises

Answer

The buyer pays for the goods

Answer

The contract is signed by both parties

Question 26

The implied warranty of merchantability under the UCC requires that:

Accepted Answer

The goods are fit for the ordinary purpose for which they are sold

Answer

The goods are of the highest quality available

Answer

The goods are free from any defects

Answer

The goods meet the buyer's specific needs

Question 27

Which of the following defenses is NOT available to a seller in an action for breach of contract by the buyer?

Accepted Answer

The goods were damaged in transit

Answer

The buyer failed to pay for the goods

Answer

The buyer breached the contract first

Answer

The seller had a valid excuse for non-performance, such as an act of God or a strike

Question 28

Which of the following scenarios describes a material breach of a sales contract, allowing the non-breaching party to terminate the agreement?

Accepted Answer

A breach that significantly reduces the value of the goods.

Answer

A minor defect in the goods that can be easily fixed.

Answer

A breach that makes the goods unusable but can be corrected within a reasonable timeframe.

Answer

A breach that isn't specifically labeled as 'material' in the contract.

Question 29

Under the Uniform Commercial Code (UCC), the risk of loss typically passes to the buyer upon delivery. True or False?

Accepted Answer

True

Answer

False

Question 30

In a sales contract, the seller's primary obligation is to:

Accepted Answer

Deliver the goods

Answer

Make payment

Answer

Repair or replace defective goods

Question 31

According to the Uniform Commercial Code (UCC), what does the implied warranty of merchantability guarantee?

Accepted Answer

The goods meet average quality standards and are suitable for their intended general use.

Answer

The goods meet the specific requirements of a particular buyer.

Answer

The goods are completely free of any defects.

Question 32

Under the Uniform Commercial Code (UCC), which of the following is a requirement for a valid sales contract? Is it:

Accepted Answer

There must be agreement as to price

Answer

The parties must be of legal age

Answer

The goods must be unique

Answer

The contract must be in writing

Question 33

In a sales contract, who is obligated to pay for the goods? Is it:

Accepted Answer

The buyer

Answer

The carrier

Answer

The seller

Answer

The third party

Question 34

In a contract for the sale of goods, is the seller excused from performance if:

Accepted Answer

The goods are destroyed through no fault of the seller

Answer

The seller raises the price

Answer

The buyer cancels the order

Question 35

Under the UCC, anticipatory repudiation of a sales contract occurs when:

Accepted Answer

The party unequivocally communicates to the other party that it will not perform its contractual obligations

Answer

The party fails to deliver the goods on time

Answer

The party demands a higher price for the goods

Question 36

In a sales contract, the seller's obligation to deliver the goods arises upon:

Accepted Answer

Tender of delivery

Answer

Shipment of the goods

Answer

Payment by the buyer

Answer

Acceptance of the goods

Question 37

Under a sales contract, the buyer's obligation to pay arises upon what event?

Accepted Answer

Tender of delivery of the goods

Answer

Formation of the contract

Answer

Shipment of the goods

Answer

Acceptance of the goods

Question 38

What does the implied warranty of merchantability guarantee?

Accepted Answer

That the goods are fit for their intended purpose

Answer

That the goods will last for a reasonable period of time

Answer

That the goods are free from defects

Question 39

Which factor is NOT considered when determining whether a sales contract is unconscionable?

Accepted Answer

The buyer's age

Answer

The buyer's education level

Answer

The buyer's financial circumstances

Question 40

When does the statute of limitations for breach of contract claims in a sales contract begin to run?

Accepted Answer

On the date the breach occurs

Answer

On the date the goods are delivered

Answer

On the date the buyer discovers the breach

Question 41

Which of the following is a valid excuse for non-performance of a sales contract?

Accepted Answer

Force majeure

Answer

Change of mind

Answer

Lack of funds

Question 42

Within what timeframe must a buyer reject goods under a sales contract?

Accepted Answer

Within a reasonable time after delivery

Answer

Immediately upon discovery of any defect

Answer

Within 30 days of delivery

Question 43

Under the Uniform Commercial Code (UCC), what is the primary obligation of a buyer in a contract for the sale of goods?

Accepted Answer

To accept and pay for the conforming goods.

Answer

To transport the goods from the seller.

Answer

To inspect the goods before purchase.

Answer

To provide a warranty for the goods.

Question 44

The doctrine of anticipatory breach of contract applies when:

Accepted Answer

One party clearly indicates their inability or unwillingness to perform their contractual obligations before the performance date.

Answer

A breach of contract is solely caused by the buyer's actions.

Answer

A breach occurs after the agreed-upon performance date.

Question 45

Which of the following is generally NOT considered a valid defense against a claim for breach of contract?

Accepted Answer

Unforeseen changes in market conditions.

Answer

The expiration of the statute of limitations for legal action.

Answer

Mutual agreement by both parties to rescind the contract.

Question 46

What is the legal effect of a validly executed disclaimer of warranties within a sales contract?

Accepted Answer

It prevents the buyer from successfully bringing a lawsuit based on a breach of the disclaimed warranty.

Answer

It shifts the burden of proof from the buyer to the seller in a dispute.

Answer

It automatically voids the entire sales contract, rendering it unenforceable.

Question 47

Which of the following remedies is NOT available to a buyer who has accepted nonconforming goods?

Accepted Answer

Rescission

Answer

Rejection

Answer

Damages

Answer

Revocation of acceptance

Question 48

A seller's anticipatory repudiation of a sales contract occurs when:

Accepted Answer

The seller unequivocally communicates that he or she will not perform under the contract.

Answer

The seller delivers goods that are not conforming to the contract.

Answer

The seller delays delivery of the goods beyond the agreed-upon time.

Question 49

The Uniform Commercial Code (UCC) provides a default measure of damages for breach of a sales contract that is equal to:

Accepted Answer

The difference between the contract price and the market price at the time and place for tender.

Answer

The actual loss suffered by the non-breaching party.

Answer

The foreseeable loss that the non-breaching party could have reasonably anticipated.

Question 50

The parol evidence rule:

Accepted Answer

Prevents the introduction of evidence of prior or contemporaneous oral agreements or understandings to contradict or vary the terms of a written contract.

Answer

Requires that all contracts be in writing.