Business Law test 4a

Business Law test 4a - ACCT 215 Hashmi Fall 2007 TEST 4A...

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ACCT 215, Hashmi, Fall 2007, TEST 4A True/False Indicate whether the sentence or statement is true or false. True is equal to choice A and False is equal to choice B. ____ 1. If, before the time for performance, a buyer communicates an intent not to perform, the seller can consider the buyer in breach and pursue a remedy. ____ 2. Goods may be rejected only if they are substantially nonconforming with the terms of the contract. ____ 3. A seller can terminate a contract on the basis of commercial impracticability if increases in the seller's costs threaten to undercut its profits. ____ 4. Under the UCC, title determines all of the rights and remedies of the parties to a sales contract. ____ 5. In general, a buyer's duty to pay for tendered goods becomes absolute before the buyer has had an opportunity to inspect the goods. ____ 6. A seller can always exercise the right to cure within the contract time for performance. ____ 7. Unless the parties agree otherwise, a buyer or lessee must pay for goods at the time and place of their receipt. ____ 8. If a contract does not specify where the goods are to be delivered and the buyer is to pick them up, the place of delivery is the location of the goods. ____ 9. A buyer and a seller cannot normally have an insurable interest in identical goods at the same time. ____ 10. A seller fulfills a contract by delivering goods that conform to the terms. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 11. According the court in Case 22.1, Maple Farms, Inc. v. City School District of Elmira , the defense of com- mercial impracticability will not excuse the performance of a contractual obligation when there is an increase in the seller's costs while the contract is in force a. unless the increase in the seller's costs is substantial. b. under any circumstances. c. unless the increase in the seller's costs makes it impossible for the seller to perform without losing money. d. unless the increase in the seller's costs was not foreseeable at the time the contract was formed. ____ 12. Blend Juice Company contracts to buy a fruit crop from Citrus Farms. Before an interest in the fruit can pass from Citrus to Blend, Citrus must a. arrange for shipment of the fruit and receive payment for it. b.
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This note was uploaded on 03/27/2008 for the course ACCT 215 taught by Professor Curtis during the Spring '08 term at Iowa State.

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Business Law test 4a - ACCT 215 Hashmi Fall 2007 TEST 4A...

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