Mann_BLRB 9_TB_Ch20

Business Law and the Regulation of Business

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Chapter 20—Performance TRUE/FALSE 1. A merchant buyer of goods receives nonconforming goods. The merchant buyer rightfully rejects and appropriately notifies the seller, but the seller has no agent in the buyer's city. The goods are perishable and threaten to decline in value speedily. The merchant buyer has no further duty to the seller other than to await the seller's instructions. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 2. The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 3. A merchant buyer who has rightfully rejected goods must follow reasonable instructions from the seller regarding disposal of the goods when the seller has no agent at the place of rejection. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 4. In a sale of goods, the seller's tender of performance does not have to conform to the Code's perfect tender rule. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 5. In the absence of agreement, payment is due at the time and place the buyer is to receive the goods, even though the place of shipment is the place of delivery. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 6. Whitley ordered 800 Christmas trees from North Pines Tree Farm to be delivered on November 24. When the trees arrive, the North Pines must accept tender of payment by any means or in any manner current, such as a check, in the ordinary course of business. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 7. If no place of tender is indicated by the contract, delivery is presumed to be made at seller's place of business. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 8. In most sales, the buyer has the right to inspect the goods before he pays. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 9. Payment of a C.O.D. shipment constitutes an acceptance of the goods. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 10. After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods.
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ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 11. Rejection is ineffective unless the buyer notifies the seller. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 12. Where goods are in the possession of a bailee and are to be delivered without being moved, in most in- stances the seller may either tender to the buyer a document of title or obtain an acknowledgment by the bailee of the buyer's right to possess the goods. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 13. On April 18, Marco bought a sailboat from a local marina. The boat was defective and did not turn about properly. Marco used the boat extensively all summer and the boat was no longer in the same condition as when it was bought. By September 30, Marco had waived his right to revoke acceptance. ANS: T
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Mann_BLRB 9_TB_Ch20 - Chapter 20-Performance TRUE/FALSE 1....

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