TJ_Comp 20_TB_Ch26

TJ_Comp 20_TB_Ch26 - Chapter 32NATURE OF THE...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 26—OBLIGATIONS AND PERFORMANCE TRUE/FALSE 1. The obligation of all parties to perform in good faith is the same because everyone is required to be honest. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 2. The UCC imposes a higher degree of good faith on a merchant seller or buyer of goods than on a non- merchant seller or buyer of goods. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 3. In a cash sale not requiring the movement of goods, each party has the right to demand that the other perform at the same time. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 4. A buyer purchasing a doughnut must pay for the doughnut before receiving it. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 5. When a party refuses to perform a contract when the time for performance arises, an anticipatory repu- diation has occurred. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 6. The statement, "I doubt that I can perform the contract," is a repudiation of the contract. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 7. When an anticipatory repudiation has occurred, the aggrieved party has been notified that the contract never will be performed. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 8. When a party refuses to perform a contract at the time of performance, a repudiation has occurred. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 9. A party to a sales contract may demand at any time that the other party provide adequate assurance of performance by such other party. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 10. A buyer or seller has the right to make a written demand for assurance of performance whenever that party feels the other side is not going to perform. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
11. The person on whom a demand for assurance is made must reply in writing for the assurance to be deemed "adequate." ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 12. The UCC specifies the form that the assurance is to take. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 13. If a person upon whom the assurance is demanded does not have a good reputation or economic posi- tion, a guarantee of performance or a pledge of security may be required. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 14. If adequate assurance of performance is not given, the party demanding assurance may make a substi- tute contract with a third party. ANS: T
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

TJ_Comp 20_TB_Ch26 - Chapter 32NATURE OF THE...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online