Business l 101 ch 10 test / business l 101 ch 10 test


1) FlavorBean Coffee Company agrees to buy an unspecified quantity of coffee beans from Global AgriCorp. Global breaches the contract. In FlavorBean’s suit to obtain relief, the court will most likely


award a reasonable quantity of beans to FlavorBean.

award FlavorBean all the beans that it requires.

award Global’s output of coffee beans to FlavorBean.

have no basis for determining a remedy.

2) Rita, the manager of the State University (SU) soccer team, orally agrees to lease a certain number of specially made SU banners from Top Banners, Inc. This lease is enforceable only if Top has made a substantial start on making the banners and


Rita agreed to the lease on behalf of the SU soccer team.

SU does not have other, similar banners available.

the banners are not suitable for others in the course of Top’s business.

the soccer season has not ended and SU goes to the finals.

3) Orange Manufacturing Corporation (OMC) orders twelve job-training and on-the-job safety DVDs from Plum Productions, Inc., which delivers the disks to OMC’s plant. This is most likely


a gift.

a lease of goods.

a sale of goods.

a service contract.

4) Elizabeth buys a car from Silas, who is sixteen years old. Elizabeth then wants to sell the car to her neighbor, John. Elizabeth’s title to the car is






5) Gail enters into a contract with Hi-Price Appliances, Inc. In a suit between the parties over payment under the contract, Gail claims that a certain clause is unconscionable. If the court agrees, it may


enforce, limit, or refuse to enforce the contract or the disputed clause.

enforce the contract without the disputed clause only.

limit the application of the disputed clause only.

refuse to enforce the entire contract only.

6) Jamie is redoing his kitchen and decides he needs a floor sander to complete the job. Jamie tells Rachel, his neighbor, that he needs a floor sander. Rachel tells Jamie to call Home Repair Rentals, Inc. Home Repair Rentals leases Jamie a floor sander. In this transaction the lessor is




Home Repair Rentals.

both Jamie and Rachel.

7) Peter, an agent for Zippy Cars, Inc., writes a letter to Cassandra on March 1 stating that he will sell her a 2011 Suburu Outback for $20,000 between March 1 and April 30. Peter’s letter to Cassandra is


a firm offer.

an acceptance.

a bilateral contract.

a breach.

8) Thorpe buys an HD TV from Viewpoint Electronics store, which agrees to keep the TV for Thorpe until he picks it up. Before Thorpe gets the TV, a fire destroys the store and the set. The loss is suffered by


neither Thorpe nor Viewpoint

Thorpe and Viewpoint.

Thorpe only.

Viewpoint only.

9) Big Beef, Inc. raises calves to sell. Big Beef breeds its cows in April, and the cows calve in February of the following year. In January Andrea contracts with Big Beef to buy fifty calves. Identification takes place in


January, when the contract is signed.

April, when the calves are conceived.

February, when the calves are born.

a reasonable period of time.

10) Sweets Store buys chocolate from Tasty Candies, Inc. The parties agree that the chocolate will be shipped “F.O.B. Sweets” via United Railroad Corporation. The chocolate is lost in transit. The loss is suffered by


Sweets and Tasty, but not United.

Sweets only.

Sweets, Tasty, and United.

Tasty only.

11) Trend-Rite Clothiers, Inc., sells t-shirts to Brand Name Stores, Inc., under an existing contract. When textile costs increase, Brand agrees to a price increase, but later wants to cancel the contract. Brand may


cancel the contract immediately.

cancel the contract only after accepting a final shipment.

cancel the contract only on reasonable notice.

not cancel the contract.

12) Raul agrees to ship to Ben one hundred ceiling fans for $5,000. Raul initials his notes of the deal, which include the terms, and files the notes in his office. Ben initials his own notes of the deal, which include the terms, and files the notes in his office. Raul fails to ship the fans. Against Raul, as a contract, the deal is


enforceable, because under the UCC a contract need not written.

enforceable, because Raul’s initialed notes are a sufficient writing.

enforceable, because Ben’s initialed notes are a sufficient writing.

not enforceable.

13) Fay pays $800 for a new iPad to Global Goods, Inc. Global holds the iPad until Fay picks it up. Global is


a bailee.

a consignee.

a lessee.

a seller.

14) Good Food Corporation buys from Home Farms, Inc., a rice crop that Home Farms plans to plant and harvest during the next growing season.Good Food plans to sell the rice to Interstate Grocery Stores. After the rice is planted, but before it is harvested, an insurable interest in the rice exists in


Good Food and Home Farms, but not Interstate Grocery.

Good Food, Home Farms, and Interstate Grocery.

Good Food only.

Home Farms only.

15) Levi, a well-known lumber dealer with a good reputation, buys a load of lumber and pays for it with a check that is later dishonored. Sam, who is unaware of the bad check, buys the lumber from Levi. Sam is a(n)


good faith purchaser.

bad faith purchaser.

insolvent purchaser.


16) Roy’s Chick’n Shack orders chicken from Standard Food Supplier, but Standard does not deliver. Roy’s will probably be unable to enforce the agreement if the parties


did not limit the duration of the deal.

did not specify a payment term.

did not specify a quantity term.

have not begun to perform.

17) Community Construction Corporation offers to buy from Solid Cement Company a certain quantity of cement for a certain price. Solid can accept the offer by


doing nothing.

promising to ship or promptly shipping the cement.

promising to ship the cement only.

promptly shipping the cement only.

18) Bill orders 1,000 nails from Super Hardware, Inc. Super Hardware keeps its nails in packages of 100,000. Bill and the agent for Super Hardware both sign the contract for the sale of the nails on Monday. The agent separates 1,000 nails on Wednesday. The agent delivers the nails to Bill on Thursday morning, and Bill pays for the nails on Friday. Identification of the nails took place on






19) Sweetwater Café orders five gallons of transfat-free cooking oil from Restaurant Supply, Inc. The seller mistakenly ships the wrong oil, which the buyer keeps, despite the nonconformity. The oil is destroyed in a kitchen fire. The loss is suffered by


Sweetwater and Restaurant Supply, but not Sweetwater customers.

Sweetwater, Restaurant Supply, and Sweetwater customers.

Sweetwater only.

Restaurant Supply only.

20) Mountaineer Sales, Inc., is the offeror and Camping Goods Corporation is the offeree under a unilateral sales contract in which Forest Recreation Products Company is also interested. Mountaineer is not notified of Camping’s performance within a reasonable time. Mountaineer


may treat the offer as having lapsed.

must assume that Camping has started to perform.

must contact Camping.

must contract with Forest.




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