AZ Bar Contracts and Commercial Law 2

Question 1

The perfect tender rule under UCC Article 2 provides that a buyer may reject goods if:

Accepted Answer

The goods or the tender of delivery fail in any respect to conform to the contract

Answer

The seller breaches the contract in any material way

Answer

The goods are more than 10% defective

Answer

The seller ships the wrong quantity

Question 2

A liquidated damages clause in a contract is enforceable if:

Accepted Answer

The damages were difficult to estimate at the time of contracting and the amount is a reasonable forecast of compensatory damages

Answer

Both parties agreed to it in writing

Answer

The clause specifies a definite dollar amount

Answer

The breaching party is a merchant

Question 3

Under common law, a material breach by one party:

Accepted Answer

Gives the non-breaching party the right to suspend performance and ultimately treat the contract as discharged

Answer

Triggers liquidated damages automatically

Answer

Requires the non-breaching party to immediately sue for damages

Answer

Has no effect if the contract contains a no-waiver clause

Question 4

The Statute of Frauds requires a writing for contracts:

Accepted Answer

Valued at more than $500 for goods under the UCC and for contracts within the MYLEGS categories at common law

Answer

Involving any transfer of real property in any jurisdiction

Answer

Between merchants for any amount

Answer

For services lasting longer than 30 days

Question 5

Impossibility of performance as a defense to breach requires that the supervening event:

Accepted Answer

Made performance objectively impossible and the risk was not assumed by the party seeking discharge

Answer

Made performance more expensive or less profitable

Answer

Was foreseeable at the time of contracting

Answer

Was caused by a third party

Question 6

Under UCC Article 2, the implied warranty of merchantability is given by:

Accepted Answer

Merchants who regularly deal in goods of the kind sold

Answer

All sellers of goods

Answer

Only licensed retailers

Answer

Sellers who expressly adopt it in the contract