SC Bar Contracts and Sales 3

Question 1

A seller ships nonconforming goods without any explanation in response to a buyer's purchase order. Under UCC Article 2, the shipment operates as:

Accepted Answer

An acceptance and a simultaneous breach

Answer

Under UCC 2-206, shipping nonconforming goods is an acceptance that also breaches the contract unless sent as a noted accommodation.

Question 2

Under a shipment contract designated F.O.B. seller's city, the goods are destroyed in transit through no one's fault. Who bears the risk of loss?

Accepted Answer

The buyer, because risk passed when goods were duly delivered to the carrier

Answer

In a shipment contract, risk of loss passes to the buyer when the seller duly delivers conforming goods to the carrier.

Question 3

A buyer accepts a delivery of lumber, later discovers a latent defect, and wants to revoke acceptance. Revocation is proper only if:

Accepted Answer

The nonconformity substantially impairs the goods' value and acceptance was reasonably induced

Answer

UCC 2-608 permits revocation only for defects that substantially impair value and were undiscoverable or covered by assurances at acceptance.

Question 4

A dealer sells a used tractor "as is." The tractor fails within a week. The buyer sues on the implied warranty of merchantability. The buyer will likely:

Accepted Answer

Lose, because "as is" effectively disclaims implied warranties

Answer

Under UCC 2-316, expressions like "as is" exclude implied warranties, including merchantability.

Question 5

A buyer of custom machinery learns the seller's factory burned down and demands adequate assurance of performance in writing. The seller ignores the demand for 45 days. The buyer may:

Accepted Answer

Treat the contract as repudiated after 30 days without assurance

Answer

Under UCC 2-609, failure to provide adequate assurance within a reasonable time not exceeding 30 days is a repudiation.

(SC Bar) South Carolina Bar Exam Practice Test

(SC Bar) South Carolina Bar Exam Practice Test

SC Bar Contracts and Sales 3