VA Bar Contracts and Sales 3

Question 1

The implied warranty of merchantability under UCC §2-314 arises automatically when:

Accepted Answer

The seller is a merchant who regularly deals in goods of that kind

Answer

Under UCC §2-314, the implied warranty of merchantability arises automatically when the seller is a merchant dealing in goods of that kind, guaranteeing the goods are fit for their ordinary purpose.

Question 2

The implied warranty of fitness for a particular purpose under UCC §2-315 arises when:

Accepted Answer

The seller knows the buyer's particular purpose and the buyer relies on the seller's skill or judgment to select suitable goods

Answer

Under UCC §2-315, this warranty arises when the seller has reason to know the buyer's specific purpose and the buyer relies on the seller's expertise in selecting appropriate goods.

Question 3

Under the UCC perfect tender rule, a buyer has the right to reject delivered goods if:

Accepted Answer

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

Answer

UCC §2-601 allows a buyer to reject goods if they 'fail in any respect' to conform to the contract — this is a stricter standard than the common law substantial performance doctrine.

Question 4

When a seller tenders non-conforming goods giving the buyer a right of rejection, risk of loss under UCC §2-510:

Accepted Answer

Remains with the seller until the buyer accepts the goods or the defect is cured

Answer

Under UCC §2-510, if a seller tenders non-conforming goods giving the buyer the right to reject, risk of loss remains on the seller until the defect is cured or the buyer accepts.

Question 5

In a shipment contract designated 'FOB Seller's City,' risk of loss passes to the buyer:

Accepted Answer

When the seller duly delivers the goods to the carrier

Answer

In a shipment contract (FOB seller's location), risk of loss passes to the buyer under UCC §2-509(1)(a) when the seller properly delivers the goods to the carrier.

(VA Bar) Virginia Bar Exam Practice Test

(VA Bar) Virginia Bar Exam Practice Test

VA Bar Contracts and Sales 3