BUS 263 Final Exam | Questions and Answers

BUS 263 Final Exam | Questions and Answers In a dispute over a sale involving a skateboard, Greg argues that as to this deal Hobby Shop, where Greg bought the board, is a merchant. A court may determine whether the shop is a merchant by assessing whether it holds itself out by occupation as having knowledge and skill unique to the skateboard in the transaction. Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is Home Repair. Dian, an agent for Expo Motors, Inc., writes a letter to Flynn on November 1 stating that she will sell him a 2017 Subaru Outback for $25,000 between November 1 and December 31. Dian's letter to Flynn is a merchant's firm offer. Article 2 of the UCC governs contracts for the sale of goods. Ed sells his car to Fran for $5,000, his bike to Gwen for $600, his game player to Holly for $200, and three shares of stock to Inez for $100. Article 2 of the UCC does not apply to the sale of the patent. Refined Metals Company and Superior Fabrication, Inc., enter into a contract under which Refined agrees to deliver a certain quantity of sheet metal to Superior each month. The contract does not include a price term. In a suit between the parties over the price, a court will determine a reasonable price. Jack sells a grand piano to Kyle for $5,000 and a gold ring to Lauren for $999. A writing is required to enforce the sale of the piano and the gold ring. Bert's Bagels, Inc., and other bakeries refer to a "baker's dozen" as consisting of a collection of thirteen baked goods. This is an example of usage of trade. Lee pays Mobile Electronics $600 for a new phone. Under the UCC, this is a sale. Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is a shipment contract. In a sale of oranges from Citrus Grove Farms to Juice Factory Inc. to be delivered after the harvest, a fire destroys the fruit before it is picked. Under the UCC, the rights and liabilities of Citrus and Juice in this circumstance are generally determined by the concepts of identification and risk of loss. Sure Good Appliance Corporation contracts with Trucking Company to take a selection of appliances to United Railroad, Inc., for United to transport the goods to a VeriSafe Company warehouse. Trucking, United, and VeriSafe each acknowledge possession of the goods by a document of title. These parties are bailees. Paramount Bookstores buys fifty cases of an assortment of books from Quixote Publishing with the right to return the unsold books in lieu of payment. This is a sale or return. A contract between Fresh Fruit Corporation and Green Grocer, Inc., requires Fresh Fruit to deliver goods to Green Grocer's place of business. This is a destination contract. Regional Freight LLC delivers a receipt issued by Storage Warehouse for goods stored in its facility to Transnational Inc., a buyer of the goods. This is a warehouse receipt. Safewise Insurance Agency contracts with Town & Country Motors to buy six cars. The contract lists the cars by their VINs (vehicle identification numbers). Under the UCC, identification has taken place Jill buys a kayak from a LakeCraft store, which agrees to keep it for her until she picks it up. Before Jill gets the kayak, an unforeseen tornado destroys the store and the goods. The loss is suffered by LakeCraft. Barley that fills County Grain Co-op's silo is fungible if the barley is alike naturally, by agreement, or by trade usage. Beef, Inc. raises calves to sell. Beef breeds its cows in April, and the cows calve in February of the following year. In January, Cold Cuts Inc. contracts with Beef to buy fifty calves. Identification takes place in April, when the calves are conceived. Ordinary contract rights, patents and copyrights, and corporate stocks and bonds are all ____ Article 2 of the UCC. excluded from Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain Cover Pine Mills Inc. and Quality Lumber Company enter into a contract for a sale of plywood to be delivered under a destination contract. Pine Mills, the seller, must deliver the goods to a particular destination Dairy Goods agrees to sell a certain quantity of ice cream to Event Caterers, but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date the seller is excused for any resulting delay Soft Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay. Soft tells Stuffy on April 15 that delivery will be delayed until June 1. Stuffy may await performance, sue Soft, or suspend its own performance Banquets & Parties (B&P) contracts to buy 1,000 balloons from Gas Bags, Inc., for $1 per item. When the market price decreases to 50 cents per balloon, B&P refuses to go through with the deal. Gas Bags can recover $500 Owen and Pablo enter into a contract for a sale of fifty Western saddles. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between the contract price and the market price ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must promptly notify ABC of the intent to cure Speedy's Auto Parts orders twenty tires from Tough Tires, Inc. Ten of the tires are delivered in a damaged condition. Speedy's may accept the shipment with a reduction in price Quarry Equipment Corporation and Rock & Gravel Inc. enter into a lease of three bulldozers. Under the perfect tender rule, Quarry must ship or tender goods to Rock & Gravel that, with respect to the contract description, conform in every way On July 10, Pet Supply Store orders fifty small dog collars from Quality Collars, Inc. to be delivered by July 15. On July 13, Quality Collars tenders fifty large dog collars. Pet Supply rejects the shipment. Quality Collars has until July 15 to cure To finance the purchase of an electric guitar, Milos signs an instrument promising to pay to "National Lenders" $1,800 with interest in installments with the final payment due August 15, 2020. To be negotiable, this instrument must include on its face not any conditional promises or orders to pay Quincy draws a check payable to "Replay Stadium" to buy two season tickets to the next year's State College football games. This instrument is an order instrument Gwen deposits $5,000 with Home Bank on July 1, 2018. Home Bank promises to repay Gwen the $5,000 plus 1 percent annual interest on July 1, 2023. Home Bank has issued Gwen a certificate of deposit Jane signs an instrument using a "J" with a swirl around it. With this mark for a signature, the instrument is Negotiable Emily writes and signs a check payable to "Festival Cinema." Georg, Festival's manager, indorses the check "For deposit only." This is a restrictive indorsement Petra signs a check payable to Quincy, who indorses the back, gives it to Regional Credit Union, and receives cash. The transfer of the check from Quincy to the credit union is a negotiation To obtain office supplies for Doctors Medical Clinic, Emma executes a draft in favor of Floyd. A draft is an unconditional written order to pay money Rico agrees to buy a bicycle from Salvatore for $250. Salvatore agrees to deliver the bike on September 1. Rico writes a draft for $250 payable to Salvatore on September 1. This is a time draft Talia, who is not an Urban Bank customer, attempts to cash a check drawn on the bank. The check is considered dishonored if Urban Bank refuses to pay it Raul wants to transfer a check to Schmidt. The check is defective if it is clearly stamped "insufficient funds." Entrepreneur LLC owes Data Analysis Company $2,000. Entrepreneur executes a note to Data Analysis as security for the debt. This security satisfies the value requirement for HDC status Lindsey, an accountant for Madison & Monroe, acquires a negotiable instrument from Norma by promising to pay its face value in thirty days. Lindsey ac-quires the status of an HDC when she pays the face value due on the instrument Sergio makes a gift of a check to Todd who takes it in good faith and without notice of any claim, defense, or defect. With respect to this check, Todd is an ordinary holder Orson signs a check "pay to the order of Painless Dental" drawn on Orson's account in Quantum Bank. To impose liability on Orson if the bank dishonors the check, Painless Dental should present it for payment within thirty days Jack pays Kelly in good faith for a promissory note. Kelly warrants that the note has not been altered. This is a presentment warranty Rubin writes a check drawn on his account at Clearwater Bank and payable to the order of Gwyn. The bank does not pay the check. Rubin is liable to Gwyn for the amount of the check Darby writes a check to Education Loan Management, Inc., that is drawn on Darby's account at Federal Bank. If the bank does not accept the check, liability for its amount is on Darby Vera gives Will a $500 check as payment for a debt. Will crudely increases the amount of the check to $5,000 and deposits the check in his First Bank account. Vera is liable for the payment of $5,000 to no one Commercial Storage Corporation obtains an insurance policy that covers losses to the insured as a result of fire. This is fire insurance Dino is the beneficiary of a life insurance policy on Erin's life obtained from Fidelity Insurance LLC through Gillian, Fidelity's agent. The insured of this policy is Erin