Question 12:

The sales of goods, covered by Article 2 of the UCC,includes all of the following EXCEPT:

a.

my textbooks

b.

the NIKE Swoosh

c.

my smart phone

d.

a new Indian motorcycle

Question 22

Juan, a 15-year old boy,is cleaning out his early childhood toy collection to donate them to charity.He finds hisExtendoSword, which is a toy sword that he played with endlessly when he was 8-10 years old.The sword is about 1 foot long, but is springs out an additional 4 feet when a button is pushed on the handle. It has safety warnings all over it.His mother told him to put the sword down because it might be dangerous if he is not careful.Juan loved playing with the sword and continues to stage a fight with it as he is cleaning the closet.Sure enough, heaccidentlypushed the button when the sword was pointed towards his own head.The sword extended, as it was designed to do, and Juan is injured.His parents, on his behalf, file a product liability lawsuit against the toy store and the manufacturer of theExtendoSword.Juan's parents will most likely:

a.

Win on the basis of a manufacturing defect.

b.

Win on the basis of a design defect.

c.

Lose if they cannot proveprivityof contract with the toy store and the manufacturer.

d.

Lose because of one or more of the commonly recognized defenses to product liability lawsuits since Juan was very familiar with the sword and how it worked,was playing with the sword pointed it at himself, and his mother reminded him of the dangers.

Question 38

Which of the following is NOT a major duty owed by the principal to the agent?

a.

duty to reimburse the agent forpayment out-of-pocket expenses

b.

duty to protect the agent for financial hits the agent may take as a result of principal'sbad acts

c.

duty to keep the agent informed

d.

duty to pay agent for agent's services

Question 43

Container Prep, Inc., agrees to sell 10,0008-ounce sour creamcontainers to Best Dairy Company.Container Prep, Inc.is only able to get its hands on 5,000 of the 8-ounce containers, but also ships5,000more expensive 8-ounce containers for the same price. Under these circumstances, Best Dairy Company

a.

cannot reject delivery, and Container Prep,Inc.cannot later replace the containers.

b.

cannot reject delivery, butContainer Prep,Inc.can later replace the containers.

c.

may reject delivery,but because ofContainer Prep,Inc.'sintent to cure by sending more expensive containers for no additional cost,Container Prep,Inc.should havereasonable time to replace the containers.

d.

may reject delivery, butContainer Prep,Inc.cannot later replace the containers.

Question 50

Defenses to suits filed against you based on product liability include all of the following EXCEPT:

a.

Assumption of the risk

b.

contributory negligence

c.

contributory intentions

d.

comparative negligence