QUESTION 23 An equitable remedy requiring exactly the performance that was specified in a contract; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique is called O s. specific performance. O b. consequential damages. O c. rescission. O d. reformation. QUESTION 24 Courts also may reform contracts when the parties have executed a written O a. oath. O b. covenant not to compete. O c. anticipatory repudiation. O d. condition precedent. QUESTION 26 Steel Mill, Inc., agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is O a. reformation O b. specific performance. O c. damages. O d. rescission.QUESTION 27 If the delegation of duties are not performed, then the obligee can sue O a. the delegatee. O b. the delegator. O c. Neither a nor b. O d. Both a and b. QUESTION 30 Under the doctrine of mitigation of damages, the duty owned depends on the nature of the damages. O True O False QUESTION 31 A merchant who deals in goods of the kind sold (or leased), automatically gives rise to an implied warranty of merchantability. True O FalseQUESTION 32 According to the UCC, a merchant is O a. a person who, by occupation, holds himself or herself out as having knowledge and skill. O b. a person who deals in the goods of the kind. O c. All of these choices. O d. a person who employs a merchant as a broker, agent, or other intermediary. QUESTION 34 Rice Corporation offers to sell Sushi Restaurants, Inc., five hundred bushels of rice. Sushi responds, "We agree to buy five hundred bushels only if the rice is Grade A quality." Without more, their contract is formed according to O a. the terms of the original offer. Ob. the new terms of the acceptance. O c. whatever is reasonable. O d. None of the terms.QUESTION 36 If goods of delivery fail in any respect to conform to the contract, the buyer (or lessee) may accept the goods, reject the entire shipment, or accept part and reject part. This is called the O a. statute of frauds. O b. reasonable standard rule. O c. predominant-factor test. O d. perfect tender rule. QUESTION 37 Merchants can satisfy the Statute of Frauds if, after the parties have agreed orally, one of the merchants sends a signed written confirmation to the other merchant O a. one year later. O b. two years later. O c. one month later. O d. within a reasonable time. QUESTION 38 When anticipatory repudiation occurs, the nonbreaching party may O a. suspend performance O b. suspend accommodation. O c. suspend consideration. O d. suspend agreement QUESTION 39 The right of the seller or lessor to repair, adjust, or replace defective or nonconforming goods is referred to as O a. a cure. O b. an obligation. O c. an accommodation. O d. a substitution. QUESTION 40 Under the Magnuson-Moss Warranty Act, a buyer must receive warranty for goods. O True O FalseQUESTION 42 Dana operates Energy, Inc., a corporation in the fuel-supply business. Dana wants to create a plan under which the firm pays a portion of its debts, is discharged of the remainder, and is allowed to continue in business. Energy should file a petition in bankruptcy for relief through O a. a repayment plan. O b. a liquidation. O c. an adjustment of debts. O d. a reorganizationQUESTION 43 Irma delivers her Jeep to be fixed at Kent's Auto Repair. Irma agrees to pay cash. Kent's performs, but Irma does not pay. Kent's keeps the Jeep until she pays. This is O a. garnishment. O b. a mechanic's lien. O c. a violation of most states' laws. O d. an artisan's lien QUESTION 44 The bankruptcy trustee sells the nonexempt assets and distributes the proceeds to creditors. O True O FalseQUESTION 45 Ron borrows funds from Suburban Bank secured by Ron's house. Ron defaults on the debt. The bank's options include O a. disposing of the collateral in any commercially reasonable manner. O b. destroying the collateral and collecting the unpaid debt from Ron O c. retaining the security interest and pursuing a judicial remedy. O d. repossessing the collateral and disavowing the security interest. QUESTION 46 The automatic stay applies to all or part of the debtor's consumer debt. True O False QUESTION 48 To create an enforceable security interest between Mortgage Bank and Nations Property Company with a written security agreement, the agreement must be signed by O a. a disinterested third-party witness. O b. All of the choices. O c. the creditor. O d. the debtor