QUESTION 8

Clark hires Dell, a real estate broker, to sell his beach house. The house is destroyed in a storm before it can be sold. Dell is Clarks agent

	a.	until Clarks insurer pays Dells commission.
	b.	until the destroyed house is rebuilt and sold.
	c.	no more.
	d.	until the destroyed house is sold.

4 points

QUESTION 9

Kit hires Lanie to manage Kits Cattle Ranch. Lanie agrees to act on Kits behalf, subject to Kits control, and Kit trusts Lanie to so act. Their relationship is

	a.	a principal and an agent.
	b.	a principal and an employer.
	c.	an employee and an independent contractor.
	d.	an employee and an agent.

4 points

QUESTION 10

What key factor or factors determine which remedies apply for a buyer when a seller breaches a sales contract?

	a.	whether the seller has failed to deliver the goods; and whether delivered goods are nonconforming.
	b.	whether the goods subject to the order have been completed; and whether they are packaged and ready to ship.
	c.	whether the buyer will pay for the goods in cash or on credit; and whether the payment will be made directly or through a bank or other third party.
	d.	the location of the buyer's primary place of business; and the location of the seller's primary place of business.

4 points

QUESTION 11

Windmill Manufacturing agrees to purchase goods from Eagle Inc. In what situation could Windmill reject a shipment of goods from Eagle under the perfect tender rule?

	a.	If Windmill accepted flawed goods from Eagle in the past.
	b.	If Eagle hires a carrier to deliver the goods that was different from the carrier the parties included in the contract.
	c.	The industry practice is to allow for minor flaws, but Windmill and Eagle did not specifically agree to that.
	d.	The goods do not meet the specifications detailed in the contract.

4 points

QUESTION 12

A statement by a salesperson that this bike will never breakit is the best bike ever made, will not lead to an express warranty because

	a.	it was only implied.
	b.	it was made by a salesperson, not the manufacturer.
	c.	it was not made in a written advertisement.
	d.	it is so clearly improbable that no reasonable person would rely on it.

4 points

QUESTION 13

Lexi buys bike shoes from Get n Gear Store, telling the salesclerk who gives her advice that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition because they are not even suitable for ordinary bike riding, causing Lexi to be injured in a fall. Get n Gear likely breached

	a.	an express warranty only.
	b.	an implied warranty of fitness for a particular purpose only.
	c.	an implied warranty of merchantability only.
	d.	both b and c.

4 points

QUESTION 14

Business Rents LLC and Cartage Trucking Inc. enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, Business Rents must ship or tender lifts to Cartage that, with regard to the contract specifications, conform

	a.	reasonably.
	b.	in every way.
	c.	substantially.
	d.	to the best of Business Rents ability.