Super Duper Upper Final

Front 1

Fraud occurs only when there is a reliance on a statement of opinion

Back 1

FALSE

Front 2

Under the doctrine of comparative negligence, both the plaintiff's and the defendant's negligence are taken into consideration

Back 2

TRUE

Front 3

Disparagement of property is another term for slander of quality.

Back 3

TRUE

Front 4

Any lawful contract can form the potential basis for an action based on wrongful interference with a contractual relationship.

Back 4

TRUE

Front 5

The law establishes rights, duties, and privileges that are consistent with the values of society.

Back 5

TRUE

Front 6

The doctrine of negligence per se applies if an event causing harm does not normally occur in the absence ofnegligence.

Back 6

TRUE

Front 7

Publishing false information about another's product is conversion.

Back 7

FALSE

Front 8

The establishment clause of the U.S. Constitution prohibits the federal government from establishing an officialreligion.

Back 8

TRUE

Front 9

False imprisonment occurs when a person restrains another intentionally and without justification.

Back 9

TRUE

Front 10

A trademark must be registered to support a trademark infringement action.

Back 10

FALSE

Front 11

A summary judgment is granted only if there is no genuine question of law.

Back 11

FALSE

Front 12

A person can reproduce copyrighted material for purposes such as teaching, including multiple copies forclassroom use, without paying royalties.

Back 12

TRUE

Front 13

For purposes of establishing negligence, causation in fact exists if an injury would have occurred even without thedefendant's act.

Back 13

FALSE

Front 14

A long arm statute permits a court to exercise jurisdiction over an out-of-state defendant.

Back 14

TRUE

Front 15

An answer can admit to the allegations made in a complaint.

Back 15

TRUE

Front 16

As a judge, Potter applies common law rules. These rules develop from

Back 16

court decisions.

Front 17

Dian, a clerk at an Entertainment Unlimited store, takes a DVD player from the store without permission. Dian isliable for

Back 17

conversion

Front 18

The Constitution provides that no person shall be deprived of "life, liberty, or property without due process oflaw." Under this clause, "persons" include

Back 18

corporations and other "legal persons."

Front 19

Business Markets Coalition (BMC), a political lobbying group, wants a certain policy enacted into law. If BMC'spolicy conflicts with the U.S. Constitution, a law embodying it can be enacted by

Back 19

none of the choices.

Front 20

Copy Products, Inc., uses, in its ads, a trademark that is similar, but not identical, to the famous, registered mark ofImitated Goods, Inc. Copy's unauthorized use of the mark constitutes trademark dilution provided

Back 20

Copy's use reduces the value of Imitated's mark.

Front 21

A state statute requires machinery in industrial plants to include automatic shut-off switches accessible to eachemployee working on the machine. Steel Company's (SC's) equipment does not have the switches. Trudy, an SCemployee, suffers an injury that an accessible shut-off switch would have prevented. Trudy's best theory forrecovery against SC is

Back 21

negligence per se.

Front 22

OK Dry-Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronizeOK instead of Purity. This is

Back 22

none of the choices.

Front 23

Mary Kate Corporation allows Ashley Company to use Mary Kate's trademark as part of Ashley's domain name.This is

Back 23

a license.

Front 24

In Ben v. City Car Dealership, a state supreme court held that a minor could cancel a contract for the sale of a car.Now a trial court in the same state is deciding Daphne v. Even Steven Auto Deals, Inc., a case with similar facts.Under the doctrine of stare decisis, the trial court is likely to

Back 24

allow the minor in the Daphne case to cancel the contract.

Front 25

Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen's statement is defamatory only if

Back 25

a third party hears it.

Front 26

Lew angrily accuses Mandy, a broker with New Financial Services, of fraudulently inducing him to invest in OpenPit Oil Company, whose wells are dry. The reliance that gives rise to liability for fraud is normally based on astatement of

Back 26

fact

Front 27

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.. If Java and Kaffe have along-standing business relationship that they would like to continue, a preferred method of settling their disputemay be mediation because

Back 27

the process is not adversarial.

Front 28

Ula wants to initiate a suit against Valley Farms by filing a complaint. The complaint should include

Back 28

a statement of the facts necessary to show Ula is entitled to relief.

Front 29

Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a city street. Ralph andSpeedy are liable to

Back 29

only those whose injuries could have been reasonably foreseen.

Front 30

Network Corporation files a suit against Omega, Inc., alleging that Omega breached a contract to design and installcustom software in Network's computer system. Network is

Back 30

the plaintiff.

Front 31

Toni files a suit against Universal Media Corporation for defamation. Actual malice must be shown for recovery ofdamages if Toni is

Back 31

a public figure.

Front 32

To prepare for a trial between Large Lots Development Corporation (LLDC) and MiniMansion ConstructionCompany (MMCC), MMCC's attorney places LLDC's president under oath. A court reporter makes a record of theattorney's questions and the officer's answers. This is

Back 32

a deposition.

Front 33

Joy invites Ken into her apartment. Ken commits trespass to land if he

Back 33

refuses to leave when Joy asks him to go.

Front 34

Mavis, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress baseall federal law on her religion's principles. The First Amendment guarantees Mavis's freedom of

Back 34

religion and speech.

Front 35

Justice For All, a political organization, files a claim to challenge a Colorado statute that limits the liberty of allpersons to broadcast "annoying" radio commercials. This claim is most likely based on the right to

Back 35

substantive due process.

Front 36

The graphics used in "Go!," a handheld video game featuring racecars, are protected by

Back 36

copyright law.

Front 37

Li'l Canine Company (LCC) uses a trademark that neither LCC nor anyone else has registered with thegovernment. Under federal trademark law, LCC

Back 37

can register the mark for protection.

Front 38

In Nebraska, the highest-ranking (superior) law is

Back 38

a provision in the Nebraska constitution.

Front 39

Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc., as she attempts tomake sales to food stores. Dom solicits each of Flora's customers. Dom is most likely liable for wrongfulinterference with

Back 39

a business relationship

Front 40

Jim is an appliance salesperson. To make a sale, he asserts that a certain model of a Kitchen Helper refrigerator isthe "best one ever made." This is

Back 40

not fraud

Front 41

The process behind the production of "Fast Pace," a racecar video game, is protected by

Back 41

trade secrets law.

Front 42

Olsen Grocery Company files a suit against Pickle Products, Inc. Pickle responds that even if Olsen's statement ofthe facts is true, according to the law Pickle is not liable. This is

Back 42

a motion to dismiss.

Front 43

Nico is a passenger in a car driven by Owen, whose negligence causes an accident, injuring himself. Nico,uninjured, accompanies Owen to Parkside Hospital in an ambulance. The ambulance is hit by a car driven by Quin,injuring Nico. Nico files a suit against Owen, whose best defense is

Back 43

superseding cause.

Front 44

An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection ofpatrons. Jack's Fun Park fails to maintain its equipment. Key, a patron, is injured. Jack's has committed

Back 44

negligence per se.

Front 45

Mace copies Nick's book, Off the Beaten Path, in its entirety and sells it to Parkland Books, Inc., without Nick'spermission. Parkland publishes it under Mace's name. This is

Back 45

copyright infringement.

Front 46

Joey reproduces Mina's copyrighted work without paying royalties. Joey is most likely excepted from liability forcopyright infringement under the "fair use" doctrine if

Back 46

Joey's use has no effect on the market for Mina's work.

Front 47

Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If adispute arises, a court having jurisdiction may

Back 47

order a party to submit to arbitration.

Front 48

Ric designs a new computer storage drive, which he names "Sci Phi." He also writes the operating manual to beincluded with each final product. Ric could obtain patent protection for

Back 48

the storage drive.

Front 49

In Restful Motel's suit against Sleepy Hotels, Inc., the jury returns a verdict in Restful's favor. Sleepy files a motionstating that a reasonable jury should not have found in Restful’s favor, and asks the judge to enter a judgment forSleepy. This is a motion for

Back 49

judgment n.o.v.

Front 50

Paula develops a new espresso machine, which she names "Quik Shot." She also writes the operating manual.Paula can obtain trademark protection for

Back 50

the name.

Front 51

Damages are designed to punish a breaching party and deter others from similar conduct.

Back 51

FALSE

Front 52

An integrated contract is a contract with more than one subject or part.

Back 52

FALSE

Front 53

Damages are awarded for whatever injury a nonbreaching party suffers, whether or not the breaching party couldhave foreseen the injury.

Back 53

FALSE

Front 54

The intention to enter into a contract is judged by objective facts as interpreted by a reasonable person.

Back 54

TRUE

Front 55

A void contract is enforceable if it is in writing.

Back 55

FALSE

Front 56

A remedy is the relief provided to an innocent contracting party when the other party breaches the contract.

Back 56

TRUE

Front 57

Contracts that are executory on both sides can be rescinded by agreement.

Back 57

TRUE

Front 58

An exculpatory clause in an employment contract is not enforceable if the clause is against public policy.

Back 58

TRUE

Front 59

The injury suffered by a nonbreaching party due to the breach of a contract may be remedied by payment ofcompensatory damages.

Back 59

TRUE

Front 60

An innocent party can enforce a fraudulent contract.

Back 60

TRUE

Front 61

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Back 61

TRUE

Front 62

An event must be certain to occur to constitute a contract condition.

Back 62

FALSE

Front 63

If the purpose of a licensing statute is to protect the public from unlicensed practitioners, a contract with anunlicensed professional is illegal.

Back 63

TRUE

Front 64

Parents are ordinarily liable for the contracts made by their minor children, even if the children acted on their own.

Back 64

FALSE

Front 65

One of the requirements of a valid contract is its acceptance.

Back 65

TRUE

Front 66

Delta, Inc., agrees to pay a debt of Excel Company to First State Bank, if Excel becomes delinquent. Theagreement is not in writing. To be enforceable, the promise must be for the benefit of

Back 66

Delta

Front 67

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a preexisting debt owed byEsther to Gladys. Gladys is

Back 67

an intended beneficiary

Front 68

Steven, who is Bertha's guardian, convinces her to buy a certain parcel of land from Christy at a greatly inflatedprice. Steven may be liable for

Back 68

undue influence

Front 69

Olin convinces Pia, who has no artistic ability, that Pia has considerable talent and induces Pia to pay Olin $10,000for art lessons. When Pia realizes the truth, she files a suit against Olin. Pia is most likely to recover on the basis of

Back 69

fraud

Front 70

Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange thecash for the lesson. These parties have

Back 70

a bilateral contract

Front 71

Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejectionfirst, then changes his mind and sends an acceptance. Whether they have a contract is determined by

Back 71

whether Kyle's rejection or acceptance is received first.

Front 72

Windshield Repair Shop (WRS) promises to pay Vincent $1,000 a week to work for WRS. Vincent accepts andquits his job with Ultra Glass. WRS fails to provide a job for Vincent. Vincent has a cause of action based on

Back 72

promissory estoppel

Front 73

Clem attempts to free himself from the duties of his contract with Drew by telling Drew to find someone else toperform them. This is

Back 73

none of the choices.

Front 74

Hillside Homes, Inc., and Ideal Builders, Inc., enter into a construction contract that includes six pages of detailedcalculations. Later Hillside, whose project manager compiled the figures, discovers that some numbers weremultiplied incorrectly, but Ideal refuses to make changes. A court would most likely

Back 74

order reformation of the contract.

Front 75

Greco promises to buy illegal copies of CDs and DVDs from Fava, who promises to deliver on April 15. Thesepromises are most likely

Back 75

void

Front 76

Dot, a real estate agent, tells Elbert, a home seller, that her commission is 12 percent. Elbert agrees that Dot cansell his house but refuses to sign a contract unless the amount of the commission is reduced. After the house issold, Elbert refuses to pay 12 percent. Dot is most likely to recover

Back 76

on a theory of quasi contract.

Front 77

Randy and Beach Biz Company enter into an oral contract under which Randy agrees to clean Beach Biz's officefor two years. This contract is enforceable by

Back 77

neither party

Front 78

Super Toolmakers, Inc., contracts to sell its business to True Hardware Corporation. Before either party hasperformed, rescission of this contract requires

Back 78

a mutual agreement to rescind.

Front 79

Roy and Sheila are parties to a contract. They subsequently agree that Tony should take Roy's place and assume all of his rights and duties under the contract. This is

Back 79

a novation.

Front 80

Debit & Credit Accounting Services and Brickwork Construction Company negotiate a contract. Terms in thecontract that are the subject of separate negotiation will be considered subordinate to

Back 80

none of the choices.

Front 81

Cathy assures Don that she will deliver his products as he directs. An assertion that one will do something in thefuture is part of the definition of

Back 81

a promise

Front 82

Nina and Owen enter into an oral contract for Nina's sale to Owen of a laser printer for $400. Before Owen takespossession of the printer, the contract is enforceable by

Back 82

either party

Front 83

Lana applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for amedical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam."This letter is

Back 83

a unilateral contract that Lana can accept by passing the exam

Front 84

Beachside Pools, Inc., agrees to build a swimming pool for Candy, but fails to build it according to the contractspecifications. Candy pays Beachside in full, and hires Do-We Fix-It Company to finish the project. Candy mayrecover from Beachside

Back 84

the cost needed to complete construction

Front 85

Drew contracts to sell a residential duplex to Evan. The contract provides that if Drew does not close the deal bySeptember 15, he must pay Evan one-half of the contract price. This provision is not enforceable because it is

Back 85

a penalty clause.

Front 86

Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro faxes NFC amemo on Macro's letterhead that summarizes the items on which they agree. NFC begins to perform, but Macrorefuses to pay. Between Macro and NFC, the memo is

Back 86

a written contract

Front 87

A contract between Donald and Chloe to lease commercial property contains an exculpatory clause. This clause is

Back 87

generally unenforceable

Front 88

Elmore offers to sell a Ford F-150 for $7,500 to Grace. Before Grace can respond, Elmore refers to the prices forsimilar Fords and says, "Forget it. I changed my mind." Elmore's offer was terminated by

Back 88

Elmore

Front 89

Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have

Back 89

an express contract

Front 90

Digital Architecture, Inc., enters into a contract to design robotic software for Chassis Assembly Corporation. Therequirements of this, and any other, contract include

Back 90

something of value received or promised to convince a person to make deal.

Front 91

Commercial Shipping, Inc., and Dock Services Corporation enter into a contract for Dock to load Commercial'strucks for which Commercial agrees to pay Dock. Dock transfers its duty to load the trucks to East HarborTransport Company. Dock is

Back 91

a delegator

Front 92

Superb Construction, Inc., contracts to build a store for Tasty Confection Company, with Tasty's payment due onJune 1. On June 1, Tasty's bank is closed, and for this reason, Tasty cannot pay Superb on time. In this situation

Back 92

Tasty is in breach of contract

Front 93

Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity's shareholders. When Faye'sschedule conflicts, she asks Gudren to serve Faye's coffee and pastries at the meeting. This transfer of duties is

Back 93

a delegation

Front 94

Tom and Sydney enter into a contract for the sale of Tom's house for which Sydney agrees to pay $350,000.Sydney wants to transfer her right to the ownership of the house to Rena, her niece. This transfer generally

Back 94

cannot be prohibited

Front 95

Employment Sources, Inc., enters into a contract with Fred. If Fred is a minor, this contract is most likely

Back 95

voidble

Front 96

Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. Insome states, Sunny would have to

Back 96

make reasonable efforts to relet the premises to mitigate damages

Front 97

Cross-Country Trucking Company contracts with Baldwin to transport crated goods to a certain destination for$5,000. Cross-Country delivers the crates, but Baldwin does not pay. Cross-Country learns that the cratescontained stolen goods. Cross-Country can

Back 97

recover $5,000 from Baldwin

Front 98

Belle enters into a contract to subdivide and sell housing lots in Cole's hillside field if Dell City annexes theproperty within the next year. Belle's duty to perform is

Back 98

conditional

Front 99

Consumer Goods, Inc., and Delta Distribution, Inc., sign a written contract for a sale of goods. To be enforceable,this written contract must include

Back 99

a quantity term

Front 100

Odell owns Payroll Company, a bookkeeping service losing market share to Quik Work, Inc. Odell pays Remy$5,000 to steal a list of Quik's clients, to whom Odell will aggressively market Payroll's services. This deal is

Back 100

void

Front 101

In many states, the plaintiff's negligence is a defense that may be raised in a product liability suit based on strictliability.

Back 101

TRUE

Front 102

A product liability action may be based on warranty theory.

Back 102

TRUE

Front 103

If goods fail to conform to a contract in any way, the buyer or lessee must reject them.

Back 103

FALSE

Front 104

If, before the time for performance, a buyer communicates an intent not to perform, the seller can consider thebuyer in breach and pursue a remedy.

Back 104

TRUE

Front 105

No oral contract is enforceable under the UCC.

Back 105

FALSE

Front 106

A lessor is a party who acquires a right to the possession and use of goods under a lease.

Back 106

FALSE

Front 107

The term cure refers to the right of the seller to reject, adjust, or replace nonconforming goods.

Back 107

TRUE

Front 108

A party must own property to have an insurable interest in it.

Back 108

FALSE

Front 109

A will is probated in part to establish its validity.

Back 109

TRUE

Front 110

A design defect is not the sort of product defect that will support the imposition of liability on a strict productliability basis.

Back 110

FALSE

Front 111

A nuncupative will is a will that is completely in the handwriting of the testator.

Back 111

FALSE

Front 112

Unless a contract provides otherwise, it is assumed to be a destination contract.

Back 112

FALSE

Front 113

An express trust is created or declared in explicit terms.

Back 113

TRUE

Front 114

A will must normally be attested to by two or three witnesses.

Back 114

TRUE

Front 115

Article 2 of the UCC governs contracts for sales of services.

Back 115

FALSE

Front 116

Silky Material Corporation in New Jersey sells fifty tons of fabric to Tattered Clothing, Inc., in Ohio, "F.O.B. NewJersey." The cost of transporting the fabric to Ohio will be paid by

Back 116

Tattered Clothing

Front 117

Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one of its warehouses. Inexchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan fromSavings Bank. Article 2 of the UCC governs

Back 117

the sale of the goods.

Front 118

Fun Toyz Corporation makes skateboards, which it sells to consumers, including Holly and Ira. Due to a defect,Holly is injured while using her new board. Ira's board has the same defect, but he is not injured. In a productliability suit based on strict product liability, Fun Toyz may be liable to

Back 118

Holly only

Front 119

Dependable Appliances, Inc., and Elain enter into a contract for a sale of kitchen appliances. Dependable, amerchant who deals in goods of the kind sold, notes that its goods come with an implied warranty ofmerchantability. Under the UCC, this means that the goods are reasonably

Back 119

fit for the ordinary purpose for which such goods are used.

Front 120

Timber Products, Inc., and Walt, a consumer, enter into a contract for a sale of plywood. If the contract includes aclause that is perceived as grossly unfair to Walt, its enforcement may be challenged under the doctrine of

Back 120

unconscionability

Front 121

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipmentcontract, the seller must

Back 121

place the goods into the hands of a carrier.

Front 122

Electric Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each sales agreementshould note that a car is sold

Back 122

subject to warranties included in the written contract only

Front 123

Garden Tool Company makes hedge trimmers. Troy is injured while using a Garden Tool trimmer and sues thecompany for product liability based on negligence. To win, Troy must show that

Back 123

Garden Tool did not use due care with respect to the trimmer.

Front 124

Oceanic Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Oceanic is a merchantwho deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty ofmerchantability is breached

Back 124

regardless of what Oceanic knew or could have discovered.

Front 125

Garth dies without a will. The distribution of Garth's property, including his eleven forested acres near Hope,Arkansas, is prescribed by

Back 125

state intestacy laws.

Front 126

Forest & Field Company makes and leases a backhoe to Zach. Due to a defect attributable to Forest & Field'snegligence, Zach is injured in an accident in which his neighbor Aron is also hurt. In a product liability suit basedon negligence, Forest & Field may be liable to

Back 126

Zach and Aron

Front 127

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of tenhydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that

Back 127

exactly conform to the contract in every detail

Front 128

Philomena dies without a will. A court appoints Quigley to handle the probate of Philomena's estate. Theadministrator of the estate is

Back 128

Quigley

Front 129

Luke owns a farm near Marshalltown, Iowa, with stands of trees serving as windbreaks. Luke grows corn on theproperty. When Luke sells the farm to Nina, if the contract does not specify otherwise, the sale includes

Back 129

the crops and the trees

Front 130

Vehicle Leasing Agency (VLA) and Wander Trucking Company enter into a contract for a lease of eight cargovans. VLA delivers eight vans, but they are not cargo-sized. Wander

Back 130

can reject the entire shipment

Front 131

On May 1, City Auto & Truck Sales agrees to sell a car to Dino. Five days later, Dino refuses delivery and cancelsthe contract. City is entitled to

Back 131

resell the car and recover any damages from Dino

Front 132

Edy obtains a homeowners' insurance policy with First Source Insurance Company. First Source can cancel thepolicy

Back 132

if Edy fails to pay the premiums.

Front 133

Consumer Shops, Inc., signs a lease for a storefront owned by Downtown Building Company. Unlike a purchaser of real property, Consumer Shops

Back 133

acquire only temporary possession of the premises.

Front 134

Sid rents an apartment from Town Properties, Inc. The lease, which ends on May 31, does not include an option forrenewal, and Sid and Town do not discuss whether Sid can stay on at the end of the term. On June 1, Sid has

Back 134

no right to remain.

Front 135

Region Construction Company has a right to drive its trucks across Staple Business, Inc.'s property, which isadjacent to Region's office. This right is

Back 135

an easement.

Front 136

Dora leases a house from Evan for a two-year term. To ensure the validity of their lease, it should include

Back 136

a description of the premise.

Front 137

Primo Pools Company and Aquatic Recreation, Inc., enter into a contract for a sale of prefabricated swimmingpools. Under either a shipment contract or a destination contract, the seller must

Back 137

provide the buyer with any necessary documents of title.

Front 138

Cow Country Corporation (CCC) sells half of its land to the Double R Ranch. On the land is a reservoir. In thedeed, CCC retains the right to remove a limited amount of water per day from the reservoir. This right is

Back 138

a profit.

Front 139

Orin creates a living trust to pass his assets, including stock in Petro Oil Company and other business investments,to his heirs. One advantage of this arrangement is that

Back 139

the assets can be transferred without going through probate.

Front 140

Skyler dies after having made a valid will. Skyler has died

Back 140

testate

Front 141

To acquire the ownership of a mountain cabin by adverse possession, Cody must occupy the cabin exclusively,continuously, and peaceably for a specified period of time

Back 141

in an, open, hostile, and adverse manner.

Front 142

Curtis enters into a contract with Drive-Away Lease Company for a three-year lease of a car. This contract issubject to

Back 142

Article 2A of the UCC.

Front 143

Bret obtains a fire insurance policy on his rental house with Continental Insurance Company. Like all insurance,this policy is an arrangement for

Back 143

transferring and allocating risk.

Front 144

According to the court in Case 14.1, Maple Farms, Inc. v. City School District of Elmira, the defense ofcommercial impracticability will not excuse the performance of a contractual obligation when there is an increase in the seller's costs while the contract is in force

Back 144

unless the increase in the seller's costs was not foreseeable at the time the contract was formed.

Front 145

Office Equipment Leasing, Inc. (OEL), agrees to lease five computer workstations to Product PromotionCorporation (PPC). Before any interest in the workstations can pass from OEL to PPC, they must be

Back 145

in existence and identified as the goods in the contract.

Front 146

Diners Café orders five gallons of transfat-free cooking oil from Restaurant Supply, Inc. The seller mistakenlyships the wrong oil, which the buyer keeps, despite the nonconformity. The oil is destroyed in a kitchen fire. Theloss is suffered by

Back 146

Diners only

Front 147

Sweet Candy, Inc., and Tasty Treats Stores enter into a contract for a sale of candy. Sweet, a merchant who dealsin goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time acontract is formed, an express warranty can be disclaimed or modified

Back 147

by clear, conspicuous language called to the buyer's attention.

Front 148

Lewey's Bicycle Store contracts to buy fifty bicycles from Mountain Bikes, Inc. Unless the contract statesotherwise, this is

Back 148

a shipment contract.

Front 149

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires. Good Tire is a merchant whodeals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises

Back 149

automatically in sales contracts.

Front 150

Lucky owns Mud Flats Ranch, which is situated on certain Nevada acreage. The exterior boundaries of the landextend

Back 150

to the center of the earth and up to the farthest reaches of the atmosphere.