Sales & Consumer Protection Exam

 

1.     Jake orders a sound system from a catalogue. The catalogue description says that the sound system has a remote control. When the computer arrives, Jake discovers there’s no remote control for this sound system. Jake may sue for breach of __________________.

 

2.     Bob enters into a contract to sell a furnace to Carl and also agrees to install it. Bob and Carl have a dispute over the contract. The contract will be governed by _________________________________

 

3.     Carl receives a box of teddy bears in the mail. He didn’t order them and has had no prior dealings with the company. The shipment contains a writing that states that if Carl doesn’t reject the teddy bears and send them back, Carl must pay $129 for the teddy bears. Which of the following statements is true?

 

4.    
Mary and George enter a contract in which George agrees to sell Mary lassos made in his
lasso factory in Bedford Falls, New York. Mary lives in Los Angeles, California. 
The contract
expressly states that the sale is F.O.B. (free on board) Los Angeles, California. The lassos are damaged during transport between Bedford Falls and Los Angeles. Who 
bears the risk
of loss?

 

5.     Zeke orally agrees to sell a video game to Molly for $200. Zeke then changes his mind and tells Molly the deal is off. Molly sues, claiming breach of contract. Both parties tell the court there was an oral agreement for $200. The most likely result is that  ______________________

 

6.     Jake bought a motorcycle from his neighbor Randy. Randy had owned the motorcycle
for his personal use for about two years. The day after the purchase, Jake is seriously injured after the motorcycle suddenly veers off of the highway due to a manufacturing defect. Jake brings a strict liability action against Randy. Jake will likely lose because  ______________.

 

7.     Tom agrees to sell 500 pairs of pants to Sally for $5,000. Tom delivers the pants. Sally hands Tom a check. Tom demands cash and refuses to accept the check. Which of the following statements is true?

 

8.     Barbara steals a big plasma television from Abby. Barbara then puts an ad in the classifieds to sell the television. Candy responds to the ad and purchases the television for $2,000. Candy later files bankruptcy and, to raise money to pay Candy’s creditors, the bankruptcy trustee sells Candy’s television at auction to Donna for $1,600. Due to an anonymous tip, the police visit Donna, examine identifying information on the television and tell her it was stolen from Abby. Who now owns this television?

 

9.     Elmer contracts with Racketware, Inc., a company in France, to purchase 5,000 tennis rackets. The rackets will be shipped by boat to a warehouse in New Jersey. Elmer and Racketware enter into the contract on November 1. The boat containing the rackets leaves France on November 2. The boat containing the rackets sinks on November 3. The documents necessary to claim the rackets are received by Elmer in the mail on November 4. The risk of loss shifted from the seller to the buyer on what date?

 

10.            Sam bought a new suit. The first time Sam took the suit to the cleaners it disintegrated
through no fault of the cleaners. What theory is best for recovering the price of the suit from the seller?

 

11.            At the beginning of November, Bob offered to sell to Sally pants at a price of $20 per pair. Sally said she wanted to see how much shopping traffic her store enjoyed on Black Friday, the day after Thanksgiving, before deciding. Bob agreed in writing to hold the offer open for the rest of the month. Sally had a lot of shoppers come to the store on Black Friday and decided she could sell a lot of pants, so she phoned Bob the next day to order several dozen pairs of pants. Bob told her the offer had been revoked. Sally sues, claiming breach of contract. The most likely result will be that _______________________.

 

12.            Carl goes to a store to buy a television. At the store, there’s a television playing. Carl thinks the picture and sound on that television is good, so he buys the same model. He takes it home, plugs it in, and finds that the picture and sound, while reasonably good, aren’t as good as what he saw in the store. He sues for breach of warranty. If he wins, it will be because  ________________

 

13.            In August, wholesaler Terrence contracts with retailer Elmer to sell Elmer 500 pairs of blue pants for $5,000 in December. Then, in October, the price of pants drops due to a deal Terrence has made with the manufacturer. Terrence, seeking to get more business from Elmer, agrees in writing to drop the price of the pants due in December from $5,000 to $3,500. Then, in November, the deal Terrence made with the manufacturer falls through, and Terrence calls Elmer and tells him the original price of $5,000 will be charged. Elmer sues, seeking damages based on the lower purchase price. The most likely result is _________________________

 

14.            John, an automobile dealer, entered a contract with Lisa in which Lisa agreed to purchase a 1995 Chevrolet automobile as is from John for $2,000. John expressly told Lisa that the motor in the automobile was bad, along with the clutch and brakes. Further, John told Lisa that she would probably need to have the automobile repaired immediately on leaving the dealership. Lisa purchased the automobile despite its problems. However, Lisa became disgruntled because the costs of the repairs were more than she expected. She filed suit against John for breach of warranty. The most likely result will be that Lisa will ___________________

 

15.            Dennis contracts with Racketware, Inc., a company in France, to purchase 5,000 tennis rackets. The rackets will be shipped by airplane to a warehouse in New Jersey. Dennis and Racketware enter into a contract on November 1, and the contract identified the rackets being purchased. The airplane containing the rackets leaves France on November 2. The documents necessary to claim the rackets are received by Dennis in the mail on November 3. Dennis claimed the goods at the warehouse on November 4. Dennis acquired an insurable interest in the rackets on what date? 

 

16.            Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due on November 15. On November 6, Peter delivers 20 pairs of sky blue pants. Lulu phones Peter and tells him he is in breach because the pants are the wrong color. Which of the following statements is true? 

 

17.            Lulu orders 20 pairs of navy blue pants from Peter for $4,000. On receipt of 20 pairs of sky blue pants, Lulu begins offering the pants for sale in her store. After a few days, when no one buys the pants, Lulu ships them back to Peter, claiming that the pants aren’t the color that was specified in the contract and claiming that Peter needs to ship her conforming goods. Peter claims he doesn’t have to do anything and that Lulu owes him $4,000. Which of the following statements is true? 

 

18.             Clementine, a debt collector, phones the home of Herschel for the purpose of collecting a debt owed by Herschel. Herschel isn’t at home and Herschel’s wife Edith answers. Clementine tells Edith that Herschel owes $500 on the debt Clementine is trying to collect. Which of the following statements is true? 

 

19.            Terra drops off her diamond ring at Jewel’s Jewelry shop to have it cleaned. By mistake, the ring ends up in a display counter and is sold by Jewel to Lulu for $9,000. Terra learns what has happened wants Lulu to give her the ring back. Lulu wants to keep it because she likes it. Which of the following statements is true?

 

20.            Zeke orally agrees to sell six television sets to Molly for $4,000. Zeke then changes his mind and tells Molly the deal is off. Molly sues, claiming breach of contract to sell six television sets for $4,000. Zeke testifies about an oral agreement to sell five television sets to Molly for $4,000. The most likely result is that ____________