Behavior that strongly suggests that a party will not perform his obligations under a contract cannot ever be a material breach, because this would unfairly penalize a party who, after all, may later be able to perform. a. True b. False

A failure to give substantial performance where substantial performance is normally required is a material breach of the contract. a. true b. false

In most states today, leases of goods are handled by Article 2A of the UCC. a. true b. false

The Code’s statute of frauds requirement applies to all contracts for the sale of goods in an amount of $500 or more. a. True b. False

Which of the following is most likely to be considered a sale of goods to which the UCC applies? a. a dentist places a crown over a patient’s tooth b. a gas station sells and installs a new battery in a car c. a hairstylist uses a creme rinse in styling a client’s hair d.

Which of the following terms in a contract for the sale of goods requires the seller to insure the goods? a. FOB b. FAS c. CIF d. C&F

By accepting nonconforming goods, a buyer normally a. waives all remedies against the seller for the nonconformity b. is obligated to pay for the goods c. gives up any possibility of later revoking acceptance d. all of the above

A liquidated damages clause in a contract for any sale of goods will not be enforced when a. actual damages would be easy to prove in the event of a breach b. the amount specified is so large as to be a penalty c. the amount specified is so low as to be uncomscionable d.

One way a buyer might breach a contract for the sale of goods is by wrongfully refusing to accept them. a. true b. false

In order to create a bailment, the bailer and bailee need not agree in writing to the existence of the bailment. a. true b. false

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