Question 1: Due to a rapid decline in the price of horseshoes, which can now be bought and sold for 50 cents each, Mark refuses to buy 1,000 horseshoes from Clark for $1 per shoe and thus breaches an existing contract. Clark is entitled to recover
a. $1,500.
b. $1,000.
c. $500.
d. $0.
Question 2: Air Transport Company contracts to buy goods from Flight Engines, Inc. Flight Engines wrongfully fails to deliver the goods. Air Transport can recover damages equal to the difference between the contract price and the market price
a. at the time the contract was made.
b. at the time and place of tender.
c. when Air Transport learned of the breach.
d. when Air Transport filed a suit against Flight Engines.
Question 3: Frank buys from E-Stuff, Inc., a product that includes a shrink-wrap agreement. A dispute arises, and E-Stuff files a suit against Frank. The court will enforce the agreement if Frank used the product
a. after having had an opportunity to read the agreement.
b. before having had an opportunity to read the agreement.
c. only after actually reading the agreement.
d. none of the above.
Question 4: Efficient Office Systems, Inc. (EOS), includes mass-market licenses with its products. With regard to an EOS product, under the UCITA a licensee can
a. not return the product or obtain a refund.
b. obtain a refund without returning the product.
c. return the product and obtain a refund.
d. return the product but not obtain a refund.
Question 5: A-1 Tools, Inc., agrees to sell five lawn mowers to Green Landscaping Service. Their contract states that the mowers are being sold "as is." This statement effectively disclaims
a. the implied warranty of fitness for a particular purpose only.
b. the implied warranty of merchantability only.
c. the implied warranty of fitness for a particular purpose and the implied warranty of merchantability.
d. none of the above.