Question Details

 BUSN 420 Week 5 Quiz

1.	Question :	(TCO 5) Centrex Computer Company offers to sell Deluxe Vehicle Sales Corporation 1,000 computers for a $500,000, states that the offer will be open for six days, and asks for a response by fax. On the fourth day, Deluxe sends an acceptance to Centrex via the mail, which is received on the sixth day. In this deal

 	Student Answer:	 	  a contract is formed.

 			  no contract is formed, because Centrex asked for a response by fax.
 			  no contract is formed, because Centrex received the acceptance late.
 			  no contract is formed, because Deluxe sent the acceptance late.

 	



Question 2.	Question :	(TCO 5) Over the course of a year, Retail Marketers, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs

 	Student Answer:		  the checks.

 			  the payment of the loan.

 			  the sale of the buildings.

 		 	  the sale of the goods.

 		



Question 3.	Question :	(TCO 5) Doctors Clinic orders 1,000 bandages from Emergency Supplies Company but fails to specify the sizes. The bandages are delivered in an assortment of sizes. Doctors Clinic may

 	Student Answer:		  accept the bandages "as-is" only.

 		 	  accept the bandages "as-is" or reject the entire shipment only.

 		 	  accept only the bandages that it wants and reject the rest.

 			  reject the entire shipment only.

 		



Question 4.	Question :	(TCO 5) Bild-Rite, Inc., is a Colorado-based firm that does business with clients throughout North America. Bild-Rite oversees construction projects, and buys and sells commercial buildings, undeveloped land, and construction supplies and other goods. Bild-Rite has had to deal with work-site theft and vandalism. With respect to these circumstances, the Uniform Commercial Code (UCC) provides a framework for

 	Student Answer:	 	  commercial transactions for the sale of and payment for goods.

 			  international construction contracts.

 			  domestic and foreign transactions in real estate.

 			  prosecuting crimes against business interests.

 		



Question 5.	Question :	(TCO 5) Jessica wants to buy a laptop from the Tenn Computers website. Before confirming the purchase, the website asks her to provide biometric identification using an electronic scanner. This is an example of _____.

 	Student Answer:		  e-licensing

 		 	  an e-signature

 			  an exclusive license

 			  cybersquatting

 	



Question 6.	Question :	(TCO 6) Pure Water Company is subject to a decision by the Environmental Protection Agency. Pure Water appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision

 	Student Answer:	 	  changed the agency's prior policy without justification.

 		 	  followed a consideration of all relevant factors.

 			  was accompanied by a rational explanation.

 			  was plainly warranted by the evidence.

 	



Question 7.	Question :	(TCO 6) National Ladder Company is subject to regulations issued by the Occupational Safety and Health Administration (OSHA). Like other federal administrative agencies, the OSHA was created by

 	Student Answer:	 	  Congress, through enabling legislation.

 			  the Federal Trade Commission, through the rulemaking process.

 			  the president, through an executive order.

 			  the U.S. Department of Labor, through a final order.

 		



Question 8.	Question :	(TCO 6) The Consumer Product Safety Commission (CPSC) wants Monster Toy Company to produce certain records for review. To obtain the records, the CPSC will issue

 	Student Answer:		  an order for specific performance.

 			  a rule for parol evidence.

 			  a formal complaint.

 		 	  a subpoena.

 		



Question 9.	Question :	(TCO 5) An appliance seller promised a restaurant owner that a home dishwasher would fulfill the dishwashing requirements of a large restaurant. The dishwasher was purchased but it was not powerful enough for the restaurant. Under the Sales Article of the UCC, what warranty was violated?

 	Student Answer:	 	  The implied warranty of marketability.

 			  The implied warranty of merchantability.

 		 	  The express warranty that the goods conform to the seller's promise.
 			  The express warranty against infringement.

 	



Question 10.	Question :	(TCO 5) Under the Sales Article of the UCC, which of the following events will release the buyer from all its obligations under a sales contract?

 	Student Answer:		  Destruction of the goods after risk of loss passed to the buyer.

 		 	  Impracticability of delivery under the terms of the contract.

 			  Anticipatory repudiation by the buyer that is retracted before the seller cancels the contract.
 		 	  Refusal of the seller to give written assurance of performance when reasonably demanded by the buyer.