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Home » Business Law » Page 1445

Business Law

Q: Jimmy is annoyed because his neighbor's dog is constantly barking. He intentionally walks up to the dog in his neighbor's yard and viciously kicks it. Jimmy has committed battery.

Q: Because there is no general duty to act or assist others, a store is not liable if, after washing a floor, it fails to notify the public of the slippery condition and someone is injured. Stores give such notification as a convenience to customers but not because of a legal duty.

Q: Mike is having coffee in a coffee house when he sees Jordan, who is the dean of a Midwest business school. Mike used to teach at Jordan's prior school and was considered a very valuable faculty member. They haven't seen each other for years, and Jordan has no idea what Mike has been doing or where he's currently working. She tells him that she has a position for him if he's interested. The next day Mike quits the university he's under contract with and signs a contract with Jordan's school. Jordan's school can be sued for tortious interference with existing contractual relationship.

Q: Res ipsa loquitur does not require that the plaintiff prove the exact cause of negligence.

Q: ________ is typically defined as intentionally committing a wrongful act with intent to harm.

Q: Courts are bound by the Restatement of Torts, once it is published.

Q: The case of Mattison v. Johnston held that competition is not a valid excuse for breaking a restrictive covenant that was created to avoid just such practices and that inducing someone to break a restrictive covenant is tortious conduct.

Q: Ms. Bobbin, your ethics teacher, is a first-year professor, just out of school, and she is very tough and demanding. You've done poorly on the first two tests, and you think it's her fault. Someone tells you that she has a criminal past, and, without verification, you spread this allegation. In fact, Ms. Bobbin has been a model citizen and never broken the law. As a result of your actions, she is put on probation, pending an investigation. She cannot sue for defamation because, as a professor, she is a public figure and your conduct was intentional but not a careless disregard of the truth or an act done with malice.

Q: Mike goes to his local bike shop to buy a cyclometer (which measures speed, distance, etc.). He tells the salesperson that he wants the best cyclometer on the market, and she shows him a cyclometer and states that particular brand and model was actually used by some participants in the 2013 Tour de France bicycle race and is the best Mike can buy. Mike buys the cyclometer. As it turns out, 8 of the 189 riders indeed used the brand and model bought by Mike, with the other 181 using various other brands and models. In actuality, there is no acknowledged top brand and model, and use is subject to personal tastes. The salesperson has committed a fraudulent misrepresentation by stating that the brand and model sold to Mike was the best.

Q: Sally is walking her 6-month-old baby in a stroller. Mark, a stranger, looks into the stroller and says, "Wow, that's one ugly baby." Sally is furious and sues Mark for intentional infliction of emotional distress. She will likely lose.

Q: When a seller makes a representation of fact about a product, this is known as an ________ warranty.

Q: The loss of marital relations and spousal companionship is called loss of ______.

Q: 2. Store management may detain a suspected shoplifter without liability for false imprisonment based on the concept of ______.

Q: Jennifer is having a party and has invited her friends to her home. These social guests would be legally classified as ______.

Q: Every time you hit the delete button on your new computer you get a small electric shock. Your friends with the same computer are suffering the same problem. These computers have a ________ defect.

Q: Lost revenue or profits, whether actual or potential, are called ________ harm.

Q: Joe wants to propose to Rhonda and goes to a jewelry store to purchase an engagement ring. After college, Joe had worked as a jeweler while going to law school, and he is now an attorney. He still remains knowledgeable regarding the jewelry industry. In the jewelry store the owner listens to what Joe wants, and he takes a diamond ring from a showcase. The jeweler tells Joe that it's a class AAA perfect blue-white stone in a platinum setting and the price is $5,000. Joe, without indicating his jewelry knowledge, asks to use the jeweler's loupe (eyepiece) and, upon inspection, sees that it's a class AA yellow-white diamond with three minor flaws. He furthermore realizes that the ring is worth only $4,000. The ring is beautiful, so he decides he'd like to buy it. He asks if the price is negotiable, and the jeweler offers a sale at $4,500. They settle on $4,300. When Joe proposes, his girlfriend says no. Dejected, Joe seeks to return the diamond ring but the jeweler refuses, so Joe sues the jeweler for fraudulent misrepresentation. Who wins and why?

Q: Define the negligence defenses of contributory negligence and comparative negligence, and explain how they differ.

Q: The point at which liability for negligence stops is called: A. proximate cause. B. negligence per se. C. res ipsa loquitur. D. negligence interruptus.

Q: Rita Reporter works for a major news network and has been assigned to investigate a story about a woman's death in a small town. She interviews police and other public officials, and the investigation is pointing to the woman's ex-husband. When Rita reports live on the air, she states that the investigation is ongoing and that the ex-husband is the prime suspect. In fact, the police have just ruled out the ex-husband, but Rita has not yet been informed of that fact. The next day, the ex-husband is fired, his new wife moves out, and friends are now refusing to talk with him. A. Rita is guilty of libel for telling a lie that caused injury to the ex-husband. B. Rita is guilty of slander for telling a lie that caused injury to the ex-husband. C. Rita is not guilty of defamation due to a qualified privilege. D. Rita is not guilty of defamation due to an absolute privilege.

Q: Aspirin generally comes in 81-mg and 325-mg doses. Arnold's Aspirin Company starts a marketing campaign touting the 81 mg as children's doses and the 325 mg as adult doses. Aspirin is widely accepted to be a generally safe, nonprescription product for people without aspirin allergies. Arnold's sells the 81-mg pills in bottles with cartoon characters, and it flavors the pills to make them more palatable. It has been proved that giving aspirin to children under 12 may cause Reyes syndrome, an often fatal disease linked to treatment of viral infections with aspirin. The back label of Arnold's 81-mg bottles is printed in very small and cramped type, and in the middle of one paragraph it states, in type similar in font, size, and color to the surrounding type, "not for 12 yrs or under." When Deloris's 8-year-old got sick, Deloris bought Arnold's 81-mg aspirin for her son, and her son subsequently contracted Reyes syndrome. Does Deloris have a cause of action in tort for her son's injuries?

Q: Delta Tau Chi is a college fraternity and is recruiting new members. Although hazing is banned, the members nevertheless take the pledges to the local zoo, where they hand them bows and ribbons and order them to break into the monkey house exhibit and decorate the inhabitants. The monkey house has a distinct sign stating, "DANGEROUS ANIMALS, DO NOT APPROACH OR ENTER THE PREMISES!" The pledges go in anyway, and two of the pledges are severely injured and sue the zoo for their injuries. Discuss the liability of the zoo and the pledges.

Q: In a products liability case, the plaintiff may pursue legal remedies against the seller under any of the following categories except: A. product disparagement. B. strict liability. C. negligence. D. warranty.

Q: In which of the following situations would res ipsa loquitur likely apply? A. Jon is driving at 75 miles per hour in a 55-mph zone and causes an accident. B. Brandon sneaks up behind someone and hits the person with a hammer. C. A train derailed, and the cause of the accident can't be proved. D. Josh forgets to put a sign up to warn people that the floor has just been waxed and is slippery.

Q: The fact that the actual negligent act must directly cause the injury is called the: A. proximate cause. B. misfeasance. C. nonfeasance. D. cause in fact.

Q: Which of the following scenarios would most likely result in strict liability? A. Bruno owns a basset hound that escapes from his yard and bites a neighbor. B. Amos buys a bag of Chips Ahoy chocolate-chip cookies and breaks a tooth when he bites into one that contains a small rock that looks like a chip. C. Ted is injured at a major-league baseball game when a foul ball enters the stands and hits him. D. Maintenance at a school waxes the floors during class but fails to put up warning signs. A student leaving class slips and is injured.

Q: The merchant's privilege with regard to shoplifters requires each of the following except: A. the shopkeeper must have reasonable cause to stop the customer. B. the shopkeeper may detain the customer only for a reasonable time. C. the shopkeeper must make a reasonable investigation if possible. D. the shopkeeper must have an eyewitness or video evidence of the theft.

Q: Bill is a technician at a university chemistry lab and is in charge of safety inspections and prevention of injury due to faulty equipment, and Bill's job includes the repair of faulty equipment. One morning, as a result of his inspection, Bill discovers a gas burner with a broken valve and does a very poor job of repairing it, using techniques not considered proper or acceptable. When the morning class arrives, Halle uses the faulty burner and is burned when it catches fire. Bill's negligence is based on: A. nonfeasance. B. misfeasance. C. negligence per se. D. res ipsa loquitur.

Q: Amanda is driving toward a busy intersection. As she approaches the intersection, she looks down and reaches to adjust the radio in her car. She runs a red light and hits another car, which then crashes into a utility pole, knocking it down and causing a power loss in a 3-mile radius. It takes the utility company 48 hours to restore electricity to the area because of a strike by the utility union. Kimberly sues Amanda because all the food in her refrigerator and freezer spoiled due to the power outage. What will the result be? A. Amanda will be liable to Kimberly because a person is liable for all consequences of his or her negligence. B. Amanda will not be liable to Kimberly because she could not have actually foreseen that it was dangerous to take one's eyes off the road when approaching an intersection. C. Amanda will be liable to Kimberly because she should have foreseen that taking her eyes off the road could cause Kimberly's food to spoil. D. Amanda will not be liable to Kimberly because her conduct was not the proximate cause of Kimberly's damages.

Q: Mike has admired Monica for a long time and has wanted to date her but is too shy around girls to ask. He is a football player with a reputation of being the toughest player on the team. Monica is scared of Mike because of his size and reputation. One day Mike summons the courage and approaches Monica, who has her back to him and doesn't know he's there. He puts his arms around her and gives her a gentle kiss before letting go. He can't believe what he did, apologizes, and runs away. Monica is slightly shaken but physically unharmed. Mike has committed: A. conversion. B. battery. C. intentional infliction of emotional distress. D. nothing, because he apologized and she was unharmed.

Q: Lindsay is Jon's manager and calls him into her office after everyone else has gone home for the day. She closes the door and tells Jon that he is a thief and that he must return items that he stole from the company. In fact, Jon is extremely honest and has never stolen anything in his life. He is extremely upset and starts to feel sick. A. Lindsay has committed libel. B. Lindsay has committed disparagement. C. Lindsay has committed slander. D. Lindsay has not committed a defamation tort.

Q: A commercial airliner crashed in the middle of the Atlantic. The cause of the crash has been proved to be a wrongly installed part in one of the engines during routine maintenance. If a negligence lawsuit is brought against the airline, it will be based on: A. nonfeasance. B. misfeasance. C. res ipsa loquitur. D. negligence per se.

Q: The highest and most comprehensive duty owed by a landowner to a person on the owner's property is owed to: A. an invitee. B. a licensee. C. an accidental trespasser. D. an intentional trespasser.

Q: Which of the following is a valid defense in a strict products liability case? A. comparative negligence B. contributory negligence C. assumption of risk D. consent

Q: To which of the following would a dram shop law apply? A. Moe's Barber Shop B. Larry's House of Watches C. Curley's Tavern D. Shemp's House of Pancakes

Q: Which of the following is not a situation in which strict liability applies? A. T.J. manufactures cheap clothing that falls apart after minimal use. B. Amanda owns a pet tiger that she keeps in her home in a suburban neighborhood. C. Faye owns a business in which she regularly uses explosives. D. Aimee manufactures snack cakes that are sold in small grocery stores.

Q: In Belanger v. Swift Transportation Inc., after Belanger had an accident driving a company vehicle, the accident was reported to a government website. Belanger claimed that Swift acted with malice and lost any reference-related privilege by reporting information to a third-party website. A. Swift followed all company procedures, so it did not act with malice and defamation did not occur. B. Swift has an absolute privilege to report on former employees, so no defamation occurred. C. Swift showed malice by not reporting Belanger's side of the story, so it is guilty of defamation. D. Swift defamed Belanger by reporting to a website, as privilege applies only in company-to-company references.

Q: Bill is a technician at a university chemistry lab and is in charge of safety inspections and prevention of injury due to faulty equipment. One morning, as a result of his inspection, Bill discovers a gas burner with a broken valve. Bill gets distracted and fails to put an "OUT OF ORDER/DO NOT USE" sign on the faulty burner. When the morning class arrives, Halle uses the faulty burner and is burned when it catches fire. Bill's negligence is based on: A. nonfeasance. B. misfeasance. C. negligence per se. D. res ipsa loquitur.

Q: Assumption of risk is a defense to: A. conversion. B. negligence. C. defamation. D. battery.

Q: Carl Critic has just announced his choices of the worst Hollywood actresses of the year, and Stella Starr has been named the worst of the worst. Carl's announcement, made in his weekly column titled "Random Musings by Carl Critic" and published in the local paper, claims that he believes her to have the least amount of talent in the movie industry and that she "can't act her way out of a paper bag." When Stella reads Carl's column, she immediately starts to cry hysterically and then decides to sue him. Does she have a valid case of libel? A. Yes, her crying proves injury. B. Yes, but only if his statements cause her to lose money by losing movie roles. C. No, Carl committed slander, not libel. D. No, this was merely Carl's opinion.

Q: One who commits a tort is called the: A. tortmaster. B. tortfeasor. C. tortdoer. D. torteffector.

Q: Finley is a U.S. senator. While at a friend's wedding, he comments that another senator, Glen, is corrupt and is an alcoholic and drug addict. A reporter overhears this statement and includes the conversation in a written report that is published in the state's largest newspaper. Glen is called before a Senate investigatory committee, and his reputation is permanently scarred. Is Finley guilty of defamation? A. Yes, he has committed slander. B. Yes, he has committed libel. C. No, he didn't disseminate the information to a third party; the reporter did. D. No, he has an absolute privilege as a government official.

Q: Which of the following is not a general category of torts? A. intentional torts B. negligence C. strict liability D. criminal torts

Q: Products liability law arises from: A. state statutes. B. state common law. C. both state statutes and state common law. D. the Uniform Law of Product Liability as adopted by each of the states.

Q: The civil counterpart to theft is: A. conversion. B. trespass to chattels. C. disparagement. D. battery.

Q: The Communications Decency Act of 1996: A. redefined obscenity standards for the motion picture industry. B. redefined obscenity standards for the radio and television industry. C. made Internet service providers liable, as publishers, for content placed on their websites even by independent and anonymous contributors. D. provided Internet service providers with immunity from defamation liability, as publishers, for content placed on their websites even by independent and anonymous contributors.

Q: Chelsea's house is for sale, and she is selling it through a real estate agent. The house is listed, and any licensed agent may show the house by using the special accessible key in a lockbox on the front porch. Stan is a licensed agent and brings Paula into the home to show it for a possible sale while Chelsea is not home. Stan and Paula would be considered: A. invitees. B. licensees. C. trespassers. D. guests.

Q: Which of the following is not a defense to defamation? A. conditional privilege B. absolute privilege C. publication D. truth

Q: Which of the following is not true of strict liability? A. Intent to injure does not have to be proved. B. It primarily applies in defective product and abnormally dangerous situations. C. Injury need not occur or be proved. D. It is based on state law.

Q: Assume that Iowa has passed a law requiring that anyone riding or operating a motorcycle wear a helmet. Mary enters Iowa Harley-Davidson and wants to take a test ride. She doesn't have a helmet with her and the dealership doesn't have one available in her size, so the proprietor lets her go without one. If she crashes and is injured, the proprietor has committed negligence per se.

Q: Under concepts articulated in MacPherson v. Buick, a manufacturer of a defective product is liable only to the purchaser of the product and not to every user.

Q: A party who is injured by another's negligence but is found to have committed comparative negligence will recover nothing.

Q: Generally, tort law is governed by: A. state statutory law. B. state common law. C. federal statutory law. D. constitutional law.

Q: Mackey Pharmacy Corp. orders 5,000 cases of regular-strength aspirin from MAK Pharmaceuticals. When they are delivered, an inspection shows that while the delivery is conforming to the contract with regard to the quantity and quality of the aspirin, none of the aspirin are in childproof bottles. The contract was silent regarding the issue of childproof bottles. Mackey rejects the delivery, and MAK sues for breach of contract. How should the courts analyze and resolve this matter?

Q: Veggy Time Inc., is a distributor of canned vegetables. It has been dealing with Fred Farmer for 10 years, purchasing Fred's entire corn crop. Fred's farm is so large and productive that Veggy Time has exclusively bought all of its corn from Fred alone. Once again it has entered into a contract with Fred to purchase his entire 2015 crop and has no other corn sellers under contract. For the past 10 years, Fred has delivered 100,000 bushels of corn to Veggy Time. Unfortunately, due to an extraordinary amount of rain, Fred's fields are now flooded and most of his crop is destroyed. In 2015, Fred can deliver only 10,000 bushels, and Veggy Time is about to suffer a huge loss. Does Veggy Time have any rights against Fred to recover for its losses? What could Veggy Time do to mitigate its damages?

Q: Which of the following is true of open-price-term contracts? A. The contract is void due to the failure to specify a required term of the contract. B. The price becomes the reasonable price at the time the contract was entered into. C. The price becomes the reasonable price at the time the goods are delivered. D. The price is determined by the court's applying a reasonable price at whatever time the court deems appropriate to fairness.

Q: Which of the following requires a written contract to be enforceable? A. Jon rents a luxury yacht for a month at a cost of $10,000. B. Lindsay borrows $5,000 from Robert to buy a car. C. Stanley's pit bull has just had a litter, and he agrees to sell you a puppy for $500 when the pups are weaned from their mother. D. Philip agrees to paint your house for $500.

Q: Normally, the buyer's offer in a commercial transaction takes the form of: A. a personal letter. B. a purchase order. C. an acknowledgment form. D. a phone call with the parties directly speaking with each other.

Q: In a destination contract, risk of loss passes to the buyer when the goods: A. are tendered at the specific destination. B. are delivered by the seller to the carrier. C. begin the journey to the destination point. D. have passed the halfway point to the destination.

Q: Explain how the UCC "battle of the forms" is resolved in nonmerchant and in merchant transactions.

Q: Annie agrees to purchase a television from Huge Buy, a merchant electronics seller. Her agreement is that she will pick the television up on Friday at Huge Buy. On Friday morning Huge Buy calls to verify that the television is marked with her name and is available for pickup. Annie tells Huge Buy that she can't come until Saturday. Friday evening a huge storm damages the Huge Buy facility, caving in the roof and destroying her television. Huge Buy demands payment from Annie, claiming that it tendered the goods and if she had picked up the television on Friday as originally agreed, there would not have been a loss. Does Annie have to pay? Why or why not.

Q: Cathy's Coaster Company uses cork in all of the protective drink coasters that it manufactures. If Cathy's enters into an agreement with a cork exporter from Portugal to purchase all of the cork it needs to produce its products, this would be: A. an output contract. B. an input contract. C. a requirements contract. D. a necessities contract.

Q: In Merchants Acceptance Inc., v. Jamison, Jamison ordered encyclopedias and the contract specified that delivery was to be made to Jamison's home. Instead, the encyclopedias were delivered to her post office box and she never received them. She refuses to pay for them and is sued. A. Jamison must pay because it was her post office box, delivery was close enough to be substantial performance, and risk of loss passed to her. B. Jamison must pay because she easily could have mitigated damages by going to her post office box to pick up the encyclopedias. C. Jamison does not have to pay because the goods were never tendered to her properly, so risk of loss never passed. D. Jamison does not have to pay because the UCC permits a nonmerchant to cancel contracts with merchants at any time as a consumer protection.

Q: Which of the following items would be properly subject to a UCC sales contract? A. a house B. a Christmas tree sold in a parking lot C. rights to a patent D. an employment contract

Q: Which of the following is not true regarding firm offers? A. A firm offer automatically occurs when an offer or promise is made by one merchant to another. B. Firm offers do not require consideration for the offer to remain open. C. Firm offers occur only between merchants. D. Firm offers must be in writing.

Q: Bob's Department Store in New York sends a purchase order to Sam's Sweaters in California, ordering 10,000 sweaters. The purchase order includes a breakdown of sizes, styles, and colors, and it states that delivery is to be made to Bob's in New York at Sam's cost. When Sam's sends an acknowledgment form accepting the offer, certain terms are changed. Which of the following would likely not automatically become part of the contract? A. Sam's changes the quantity to 9,500 sweaters. B. Sam's changes the price, raising the per-item cost by $.50 each. C. Sam's omits the order for 1,000 purple sweaters and allocates those 1,000 sweaters equally among the other-color sweaters ordered. D. Sam's changes the place of delivery to its factory in California and allocates the cost of shipping to Bob's in New York.

Q: The United Nations Convention on Contracts for the International Sale of Goods, with regard to cure: A. does not recognize cover as a seller's remedy. B. follows the same cure rules as stated in the UCC. C. allows an absolute right and obligation for a seller to cure, and the buyer must allow the seller to cure even if the time for performance is past due. D. requires that the seller apply to the International Court of Justice for the right to cure, and the court will evaluate each case individually.

Q: The International Chamber of Commerce abbreviation indicating that goods are to be picked up by the buyer and not delivered is: A. EXW. B. FAS. C. FOB. D. FCA.

Q: Acme Rocket Company is shipping 500 toy rockets by boat to Rockets R Us. Acme is located in Miami, and Rockets R Us is located in Boston. If goods are shipped FOB Miami: A. Rockets R Us bears the risk of loss if the boat sinks on its way to Boston. B. Rockets R Us bears the risk of loss once the shipment arrives in Boston. C. Acme bears the risk of loss if the boat sinks on its way to Boston. D. Acme bears the risk of loss until the goods are accepted by Rockets R Us.

Q: Absent specific agreements between the parties, the reasonableness requirement of the UCC governing delivery of goods requires each of the following except: A. the goods must be delivered in one shipment. B. the goods must be delivered at a reasonable hour. C. the goods must be delivered on a weekday. D. the goods must be delivered in a reasonable manner.

Q: Two merchant companies have entered into a contract for the sale of goods but have had no prior dealings that would establish a course of conduct between them. The UCC will allow gap fillers to apply to their contract regarding missing terms in each of the following situations except: A. they have failed to specify when payment for the goods is to be made. B. they have failed to specify where delivery of the goods is to be made. C. they have failed to specify the quality or grade of the goods to be delivered. D. they have failed to specify the price of the goods to be delivered.

Q: In the absence of a specific contract provision regarding the details of payment, the UCC provides that payment be made in full: A. at the time and place that delivery occurs. B. within 10 days of the time and place that delivery occurs. C. within 20 days of the time and place that delivery occurs. D. within 30 days of the time and place that delivery occurs.

Q: UCC rules on acceptance of goods and payment in regard to installment contracts mandate that: A. acceptance is not made until all shipments are received and then payment is made. B. acceptance is made separately for each shipment but payment is not due until the final shipment is received. C. payment must be made in advance and acceptance occurs after all shipments are received. D. acceptance is made separately for each shipment and payment for each shipment is due on delivery of that shipment.

Q: The United Nations Convention on Contracts for the International Sale of Goods (UNCISG) differs from the UCC in that under UNCISG: A. acceptances are effective when mailed. B. acceptances are effective when received. C. written contracts are required for sales contracts of $1,000 or more rather than $500 or more. D. industry practices and past dealings between parties are not recognized.

Q: Your department secretary has called a local office supply company and ordered 100 reams of copy paper. The agreement is that the paper will be delivered to the department office and a check for payment will be given on delivery. On the way to make the delivery the truck is in a crash, and the paper is destroyed in a fire resulting from the accident. A. This is a shipment contract, and the office supply company bears risk of loss. B. This is a shipment contract, and your school bears risk of loss because the paper had been set aside and tendered. C. This is a destination contract, and because delivery had been initiated, the school bears the risk of loss. D. This is a destination contract, and since the goods were never properly tendered, the office supply company bears the risk of loss.

Q: In Sons of Thunder Inc., v. Borden Inc., it was alleged that Borden breached its contract with the owners of Sons of Thunder by not purchasing the required amount of clams. The court found that: A. because Borden urged the plaintiffs to purchase bigger boats to handle "shuck-at-sea" technology and then canceled the "shuck-at-sea" program, buying fewer clams from the plaintiff and then buying from a competitor, Borden had not acted in good faith. B. Borden had breached an output contract by not buying all of the plaintiffs' clams and buying from competitors. C. purchasing larger boats by the plaintiffs was a business decision that Borden could not be held responsible for. D. Borden had breached a requirements contract by buying from competitors when the plaintiffs still had available clams to sell to Borden.

Q: Commercially reasonable means: A. getting the highest price possible for goods without violating the law. B. charging a fair price for goods and not taking advantage of others in the industry. C. observing industry standards and practices that may be unique to the particular industry. D. observing industry standards and practices that are generally accepted throughout various industries as proper business practices.

Q: Two merchants agree to a sale of goods to be shipped by boat from Maine to Florida. No other shipping terms are indicated. If the boat sinks during the trip and all the goods are destroyed: A. the buyer may sue the seller, but not the carrier, for its loss. B. the seller may sue the carrier because the seller maintained risk of loss and the right to sue for losses. C. the buyer may sue both the seller and the carrier for its loss. D. the buyer may sue the carrier, but not the seller, for its loss.

Q: Josh's Futbol World orders 500 U.S.A. replica soccer jerseys from Victory Apparel, a sports apparel manufacturer. The jerseys are to be delivered to Josh's place of business. When the shipment arrives, Josh's discovers that it has received 500 pairs of U.S.A. replica shorts but no jerseys. Before Josh's can notify Victory and return the shorts, a fire destroys Josh's building along with the shipment of shorts. A. This was a destination contract, and since the shorts were tendered to the destination, Josh's bears risk of loss until they can be returned. B. This was a destination contract, and the shorts were nonconforming goods, so Victory did not complete performance and retains risk of loss. C. This was a shipment contract, and Josh's assumed risk of loss when Victory delivered the goods to the carrier. D. This was a shipment contract, and Victory retained risk of loss until the goods were tendered to Josh's at Josh's establishment.

Q: The UCC will permit an incomplete or slightly ambiguous contract to be enforced using each of the following criteria except: A. past commercial conduct. B. industry standards or norms. C. judicial input of any terms necessary to maintain fairness. D. correspondence or verbal exchanges between the parties.

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