Deck 19: Performance and Remedies

Question 1

The Uniform Commercial Code fills the gap if the parties do not stipulate in their contract when delivery is to occur.

Answer 1

True

Question 2

If nothing is said in the contract about what quality of goods conform to the contract, then the Uniform Commercial Code default rule kicks in.

Answer 2

True

Question 3

Seller contracted to sell a classic 1937 Packard automobile to Buyer for $150,000; a day later, Seller got an offer from Purchaser to buy the car for $210,000, and Seller delivered the car to Purchaser. Buyer's best remedy now is to collect compensatory damages.

Answer 3

False

Question 4

Seller sold Buyer goods with an exclusive remedy that Seller would replace defective goods with non-defective ones. If that remedy term does not make Buyer whole, it will be thrown out and Code remedies are available.

Question 5

The parties have to strictly adhere to the Uniform Commercial Code guidelines on what "conforming goods" means.

Question 6

One of the duties in a destination contract is to deliver the goods to a carrier.

Question 7

As a remedial measure, the seller cannot cancel a contract.

Question 8

A revocation of acceptance means that once the buyer has accepted and exercised ownership of the goods, he cannot return the goods and get his money back.

Question 9

Unlike at common law, under the Code a party who suffers a loss from breach of contract has no obligation to attempt to mitigate damages.

Question 10

In the event of a contract breach, a seller refuses to send the remaining shipment. The remedy used here is 'resell'.

Question 11

An installment contract is one calling for delivery of goods in separate lots with separate acceptance for each delivery.

Question 12

A buyer can revoke an acceptance if the buyer reasonably thought the nonconformity would be cured and it is not within a reasonable time.

Question 13

The Uniform Commercial Code statute of limitations for breach of any sales contract is five years.

Question 14

The Uniform Commercial Code cannot fill the gap when parties have not stipulated delivery terms or if their agreement is incomplete or merely formulaic.

Question 15

Acceptance means the buyer has taken possession of the goods.

Question 16

If Seller learns that Buyer is insolvent, Seller may stop goods en route, or refuse to deliver the goods except for cash.

Question 17

In a shipment contract, a seller has the duty of getting the goods to the destination at the buyer's disposal and to provide appropriate documents of delivery.

Question 18

A buyer's remedial measures do not include recovering damages for nondelivery.

Question 19

Replevin is an action to recover possession of goods wrongfully held.

Question 20

Acceptance means the buyer takes the goods.

Question 21

Limitations on damages in sales contracts

A) are generally allowed if reasonable.
B) are not allowed in case of personal injury involving a consumer transaction.
C) are not allowed in case of personal injury in any sales transaction.
D) are only allowed "as between merchants."
E) may not include liquidated damages

Question 22

Regardless of the type of contract, the _____, which is the offer to make delivery, must be kept open for a reasonable time.

A) tender
B) auction
C) replevin
D) warranty
E) acquisition

Question 23

Commercially reasonable expenses to which Seller is entitled as a result Buyer's bre_________ damages.

A) general
B) liquidated
C) incidental
D) punitive
E) nominal

Question 24

_____ is an action to recover possession of goods wrongfully held.

A) Replevin
B) Revocation
C) Resell
D) Restitution
E) Mediate

Question 25

In a destination contract, one of the duties of a seller is:

A) to deliver the goods to a carrier.
B) to get the goods to the destination at the buyer's disposal.
C) to deliver the goods with a reasonable contract for their transportation.
D) to deliver them with proper documentation for the buyer.
E) to promptly notify the buyer of the shipment.

Question 26

In the Wilson v. Scampoli case, _____.

A) the appellee instituted a suit against appellant seeking a refund of the purchase price of the T.V.
B) the appellee instituted a suit against appellant seeking a brand new T.V. set
C) the appellee instituted a suit against appellant seeking a refund of the purchase price of the T.V. as well a brand new T.V. set
D) the appellee instituted a suit against appellant seeking incidental damages
E) the appellee instituted a suit against appellant seeking a refund of the amount needed to repair the T.V.

Question 27

Breach of one installment of an installment contract necessarily gives the non-breaching party the right to cancel the whole contract.

Question 28

Richard is delivering 500 pounds of garlic from Santa Maria, CA to Portland, OR. On the way, his truck breaks down. Due to this, delivery had to be stopped till new transportation was arranged for. Also, storage had to be provided for the stock till it could be reloaded in the new transportation. Charges and expenses incurred from this would be included under _____.

A) liquidated damages
B) reliance damages
C) treble damages
D) statutory damages
E) incidental damages

Question 29

A contract term providing remedies other than those specified in the code is invalid.

Question 30

Specific performance is a remedy available both at common law and under the Code.

Question 31

Under the Code, an aggrieved party must usually make an election of remedies and not pursue others.

Question 32

Acceptance is clear enough: it means the buyer takes the goods. Under which of the following circumstances does acceptance occur?

A) By waiver of rights
B) By rejection
C) By silence
D) By cash delivery
E) By making payment against documents of title

Question 33

When nothing is said in the contract about what quality of goods conform to the contract, the _____ will be put to use.

A) posting rule
B) mutual agreement clause
C) hardship clause
D) perfect tender rule
E) mirror image rule

Question 34

To which of the following exceptions is the buyer's right to inspect subject to?

A) When the buyers keeps the goods despite nonconformity
B) When the buyer does anything that is inconsistent with the seller's ownership
C) When the buyer fails to reject, after a reasonable opportunity to inspect
D) When the delivery is made on credit
E) When the payment term is C.O.D.

Question 35

A _____ of acceptance means that although the buyer has accepted and exercised ownership of the goods, he can return the goods and get his money back.

A) replevin
B) tender
C) revocation
D) probation
E) legal notice

Question 36

A(n) _____ is that which calls for delivery of goods in separate lots with separate acceptance for each delivery.

A) revocation
B) installment contract
C) common law
D) perfect tender
E) secured transaction

Question 37

The Furlong v. Alpha Chi Omega Sorority case was about _____.

A) nondelivery of goods
B) late delivery
C) breach of contract by seller
D) incidental damages
E) cancellation of goods by buyer

Question 38

When the seller fails to make delivery or repudiates, then with respect to any goods involved, and with respect to the whole if the breach goes to the whole contract, the buyer may _____.

A) "cover" and get damages
B) recover incidental damages
C) recover consequential damages
D) secure goods in his possession
E) send the goods back to the seller

Question 39

If a buyer has accepted nonconforming goods and notified the seller of the nonconformity, the buyer can _____.

A) replevy the goods
B) recover damages for the breach
C) recover identified goods
D) cancel the contract
E) recover damages for nondelivery

Question 40

Liquidated damages set out in a sales contract will always be enforced.

Question 41

Dubious in Hammingbell sold a number of auto parts, FOB Hammingbell, in boxes to Dealer in Vernon Mtn.; the goods were shipped via Trucking Co. When the load arrived at Dealer's place Deal-er insisted the driver unload the boxes inside the store. The driver refused; sharp words were ex-changed, and the goods were not unloaded. Subsequently they were lost. Dubious demanded pay-ment from Dealer. Which is correct? a. Dubious wins because Dealer should have accepted the goods and sued Trucking Co. for breach of contract.
B) Dealer wins because Trucking Co. was an agent of Dubious'.
C) Dealer wins because Dubious acted unreasonably in contracting with Trucking Co.
D) Dubious wins because he made a proper delivery to Trucking Co. in Hammingbell.
E) None of the above.

Question 42

What is a revocation and under which circumstances can a buyer revoke an acceptance?
a. if the buyer reasonably thought the nonconformity would be cured and it is not within a
reasonable time; or
b. if the acceptance was due to a latent defect that could not reasonably have been discovered before acceptance.
Moderate

Question 43

Betty Buyer contracted with Dubious to buy a 2017 Bulgemobile four-door sedan, colored "avocado green"; Dubious had five such cars on his lot. But on the day Betty was to pick the car up, she telephoned Dubious: Ring, ring; ring, ring: "I'm sorry, but I changed my mind. I'm not going to buy the car." Dubious put down the telephone receiver, and just as he did Dewey Donkers-a customer-approached him, saying, "I'll buy that green four-door there," pointing to the car Betty was going to buy. And Donkers bought the car for the same price Buyer was to have paid.
Ring, ring; ring, ring. "Hello, Dubious? This is Zach Zeller. The good news is we found the Bulgemobile car parts you wanted in Los Angeles. The bad news is we placed the order as you requested, but the parts were destroyed en route to you in a freeway collision while on board Zippo Trucking Company's truck. More later, 'bye for now." Ring, ring; ring ring. "Hello, Dubious? Yeah, Roger here, at Mufflers R Us. I got your request making sure we'd deliver the muffler and exhaust parts by two weeks from Tuesday, as we contracted to do. I don't know-we had problems with our pipe-bending machine for making the exhaust parts up. We might not make the deadline. Just a heads up to you. Goodbye."
Ring, ring; ring, ring. "Hello, Dubious? Carr here. If you haven't sent that 1948 Bulgemobile to Franklin yet, I suggest you don't. He just told me he's gonna have to declare bankruptcy tomorrow. Best regards."
Each of the following questions starts with this phrase: "What remedy, if any, has . . ."
a) . . . Dubious in the situation with Roger (exhaust pipe bit)?
b) . . . Dubious regarding the '48 Bulgemobile which was, as Carr spoke, en route to Franklin on board a car-carrying truck?

Question 44

Betty Buyer contracted with Dubious to buy a 2017 Bulgemobile four-door sedan, colored "avocado green"; Dubious had five such cars on his lot. But on the day Betty was to pick the car up, she telephoned Dubious: Ring, ring; ring, ring: "I'm sorry, but I changed my mind. I'm not going to buy the car." Dubious put down the telephone receiver, and just as he did Dewey Donkers-a customer-approached him, saying, "I'll buy that green four-door there," pointing to the car Betty was going to buy. And Donkers bought the car for the same price Buyer was to have paid.
Ring, ring; ring, ring. "Hello, Dubious? This is Zach Zeller. The good news is we found the Bulgemobile car parts you wanted in Los Angeles. The bad news is we placed the order as you requested, but the parts were destroyed en route to you in a freeway collision while on board Zippo Trucking Company's truck. More later, 'bye for now." Ring, ring; ring ring. "Hello, Dubious? Yeah, Roger here, at Mufflers R Us. I got your request making sure we'd deliver the muffler and exhaust parts by two weeks from Tuesday, as we contracted to do. I don't know-we had problems with our pipe-bending machine for making the exhaust parts up. We might not make the deadline. Just a heads up to you. Goodbye."
Ring, ring; ring, ring. "Hello, Dubious? Carr here. If you haven't sent that 1948 Bulgemobile to Franklin yet, I suggest you don't. He just told me he's gonna have to declare bankruptcy tomorrow. Best regards."
Each of the following questions starts with this phrase: "What remedy, if any, has . . ."
a) . . . Dubious regarding the contract with Betty Buyer? b) . . . Dubious for the value of the car parts that Zach Zeller mentioned?

Question 45

An action at law to recover specific goods in Seller's possession which Seller is wrongfully withhold-ing from Buyer is

A) cover
B) reclamation
C) specific performance
D) replevin
E) forfeiture

Question 46

What are the different forms of a contract?

Question 47

On March 7 Dubious contracted with Electric Wholesalers to supply Electric with specific automobile electrical parts. Delivery was called for on June 3. On May 2, Electric notified Dubious that it would not perform and that Dubious should look elsewhere. (Electric had received a larger and more lucra-tive contract on April 21 and its capacity was such that it could not fulfill both orders.) Dubious tele-phoned Electric: "You turkeys. I'm cancelling the contract with you and I'll get the parts elsewhere." The facts

A) Will not prevent Electric from changing its mind and performing as contracted with Dubi-ous.
B) Are not sufficient to clearly establish an anticipatory repudiation.
C) Will permit Dubious to sue only after June 3, the latest performance date.
D) Will permit Dubious to sue immediately after May 2, even though the performance called for under the contract was not due until June 3.
E) none.