Question 1

If no definite time for delivery is fixed by the terms of the contract,delivery:
A) will not take place.
B) must begin within 10 days of the contract.
C) must be immediate.
D) and acceptance must happen within a reasonable amount of time.

Accepted Answer

If no definite time for delivery is fixed by the terms of the contract, then delivery and acceptance must happen within a reasonable amount of time as determined by the circumstances of the contract. Courts will consider factors such as the nature of the goods, the industry standards, and any prior dealings between the parties to determine what constitutes a reasonable time for delivery and acceptance.

Question 2

Revocation following an acceptance of the goods gives the buyer fewer rights than he would have had if he had at first rejected the goods.

Accepted Answer

The answer of Revocation following an acceptance of the goods...

Question 3

Amanco is to deliver to D & R Wholesalers 50 dozen wire-rim glasses frames by October 15.On October 2,Amanco delivers 30 dozen wire-rim frames and 20 dozen plastic frames.If D & R rejects the frames:
A) Amanco has until October 15 to cure the defect if it notifies D & R of its intention to do so.
B) D & R need not notify Amanco of its rejection of the nonconforming goods in order for the rejection to be effective since Amanco should know the goods did not meet the contract specifications.
C) the contract is automatically voided since the goods were nonconforming.
D) Amanco has no opportunity to cure the defect since it exhibited bad faith in not sending goods specified in the original contract.

Accepted Answer

According to the Uniform Commercial Code (UCC), Amanco has the right to cure the defect within the time specified in the contract if it notifies D & R of its intention to do so. Since the delivery deadline is October 15, Amanco still has time to deliver the remaining 20 dozen wire-rim frames to meet the contract requirements. Therefore, option A is the best choice. Option B is incorrect because the buyer must notify the seller of the rejection of non-conforming goods for the rejection to be effective. Option C is incorrect because the contract is not automatically voided; instead, the buyer has the option to accept conforming goods or terminate the contract. Option D is incorrect because the seller has the right to cure the defect, and bad faith has not been demonstrated.

Question 4

The CISG follows the perfect tender rule,as does the Code.

Accepted Answer

The CISG allows for a more flexible approach to non-conforming goods, giving the seller the opportunity to cure defects in certain situations, unlike the perfect tender rule under the UCC which requires the goods to conform perfectly to the contract specifications.

Question 5

Knecht contracts to sell $20,000 of goods to Morales.Later,Morales hears from another supplier that Knecht is having financial trouble,and Morales is concerned that Knecht will not be able to fill his order.If Morales has reasonable grounds for insecurity about Knecht's contractual performance:
A) Morales has no recourse except to wait for the contractual delivery date and,if Knecht fails to deliver,Morales can then sue for breach of contract.
B) Morales may demand written assurance of performance from Knecht before the contract delivery date,and Knecht must provide adequate assurance within a reasonable time not exceeding 30 days.
C) Morales may demand assurance of performance from Knecht,and Knecht must provide adequate assurance within ten days or the contract is repudiated.
D) the statement by the other supplier creates an anticipatory repudiation which allows Morales to avoid the contract.

Accepted Answer

Under the Uniform Commercial Code (UCC), if a party has reasonable grounds for insecurity about the other party's contractual performance, they may demand adequate assurance of performance. The demand must be made in writing and the other party must provide adequate assurance within a reasonable time, not exceeding 30 days. If they fail to do so, it can be considered a repudiation of the contract. Therefore, Morales may demand written assurance of performance from Knecht before the contract delivery date, and Knecht must provide adequate assurance within a reasonable time not exceeding 30 days.

Question 6

Under the CISG,if prior to the date for performance of the sales contract it is clear that one of the parties will commit a fundamental breach,the other party may declare the contract avoided.

Accepted Answer

This statement is true according to Article 64 of the CISG, which allows a party to declare the contract avoided if it is clear that the other party will commit a fundamental breach before the performance date.

Question 7

When the nonconformity or default substantially impairs the value of the installment but not the value of the entire contract,the buyer can reject the installment,even if the seller gives adequate assurance of the installment's cure.

Accepted Answer

Under the Uniform Commercial Code (UCC), if the nonconformity or default of an installment substantially impairs the value of that installment but not the entire contract, the buyer may reject the particular installment. However, if the seller provides adequate assurance of cure, the buyer may not be able to reject the installment based on that nonconformity.

Question 8

If an anticipatory repudiation substantially impairs the value of the contract,the aggrieved party may:
A) await performance for a reasonable time.
B) resort to any remedy for breach.
C) Both of these options.
D) None of these options.

Accepted Answer

The aggrieved party may choose to await performance for a reasonable time or resort to any remedy for breach if an anticipatory repudiation substantially impairs the value of the contract. These options are provided for in the Uniform Commercial Code (UCC) Section 2-610. Therefore, both options are available to the aggrieved party.

Question 9

Watkins has furniture,some of which it has sold to Home Interiors,stored in Central Warehouse.It is to be delivered without being moved.In order to fulfill its obligations to tender delivery,Watkins may either tender to Home Interiors a document of title or obtain an acknowledgment by the warehouse of Home Interiors' right to possess the furniture.

Accepted Answer

This statement accurately describes the options available to Watkins to fulfill its delivery obligations to Home Interiors. It can either provide a document of title or obtain an acknowledgment of Home Interiors' right to possess the furniture from the warehouse.

Question 10

Acceptance of any part of a commercial unit is acceptance of the entire unit.

Accepted Answer

This is a basic principle of commercial law, known as "the indivisibility of commercial units." It means that if a buyer accepts any part of a commercial unit (such as a shipment of goods), they are considered to have accepted the entire unit, even if there are defects or issues with other parts that were not yet inspected or delivered.

Question 11

In a "no arrival,no sale" contract,the seller is responsible to the buyer for the goods' failure to arrive.

Accepted Answer

The answer of In a "no arrival,no sale" contract,the seller...

Question 12

If the goods or the tender of delivery fail in any respect to conform to the contract,the buyer may:
A) reject the whole.
B) accept the whole.
C) accept any commercial unit(s)and reject the rest.
D) Any of these.

Accepted Answer

The buyer has the option to reject the whole, accept the whole, or accept any commercial unit(s) and reject the rest. The best choice would depend on the specific circumstances of the contract and the extent of the non-conformity of the goods or tender of delivery. Therefore, any of these options may be the best choice depending on the situation.

Question 13

A buyer who sells rejected goods on behalf of the seller is entitled to reasonable expenses not to exceed five percent of the gross proceeds.

Accepted Answer

Under the Uniform Commercial Code (UCC), when a buyer rightfully rejects goods and sells them on behalf of the seller, the buyer is entitled to reimbursement for reasonable expenses incurred in the sale, but the UCC does not specify a five percent cap on these expenses. The actual amount can vary based on the circumstances and the reasonable costs incurred.

Question 14

The Code provides that where neither party is at fault and the agreed manner of delivering the goods becomes commercially impracticable,a substituted manner of performance,if commercially reasonable,must be tendered and accepted.

Accepted Answer

This statement is in accordance with Section 2-615 of the Uniform Commercial Code (UCC), which allows for a substituted manner of performance if the agreed upon method becomes impracticable due to unforeseen circumstances beyond the control of either party. The substituted performance must be commercially reasonable and agreed upon by both parties.

Question 15

A commercial unit may be a group of items,such as a dozen pairs of socks.

Accepted Answer

A commercial unit can refer to any group or quantity of items that are typically bought and sold together, including a dozen pairs of socks.

Question 16

A buyer in Atlanta enters into a sales contract with a seller in Chicago.If the contract does not mention the place for delivery of the goods,the place of delivery will be:
A) at the seller's business or residence in Chicago.
B) as stated in all destination contracts.
C) at the buyer's business or residence in Atlanta.
D) irrelevant,since the contract is void.

Accepted Answer

Under the Uniform Commercial Code (UCC), if a contract for the sale of goods does not specify the place of delivery, the default location is the seller's place of business or, if the seller has no business location, the seller's residence.

Question 17

If a lease contract does not sufficiently cover the particulars of performance,Article 2A provides many gap-filler provisions.

Accepted Answer

The answer of If a lease contract does not sufficiently...

Question 18

Unless the contract specifies otherwise,goods may be tendered in installments.

Accepted Answer

The answer of Unless the contract specifies otherwise,goods may be...

Question 19

Parker agrees to sell to Thompson 500 bushels of soybeans at $9.50 per bushel.Without the fault of Parker or Thompson,200 bushels are destroyed.Thompson must take the remaining 300 bushels and pay Parker $2,850.

Accepted Answer

The answer of Parker agrees to sell to Thompson 500...

Question 20

In a contract that provides that the sale is F.O.B.Chicago,the seller must at his own expense and risk transport the goods to Chicago and there tender delivery to the buyer.

Accepted Answer

F.O.B. stands for "Free on Board" and indicates that the seller is responsible for the transportation of the goods to a specific location, in this case Chicago, and for tendering delivery to the buyer at that location.

Quiz 22: Performance

If no definite time for delivery is fixed by the terms of the contract,delivery: