Question 1

A buyer or lessee may obtain specific performance of a sales or lease contract if the buyer or lessee files notice within 10 days of a breach that specific performance is demanded.

Accepted Answer

Specific performance is a legal remedy that may be available in certain circumstances, but it is not automatically granted simply by filing notice within 10 days of a breach. It typically requires a court order and is subject to various legal criteria and considerations.

Question 2

A buyer or lessee who rightfully cancels a contract is discharged from any further obligations on the contract.

Accepted Answer

When a buyer or lessee rightfully cancels a contract, they are freed from any further obligations on the contract. This means they are discharged from fulfilling any terms or conditions specified in the contract.

Question 3

Under Article 2 of the UCC,the remedy known as cover is a buyer's remedy.

Accepted Answer

Article 2 of the UCC provides the remedy of cover to buyers if the seller breaches the contract. Cover allows the buyer to purchase substitute goods to replace the non-conforming goods from the original seller.

Question 4

Under the UCC,the parties are free to set reduce the statute of limitations applicable to a contract but may not extend it.

Accepted Answer

According to the UCC 2-725, the statute of limitations for a contract may be shortened by agreement, but it cannot be extended beyond the statutory period.

Question 5

A court order is required to force a party to provide adequate assurance unless a repudiation or anticipatory repudiation has occurred.

Accepted Answer

A court order is not always required for a party to provide adequate assurance. If a party fails to provide adequate assurance after a reasonable request from the other party, then the other party may treat it as a repudiation or anticipatory repudiation of the contract and seek remedies. In such cases, a court order may not be required before seeking remedies.

Question 6

The UCC statute of limitations provides that an action for breach of any written or oral sales or lease contract must commence within three (3)years after the cause of action accrues.

Accepted Answer

The UCC statute of limitations for sales or lease contracts is generally four (4) years, not three.

Question 7

If one party to a contract has reasonable grounds to believe that the other party either will not or cannot perform his or her contractual obligations,an adequate assurance of performance may be demanded orally or in writing.

Accepted Answer

An adequate assurance of performance must be demanded in writing, not orally, to ensure there is a clear and formal record of the request.

Question 8

Capture is a remedy available to a seller giving them the right to recover shipped goods which are part of an installment contract,when the buyer has become insolvent or otherwise refuses to pay for all or part of the total contract.

Accepted Answer

The correct term is "reclamation," not "capture." Reclamation allows a seller to recover goods from an insolvent buyer under certain conditions.

Question 9

When there is an anticipatory repudiation,the aggrieved party will not have a cause of action until the time that performance was due.

Accepted Answer

When there is an anticipatory repudiation, the aggrieved party can immediately bring a lawsuit for breach of contract, even if the time for performance has not yet arrived. This is because the repudiation itself is a breach of the contract.

Question 10

In noncarrier cases,unless otherwise agreed,where is the place of delivery for a sale of goods located at the seller's place of business?
A) the seller's place of business
B) the buyer's place of business
C) the lender's place of business
D) the trustee's place of business
E) the bailee's place of business

Accepted Answer

According to the noncarrier cases, unless agreed otherwise, the place of delivery for a sale of goods is located at the seller's place of business. Therefore, the correct choice is A, the seller's place of business.

Question 11

If the buyer or lessee makes partial or full payment for goods before they are received,and the seller or lessor becomes insolvent within 10 days after receiving the first payment,the buyer or lessee may recover the goods from the seller or lessor.

Accepted Answer

This is known as the "10-Day Rule" and is a provision included in the Uniform Commercial Code (UCC) to protect buyers/lessees in this scenario. If the seller/lessor becomes insolvent within 10 days after receiving the first payment, the buyer/lessee has the right to recover the goods or a refund.

Question 12

If the buyer exercises the right to inspect goods,even if the goods are rejected for nonconformance,the buyer is responsible for the costs of inspection and cannot recover the costs from the seller.

Accepted Answer

The buyer can recover the costs of inspection from the seller if the goods are rejected for nonconformance, as the seller is responsible for providing conforming goods.

Question 13

A party who requests assurance of performance for a commercially reasonable reason remains obligated to perform its own obligations even if adequate assurance is not received from the other party.

Accepted Answer

If a party requests assurance of performance and does not receive it, they may suspend their own performance until they receive adequate assurance.

Question 14

The right to replevy is the buyer's or lessee's right to recover goods from a seller or lessor who is wrongfully withholding the goods.

Accepted Answer

The right to replevy is a legal right that allows the buyer or lessee to recover goods that are being wrongfully withheld by a seller or lessor. This right is commonly exercised in cases where a seller or lessor has breached a contract by refusing to deliver the goods or has otherwise unlawfully taken possession of them. Replevin actions can be initiated in court and are usually accompanied by a request for damages or other relief.

Question 15

Regardless of whether it is commercially reasonable to do so,a party making a demand for assurance of performance may suspend his or her performance until adequate assurance of due performance is received from the other party.

Accepted Answer

The answer of Regardless of whether it is commercially reasonable...

Question 16

Replevin actions are not available for goods identified in a lease contract.

Accepted Answer

Replevin actions can be used to recover goods wrongfully held, including those identified in a lease contract, if the lessee has a right to possession.

Question 17

A replevin action under Article 2 of the UCC requires that the goods be unique.

Accepted Answer

A replevin action under Article 2 of the UCC does not require that the goods be unique. It can be applied to any goods that are wrongfully withheld by a party in breach of a sales or lease contract under Article 2.

Question 18

In a replevin action,the buyer or lessee must show that he or she was unable to cover or that attempts at cover will be unavailing.

Accepted Answer

In a replevin action, the buyer or lessee must demonstrate that they were unable to obtain substitute goods (cover) or that attempts to do so would be futile, as part of the legal requirements to reclaim goods wrongfully held by another party.

Question 19

If a buyer or lessee rightfully repudiates a sales or lease contract,the buyer or lessee may recover the difference between the contract price (or original rent)and the market price (or rent)at the time the buyer or lessee learned of the breach,but incidental damages may not be recovered.

Accepted Answer

Incidental damages may be recovered by the buyer or lessee in addition to the difference between the contract price and the market price when a sales or lease contract is rightfully repudiated.

Question 20

The basic obligation of a seller of goods to transfer and deliver goods to the buyer in accordance with the terms of the contract is known as:
A) performance of delivery.
B) anticipatory tender.
C) delivery as agreed.
D) anticipatory delivery.
E) tender of delivery.

Accepted Answer

The term "tender of delivery" refers to the seller's obligation to make the goods available to the buyer in accordance with the terms of the contract, ensuring that the buyer can take possession of them.

Quiz 18: Remedies for Breach of Sales and Lease Contracts