Question 1

Rancho Stables orders ten saddles from Saddles,Inc.The sales contract states that if the tack is defective,Rancho will allow Saddles to repair or replace it instead of rejecting the shipment.When the gear arrives,it is defective.In this case,the perfect tender rule

Accepted Answer

The perfect tender rule, which requires the seller to deliver goods that conform exactly to the terms of the contract, does not apply in this case because the contract specifically allows for the repair or replacement of defective items, thus modifying the perfect tender rule.

Question 2

Text & Talk Corporation sells phones.Under most circumstances,Text & Talk will be presumed to have warranted that its title to the goods is

Accepted Answer

Under the Uniform Commercial Code, in the absence of any specific terms within a contract, there is a warranty of title. This means that the seller guarantees they have good and valid title to the goods they are selling. Therefore, under most circumstances, Text & Talk Corporation will be presumed to have warranted that its title to the goods is good and valid.

Question 3

Fresh Dairy Mart is the offeror and Gelato Company is the offeree under a unilateral sales contract in which Helado Corporation is also interested.Fresh is not notified of Gelato's beginning performance within a reasonable time.Fresh

Accepted Answer

If the offeree, Gelato, does not notify the offeror, Fresh, of beginning performance within a reasonable time, then Fresh may treat the offer as having lapsed. This means that Fresh is no longer bound by the terms of the contract and is free to withdraw the offer. Therefore, A is the best choice. B, C, and D are not correct as they do not reflect the legal ramifications of an offeree failing to begin performance within a reasonable time.

Question 4

Precise Parts,Inc. ,and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications.Precise Parts ships goods that do not comply.Quality Auto

Accepted Answer

Quality Auto can reject the entire shipment because Precise Parts did not meet the required specifications. This is a breach of contract and Quality Auto is not obligated to accept non-conforming goods.

Question 5

Dona offers to sell her used sofa,chair,coffee table,end table,and lamp to Erma for $700.Erma responds that she will pay that price if Dona's TV set is included.Neither party is a merchant.Their contract is formed according to

Accepted Answer

According to the mirror image rule, an acceptance must be a mirror image of the offer. In this case, Erma's response is not a mirror image of Dona's original offer as it includes a new demand for the TV set. Therefore, it is not a valid acceptance, and the contract would remain based on the terms of the original offer.

Question 6

Grass Farm LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc.The owner of the stable responds,"We agree if you agree to make it sixty bales for the price." Their contract is formed according to

Accepted Answer

The owner of the stable's response is a counteroffer, not an acceptance, because it changes the terms of the original offer. This means no contract is formed on the basis of the original offer or the counteroffer without further agreement.

Question 7

Builders Inc.and Concrete Supply Company enter into a contract for a sale of cement.Concrete delivers,but Builders does not pay.Concrete can recover as damages

Accepted Answer

The Uniform Commercial Code (UCC) allows for the seller to recover the purchase price as well as any incidental damages incurred as a result of the buyer's breach. Therefore, option C is the correct answer. Option A is partially correct, but does not take into account any incidental damages. Option B is incorrect because damages must be reasonable and provable. Option D is incorrect because the UCC specifically states that the measure of damages is the purchase price plus incidental damages, not the market price.

Question 8

Rice Corporation offers to sell Sushi Restaurants,Inc. ,five hundred bushels of rice.Sushi responds,"We agree to buy five hundred bushels only if the rice is Grade A quality." Without more,their contract is formed according to

Accepted Answer

The answer of Rice Corporation offers to sell Sushi Restaurants,Inc....

Question 9

Containers Inc.sends its standard order form to Distribution Corporation to evidence a sale of packing materials.Distribution responds with its own standard purchase order form.Additional terms in Distribution's form automatically become part of the contract unless

Accepted Answer

The answer of Containers Inc.sends its standard order form to...

Question 10

Nature's Eggs,Inc.agrees to supply Omelet Express with five hundred eggs.Nature's Eggs can reasonably ask Omelet Express to pick up the eggs at

Accepted Answer

The question does not mention any agreement or obligation for Nature's Eggs to deliver the eggs to Omelet Express. Therefore, it is reasonable for Nature's Eggs to ask Omelet Express to pick up the eggs at any reasonable hour, which is the option provided in choice B. Choice D is also technically correct, but it is redundant since it is already covered by choice B. Choice A is not a realistic option for a commercial transaction, and choice C is incorrect since it is not a standard practice for a seller to deliver goods without prior arrangement.

Question 11

On July 10,Bob's Pet Supply Store orders fifty small dog collars from Canine Collars,Inc.to be delivered by July 15.On July 13,Canine Collars tenders fifty large dog collars.Bob's rejects the shipment.Canine Collars has

Accepted Answer

The answer of On July 10,Bob's Pet Supply Store orders...

Question 12

Steel Buildings,Inc. ,agrees to sell four portable garages to Truck Service Center.Five days later,Truck Service refuses delivery and cancels the contract.Steel is entitled to

Accepted Answer

Steel Buildings, Inc. has the right to resell the portable garages and recover any damages from Truck Service after they refuse delivery and cancel the contract. This is the standard approach in cases of contract cancellation, as the seller is entitled to be made whole after a buyer backs out of a deal. Option A is not correct, as forcing Truck Service to accept the garages would likely result in a breach of the peace. Option B is incorrect, as Steel Buildings, Inc. should have the right to resell the garages and mitigate their damages. Option D is incorrect, as Steel Buildings, Inc. should have the right to recover any damages resulting from Truck Service's breach of contract.

Question 13

Sara and Tim enter into a contract for a sale of orchids that requires payment within thirty days of delivery.The UCC provides that when parties do not specify payment terms,payment is due at the time and place of delivery.Under the UCC,the specific payment term in the parties' contract

Accepted Answer

The UCC allows parties to specify their own payment terms, and such terms are fully enforceable as long as they are agreed upon by both parties.

Question 14

Real Stones,Inc. ,and Sparkling Jewelry Stores enter into a contract for a sale of gemstones.Real Stones does not deliver.Sparkling can recover as damages the difference between

Accepted Answer

The most common measure of damages for breach of contract in the sale of goods is the difference between the contract price and the market price at the time and place of delivery. This is because the purpose of damages is to put the non-breaching party in the position they would have been in had the contract been performed. In this case, Sparkling Jewelry Stores can recover damages equal to the difference between the contract price and the market price because Real Stones did not deliver the gemstones.

Question 15

Minerals Ltd.contracts to provide several manufacturers with tin.When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts,the distributor

Accepted Answer

When a party is unable to fulfill its performance obligations due to events beyond its control (such as an embargo), it is excused from its contractual duties. This is a legal principle known as the doctrine of impossibility or frustration of purpose. Therefore, Minerals Ltd. would be excused from performing its contracts due to the tin embargo.

Question 16

ABC Hardware Store orders one hundred power hand-drills from Best Tools Inc.When the hand-drills are delivered,they are all missing pieces.ABC rejects the shipment.To exercise a right to cure,Best Tools must

Accepted Answer

In order to exercise a right to cure, Best Tools must promptly notify ABC of their intent to cure. This gives them a chance to fix the issue and avoid having the entire shipment rejected. They do not need to pay a cure fee, pick up the nonconforming tools, or enter into a new contract.

Question 17

Bean Processor Inc.agrees to ship a certain quantity of coffee beans to Coffee Café LLC.Bean sends to Coffee an e-mail indicating that the parties intended to form a contract.Against Bean,as a contract,the e-mail will be sufficient

Accepted Answer

Under the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-SIGN), an electronic record or signature can satisfy the statute of frauds requirement for contracts to be in writing and signed by the party against whom enforcement is sought. Therefore, if the e-mail from Bean Processor Inc. is signed (which can include an electronic signature or even the typed name of the sender in an email, depending on jurisdiction), it can be sufficient to form a contract.

Question 18

Bon,an agent for City Motors Inc. ,e-mails Dale on May 1 that the dealer will sell to her a 2018 Ford pick-up truck for $25,000 between May 1 and July 1.Bon's offer to Dale is

Accepted Answer

Bon's offer to sell the pick-up truck to Dale for $25,000 between May 1 and July 1 is an offer with a specific time frame. As there is no mention of any conditions or consideration required for the offer to be irrevocable, it can be assumed that the offer is irrevocable for the stated period. Therefore, choice A is the best answer.

Question 19

Chair Company contracts to deliver a dozen suites of dining room tables and chairs to Furniture Store on May 1.On April 15,Chair tells Furniture that delivery will be delayed until June 1.Furniture may

Accepted Answer

Furniture Store has a few options available to them. They can await performance and hope that the products are delivered on June 1, they can sue Chair for breach of contract and seek damages, or they can suspend their own performance until they receive the products. It is up to Furniture Store to decide which option is best for their business.

Question 20

Fiesta LLC contracts to buy 1,000 balloons from Gas Bags Inc.for $1 per item.When the market price decreases to 50 cents per balloon,Fiesta refuses to go through with the deal.Gas Bags can recover

Accepted Answer

The answer of Fiesta LLC contracts to buy 1,000 balloons...

Quiz 12: Sales and Lease Law