Question 1

If a sales contract requires the seller to ship the goods to the buyer, a proper delivery occurs when the seller places the goods in the possession of a(n) ____________________ and notifies the buyer that the goods have been shipped.

Accepted Answer

The answer of If a sales contract requires the seller...

Question 2

Ronco, a retailer of toys, rejected a shipment of dolls from Jasper, a wholesaler, because they were not the original ones that were ordered. Suppose that the original contract price of each doll was $20.00 and that the price from the other seller Ronco finally purchased the dolls from was $22.00 each. If Ronco had originally ordered 2,500 dolls, what damages would he (Ronco) be entitled to recover from Jasper if he purchased the same number of dolls from the other seller?

Accepted Answer

Ronco would be entitled to recover the difference between the contract price and the price paid to the other seller, which is $2.00 per doll. For 2,500 dolls, this amounts to 2,500 * $2.00 = $5,000.

Question 3

An unpaid seller has the right to stop delivery of goods purchased on credit that were delivered to a carrier for shipment to the buyer whenever the

Accepted Answer

The right of an unpaid seller to stop the delivery of goods in transit is specifically aimed at protecting the seller when they learn of the buyer's insolvency. This right is exercised to prevent potential loss from delivering goods to a buyer who is unable to fulfill payment obligations.

Question 4

When a buyer breaches a sales contract by refusing to accept conforming goods, a common remedy of the seller is to

Accepted Answer

Reselling the goods is a common remedy for the seller when a buyer breaches a sales contract by refusing to accept conforming goods. This allows the seller to mitigate damages by finding another buyer for the goods.

Question 5

If either the seller or buyer refuses to carry out his or her part of a sales agreement, a(n) ____________________ occurs.

Accepted Answer

The answer of If either the seller or buyer refuses...

Question 6

A buyer is insolvent under the UCC when he or she

Accepted Answer

Under the Uniform Commercial Code (UCC), a buyer is considered insolvent when they cannot pay their debts as they become due. This definition focuses on the financial inability to meet obligations, rather than a refusal to pay or other actions related to contract performance or legal rights.

Question 7

One remedy that is not available to a seller is

Accepted Answer

Suing for breach of warranty is a remedy typically available to buyers when the goods they receive do not meet the agreed-upon standards or warranties. Sellers, on the other hand, have remedies like stopping goods in transit, reclaiming goods, or rescinding the contract in case of buyer's breach.

Question 8

The seller performs a sales contract by offering ____________________ goods to the buyer.

Accepted Answer

The answer of The seller performs a sales contract by...

Question 9

If a buyer breaches the sales contract, the seller may sue for

Accepted Answer

When a buyer breaches a sales contract, the seller may sue for the purchase price as a way to recover the agreed amount for the goods or services that were to be provided under the contract.

Question 10

A buyer can recover goods that are not unique and are wrongfully withheld by the seller through the remedy of

Accepted Answer

Replevin is a legal remedy that allows a buyer to recover goods that have been wrongfully withheld by the seller, even if the goods are not unique. It involves a court order requiring the return of the goods to their rightful owner.

Question 11

The price at which goods are currently being sold is called the

Accepted Answer

The market price is the current price at which goods or services are being sold in the market. This price can fluctuate based on supply and demand, unlike contract price, cover, or tender price, which have specific meanings and contexts in business and finance.

Question 12

Ronco, a retailer of toys, rejected a shipment of dolls from Jasper, a wholesaler, because they were not the original ones that were ordered. Ronco called Jasper and requested that the proper dolls be shipped. Jasper said he could not because his stock had been depleted. Ronco then went to another seller, purchased the dolls he wanted from that seller, and sued Jasper for the extra costs he (Ronco) incurred. In this case, Ronco used the remedy of

Accepted Answer

Ronco used the remedy of "cover," which in contract law allows a buyer to purchase substitute goods when the seller fails to deliver goods that conform to the contract. Ronco bought the dolls from another seller after Jasper failed to deliver the correct ones, which is a classic example of "cover."

Question 13

If the seller breaches a contract for the sale of goods by not delivering them to the buyer, the buyer may demand that the seller deliver the goods described in the sales agreement if

Accepted Answer

The buyer may demand specific performance, which is the delivery of the exact goods specified in the contract, when the goods are unique or when substitute goods of equal quality and price are not available. This is because monetary damages may not be sufficient to compensate the buyer for the loss of not receiving the unique goods as contracted.

Question 14

The buyer performs a sales contract by accepting and ____________________ for goods according to the terms of the contract.

Accepted Answer

The answer of The buyer performs a sales contract by...

Question 15

If the seller delivers nonconforming goods to the buyer after time for performance is past, the buyer may:

Accepted Answer

Under the Uniform Commercial Code (UCC), when a seller delivers nonconforming goods, the buyer has several options: they can accept the goods, reject all of the goods, or accept some and reject the rest. This flexibility is designed to accommodate the varied circumstances that can arise in commercial transactions.

Question 16

After the buyer accepts nonconforming goods from a seller without objection having had a reasonable opportunity to inspect them the buyer may no longer ____________________ them.

Accepted Answer

The answer of After the buyer accepts nonconforming goods from...

Question 17

If the buyer of goods breaches the sales contract by refusing to accept conforming goods, a remedy available to the seller under the UCC is:

Accepted Answer

The answer of If the buyer of goods breaches the...

Question 18

A seller may reclaim goods delivered to an insolvent buyer if the seller makes a demand within

Accepted Answer

A seller may reclaim goods delivered to an insolvent buyer if the seller makes a demand within ten days after the buyer receives the goods, according to the Uniform Commercial Code (UCC).

Question 19

If a seller wishes to reclaim goods sold to a buyer after the buyer has received the goods, the seller must prove

Accepted Answer

To reclaim goods, the seller must prove all of the listed conditions: that the buyer received the goods on credit, was insolvent at the time of receiving them, and that the seller demanded the return of the goods within ten days after the buyer received them.

Question 20

The remedy of specific performance will be granted only if

Accepted Answer

Specific performance is a remedy in contract law that may be granted when the goods involved are unique, cannot be substituted, or are no longer available from other sellers, making damages an inadequate remedy.

Quiz 17: The Sales Contract: Performance, Breach, and Remedies for Breach