Question 1

[Softball Trophies] To recognize softball players on his team, Eduardo ordered from Troy 10 trophies showing a softball player swinging a bat. The trophies were to be delivered on May 1st for an award dinner to be held on May 20th. Troy was at first unable to obtain trophies showing a softball player swinging a bat, but by May 13th, he did locate some trophies with a softball player holding a bat. The difference did not substantially impair the value of the trophies, and thinking that the trophies would be acceptable, Troy delivered them on May 14th. Eduardo glanced at the trophies, paid for them with a check, and said nothing. On May 16th Eduardo looked at the trophies more closely and decided that he did not like them. Eduardo canceled payment on his check, and Troy sued him for payment.
-Troy's failure to cure the problem will most likely have which effect?

Accepted Answer

Troy attempted to cure the problem by providing trophies with a softball player holding a bat instead of swinging it, which did not substantially impair their value. Eduardo accepted and paid for them without objection initially, which indicates acceptance of the goods as delivered. This acceptance prevented Troy from having the opportunity to cure any further defects, making Eduardo responsible for payment.

Question 2

LaTisha contracted with Marco, who operates a farm in Guatemala, for the importation of some great coffee beans for her coffee shop. The contract provided that Marco would be sure the coffee arrived by September 1st, in time for an open house LaTisha had planned. LaTisha was not worried because Marco had always delivered on a timely basis in the past. Marco was busy and was late getting the beans in transit. The beans did not arrive until September 2nd. LaTisha shipped them back and refused to pay. Marco sued. What is LaTisha 's best defense?

Accepted Answer

The perfect tender rule allows a buyer to reject goods if they fail to conform to the contract in any way, including being late.

Question 3

[Business Law Rocks] Business law instructor Courtney ordered 50 T-shirts for her classes that said "Business Law Rocks" on the front. She wanted to distribute them on the last day of class and contracted with Tyler, who owned a T-shirt business, for the shirts to arrive by that day. The shirts arrived on Thursday, the day before the last class on Friday. Unfortunately, the shirts said "Business Law Yuck" on the front. Tyler told Courtney that he would remedy and fix the problem and that he had the right to do so. She told him, however, that she had to have the shirts the next day because the students would be gone after that. Courtney had also ordered some pamphlets on employment law to be used the next fall semester. The seller had agreed to provide the pamphlets 30 days before spring semester ended. The seller, however, erred and sent pamphlets on environmental law, which arrived 28 days before spring semester ended. The seller attempted to remedy the problem by sending the correct pamphlets on employment law, but they did not arrive until 27 days before spring semester ended. None of the parties had any prior dealings.
-By claiming that he had the right to fix the problem, Tyler was alluding to which of the following, under the UCC?

Accepted Answer

Tyler was alluding to the "right to cure" under the Uniform Commercial Code (UCC), which allows a seller to attempt to correct a delivery failure within the contract time limits if they initially deliver non-conforming goods.

Question 4

Under an installment contract, when does the UCC provide that a buyer/lessee may reject an installment of a particular item?

Accepted Answer

Under the UCC, a buyer/lessee may reject an installment if the defects substantially impair the value of that installment and cannot be cured.

Question 5

Ming-Na orders a certain type of rose from a florist for her event. A disease sweeps through that type of rose, and the florist could only obtain the roses at great cost, if at all. Is there any defense that the florist can use?

Accepted Answer

Commercial impracticability is a defense that can be used when unforeseen events make the fulfillment of a contract unreasonably difficult or expensive. In this case, the disease affecting the roses could be considered an unforeseen event that makes obtaining the roses at a reasonable cost impracticable.

Question 6

[Business Law Rocks] Business law instructor Courtney ordered 50 T-shirts for her classes that said "Business Law Rocks" on the front. She wanted to distribute them on the last day of class and contracted with Tyler, who owned a T-shirt business, for the shirts to arrive by that day. The shirts arrived on Thursday, the day before the last class on Friday. Unfortunately, the shirts said "Business Law Yuck" on the front. Tyler told Courtney that he would remedy and fix the problem and that he had the right to do so. She told him, however, that she had to have the shirts the next day because the students would be gone after that. Courtney had also ordered some pamphlets on employment law to be used the next fall semester. The seller had agreed to provide the pamphlets 30 days before spring semester ended. The seller, however, erred and sent pamphlets on environmental law, which arrived 28 days before spring semester ended. The seller attempted to remedy the problem by sending the correct pamphlets on employment law, but they did not arrive until 27 days before spring semester ended. None of the parties had any prior dealings.
-Which statement is true in regard to the efforts of the seller of the employment law pamphlets to remedy the problem with the incorrect pamphlets?

Accepted Answer

The seller did not provide prompt notice of his intent to cure and did not have reasonable grounds to believe that the nonconforming tender of environmental pamphlets would be acceptable to Courtney.

Question 7

A buyer who has accepted goods may later ________ if the buyer can show that the defects substantially impaired the value of the goods.

Accepted Answer

A buyer can revoke acceptance of goods if they can prove that the defects substantially impair the value of the goods, according to the Uniform Commercial Code (UCC).

Question 8

Which statement is correct regarding whether a buyer and lessee may make a partial acceptance?

Accepted Answer

The answer of Which statement is correct regarding whether a...

Question 9

Under the UCC, a delay in delivery or nondelivery, in whole or in part, is not a breach in circumstances in which performance has been made impracticable ________.

Accepted Answer

Under the Uniform Commercial Code (UCC), a delay in delivery or nondelivery is not considered a breach if it is due to a contingency that was not foreseen by the parties at the time of the agreement. This principle allows for adjustments in contracts when unexpected events occur that make performance impracticable, provided those events were not anticipated by the parties involved.

Question 10

[Business Law Rocks] Business law instructor Courtney ordered 50 T-shirts for her classes that said "Business Law Rocks" on the front. She wanted to distribute them on the last day of class and contracted with Tyler, who owned a T-shirt business, for the shirts to arrive by that day. The shirts arrived on Thursday, the day before the last class on Friday. Unfortunately, the shirts said "Business Law Yuck" on the front. Tyler told Courtney that he would remedy and fix the problem and that he had the right to do so. She told him, however, that she had to have the shirts the next day because the students would be gone after that. Courtney had also ordered some pamphlets on employment law to be used the next fall semester. The seller had agreed to provide the pamphlets 30 days before spring semester ended. The seller, however, erred and sent pamphlets on environmental law, which arrived 28 days before spring semester ended. The seller attempted to remedy the problem by sending the correct pamphlets on employment law, but they did not arrive until 27 days before spring semester ended. None of the parties had any prior dealings.
-Is Tyler correct that he has a right to remedy and fix the problem?

Accepted Answer

Tyler has the right to remedy the problem under the Uniform Commercial Code (UCC), but this right is contingent on his ability to correct the mistake by the next day, which is the last day set for performance. The UCC allows a seller to cure defects in the goods delivered if the seller can do so within the contract time for performance. In this case, since Courtney needs the T-shirts by the next day for her class, Tyler's right to cure is limited to his ability to provide the correctly worded T-shirts by that deadline.

Question 11

What did the court rule in the case of Hubbard v. UTZ Quality Foods, Inc., in which the buyer refused on the basis of color to accept potatoes that were the subject of an installment contract?

Accepted Answer

The court ruled that the failure to meet the proper color standard amounted to a substantial impairment of the installments, substantially impairing the whole contract. This decision was based on the understanding that the specific quality (color in this case) was critical to the value and usability of the product as agreed upon in the contract.

Question 12

If Dominique ordered lobsters from Maine for a catered affair and a hurricane hits the Maine coast line, what rule may allow the seller a defense to a breach of contract claim?

Accepted Answer

Commercial impracticability can be invoked as a defense when unforeseen events, such as a hurricane, significantly alter the essential nature of a performance or make it unreasonably difficult or expensive, thereby excusing the seller from fulfilling the contract.

Question 13

According to the case of Hubbard v. UTZ Quality Foods, Inc., whether goods conform to contract terms is a ________.

Accepted Answer

The answer of According to the case of Hubbard v....

Question 14

[New Furniture] Kristin purchased $2,000 worth of furniture from Solid Wood Furniture. Through an arrangement with Solid Wood, Kristin financed the purchase through a financing company called Let Us Help You. Twenty-nine days after the goods were delivered to her, Kristin had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay. She notified Solid Wood on that day that she was rejecting the goods. Solid Wood claimed that she did not properly reject the furniture and also that she failed to act in good faith, an obligation imposed equally on all parties to a transaction. Kristin says that she properly rejected; that, although the UCC imposes no duty of good faith, she acted in good faith; and that, in any event, she had an absolute right to return the goods.
-Which statement is true regarding the claim of Solid Wood that Kristin failed to properly reject the goods?

Accepted Answer

Solid Wood's claim that Kristin failed to properly reject the goods is based on the Uniform Commercial Code (UCC) rules regarding the rejection of goods. The UCC allows for the rejection of goods under certain conditions, but it requires that rejection be made within a reasonable time and that the buyer notify the seller. Kristin's disagreement with the financing company over interest rates does not constitute a valid reason under the UCC for rejecting the goods 29 days after delivery. The UCC also imposes a duty of good faith on all parties involved in a transaction, contradicting Kristin's claim that there is no such duty. Therefore, her late rejection based on a dispute unrelated to the condition or delivery of the goods themselves does not align with the proper procedure for rejection under the UCC.

Question 15

Which of the following was the result in the "Case Opener" in which Vitol sued Koch Petroleum for delivering oil one day late causing Vitol to sustain a loss based on its sale to another entity?

Accepted Answer

The court ruled that Koch Petroleum violated the perfect tender rule, which requires that goods delivered must exactly meet the terms of the contract, allowing Vitol to recover for the late delivery.

Question 16

[Softball Trophies] To recognize softball players on his team, Eduardo ordered from Troy 10 trophies showing a softball player swinging a bat. The trophies were to be delivered on May 1st for an award dinner to be held on May 20th. Troy was at first unable to obtain trophies showing a softball player swinging a bat, but by May 13th, he did locate some trophies with a softball player holding a bat. The difference did not substantially impair the value of the trophies, and thinking that the trophies would be acceptable, Troy delivered them on May 14th. Eduardo glanced at the trophies, paid for them with a check, and said nothing. On May 16th Eduardo looked at the trophies more closely and decided that he did not like them. Eduardo canceled payment on his check, and Troy sued him for payment.
-Which of these is the most likely result if Troy claims he had reasonable grounds to believe the trophies were acceptable?

Accepted Answer

Troy would be correct because Eduardo's act of paying for the trophies upon delivery without immediate objection provided Troy with a reasonable basis to believe that the trophies were acceptable, despite the minor difference from the original specification.

Question 17

When may a buyer revoke acceptance if a nonconformity substantially impairs the value of goods?

Accepted Answer

Under the Uniform Commercial Code (UCC), a buyer may revoke acceptance of goods if the nonconformity substantially impairs the value of the goods to them and they had a legitimate reason for the initial acceptance, such as not discovering the nonconformity due to its latent nature or relying on the seller's assurances. The revocation must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in the condition of the goods which is not caused by their own defect. The options suggesting a specific time frame (24 hours, 48 hours, 7 days, 30 days) are not accurate representations of the UCC's provisions regarding revocation of acceptance.

Question 18

Under the UCC, which of the following is true if goods are identified at the time the parties entered into a contract and these goods are partially destroyed through no fault of the parties before risk passes to the buyer or lessee?

Accepted Answer

Under the UCC, if goods identified to a contract are partially destroyed before risk passes to the buyer, the buyer may inspect the goods and either treat the contract as void or accept the damaged goods with a reduction in the contract price.

Question 19

[Softball Trophies] To recognize softball players on his team, Eduardo ordered from Troy 10 trophies showing a softball player swinging a bat. The trophies were to be delivered on May 1st for an award dinner to be held on May 20th. Troy was at first unable to obtain trophies showing a softball player swinging a bat, but by May 13th, he did locate some trophies with a softball player holding a bat. The difference did not substantially impair the value of the trophies, and thinking that the trophies would be acceptable, Troy delivered them on May 14th. Eduardo glanced at the trophies, paid for them with a check, and said nothing. On May 16th Eduardo looked at the trophies more closely and decided that he did not like them. Eduardo canceled payment on his check, and Troy sued him for payment.
-Only considering the issue involving the time set for delivery, what is the likely effect of Troy delivering the trophies after the agreed upon time?

Accepted Answer

Eduardo's action of paying for the trophies without immediate inspection and after the agreed delivery date likely indicates acceptance of the late delivery, thus waiving the specific performance provisions related to the delivery time in the contract.

Question 20

Typically, buyers and lessees ordinarily inspects goods ________ paying, unless the parties agree otherwise.

Accepted Answer

Typically, buyers and lessees inspect goods before paying to ensure the goods meet their expectations and requirements, unless a different arrangement is agreed upon by the parties involved.

Quiz 23: Performance and Obligations Under Sales and Leases