Question 1

A buyer is obliged to accept conforming goods and to pay for them according to the contract terms.

Accepted Answer

When a buyer agrees to a contract, they are obligated to accept and pay for conforming goods in accordance with the terms of the contract. This means that the buyer must pay the agreed-upon amount for the goods and accept delivery of the goods that meet the specifications outlined in the contract. Failure to do so may result in legal consequences, such as breach of contract.

Question 2

A "commercial unit" is a unit of goods that by commercial usage is a single unit and that, if divided, would be materially impaired in character or value.

Accepted Answer

A commercial unit is defined as a unit of goods that is considered to be a single unit in commercial usage, and dividing it would result in a loss of value or change in character.

Question 3

Revocation of acceptance requires notice to the seller, whereas rejection does not.

Accepted Answer

Both revocation of acceptance and rejection require the buyer to notify the seller for the action to be effective.

Question 4

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years.The October shipment consisted of 100 badly defective tires.ZYX Cycle Company:
A) can treat the whole contract as breached.
B) cannot reject the October shipment since it is part of the installment series.
C) must pay for the defective tires, but Supertread must provide 200 tires in November.
D) can reject the October shipment if it cannot be cured in a timely manner by Supertread.

Accepted Answer

Under the Uniform Commercial Code (UCC), which governs the sale of goods, a buyer can reject a shipment of goods if the goods fail to conform to the contract and the non-conformity substantially impairs the value of the shipment to the buyer. If the non-conformity cannot be cured in a timely manner, the buyer has the right to reject the shipment. In this case, since the October shipment consisted of 100 badly defective tires, ZYX Cycle Company can reject the October shipment if Supertread Tire Company cannot cure the defect in a timely manner.

Question 5

Under the CISG, a party may suspend performance of his obligations if, after the conclusion of the contract, it becomes apparent that the other party will not perform a substantial part of his obligations.

Accepted Answer

This is stated in Article 71 of the CISG.

Question 6

The concept of the "right to cooperation" includes that:
A) where neither party is at fault and the agreed manner of delivery becomes impracticable, both parties are required to negotiate a new price.
B) where one party's required cooperation is not timely, the other party is excused from any resulting delay in her own performance.
C) where one party's required cooperation is untimely, the other party is required to tender performance as if the first party had tendered in a timely manner.
D) None of these.

Accepted Answer

The concept of the "right to cooperation" implies that if one party does not provide the necessary cooperation required for the other party to fulfill their obligations, the latter is excused from any delays or failures in performance resulting from this lack of cooperation. This principle ensures that a party is not penalized for circumstances beyond their control, specifically when their performance is contingent upon the cooperation of the other party.

Question 7

The perfect tender rule requires that the seller's tender of performance must conform exactly to the contract subject to:
A) cure by the seller.
B) installment contracts.
C) Both of these.
D) Neither of these.

Accepted Answer

The perfect tender rule does allow for exceptions, such as the opportunity for the seller to cure a defect in the goods delivered or in the case of installment contracts, where a failure in one installment does not necessarily constitute a breach of the whole contract.

Question 8

A buyer's or lessee's right to reject nonconforming goods depends on the size or extent of the breach of the seller's or lessor's duty to tender conforming goods.

Accepted Answer

The answer of A buyer's or lessee's right to reject...

Question 9

Acceptance of goods, which disallows any later rejection of them, is accomplished only through express words.

Accepted Answer

Acceptance of goods can be accomplished not only through express words but also through actions that imply acceptance, such as using the goods in a manner consistent with ownership, or failing to reject them within a reasonable time.

Question 10

After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods.

Accepted Answer

According to the Sale of Goods Act, if a buyer does not reject the goods within a reasonable time, they will be deemed to have accepted them. The Act does not specify a specific time frame, but a week can be considered a reasonable time for perishable goods like strawberries. Therefore, after a week, the buyer will be deemed to have accepted the goods.

Question 11

If no place of tender is indicated by the contract, delivery is presumed to be made at seller's place of business.

Accepted Answer

According to the default rules of the Uniform Commercial Code (UCC), if the place of tender is not specified in the contract, the seller's place of business is considered the default place for delivery.

Question 12

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 buyer's business or residence in Atlanta.
B) as stated in all destination contracts.
C) at the seller's business or residence in Chicago.
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 rule is that the place of delivery is the seller's place of business or, if the seller has no business location, the seller's residence. Therefore, since the seller is in Chicago, the place of delivery would be the seller's business or residence in Chicago.

Question 13

The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract.

Accepted Answer

"Ex-ship" and "no arrival, no sale" terms indicate that the contract is a destination contract, where the seller is responsible for the goods until they arrive at the destination specified in the contract.

Question 14

In April, Howard bought a sailboat from a local marina.The boat was defective and did not turn about properly.Despite this, Howard used the boat extensively all summer and the boat was in worse condition than when it was bought.By September 30, Howard had waived his right to revoke acceptance.

Accepted Answer

Howard waived his right to revoke acceptance, indicating that he accepted the defective boat.

Question 15

A buyer's cancellation of a contract based on the seller's anticipatory repudiation is effective:
A) if the cancellation precedes the seller's attempt to retract her repudiation.
B) only if bond has been obtained.
C) only if the buyer expressly notifies the seller of the cancellation.
D) All of these are correct.

Accepted Answer

A buyer's cancellation of a contract is effective if it occurs before the seller retracts their anticipatory repudiation.

Question 16

A carpenter ordered 500 sheets of 1/2-inch plywood from her supplier, but received 498 sheets of 1/4-inch plywood.If she rejects these goods, she has no further obligation to her supplier regarding these nonconforming goods.

Accepted Answer

While the carpenter can reject the nonconforming goods, she does have an obligation to notify her supplier of the rejection and give them the opportunity to correct the mistake or offer a solution. Additionally, there may be contractual or legal obligations that depend on the specific terms of their agreement.

Question 17

Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700.It is to be delivered to Bill's home on July 7.Under the perfect tender rule, which one of the following cases would permit Bill to rightfully reject the goods?
A) Sam delivered an 18-cubic-foot, silver refrigerator on July 7, and Bill calls Sam to complain.
B) Sam sent his truck to Bill's home with the 18-cubic-foot, yellow refrigerator on July 7, but Bill was not home.
C) Sam sent 18-cubic-foot, yellow refrigerator without ice cube trays on July 5 and notifies Bill of the defect.
D) Sam sent an 18-cubic-foot, yellow refrigerator with a small dent in it on July 7. Bill refuses delivery but never bothers to call Sam.

Accepted Answer

CThe perfect tender rule requires that the goods delivered must exactly meet the terms of the contract. In choice A, the color of the refrigerator does not match the contract specifications, allowing Bill to rightfully reject the goods. In choice C, the absence of ice cube trays (assuming they were expected as part of the refrigerator based on the contract) constitutes a defect, also permitting Bill to reject the goods.

Question 18

Allister contracts to the sell and deliver to Chan 300 rolls of bubble wrap.Unless the parties agree otherwise, Allister must tender all 300 rolls in a single delivery, and Chan's payment is due at the time of the tender.

Accepted Answer

The statement accurately describes the terms of the contract between Allister and Chan for the sale and delivery of 300 rolls of bubble wrap.

Question 19

Tender of delivery requires:
A) that the goods be made available to the buyer for at least one week if they are not perishable.
B) only that the seller put and hold goods that conform to the contract at the buyer's disposition.
C) that tender occur during the buyer's normal business hours.
D) that the seller give the buyer reasonable notice of the tender.

Accepted Answer

The answer of Tender of delivery requires:
A) that the goods...

Question 20

Where goods are in the possession of a bailee and are to be delivered without being moved, in most instances the seller may either tender to the buyer a document of title or obtain an acknowledgment by the bailee of the buyer's right to possess the goods.

Accepted Answer

This statement is true as per the provisions of the Uniform Commercial Code. When goods are stored with a bailee (a person or entity who holds possession of the goods on behalf of the owner), the seller can either provide a document of title (such as a bill of lading) to the buyer, or get an acknowledgment from the bailee that the buyer has the right to possess the goods. This is known as 'delivery without movement', and it is a valid method of transferring ownership of goods in certain situations.

Quiz 20: Performance

A buyer is obliged to accept conforming goods and to pay for them according to the contract terms.

A "commercial unit" is a unit of goods that by commercial usage is a single unit and that, if divided, would be materially impaired in character or value.

Revocation of acceptance requires notice to the seller, whereas rejection does not.

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years.The October shipment consisted of 100 badly defective tires.ZYX Cycle Company:

Under the CISG, a party may suspend performance of his obligations if, after the conclusion of the contract, it becomes apparent that the other party will not perform a substantial part of his obligations.

The concept of the "right to cooperation" includes that:

The perfect tender rule requires that the seller's tender of performance must conform exactly to the contract subject to:

A buyer's or lessee's right to reject nonconforming goods depends on the size or extent of the breach of the seller's or lessor's duty to tender conforming goods.

Acceptance of goods, which disallows any later rejection of them, is accomplished only through express words.

After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods.

If no place of tender is indicated by the contract, delivery is presumed to be made at seller's place of business.

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:

The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract.

In April, Howard bought a sailboat from a local marina.The boat was defective and did not turn about properly.Despite this, Howard used the boat extensively all summer and the boat was in worse condition than when it was bought.By September 30, Howard had waived his right to revoke acceptance.

A buyer's cancellation of a contract based on the seller's anticipatory repudiation is effective:

A carpenter ordered 500 sheets of 1/2-inch plywood from her supplier, but received 498 sheets of 1/4-inch plywood.If she rejects these goods, she has no further obligation to her supplier regarding these nonconforming goods.

Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700.It is to be delivered to Bill's home on July 7.Under the perfect tender rule, which one of the following cases would permit Bill to rightfully reject the goods?

Allister contracts to the sell and deliver to Chan 300 rolls of bubble wrap.Unless the parties agree otherwise, Allister must tender all 300 rolls in a single delivery, and Chan's payment is due at the time of the tender.

Tender of delivery requires:

Where goods are in the possession of a bailee and are to be delivered without being moved, in most instances the seller may either tender to the buyer a document of title or obtain an acknowledgment by the bailee of the buyer's right to possess the goods.