Question 1

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

Accepted Answer

The "right to cooperation" implies that if one party's required cooperation is not timely, the other party is excused from any resulting delay in their own performance.

Question 2

If Mary allows the seller, Sellmart Co., four weeks to repair the defects in her kitchen set and they have tried but have not done a good job at it, she may revoke her acceptance if she:

Accepted Answer

Mary can revoke her acceptance by notifying Sellmart of the revocation, especially if the defects were not adequately repaired.

Question 3

Goods are to be sent from Buffalo, NY to Raleigh, NC by UPS using the delivery terms F.O.B. Buffalo, NY. Where does tender occur?

Accepted Answer

Under F.O.B. (Free on Board) terms, the seller's responsibility ends when the goods are shipped from the specified location, which in this case is Buffalo, NY. Therefore, tender occurs where the goods are shipped.

Question 4

a. What are the obligations of the seller under a shipment contract? 
b. What are the obligations of the seller under a destination contract?

Accepted Answer

The answer of a. What are the obligations of the...

Question 5

Bill orders a custom-made suit from Rooks to be delivered by Friday at 5 p.m. When the suit is delivered to his office on Friday afternoon, he is in conference with a client. He accepts delivery and hangs the suit in his closet. When Bill tries on the suit Saturday evening, he discovers that the pants are cuffed. He had ordered cuffless trousers. What can he do?

Accepted Answer

Bill can revoke acceptance if the nonconformity substantially impairs the value of the goods to him and Rooks will not or cannot cure the defect.

Question 6

Which of the following is correct with respect to the Code's approach to impossibility of performance?

Accepted Answer

The Code excuses performance when it becomes impractical due to unforeseen events that go beyond mere hardship or increased costs, not just any drop in demand or increased production costs.

Question 7

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

Accepted Answer

A buyer can cancel a contract if the seller anticipatorily repudiates, provided the cancellation occurs before the seller retracts the repudiation.

Question 8

In which of the following situations does the seller have the right to cure?

Accepted Answer

The seller has the right to cure if the time for performance has not yet expired (A) or if the seller had reasonable grounds to believe the buyer would accept a nonconforming tender (B).

Question 9

Vernon is an accountant for a major accounting firm. One day at work, he is discussing his collection of rare coins with one of his co-workers. Vernon tells his co-worker that he keeps his collection at home and that he has recently purchased several Chinese gold Panda coins at an exceptional price. The co-worker expresses an interest in buying two of the coins at a price of $250, and a contract is duly formed. If no place for delivery is expressed, where are the coins to be delivered?

Accepted Answer

If no place for delivery is specified in a contract, the default rule is that the goods are to be delivered at the seller's place of business or, if there is no place of business, at the seller's residence. Since Vernon keeps the coins at home, they are to be delivered there.

Question 10

Under the __________, a buyer may reject goods for even the slightest defect.

Accepted Answer

Under the perfect tender rule, a buyer may reject goods for even the slightest defect.

Question 11

J & J Co. offers a "subscription" for baby toys to be delivered every two months from the birth of a child. Payment must be made within two weeks of delivery. The Markham family accepted the J & J plan when their son, Timmy, was born. When Timmy was four months old, one J & J toy arrived smashed to pieces. Markham:

Accepted Answer

The Markham family can reject the damaged installment and refuse to pay for it if J & J cannot cure the defect, as the contract allows for installment deliveries and the breach pertains to a single installment.

Question 12

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

Accepted Answer

The perfect tender rule allows for exceptions such as installment contracts and the seller's right to cure any defects in performance.

Question 13

Whitaker has reasonable grounds for believing Crosslin will not perform his obligations under their contract. Discuss what Whitaker might do if their contract is governed by: (a) the UCC and (b) the CISG.

Accepted Answer

The answer of Whitaker has reasonable grounds for believing Crosslin...

Question 14

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:

Accepted Answer

ZYX Cycle Company can reject the October shipment if it cannot be cured in a timely manner by Supertread.

Question 15

a. Distinguish between a rejection of goods and a revocation of acceptance of goods. 
b. What is the effect of a rejection? What is the effect of a revocation? 
c. Does the buyer have any obligations to the seller once she has rejected the goods?

Accepted Answer

The answer of a. Distinguish between a rejection of goods...

Question 16

A manifestation by the buyer of his unwillingness to become the owner of the goods is:

Accepted Answer

Rejection is the act by the buyer of refusing to accept the goods, indicating their unwillingness to become the owner.

Question 17

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

Accepted Answer

A buyer is deemed to have accepted goods if he fails to reject them after having a reasonable opportunity to inspect them, as per the Uniform Commercial Code (UCC) which governs sales of goods.

Question 18

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?

Accepted Answer

The answer of Sam agrees to sell Bill one 18-cubic-foot,...

Question 19

Speedy Stop sells necessities to neighborhood shoppers until 1 a.m. every day. Dairyland delivered its order of milk products as usual around 6 a.m. while Mary, the shopkeeper, was busy with the early coffee and donut crowd. The Dairyland driver left 12 crates in the refrigerator compartment and went on to the rest of his route. At 7:30 a.m., Mary started to shelve the milk products and discovered that all 12 crates contained buttermilk rather than the usual mix of containers of whole milk, 2%, skim milk, and cream she had ordered. What is her obligation with regard to the goods?

Accepted Answer

The answer of Speedy Stop sells necessities to neighborhood shoppers...

Question 20

The Elm Street Accounting Partnership has ordered two maroon office chairs for its waiting room from the Quality Office Supply Company. Quality sends two burgundy-red office chairs that the Elm Street partnership rejects. What, if any, rights does Quality have under the circumstances? Explain.

Accepted Answer

The answer of The Elm Street Accounting Partnership has ordered...

Quiz 20: Performance