Question 1

In Griffith v. Clear Lakes Trout, where a dispute arose over "market size" trout, the court held that it would look to the history of the dealings between the parties to see what they believed, in practice, to be the proper size of the fish.

Accepted Answer

The statement accurately reflects the decision in Griffith v. Clear Lakes Trout.

Question 2

If the parties to a contract failed to include a critical term, such as price or quantity, the court may look to normal trade usage to determine what that term should be.

Accepted Answer

When a critical term is missing from a contract, the court may apply the principle of normal trade usage to determine the missing term. This means that the court may look to the standard practices and customs of the relevant industry to fill in the gap left by the parties.

Question 3

Under the common law, buyers may reject goods that do not conform to the contract. The UCC provides the seller with opportunities (limited) to cure the problem.

Accepted Answer

Under the common law, buyers have the right to reject non-conforming goods, while under the UCC, sellers have the opportunity to cure the problem within a reasonable time period before the buyer can reject the goods.

Question 4

If the delivery terms are not specified in a contract, it must be "reasonable" which is determined by industry custom and intent of the parties.

Accepted Answer

If the delivery terms are not specified in a contract, it is assumed to be "reasonable" according to industry custom and the intent of the parties, as it is an implied term in contract law.

Question 5

Under the UCC, the court will determine a reasonable price in case a contract is unclear about price and the parties cannot agree.

Accepted Answer

This is true according to the UCC §2-305. It states that if the price is not agreed upon, a reasonable price at the time of delivery will be considered.

Question 6

If the delivery terms are not specified in a contract, the normal usage that the courts impose is for the seller to pay for shipping to the buyer's place of business.

Accepted Answer

If delivery terms are not specified in a contract, the default rule under the Uniform Commercial Code is that delivery occurs at the seller's place of business, and the buyer is responsible for arranging and paying for shipping to its own place of business. However, parties can agree to different delivery terms as long as they make their intentions clear in the contract.

Question 7

When a buyer agrees to purchase all the goods produced by a seller, it is called an output contract.

Accepted Answer

An output contract is a type of agreement where a buyer agrees to purchase all the goods produced by a seller.

Question 8

If a seller delivers defective good, under the UCC the buyer may not cancel the contract if the seller repairs the goods or replaces them before the deadline in the contract.

Accepted Answer

Under the UCC, if a seller delivers defective goods, the buyer may not cancel the contract if the seller can repair the goods or replace them before the deadline in the contract. This is known as the seller's right to cure.

Question 9

If a seller delivers defective good, under the UCC the buyer may not cancel the contract if the seller repairs the goods or replaces the goods in a "timely" fashion.

Accepted Answer

Under the UCC, if a seller delivers defective goods, the buyer has the right to reject them. The seller can offer to repair or replace the goods, but the buyer is not obligated to accept this offer and may choose to cancel the contract instead.

Question 10

If the parties to a contract failed to establish a delivery date in their contract, if a dispute arises over delivery, both parties have the right to abandon the contract.

Accepted Answer

If the parties failed to establish a delivery date in their contract, the delivery must be made within a reasonable time. If a dispute arises over delivery, both parties cannot simply abandon the contract. They will have to seek legal remedies or come to a new agreement.

Question 11

Under the common law, the seller's tender of delivery is required to conform in detail to the terms of the agreement between the parties. In the absence of perfect tender, the buyer can reject that part of shipment that does not conform and accept the remainder.

Accepted Answer

The answer of Under the common law, the seller's tender...

Question 12

The UCC operates the same as the common law in how it allows courts to fill the gaps left of contracts that have open terms.

Accepted Answer

The UCC (Uniform Commercial Code) is more flexible than common law in allowing courts to fill gaps in contracts with open terms, particularly in commercial transactions, by implying terms based on reasonableness or industry standards.

Question 13

When a seller agrees to supply all of the goods needed by a buyer, it is called a requirements contract.

Accepted Answer

A requirements contract is a type of contract where the seller agrees to supply all of the goods or services needed by the buyer for a specified period of time.

Question 14

When a seller agrees to supply all of the goods needed by a buyer, it is called an output contract.

Accepted Answer

An agreement where a seller agrees to supply all of the goods needed by a buyer is called a requirements contract, not an output contract. An output contract is when a buyer agrees to purchase all of a seller's production.

Question 15

When a buyer agrees to purchase all the goods produced by a seller, it is called a requirements contract.

Accepted Answer

A requirements contract is when a buyer agrees to purchase all the goods or services they need from a particular seller, not necessarily all the goods produced by the seller.

Question 16

If a buyer rejects a shipment of goods as non-conforming, under the UCC the seller may have a right to cure the problem.

Accepted Answer

Under the UCC, if the buyer rejects a shipment of goods as non-conforming, the seller may have a right to cure the problem by either repairing or replacing the goods. However, this right usually only applies if the time for performance has not yet expired and the non-conformity can be cured without causing undue delay or inconvenience to the buyer.

Question 17

The UCC generally requires that a contract specify in writing a quantity to be purchased.

Accepted Answer

The UCC's statute of frauds requires that contracts for the sale of goods specify a quantity to be purchased, and this requirement is generally satisfied by including the quantity term in writing.

Question 18

In Griffith v. Clear Lakes Trout, where a dispute arose over trout, the court held that the buyer, Clear Lakes, had to accept small fish despite their not being "market size," because otherwise Griffith would go bankrupt.

Accepted Answer

In Griffith v. Clear Lakes Trout, the court held that the buyer, Clear Lakes, did not have to accept the small fish because they were not of the "market size" specified in the contract, and the potential bankruptcy of Griffith was not a valid reason to enforce acceptance of non-conforming goods.

Question 19

In Griffith v. Clear Lakes Trout, where a dispute arose over "market size" trout, the court held that the buyer (Clear Lakes) had the right to expect the seller to grow the trout to a larger size than he had been doing.

Accepted Answer

In Griffith v. Clear Lakes Trout, the court held that the term "market size" was ambiguous and that there was no agreement for the seller to grow the trout to a larger size than what was considered market size at the time of the contract.

Question 20

In meeting her obligation under the UCC, the seller must be concerned about the appropriate manner and timeliness of delivery, the place of tender, and the quality of tender.

Accepted Answer

According to the UCC, the seller is responsible for meeting certain obligations, including the appropriate manner and timeliness of delivery, the place of tender, and the quality of tender. Therefore, the statement is true.

Quiz 11: Domestic and International Sales