Question 1

If no delivery agreement is made and the seller does not have a place of business,then delivery is to be made at the buyer's home.

Accepted Answer

In the absence of a delivery agreement and if the seller has no place of business, delivery is typically made at the seller's residence, not the buyer's home.

Question 2

If a buyer accepts any part of a commercial unit of goods,he is considered to have accepted the whole unit.

Accepted Answer

This is known as the "doctrine of acceptance" and is a common law principle that applies to commercial transactions. If a buyer accepts any part of a commercial unit of goods, they are deemed to have accepted the entire unit, even if there are defects in some parts of the unit.

Question 3

Skyline Builders and Pine Lumber had a contract,calling for Pine Lumber to deliver a certain quantity of bricks to Skyline's place of business on the first of every month for one year.Pine delivered the bricks one week late for the first six months,but Skyline did not object.When Pine delivered the bricks one week late,as usual,in the seventh month,Skyline attempted to cancel the contract because of the late delivery.Which of the following is true about this scenario?
A) Pine will have to return the delivery fee of the first six months because it broke the contract.
B) Skyline does not have the legal right to modify the contract.
C) Pine is not in breach because the delivery was made at the intended place of business.
D) Skyline has waived its right to cancel the contract.

Accepted Answer

Skyline has waived its right to cancel the contract because it accepted Pine's late delivery for six months. In such a scenario, the decision to cancel cannot be based on the reason that Pine made a late delivery in the seventh month. In a contract in which there are a number of instances of partial performance (such as deliveries or payments) by one party, the other party must be careful to object to any later deliveries or payments. If the other party does not object, it may be waiving its right to cancel the contract if other deliveries or payments are late.

Question 4

Once a party has waived rights to a portion of a contract that has not yet been performed,that party:
A) may retract the waiver if there is a material change of position by the other party.
B) may retract the waiver unconditionally.
C) may retract the waiver by giving reasonable notice that strict performance will be required.
D) may retract the waiver only if the other party does not object to it.

Accepted Answer

A party who has waived rights to a portion of the contract not yet performed may retract the waiver by giving reasonable notice to the other party that strict performance will be required. The retraction of the waiver is effective unless it would be unjust because of a material change of position by the other party in reliance on the waiver.

Question 5

A party who has waived rights to a portion of the contract not yet performed may retract the waiver by giving reasonable notice to the other party that strict performance will be required.

Accepted Answer

This statement is true. A party who has waived their rights to a portion of the contract not yet performed can retract the waiver by providing reasonable notice to the other party that strict performance will be required. This is known as the right to revoke waiver.

Question 6

By accepting goods,the buyer forfeits remedies against the seller for any nonconformities in the goods.

Accepted Answer

Accepting goods does not necessarily mean the buyer forfeits remedies for nonconformities. The buyer may still have recourse under warranty or other legal provisions if the goods do not conform to the contract.

Question 7

Once a party to a contract repudiates the contract,it is rendered void with no way to withdraw the repudiation.

Accepted Answer

Repudiation allows the non-breaching party to treat the contract as terminated, but under certain legal systems, the repudiating party can retract their repudiation if the non-breaching party has not yet accepted the repudiation or otherwise acted upon it, such as by suing for damages or treating the contract as terminated.

Question 8

A contract calls for a farmer to send apples growing at his farm to the fruit market every Monday,and he promptly sends fresh stock of apples every Monday as per the contract.If the fruit market does not pay cash but rather sends a check the following week,then _____.
A) the farmer can object, but the contract can be cancelled only after six months of the contract period
B) the farmer cannot object under any circumstances
C) the farmer must object if he may want to rely on the late payment as grounds for later canceling the contract
D) the farmer can object only if he has not been paid by any means for the apples he delivered

Accepted Answer

In the given scenario, if the fruit market does not pay cash to the farmer but rather sends a check the following week, then the farmer must object if he may want to rely on the late payment as grounds for later canceling the contract. If the fruit market does this every week and the farmer does not object, the farmer will be unable later to cancel the contract for that reason.

Question 9

Under the Uniform Commercial Code,the duties of either the buyer or the seller generally may be delegated to someone else.

Accepted Answer

The Uniform Commercial Code allows for delegation of duties by either the buyer or seller. This is subject to certain limitations and requirements.

Question 10

If a buyer wrongfully rejects goods,he is liable to the seller for breach of the sales contract.

Accepted Answer

If a buyer wrongfully rejects goods, it means that the buyer has not fulfilled their obligations under the sales contract. As a result, the buyer will be liable to the seller for breach of the sales contract. The seller may be entitled to damages or other remedies for the buyer's breach.

Question 11

If the goods required for the performance of a contract are destroyed without fault of either party prior to the time the risk of loss passed to the buyer,then the contract is voided.

Accepted Answer

This statement is in line with the doctrine of frustration of contract, which holds that when an unforeseeable event occurs that makes the performance of a contract impossible or radically different from what was originally contemplated, the contract is terminated. In this case, the destruction of the goods without fault of either party would qualify as an unforeseeable event, and therefore the contract would be voided.

Question 12

A buyer has the right to retain goods,even if the bank refuses to pay the buyer's check.

Accepted Answer

If a bank refuses to pay a buyer's check, the seller may have the right to reclaim the goods, as the payment has not been completed.

Question 13

If a buyer has a basis for rejecting a delivery of goods,the buyer must act within 12 months of delivery.

Accepted Answer

The time frame for rejecting goods is typically much shorter and is governed by the terms of the contract or applicable laws, often requiring action within a reasonable time after delivery.

Question 14

The basic duty of a seller is to deliver the goods called for by the contract.

Accepted Answer

The basic duty of a seller is to deliver the goods as specified in the contract.

Question 15

If there is no agreement for delivery in installments,then all the goods must be delivered to the buyer in a single delivery.

Accepted Answer

This is because without an agreement for delivery in installments, the default assumption is that the entire shipment will be delivered at once.

Question 16

If there is a conflict between the express terms of the contract and trade usage,_____.
A) the trade usage prevails
B) the express terms prevail
C) neither will prevail over the other
D) implied terms prevail

Accepted Answer

Under the Uniform Commercial Code, trade customs and practices can be used in interpreting a contract. If there is a conflict between the express terms of the contract and trade usage, the express terms prevail.

Question 17

If the shipping terms are cash on delivery,the buyer must pay for the goods after inspecting them.

Accepted Answer

Cash on delivery (COD) requires the buyer to pay for goods at the time of delivery, not necessarily after inspecting them.

Question 18

In a contract where there is no agreement between two parties for delivery in installments,all the goods _____.
A) must be delivered at the seller's discretion
B) must be delivered to the buyer in a single delivery
C) must be delivered in the installments at the seller's discretion
D) must be delivered in reasonably spaced intervals

Accepted Answer

The basic duty of the seller is to deliver the goods called for by the contract. The basic duty of the buyer is to accept and pay for the goods if they conform to the contract. The buyer and seller may agree that the goods are to be delivered in several lots or installments. If there is no agreement for delivery in installments, then all the goods must be delivered to the buyer in a single delivery.

Question 19

The terms in the contract between the parties are the primary means for determining the obligations of the buyer and seller.

Accepted Answer

The terms in the contract are legally binding and set forth the responsibilities and expectations of both parties.

Question 20

Under the Uniform Commercial Code,only the buyer can demand assurance from the other party that the contract will be performed.

Accepted Answer

Under the Uniform Commercial Code (UCC), both the buyer and the seller have the right to demand assurance of performance from the other party if they have reasonable grounds for insecurity about the other party's performance.

Quiz 21: Performance of Sales Contracts