Question 1

Sparkling Gem Corporation agrees to sell Jewel Outlets,Inc.(JOI),fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is

Accepted Answer

The answer of Sparkling Gem Corporation agrees to sell Jewel...

Question 2

A contract for a sale of a certain quantity of drum kits from Rimshot Drum Company to Musicians Warehouse specifies Urban City as the place for delivery but leaves open the particular address.Obliged to specify the address is

Accepted Answer

As the contract specifies Musicians Warehouse as the buyer, it is their responsibility to provide the address for delivery within the specified location.

Question 3

If a seller asks a buyer to store nonconforming goods overnight,then the buyer is entitled to reimbursement for the costs involved.

Accepted Answer

According to the Uniform Commercial Code (UCC) Section 2-603(1), if a seller requests a buyer to store nonconforming goods, the buyer is entitled to reimbursement for any reasonable expenses incurred in caring for the goods. This includes the cost of storage, insurance, and other necessary expenses.

Question 4

A buyer may reject a seller's goods under any circumstances.

Accepted Answer

A buyer cannot reject a seller's goods under any circumstances. The buyer must have a valid reason for rejecting the goods, such as if they are defective or not as described by the seller. The buyer may also have a legal right to reject the goods if they do not meet certain legal standards or requirements.

Question 5

If goods identified to a contract are destroyed through no fault of either party,both parties are excused from performance.

Accepted Answer

This is known as the doctrine of impossibility or frustration of purpose, which applies when the subject matter of the contract is destroyed or becomes impossible to perform through no fault of either party. Both parties are excused from performance because it is impossible to meet the terms of the contract.

Question 6

On a lessee's insolvency,the lessor can stop delivery of the goods.

Accepted Answer

This is because in a lease agreement, the lessor retains ownership of the goods and has the right to repossess them in the event of the lessee's insolvency.

Question 7

In general,a buyer's duty to pay for tendered goods becomes absolute be?fore the buyer has had an opportunity to inspect the goods.

Accepted Answer

The answer of In general,a buyer's duty to pay for...

Question 8

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Far Vu,Inc.,which is based in Hawaii.Absent an agreement to the contrary,the place of deliv?ery is in

Accepted Answer

The answer of Clear Day Company,which is based in Delaware,agrees...

Question 9

If a seller repudiates a contract,the buyer's damages do not have to be adjusted to reflect any expenses that were saved as a result of the breach.

Accepted Answer

If a seller repudiates a contract, the buyer's damages may have to be adjusted to reflect any expenses that were saved as a result of the breach. This is known as the mitigation of damages principle, and it requires the injured party to take reasonable steps to minimize their losses in the wake of a breach.

Question 10

If a buyer breaches a contract while the seller is still in possession of the goods,the seller can resell the goods and hold the buyer liable for any loss.

Accepted Answer

This is known as the right of resale, which allows the seller to resell goods in their possession if the buyer breaches the contract. The buyer is then held liable for any loss incurred by the seller as a result of the resale.

Question 11

If a seller discovers that the buyer has received goods on credit and is insolvent,the seller can only demand the return of the goods if he or she does so on the same day that the buyer received the goods.

Accepted Answer

If the buyer is insolvent, the seller can demand the return of the goods within a reasonable time after the buyer received them, not necessarily on the same day. The exact definition of "reasonable time" may vary depending on the circumstances.

Question 12

Big Eggs,Inc.agrees to supply Omelet Express with five hundred eggs.Big Eggs cannot reasonably ask Omelet Express to pick up the eggs at

Accepted Answer

Since Big Eggs agrees to supply Omelet Express with 500 eggs, it is their responsibility to deliver the eggs to Omelet Express. Asking Omelet Express to pick up the eggs at any given time would not be reasonable. However, delivering the eggs at 4:30 A.M. would ensure that Omelet Express has the eggs in time for their breakfast service.

Question 13

A buyer who obtains substitute goods to replace goods that a seller did not deliv?er can also recover damages from the seller.

Accepted Answer

According to the principle of "cover" under the Uniform Commercial Code (UCC), a buyer has the right to obtain substitute goods if the seller fails to deliver the goods. The buyer can then recover damages from the seller, including any difference in cost between the original goods and the substitute goods, as well as any incidental or consequential damages incurred due to the seller's failure to deliver. This is outlined in UCC Section 2-712.

Question 14

If a buyer repudiates a contract,the seller cannot re?cover damages.

Accepted Answer

If a buyer repudiates a contract, the seller can recover damages. Repudiation of a contract means the buyer refuses to fulfill their obligations under the agreement. In such cases, the seller may be entitled to compensation for any losses or damages suffered as a result of the breach.

Question 15

Once the seller has tendered delivery,the buyer is obligated to accept the goods and pay for them.

Accepted Answer

Once the seller has fulfilled their obligation to deliver the goods as per the terms of the contract, the buyer is obligated to accept them and pay for them. This is known as the buyer's acceptance obligation.

Question 16

If a seller fails to deliver the goods,the buyer's damages do not include all losses resulting from this course of events.

Accepted Answer

If a seller fails to deliver the goods, the buyer's damages can include all losses resulting from this course of events, including any additional costs incurred in obtaining substitute goods or lost profits due to the delay in delivery.

Question 17

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers,but their contract does not specify the address at which the goods are to be delivered.If the parties fail to specify the address before the delivery date

Accepted Answer

Since the contract does not specify the address for delivery, it is the responsibility of the buyer (Coffee & Dessert Caterers) to provide the address in a timely manner. If they fail to do so, any resulting delay cannot be attributed to Pleasant Valley Dairy and they are excused from any liability for the delay.

Question 18

If a lessee wrongfully refuses to accept goods that conform to a contract,the lessor must tender substitute goods.

Accepted Answer

The answer of If a lessee wrongfully refuses to accept...

Question 19

If,before the time for performance,a buyer communicates an intent not to perform,the seller can consider the buyer in breach and pursue a remedy.

Accepted Answer

If the buyer communicates an intent not to perform before the time for performance, it can be considered a breach of contract by the seller and the seller can pursue a remedy.

Question 20

Unless otherwise agreed,inspection of goods can take place at any reasonable place and time and in any reasonable manner.

Accepted Answer

This is a standard provision in most contracts and trade agreements. However, parties may agree to specific terms related to inspection in their contract.

Quiz 20: Performance and Breach

Sparkling Gem Corporation agrees to sell Jewel Outlets,Inc.(JOI) ,fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is