Question 1

Primo Pools Company and Aquatic Recreation,Inc.,enter into a contract for a sale of prefabricated swimming pools.Under either a shipment contract or a destination contract,the seller must

Accepted Answer

The answer of Primo Pools Company and Aquatic Recreation,Inc.,enter into...

Question 2

Hydraulic Leasing Corporation (HLC)and Dockside Offloading Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,HLC must ship or tender goods to the lessee that

Accepted Answer

Under the perfect tender rule, the seller is obligated to deliver goods that conform to the contract description in every way. This means that the goods must meet all the specifications and requirements as per the contract, and any deviation from the agreed-upon terms may give the buyer the right to reject the goods. Therefore, the correct choice is C.

Question 3

Owen and Pablo enter into a contract for a sale of fifty Western saddles.Owen does not deliver.Pablo can normally recover as damages the difference between

Accepted Answer

In this scenario, Pablo can recover as damages the difference between the contract price and the market price. This means that Pablo can claim the amount of money that he would have gained if Owen had delivered the fifty Western saddles as promised, minus the amount of money that he actually lost due to the breach of contract. The market price is the price of similar goods in the market at the time of breach, and it is used as a benchmark for determining the damages in a breach of contract case. Therefore, option C is the best choice in this scenario.

Question 4

Mitch and Nadine enter into a contract for a sale of seventy-six specially made motion detectors.When Nadine does not deliver within a reasonable time after the agreed delivery date,Mitch files a suit for breach.Nadine asserts the doctrine of commercial impracticability.This doctrine extends only to problems that are

Accepted Answer

The doctrine of commercial impracticability is based on unforeseen circumstances that make performance impossible or extremely difficult. It does not apply to problems that are foreseen, preventable or ordinarily assumed by a seller or lessor.

Question 5

Fact Pattern 21-A1 (Questions A9-A10 apply)
Internet Cafés,Inc.,contracts to buy all of its requirements for coffee,at a minimum of 1 million pounds per year,from Java Corporation for six years.After three years,Internet tells Java that it plans to sell its assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract.
-Refer to Fact Pattern 21-A1.Bagel Bistros's refusal is

Accepted Answer

Bagel Bistros's refusal to assure Java that it will continue the contract with Internet constitutes a repudiation of the contract. This is because Bagel Bistros has refused to perform a duty that it would have been required to perform under the contract, and this refusal indicates a lack of intention to perform the contract as agreed. As a result, Java can treat the repudiation as a breach of contract and seek damages.

Question 6

Recycle Packaging,Inc.,agrees to sell 50,000 6-ounce yogurt containers to Organic Dairy Company.Recycle can obtain only 20,000 of the 6-ounce contain?ers,but also ships 30,000 more expensive 8-ounce containers for the same price.Organic rejects the 8-ounce containers.With time for performance not yet expired,Recycle can

Accepted Answer

Recycle Packaging, Inc. can attempt to cure the defect by providing the correct 6-ounce containers before the time for performance expires.

Question 7

Fact Pattern 21-A1 (Questions A9-A10 apply)
Internet Cafés,Inc.,contracts to buy all of its requirements for coffee,at a minimum of 1 million pounds per year,from Java Corporation for six years.After three years,Internet tells Java that it plans to sell its assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract.
-Refer to Fact Pattern 21-A1.Java can

Accepted Answer

Java can terminate the contract and seek damages because Bagel Bistros has refused to assure them that they will continue the contract after Internet Cafés sells its assets. The contract was made between Internet Cafés and Java, and Bagel Bistros has no obligation to continue the contract. Therefore, Java can terminate the contract and seek damages for breach.

Question 8

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks,Inc.,but refuses to deliver.Due to a spice shortage,Roller Rinks cannot obtain pizza elsewhere.Roller Rinks's right to recover the goods from Cheesy is the right of

Accepted Answer

Roller Rinks can sue for replevin, which is the right to recover possession of specific goods unlawfully withheld by another party. This allows them to retrieve the 1,000 cases of frozen pizzas they contracted for from Cheesy Pizza Company, since they cannot obtain the pizzas elsewhere due to the spice shortage. Cover (A) refers to a buyer's right to purchase substitute goods when the seller fails to deliver, where cure (B) refers to a seller's right to remedy a nonconforming delivery. Specific performance (D) refers to a court order requiring a party to fulfill a contractual obligation, which is not applicable in this situation since the goods are not unique or of special value.

Question 9

Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments.Consuelo delivers,but Gabriela does not pay.Consuelo can normally recover as damages

Accepted Answer

As per the UCC Section 2-713, the seller can recover the purchase price plus incidental damages in case the buyer fails to pay for the goods. Incidental damages include expenses incurred due to the buyer's breach of contract, such as expenses incurred in stopping the delivery of goods, transporting the goods to storage, etc. Therefore, option C is the best choice.

Question 10

Richman Manufacturing Company contracts to sell sweaters to Sweet Sweaters store.Before the sweat?ers are delivered,Sweet Sweaters indicates that it will not be able to pay.Richman can

Accepted Answer

Richman can resell the sweaters and recover any damages from Sweet Sweaters as they have breached the contract by indicating that they won't be able to pay. However, they cannot force Sweet Sweaters to accept and pay for the sweaters or require them to find a buyer for the sweaters. Doing nothing would result in a loss for Richman. Therefore, the best choice is to resell the sweaters and recover any damages from Sweet Sweaters.

Question 11

Price-Cut Discount Stores are open to consumers.The UCC requirement of good faith imposes

Accepted Answer

The UCC requirement of good faith imposes a higher duty on merchants than on consumers.

Question 12

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle.Esau cancels the con?tract ten days later.Double D is unable to sell the cattle to another buyer.Double D can

Accepted Answer

When a party breaches a contract, the non-breaching party is entitled to recover damages. In this case, Double D Ranch can recover the contract price from Esau. However, Double D Ranch must hold the cattle for Esau because cattle is a unique product and cannot be easily resold to another buyer. Therefore, choice B is the best option. Choice A is not possible because Double D Ranch cannot force Esau to accept the cattle. Choice C is not possible because Double D Ranch cannot keep the cattle and also recover the contract price. Choice D is not possible because destroying the cattle would be a waste and an unreasonable solution.

Question 13

Amble Country Stables contracts to buy 1,000 horseshoes from Burleigh Blacksmith,Inc.,for $1 per shoe.When the market price decreases to 50 cents per shoe,Amble refuses to go through with the deal.Burleigh can recover

Accepted Answer

Burleigh can recover the difference between the contract price and the market price, which is $500 (1,000 shoes x $0.50 difference per shoe). Therefore, the correct choice is C.

Question 14

Nature's Foods,Inc.,orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers.Olive Grove ships "Grade B" oil,which Nature's Foods accepts.To recover damages for the nonconformity,Nature's Foods must give notice of the breach within a reasonable time to

Accepted Answer

Nature's Foods must give notice of the breach within a reasonable time to Olive Grove, the supplier of the nonconforming goods, to allow them an opportunity to rectify the situation or provide compensation. Pic 'N Pay, the buyer, has no contractual relationship with Olive Grove and is not responsible for the nonconforming goods. The appropriate government agency may be involved if there are legal violations, but is not directly relevant to recovering damages for nonconformity.

Question 15

Field Gardens and Gourmet Restaurant,Inc.,enter into a con?tract for a sale of lettuce.When Field learns that Gourmet is insolvent,Field can stop delivery of the goods in transit

Accepted Answer

Field Gardens can stop the delivery of goods in transit regardless of the quantity if they discover that Gourmet Restaurant is insolvent. The Uniform Commercial Code (UCC) provides that a seller can stop delivery of the goods in transit if the buyer becomes insolvent. This right is not dependent on the quantity of goods, but rather on the buyer's insolvency.

Question 16

Rocky and Slim enter into a contract for a sale of five rowboats.Circumstances make it difficult for Rocky to perform,and the contract is breached.Slim looks for remedies.Unlike the common law,under the UCC,remedies are

Accepted Answer

Under the UCC, remedies are cumulative, meaning that a party can pursue multiple remedies to address a breach of contract, rather than being limited to a single remedy.

Question 17

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

Accepted Answer

In the absence of an agreement specifying the place of delivery, the default rule under the Uniform Commercial Code (UCC) is that delivery occurs at the location where the goods are stored, which in this case is Florida.

Question 18

Screen Perfect,Inc.,and Vibrant View Stores enter into a contract for a sale of 3D HD TVs with certain specifications.Screen Perfect ships TVs that are not 3D but otherwise meet the specifications.Vibrant View

Accepted Answer

Since the TVs do not meet the agreed-upon specifications, Vibrant View can reject the entire shipment. However, if they choose to accept some of the TVs that do meet the specifications, they can negotiate with Screen Perfect for a partial refund or discount.

Question 19

Bayou Boats,Inc.,contracts for the sale of seven swamp boats to Tidal Flats Fishing Tours.Bayou repudiates the contract.Tidal Flats's recovery of damages is measured at the time

Accepted Answer

The recovery of damages is measured at the time when Tidal Flats learned about the breach. This is because the damages are based on the non-breaching party's loss at the time of the breach, which would include any additional costs incurred to secure goods from another source, lost profits, or other related costs.

Question 20

Nash buys a car under a warranty from Rough Ride Motors.Nash soon discovers that the car has a defect that significantly affects its value and use.In all states and the District of Columbia,Nash may have remedies under

Accepted Answer

Lemon laws are designed to provide remedies to consumers who purchase defective vehicles. They vary by state, but generally require the manufacturer or dealer to repair or replace the defective vehicle, or provide a refund. Therefore, Nash may have remedies under a lemon law.

Quiz 21: Performance Breach of Sales Lease Contracts