Question 1

Which statement is correct regarding the UCC and norms in the industry?

Accepted Answer

The Uniform Commercial Code (UCC) generally requires courts to consider the norms and practices within a particular trade or industry when interpreting and applying the provisions of the UCC. This helps ensure that commercial transactions are interpreted in light of the actual practices and expectations of the parties involved in that specific sector.

Question 2

In reference to the case in the text DeJesus v Cat Auto Tech. Corp., what was the effect of the defendant's payment for goods without inspection on the day of delivery, when the delivery was approximately two weeks after the time called for by the contract?

Accepted Answer

Accepting and paying for the goods without inspection effectively waived the specific performance provisions regarding the timing of delivery, indicating acceptance of the late delivery as fulfilling the contract terms.

Question 3

Which of the following did the appellate court recognize in SCM Group, U.S.A., Inc., v. Custom Designs & Manufacturing Co., Inc., the case in the text in which the plaintiff sued the defendant after the defendant refused to pay for equipment?

Accepted Answer

The answer of Which of the following did the appellate...

Question 4

Victor, a major supplier of computers is selling computers to Liken, a buyer for a large chain store. Under the UCC, Victor is required to tender ________ goods to Liken.

Accepted Answer

Under the Uniform Commercial Code (UCC), a seller is required to tender goods that conform to the contract specifications. "Conforming" goods are those that meet the quality, quantity, and description criteria agreed upon in the contract.

Question 5

Which statement is correct regarding any right of inspection for lessees?

Accepted Answer

The Uniform Commercial Code (UCC) does provide for a right of inspection for lessees, allowing them to inspect leased goods to ensure they conform to the lease agreement before accepting them. This right is not limited to specific circumstances or types of goods.

Question 6

Which statement is correct regarding any right of inspection for buyers?

Accepted Answer

The Uniform Commercial Code (UCC) generally provides buyers with a right of inspection before payment is due for the goods. This allows buyers to ensure that the goods meet the contract specifications.

Question 7

Usage of trade is defined by the UCC ________

Accepted Answer

Usage of trade under the Uniform Commercial Code (UCC) refers to any practice or method of dealing that has such regularity of observance in a place, vocation, or trade as to justify an expectation that it will be observed with respect to the transaction in question. This definition aligns with choice A, which emphasizes practices expected to be part of industry dealings.

Question 8

The UCC defines course of dealing as ________

Accepted Answer

The UCC (Uniform Commercial Code) defines "course of dealing" as the sequence of previous commercial transactions between the same parties that establishes a common basis for understanding how they are to perform under a particular agreement. This concept helps in interpreting the terms of a contract and the parties' intentions.

Question 9

________, under the UCC, refers to the history of dealings between the parties in the particular contract at issue.

Accepted Answer

The answer of ________, under the UCC, refers to the...

Question 10

How does the position of the UCC compare with the common law in regard to the perfect tender rule?

Accepted Answer

The UCC requires perfect tender in the sale of goods, meaning goods delivered must exactly meet the terms of the contract. Common law, applied in service and real estate contracts, allows for substantial performance, which is a slightly lesser standard where minor deviations from the contract terms may be acceptable if the essential purpose of the contract is met.

Question 11

Under the UCC, ________ requires that the seller/lessor have and hold conforming goods at the disposal of the buyer/lessee and give the buyer/lessee reasonable notification to enable him or her to take delivery.

Accepted Answer

Tender of delivery under the Uniform Commercial Code (UCC) involves the seller or lessor having conforming goods available for the buyer or lessee and providing reasonable notification to allow the buyer or lessee to take delivery. This is a fundamental obligation in sales and lease contracts governed by the UCC.

Question 12

A common law rule known as the ________ requires that the seller deliver goods in conformity with the terms of the contract, down to the last detail.

Accepted Answer

The "Perfect Tender Rule" is the correct term. It mandates that the goods delivered must exactly meet the contract specifications. If they do not, the buyer has the right to reject the goods.

Question 13

Which of the following are goods that conform to contract specifications?

Accepted Answer

Conforming goods are those that meet the specifications and requirements outlined in a contract.

Question 14

Substantial performance occurs ________

Accepted Answer

Substantial performance occurs when all the material elements of a contract are satisfied, even if some nonmaterial requirements may not be satisfied. This means the essential duties have been performed but there may be minor issues that don't necessarily void the contract's validity.

Question 15

Sellers and lessors can repair, adjust, or replaced defective or nonconforming goods as long as they give ________.

Accepted Answer

Prompt notice is required to be given to the buyer or lessee of any defect or nonconformity in the goods.

Question 16

What was the result on appeal in the case in the text Alaska Pacific Trading Co. v. Eagon Forest Products Inc. in which the defendant rejected a shipment of logs, and the plaintiff/seller claimed that its late shipment was excused because the contract did not specify that time was of the essence?

Accepted Answer

CThe correct answers are based on the principles of contract law. In this case, the seller's failure to ship the logs in a timely manner did not meet the perfect tender rule, which requires the seller to deliver the goods exactly as contracted. Since the contract did not specify that time was of the essence, the seller might argue that the delay was not a material breach. However, the court found that the seller did not substantially perform according to the contract's terms, thereby releasing the buyer from its obligation to accept the logs. This indicates that both the perfect tender rule and the doctrine of material breach were considered, but ultimately, the seller's failure to perform as per the contract's terms led to the buyer being released from their duty to accept the logs.

Question 17

Sellers and lessors have the right to ________ problems with nonconforming goods, under sections of the UCC.

Accepted Answer

Under the Uniform Commercial Code (UCC), sellers and lessors have the right to cure or fix problems with nonconforming goods, allowing them to attempt to correct any issues that do not meet the contract specifications before being considered in breach of the contract.

Question 18

If goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer or lessee, under the UCC what is the result?

Accepted Answer

Under the Uniform Commercial Code (UCC), if the identified goods are destroyed before the risk passes to the buyer or lessee and this occurs without the fault of either party, the contract is voided and both parties are excused from performance. This is because the specific goods that were the subject of the contract are no longer available to fulfill the contract's terms.

Question 19

Which of the following is false regarding the perfect tender rule?

Accepted Answer

The perfect tender rule, under the Uniform Commercial Code (UCC), requires that goods delivered must exactly meet the terms of the contract in every detail. If they do not, the buyer has the right to reject the goods. This rule does not allow for the satisfaction of only material elements while overlooking nonmaterial elements.

Question 20

Which of the following states that when a contract for sale involves repeated occasions for performance by either party with the other's knowledge of the nature of the performance and opportunity for objection to it, any course of performance accepted or acquiesced to without objection is relevant to determine what the parties' agreement means?

Accepted Answer

The correct answer is E) Course of performance. This principle states that in a contract where there are repeated occasions for performance, the way in which the parties perform without objection from the other party can be used to interpret the meaning of the contract. This is because the repeated and accepted manner of performance can shed light on what the parties intended the contract terms to mean.

Quiz 23: Performance and Obligations Under Sales and Leases