Question 1

Under the perfect tender rule, a buyer or lessee has the right to insist on goods that conform to their contract in every detail.

Accepted Answer

The perfect tender rule allows a buyer or lessee to reject goods if they do not conform exactly to the specifications of the contract, emphasizing the seller's obligation to deliver goods that match the contract terms in every detail.

Question 2

Commercial impracticability arises only when the parties-at the time the contract was made-had reason to foresee a certain event that could make performance "impracticable."

Accepted Answer

Commercial impracticability can arise even when the parties had no reason to foresee a certain event at the time the contract was made, making performance impracticable due to unforeseen circumstances.

Question 3

Tender can occur at any hour-for example, 2 A.M.-and in any manner-such as by a phone call to the buyer, allowing "fifteen minutes to pick up the goods."

Accepted Answer

False

Question 4

If a seller fails to deliver conforming goods, the measure of recovery in the buyer's suit for damages is the difference between the contract price and the market price at the place of delivery at the time the buyer learns of the breach.

Accepted Answer

This statement is consistent with the principles outlined in the Uniform Commercial Code (UCC) regarding remedies for breach of contract in a sale of goods. The measure of damages for non-delivery or repudiation by the seller is indeed the difference between the market price at the time the buyer learned of the breach and the contract price, along with any incidental and consequential damages, minus expenses saved as a result of the seller's breach.

Question 5

A buyer will be deemed to have accepted delivered goods if, after a reasonable opportunity to inspect the goods, the buyer does not reject them.

Accepted Answer

Under the Uniform Commercial Code (UCC), a buyer is considered to have accepted goods if they fail to reject them after having a reasonable opportunity to inspect the goods and determine if they conform to the contract.

Question 6

If a buyer rightfully rejects nonconforming goods, he or she can resell them and retain the proceeds, without crediting the amount to the seller.

Accepted Answer

Under the Uniform Commercial Code (UCC), if a buyer rightfully rejects nonconforming goods, they must account for any proceeds if they resell the goods, typically by crediting the amount to the seller or deducting it from any damages sought.

Question 7

If a buyer wrongfully refuses to accept the goods, the seller can bring an action for damages equal to the difference between the contract and market prices at the time and place of tender.

Accepted Answer

Under the Uniform Commercial Code (UCC), when a buyer wrongfully refuses to accept and pay for goods, the seller may recover damages equal to the difference between the contract price and the market price at the time and place of tender, along with any incidental damages.

Question 8

If a party to a contract has reasonable grounds to believe that the other party will not perform, he or she can demand in writing assurance of performance.

Accepted Answer

Under the Uniform Commercial Code (UCC) and general contract law principles, if one party to a contract has reasonable grounds for insecurity regarding the other party's performance, they may in writing demand adequate assurance of due performance and until they receive such assurance, may if commercially reasonable suspend any performance for which they have not already received the agreed return.

Question 9

If a buyer wrongfully refuses to pay for goods, the seller can reclaim them and resell them, without crediting the sale proceeds to the buyer.

Accepted Answer

If a buyer wrongfully refuses to pay for goods, the seller can reclaim and resell them, but they must credit the sale proceeds to the buyer's account, minus any damages or costs incurred.

Question 10

If, before the time for contract performance, one party communicates an intent not to perform, the other party can only wait to see if the repudiating party will decide to perform.

Accepted Answer

When one party communicates an intent not to perform before the time for contract performance, the other party can treat the repudiation as a breach and may seek remedies without waiting to see if the repudiating party decides to perform.

Question 11

When the time for performance under a contract expires, the right to cure also expires.

Accepted Answer

The right to cure under a contract may still be available even after the time for performance has expired, depending on the terms of the contract and applicable law, which may allow a party to correct a failure to perform within a reasonable time.

Question 12

A seller who tenders nonconforming goods with a price allowance has reasonable grounds to believe that the buyer will accept the tender.

Accepted Answer

Under the Uniform Commercial Code (UCC), if a seller tenders goods that are nonconforming but offers a price allowance (discount) to compensate for the nonconformity, it is generally considered that the seller has reasonable grounds to believe the buyer will accept the tender. This is because the price allowance may make the nonconforming goods acceptable to the buyer despite the nonconformity.

Question 13

Under the UCC, good faith can never be disclaimed.

Accepted Answer

Under the Uniform Commercial Code (UCC), while the obligation of good faith cannot be disclaimed, parties can define the standards by which the performance of the obligation is to be measured, provided that such standards are not manifestly unreasonable.

Question 14

If a breach occurs when the seller still possesses identified goods, the seller must nevertheless deliver the goods to pursue a remedy.

Accepted Answer

Under the Uniform Commercial Code (UCC), if a breach occurs and the seller still possesses the goods, they are not obligated to deliver the goods to pursue a remedy. Instead, they have several options, including withholding delivery, reselling the goods, or canceling the contract.

Question 15

The obligation of commercial reasonableness underlies every sales and lease contract.

Accepted Answer

Under the Uniform Commercial Code (UCC), the obligation of commercial reasonableness applies to various aspects of sales and lease contracts, including the performance and enforcement of these contracts, to ensure fairness and efficiency in commercial transactions.

Question 16

If a seller fails to deliver the goods, the buyer can purchase other goods to substitute for those due under the contract, but cannot then sue for consequential damages.

Accepted Answer

The buyer can indeed purchase substitute goods (cover) and also sue for consequential damages resulting from the seller's breach, provided these damages were foreseeable at the time the contract was made.

Question 17

If contracting parties agree that defective goods will not be rejected if the seller or lessor can repair or replace them within a reasonable period of time, the perfect tender rule does not apply.

Accepted Answer

The perfect tender rule, which requires goods to conform exactly to the contract specifications, can be modified or waived by agreement between the parties. If they agree that defective goods can be repaired or replaced within a reasonable time, they are essentially agreeing to waive the strict application of the perfect tender rule.

Question 18

Any use of delivered goods by the buyer-even for the limited purpose of testing them-constitutes acceptance.

Accepted Answer

Acceptance of goods typically requires that the buyer has had a reasonable opportunity to inspect the goods and has either explicitly or implicitly indicated that the goods are as expected. Merely testing the goods to ascertain if they conform to the contract does not necessarily constitute acceptance.

Question 19

Under the UCC, because a contract for the sale of six display counters does not designate where the goods will be delivered, the place of delivery is the buyer's place of business.

Accepted Answer

The answer of Under the UCC, because a contract for...

Question 20

Under shipment contract for the sale of a certain quantity of solar panels, the seller is required to deliver conforming goods at a particular destination.

Accepted Answer

Under a shipment contract, the seller is required to deliver the goods to a carrier for transportation to the buyer, not necessarily to a particular destination. The responsibility of the seller ends upon handing over the goods to the carrier.

Quiz 22: Performance and Breachapter of Sales and Lease Contracts