Question 1

If Mary allows the seller, Sellmart Co., four weeks to repair the defects in her kitchen set and they have tried but have not done a good job at it, she may revoke her acceptance if she:

Accepted Answer

Mary can revoke her acceptance if she notifies Sellmart of the revocation, especially after giving them an opportunity to repair the defects which they failed to do satisfactorily.

Question 2

J & J Co. offers a "subscription" for baby toys to be delivered every two months from the birth of a child. Payment must be made within two weeks of delivery. The Markham family accepted the J & J plan when their son, Timmy, was born. When Timmy was four months old, one J & J toy arrived smashed to pieces. Markham:

Accepted Answer

C is correct because under the Uniform Commercial Code (UCC), which governs sales of goods, a buyer can reject a non-conforming installment if the seller fails to cure it, but this does not necessarily breach the entire contract unless the non-conformity substantially impairs the value of the entire contract.

Question 3

Speedy Stop sells necessities to neighborhood shoppers until 1 a.m. every day. Dairyland delivered its order of milk products as usual around 6 a.m. while Mary, the shopkeeper, was busy with the early coffee and donut crowd. The Dairyland driver left 12 crates in the refrigerator compartment and went on to the rest of his route. At 7:30 a.m., Mary started to shelve the milk products and discovered that all 12 crates contained buttermilk rather than the usual mix of containers of whole milk, 2%, skim milk, and cream she had ordered. What is her obligation with regard to the goods?

Accepted Answer

The answer of Speedy Stop sells necessities to neighborhood shoppers...

Question 4

Although the nonhappening of presupposed conditions may relieve the seller of her contractual duty, if the contingency affects only a part of the seller's capacity to perform, the seller must

Accepted Answer

When a seller cannot fully perform due to the nonhappening of presupposed conditions affecting only part of their capacity, they are generally expected to allocate their limited resources (such as inventory and production capabilities) in a fair and reasonable manner among all their customers. This approach ensures equity and maintains trust in business transactions.

Question 5

a. Distinguish between a rejection of goods and a revocation of acceptance of goods. 
b. What is the effect of a rejection? What is the effect of a revocation? 
c. Does the buyer have any obligations to the seller once she has rejected the goods?

Accepted Answer

The answer of a. Distinguish between a rejection of goods...

Question 6

The CISG:

Accepted Answer

The CISG (United Nations Convention on Contracts for the International Sale of Goods) does not adhere to the perfect tender rule, which is a principle under some domestic laws (like the UCC in the United States) that requires the goods delivered to perfectly match the contract specifications. Instead, the CISG allows for a more flexible approach to conformity of goods, considering whether the non-conformity substantially affects the value of the goods to the buyer.

Question 7

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may:

Accepted Answer

The aggrieved party may suspend their own performance when there is an anticipatory repudiation that substantially impairs the value of the contract. This allows them to avoid further obligations under the contract until the issue is resolved.

Question 8

Bill orders a custom-made suit from Rooks to be delivered by Friday at 5 p.m. When the suit is delivered to his office on Friday afternoon, he is in conference with a client. He accepts delivery and hangs the suit in his closet. When Bill tries on the suit Saturday evening, he discovers that the pants are cuffed. He had ordered cuffless trousers. What can he do?

Accepted Answer

Bill can revoke acceptance if the nonconformity (the cuffs) substantially impairs the value of the suit to him and if Rooks refuses to correct the issue. Acceptance can be revoked under the Uniform Commercial Code if the goods fail in some substantial way to conform to the contract and the buyer did not discover the non-conformity before acceptance, or if it was difficult to discover or was assured it would be corrected.

Question 9

Ryan is interested in purchasing two dozen L.E.D. signs from Superior Sign Co. If the signs are damaged:

Accepted Answer

The answer of Ryan is interested in purchasing two dozen...

Question 10

Which of the following is correct with respect to the Code's approach to impossibility of performance?

Accepted Answer

The correct approach to impossibility of performance, as outlined in the Uniform Commercial Code (UCC), is that performance can be excused when it becomes impractical due to unforeseen supervening events that go beyond mere hardship or increased costs. This recognizes that certain extreme and unexpected circumstances can disrupt contractual obligations in a way that could not have been anticipated at the time the contract was made.

Question 11

Goods are to be sent from Buffalo, NY to Raleigh, NC by UPS using the delivery terms F.O.B. Buffalo, NY. Where does tender occur?

Accepted Answer

F.O.B. (Free On Board) Buffalo, NY means that the seller fulfills their obligation to deliver when the goods have been placed on board the transport (in this case, UPS) at the specified location, which is Buffalo, NY. Tender occurs where the goods are shipped from, not where they are identified, delivered, or taken by the buyer.

Question 12

Seller, through no fault of its own, is unable to deliver the goods to buyer because the agreed type of carrier is unavailable. Explain what the Code requires.

Accepted Answer

The answer of Seller, through no fault of its own,...

Question 13

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

Accepted Answer

Acceptance of goods is deemed to occur if the buyer fails to reject the goods after having a reasonable opportunity to inspect them, indicating that the goods are satisfactory or at least acceptable for the purposes of the contract. Immediate delivery, payment, or express acceptance are not necessary conditions for the acceptance of goods under many legal frameworks.

Question 14

Which of the following terms would indicate a destination contract?

Accepted Answer

A destination contract is indicated by terms that specify delivery to the buyer's location or a specific destination, hence "F.O.B. city of buyer" means the seller is responsible for the goods until they reach the buyer's city, fitting the definition of a destination contract.

Question 15

The court in Furlong v. Alpha Chi Omega Sorority held that:

Accepted Answer

The court held that the design specifications were part of the basis of the bargain, thus constituting an express warranty.

Question 16

Which of the following is a shipment contract?

Accepted Answer

In a shipment contract, the seller is required to send the goods to a carrier and make a reasonable contract for their transportation. The risk of loss passes to the buyer when the goods are duly delivered to the carrier. "F.O.B. (free on board) place of shipment" indicates that the seller fulfills their obligation once the goods are placed on board the ship at the specified location, making it a shipment contract.

Question 17

A manifestation by the buyer of his unwillingness to become the owner of the goods is:

Accepted Answer

Rejection is the correct term for a manifestation by the buyer of his unwillingness to become the owner of the goods, indicating that the buyer refuses to accept the goods.

Question 18

Under the __________, a buyer may reject goods for even the slightest defect.

Accepted Answer

The perfect tender rule allows a buyer to reject goods if they do not meet all the contract specifications, even for minor defects.

Question 19

Which of the following is NOT an option for the buyer if a shipment of goods fails in any respect to conform to the contract?

Accepted Answer

Under the Uniform Commercial Code (UCC), which governs sales of goods in the United States, a buyer has several options if goods fail to conform to the contract, including accepting the whole shipment, accepting any commercial units and rejecting the rest, or rejecting the whole shipment. However, the buyer does not have the unilateral right to destroy the whole shipment and demand a replacement. This action would not be considered a standard remedy under the UCC.

Question 20

Vernon is an accountant for a major accounting firm. One day at work, he is discussing his collection of rare coins with one of his co-workers. Vernon tells his co-worker that he keeps his collection at home and that he has recently purchased several Chinese gold Panda coins at an exceptional price. The co-worker expresses an interest in buying two of the coins at a price of $250, and a contract is duly formed. If no place for delivery is expressed, where are the coins to be delivered?

Accepted Answer

Under the Uniform Commercial Code (UCC), when a contract for the sale of goods does not specify a place of delivery, the default location is the seller's place of business. If the seller does not have a place of business, or the transaction is not related to the business, the goods are to be delivered from the seller's residence. Since Vernon's sale of coins is a personal transaction not related to his accounting firm, and no other place of delivery is specified, the default delivery location is Vernon's home.

Quiz 20: Performance