Question 1

Under the "perfect tender rule" the buyer may reject the goods if they fail in any respect to conform to the contract.

Accepted Answer

The perfect tender rule allows the buyer to reject the goods if they do not conform to the contract in any respect.

Question 2

If a buyer does not receive goods by the contract deadline,remedies available include:

Accepted Answer

If a buyer does not receive goods by the contract deadline, there are several remedies available, including incidental and consequential damages, cover, and damages for non-delivery. Incidental and consequential damages are damages that are incurred as a result of the seller's breach, such as lost profits or costs incurred to cover the shortfall. Cover refers to the situation where the buyer purchases substitute goods at a higher price due to the seller's breach, and then seeks damages for the difference in cost. Damages for non-delivery are the actual damages incurred by the buyer as a result of the seller's breach. All of these remedies may be available depending on the specific circumstances of the breach.

Question 3

The common law requirement that the seller make a tender of delivery that conforms in all respects to the contract requirements was retained by drafters of the UCC,although the Code includes sections that limit the rule's effect.

Accepted Answer

The statement is true. The UCC retains the common law requirement of a conforming tender of delivery, but also has provisions that limit the strict application of the rule in certain circumstances.

Question 4

If Chuck buys frozen cheese from Cheese Inc.,then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment,Chuck has accepted the shipment even if there is non-conformity.

Accepted Answer

According to the Uniform Commercial Code, if the buyer fails to inspect the goods within a reasonable time after their arrival and does not reject them, then the buyer is deemed to have accepted them, even if there is non-conformity.

Question 5

In some industries it is a routine practice to draft contracts permitting imperfection in the seller's goods,thereby limiting the effect of the perfect tender rule by the parties' agreement.

Accepted Answer

This statement is true. Parties can agree to limit the perfect tender rule by including clauses in contracts permitting imperfections in the seller's goods. This is typically done in industries where minor defects or variations are expected, such as the agricultural or construction industries.

Question 6

A buyer's material breach gives the seller the right to refuse to deliver the goods.

Accepted Answer

According to the Uniform Commercial Code (UCC), if a buyer commits a material breach of the contract, the seller has the right to withhold delivery of the goods.

Question 7

Matson agrees to purchase 500 wooden chairs from Woodcarvers,Inc.After Woodcarvers sets the chairs aside in its warehouse,but before the risk of loss passes to Matson,the chairs are destroyed in a fire,which was not the fault of Woodcarvers.The contract between Matson and Woodcarvers is void.

Accepted Answer

The answer of Matson agrees to purchase 500 wooden chairs...

Question 8

A buyer has an absolute right to reject goods as long as the rejection is timely.

Accepted Answer

The answer of A buyer has an absolute right to...

Question 9

Meister Bros.shipped 250 radiator belts to fill Braybon's order.Quality control measures had been in place in Meister's factory when the belts were manufactured.When Braybon received the order one day before it was due,it notified Meister that it rejected the belts because of a variation from the contract specifications.Meister,although it believed the original belts met the contract specifications,notified Braybon that it would supply conforming goods within one week.When the conforming goods arrive in one week:

Accepted Answer

Under UCC, the seller has the right to cure if the non-conforming goods have been rejected by the buyer. Meister Bros. notified Braybon that it would supply conforming goods within one week, which means Meister has the right to cure. Therefore, Braybon should accept the conforming goods when they arrive.

Question 10

Liquidated damages are not permitted under the UCC.

Accepted Answer

Liquidated damages are permitted under the UCC as long as they are not deemed to be a penalty. The UCC allows parties to agree to a reasonable estimate of damages in the event of a breach of contract.

Question 11

A homeowner has a contract with a firewood supplier to bring a rick of hardwood at the beginning of each month from October through March.If the supplier has brought a mixture of hard and soft woods for the first three deliveries,the homeowner cannot reject a delivery in January just because it includes some soft wood.

Accepted Answer

The contract specifies that the supplier will bring a rick of hardwood at the beginning of each month from October through March, but does not specify that it must be only hard wood. Therefore, even if the first three deliveries included some soft wood, the homeowner cannot reject a delivery in January just because it includes some soft wood.

Question 12

In the Zion Temple First Pentecostal Church of Cincinnati,Ohio,Inc.v.Brighter Day Bookstore & Gifts case,the court found that,because of an error in the catalog,there was no right to cure a nonconformity with the sleeves of the robes.

Accepted Answer

The court, in fact, found that the defendant had a right to cure the nonconformity with the sleeves of the robes, despite an error in the catalog.

Question 13

Tender means to physically deliver the goods to the buyer.

Accepted Answer

Tender refers to the process of inviting bids or offers from potential suppliers. It does not involve physical delivery of goods to the buyer.

Question 14

The duties of the buyer include all of the following except:

Accepted Answer

The duty of delivering the documents of sale to the seller as a tender of goods falls under the seller's responsibility, not the buyer's. Therefore, Option C is the correct answer. All other options are duties of the buyer in a sales transaction.

Question 15

Under the UCC,the seller's right to correct a shipment of non-conforming goods is called:

Accepted Answer

The UCC provides the seller with the right to cure or correct a shipment of non-conforming goods within a reasonable time after delivery. This is known as the "right to cure." Therefore, option B is the correct answer. Option A is not correct because "correction" is not a term used in the UCC. Option C refers to the buyer's right to purchase substitute goods if the seller fails to deliver conforming goods, while option D refers to the seller's right to offer replacement goods if the buyer rejects the original shipment.

Question 16

A buyer who accepts nonconforming goods may revoke the acceptance under limited circumstances.

Accepted Answer

According to the UCC (Uniform Commercial Code), a buyer who has accepted nonconforming goods may revoke acceptance if the nonconformity substantially impairs the value of the goods and the revocation occurs within a reasonable time after the buyer discovers or should have discovered the nonconformity.

Question 17

A seller may not make repairs or adjustments after the goods have been tendered,even if that action will bring the goods into conformity in order to "cure" nonconforming goods.

Accepted Answer

Under the Uniform Commercial Code (UCC), a seller is allowed to make repairs or adjustments after the goods have been tendered if such actions will bring the goods into conformity. This is known as the right to cure nonconforming goods.

Question 18

Bryson Hardware accepted delivery of the 50 door handles it ordered.If it later finds the handles do not conform to the contract specifications,it may return the goods only if:

Accepted Answer

Bryson Hardware can return the goods if it shows that the defects substantially impair their value, as this is a standard requirement for rejecting goods under the Uniform Commercial Code (UCC) when they do not conform to the contract specifications.

Question 19

"Course of dealing" refers to prior commercial transactions between the same parties.

Accepted Answer

Course of dealing refers to prior commercial transactions between the same parties.

Question 20

Wimble ordered 1,000 pro-quality luminescent orange tennis balls from Sports Unlimited at a cost of $800.On June 1,Sports Unlimited shipped standard white tennis balls,but Wimble rejected them.Wimble bought the same number of pro-quality luminescent orange balls from another supplier the same day for $650.In a suit against Sports Unlimited,Wimble may recover $800.

Accepted Answer

Wimble cannot recover the full $800 as they did receive some product (the white tennis balls). However, they may be entitled to some amount of compensation for the cost of purchasing the replacement luminescent orange tennis balls from another supplier.

Quiz 23: Performance And Remedies