Question 1

Merchants have the duty to act in a commercially reasonable manner with respect to any sales contract.

Accepted Answer

Merchants are expected to act in a commercially reasonable manner under the Uniform Commercial Code (UCC), which governs sales contracts and commercial transactions in the United States. This includes fulfilling their obligations and duties in a way that aligns with industry standards and practices.

Question 2

Merchants have the duty to act in a commercially strict manner.

Accepted Answer

Merchants have the duty to act in a commercially reasonable manner, not strictly. This means they must act in good faith and in accordance with fair commercial standards.

Question 3

Usage of trade refers to any general practice or method of performance that is specific to a particular trade or industry used to define expectations of the parties engaged in specific transactions that are common in the industry.

Accepted Answer

Usage of trade refers to the regular practices and methods that are widely accepted and used within a specific industry or trade to help define the expectations and obligations of parties involved in transactions within that industry.

Question 4

Course of performance refers to how the parties acted in past contracts instead of the specific contract in question.

Accepted Answer

Course of performance refers to how the parties have acted under the specific contract in question, indicating their interpretation and understanding of the contract terms.

Question 5

Absent any specific agreement between the parties to the contrary, the UCC uses a general reasonableness requirement to govern the delivery process.

Accepted Answer

The Uniform Commercial Code (UCC) generally applies a standard of reasonableness to various aspects of commercial transactions, including the delivery process, when no specific agreement on the matter exists between the parties involved.

Question 6

The perfect tender rule states that a seller must tender the goods in a manner that matches the contract terms in every respect.

Accepted Answer

The perfect tender rule requires that the goods delivered must exactly meet the terms of the contract without deviation.

Question 7

If the seller has delivered goods and the buyer rejects them under the perfect tender rule, the seller has the right to repair or replace the rejected goods so long as the time period for performance has not started.

Accepted Answer

Under the perfect tender rule, the seller has the right to repair or replace rejected goods only if the time for performance has not expired; if the period for performance has started, the seller can still attempt to cure defects if there is time remaining within the original performance period.

Question 8

Some UCC rules are different for performance of sales contracts compared with contracts formed under __________ law.

Accepted Answer

The Uniform Commercial Code (UCC) rules differ for the performance of sales contracts compared with contracts formed under common law, which is the body of law derived from judicial decisions rather than statutes.

Question 9

The UCC provides the parties with __________ flexibility in how they carry out their obligations.

Accepted Answer

The Uniform Commercial Code (UCC) is designed to provide maximum flexibility to parties in commercial transactions, allowing them to structure their agreements as they see fit, as long as they do not violate any specific provisions of the UCC.

Question 10

Both industry standards and how the parties have performed in past dealings play an important role in determining the:

Accepted Answer

Industry standards and past dealings between the parties are considered when determining the obligations and rights of both parties in a contract or agreement. This encompasses both the buyer's and the seller's obligations and rights, making option C the most comprehensive and accurate choice.

Question 11

Good faith is defined in the UCC as "honesty in __________ in the conduct or transaction concerned."

Accepted Answer

The UCC defines good faith as "honesty in fact" in the conduct or transaction concerned.

Question 12

__________ have a greater duty to act in a commercially reasonable manner.

Accepted Answer

Merchants have a greater duty to act in a commercially reasonable manner due to their expertise and experience in their specific fields of business. This standard is part of the Uniform Commercial Code (UCC), which governs commercial transactions in the United States.

Question 13

In Sons of Thunder v. Borden, the New Jersey Supreme Court held that a buyer breached the duty of good faith by:

Accepted Answer

In Sons of Thunder v. Borden, the New Jersey Supreme Court found that the buyer breached the duty of good faith by willfully trying to circumvent its contractual obligations to a seller that had made a significant investment to carry out its obligations. This case emphasizes the importance of acting in good faith in the performance and enforcement of contracts.

Question 14

Terminology used by the parties in commercial transactions may have more than one meaning that varies from industry to industry or __________.

Accepted Answer

The correct answer is D: region to region. Different regions may have different meanings for the same terminology used in commercial transactions.

Question 15

The course of performance is a method to show what the __________ intended through their own actions in performing the specific contract in question.

Accepted Answer

The course of performance refers to how the parties involved in a contract have acted or behaved during the execution of that contract, which can help interpret their intentions or the contract's terms. It specifically relates to the actions of the parties in the contract, not just buyers, third parties, or business owners alone.

Question 16

What may be a method to show what the parties intended through their own actions in performing the specific contract in question?

Accepted Answer

Course of performance refers to how the parties to a specific contract have acted or behaved in the performance of that particular contract, which can be used to interpret or clarify the contract's terms and the parties' intentions.

Question 17

Usage of trade means:

Accepted Answer

Usage of trade refers to the observance of industry-specific standards and practices that are unique to a particular industry, guiding how business is conducted within that industry.

Question 18

__________ refers to any general practice or method of performance that is specific to a particular trade or industry

Accepted Answer

Usage of trade 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. It is specific to a particular trade or industry, indicating common practices or norms within that field.

Question 19

Trade usage, course of performance, and course of dealing may be used to supplement the express terms of a contract although not admissible to

Accepted Answer

Trade usage, course of performance, and course of dealing can be used to help interpret or add context to a contract, but they cannot be used to contradict its express terms.

Question 20

__________ is similar to course of performance in that both refer to patterns of performance by the parties.

Accepted Answer

Course of dealing refers to the conduct between parties in previous transactions and agreements, establishing a common basis for understanding their conduct in the current transaction, similar to course of performance which looks at how parties have acted in the performance of the current contract.

Quiz 15: Performance and Cure in Sales Contracts