Question 1

Under the doctrine of commercial impracticability,which situation would NOT excuse the seller's performance?

Accepted Answer

Forgetting to include the cost of freight in a contract is a mistake on the part of the seller and does not fall under the doctrine of commercial impracticability. The other situations listed involve unforeseen events that make it impossible or impractical for the seller to deliver as agreed upon, which could potentially excuse their performance under the doctrine.

Question 2

If a contract does not provide for a time for inspection,the UCC allows inspection to take place

Accepted Answer

Under the UCC, if a contract does not provide for a time for inspection, inspection must take place within a reasonable time. What is considered a reasonable time will depend on the circumstances of the particular transaction.

Question 3

If a seller cures within a reasonable amount of time,the contract

Accepted Answer

If the seller cures a breach of contract within a reasonable amount of time, it means they have fulfilled their obligations under the contract and the contract has been completed or performed as intended. The buyer cannot claim a breach of contract and has to accept the cure.

Question 4

Reba orders a pair of custom-made cowboy boots,C.O.D.from Home on the Range Western Wear.When the boots arrive,Reba pays the carrier for the boots,then opens the package,only to discover that the boots are the wrong snake skin color and three sizes too big.At this point

Accepted Answer

According to the C.O.D. terms, Reba is entitled to inspect the goods after payment. Since the boots are nonconforming, she can reject them and request a refund or replacement.

Question 5

Which is an example of a repudiation?

Accepted Answer

Repudiation refers to the rejection or revocation of a contract or agreement before it is completed. In option C, Max places an order for custom-made shirts but changes his mind and rejects the agreement within a few hours, thus constituting repudiation. The other options involve issues such as late delivery, negotiation on price, and disagreement on product quality. They do not involve repudiation.

Question 6

What is the difference between incidental damages and consequential damages?

Accepted Answer

The answer of What is the difference between incidental damages...

Question 7

A buyer who is unable to obtain cover

Accepted Answer

Specific performance may be granted when goods are unique or in other proper circumstances, allowing the buyer to obtain the contracted goods despite the seller's breach.

Question 8

Turtle World orders 200 small sea turtles from Reptile World.After the sea turtles had been identified to the contract but before the risk of loss had passed to Turtle World,the turtles were released into the ocean by a militant animal rights group who broke into Reptile World to set the animals free.Under this scenario

Accepted Answer

The answer of Turtle World orders 200 small sea turtles...

Question 9

A baseball team ordered 500 wooden baseball bats from Bats,Inc. ,for delivery on June 1.On May 15,the ball team received 500 aluminum bats instead of the wooden ones.As of May 16,Bats,Inc.

Accepted Answer

Bats, Inc. may cure the mistake by delivering the correct wooden bats before the original delivery date of June 1, as the incorrect delivery was made before the agreed-upon delivery date.

Question 10

Which of the following statements is NOT TRUE regarding the buyer's right to cover?

Accepted Answer

The buyer is not obligated to cover but has the option to do so under the Uniform Commercial Code (UCC) when the seller breaches the contract. Covering is a remedy that allows the buyer to purchase substitute goods, but it is not a mandatory action.

Question 11

Master Glue Hairspray,Inc.contracts to purchase 100 umbrellas with its logo and slogan,"A spray a day keeps the rain and wind away!" specially printed on the umbrellas and its 1-800 telephone number on the umbrella handle.After the seller completes the order,Master Glue refuses to accept or pay for the umbrellas.Because of the special logo and telephone number,the seller has been unable to find a new buyer.If the seller sues Master Glue,what is the proper measure of the seller's damages?

Accepted Answer

The proper measure of the seller's damages is the contract price because the goods were specially made and cannot be sold to others due to their customization.

Question 12

Buyer Bob breaches his contract for the sale of goods with Seller Suzie.Suzie still has possession of the goods at the time of the breach.Suzie can refuse to deliver the goods and

Accepted Answer

Under the UCC §2-706, when a buyer breaches a contract for the sale of goods, and the seller still has possession of the goods, the seller may resell the goods and recover the difference between the resale price and the contract price, plus incidental damages and less expenses saved (Option C). The seller may also sue the buyer for any damages suffered, including any loss on the resale, and incidental damages, such as expenses incurred in stopping delivery, shipping, etc. Option A is incorrect because the seller cannot both resell the goods and sue the buyer for the total contract price. Option B is incorrect because the seller can do both. Option D is incorrect because the seller can also sue for any loss on the sale, not merely incidental damages.

Question 13

Family Time Restaurant has a contract with Prime Meats for Prime to deliver 100 pounds of ground sirloin twice a week for the next three months.If,on one delivery,Prime brings 95 pounds of ground chuck instead of 100 pounds of ground sirloin,

Accepted Answer

According to the perfect tender rule, the seller must deliver goods that conform to the contract in every way. However, if there is a non-conforming installment, the buyer may only reject it if it substantially impairs the value of that installment and cannot be cured. In this case, Family Time may reject the non-conforming installment, but only if it substantially impairs the value of that installment and cannot be cured. Prime may have the right to cure the non-conformity by delivering the correct goods in the next delivery. Therefore, option B is the best choice.

Question 14

A buyer who accepts goods but notifies the seller the goods are non-conforming

Accepted Answer

If a buyer accepts goods but discovers they are non-conforming, they can still recover damages, including the difference between the goods as promised and as delivered, as well as incidental and consequential damages. The fact that the buyer accepted the goods does not necessarily waive all rights to recover damages.

Question 15

A buyer may revoke an acceptance of goods if

Accepted Answer

A buyer may revoke acceptance if they had a legitimate reason for the initial acceptance, such as believing the seller would cure the nonconformity.

Question 16

Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each.If the first installment arrives with 5 pounds of spoilage,then Dessert World may

Accepted Answer

Dessert World cannot reject the shipment under the perfect tender rule because a small percentage of spoilage is expected in the food industry for fresh fruits and vegetables. They can only reject the installment if the amount of spoilage is excessive or if it collapses the purpose of the contract.

Question 17

If applicable,course of dealing will

Accepted Answer

Course of dealing refers to the previous interactions or transactions between the buyer and seller. If there has been a consistent pattern of accepting goods with certain defects or issues, the buyer may be limited in their right to reject for those same issues in the future.

B, C, and D are not accurate explanations of the concept of course of dealing.

Question 18

Under which circumstances has the buyer accepted goods?

Accepted Answer

Peter's action of selling half of the toy soldiers indicates that he has accepted the goods by acting in a manner that acknowledges ownership.

Question 19

A court order requiring the seller to perform as promised is called

Accepted Answer

A court order requiring the seller to perform as promised is referred to as specific performance. This is a legal remedy in which a court orders a party to carry out a specific action that was promised under a contract. It is typically used when monetary compensation cannot adequately resolve the issue at hand.

Question 20

Neon orders one thousand 25-foot nylon ropes from Hang'em High Co.Upon inspection of the delivery,Neon learns that Hang'em sent five hundred 25-foot ropes and five hundred 20-foot ropes.Neon may

Accepted Answer

Neon can choose to accept the 500 conforming ropes and reject the 500 nonconforming ropes. This is in accordance with the perfect tender rule, which requires that goods delivered must be exactly the goods ordered. It is up to Neon whether they want to seek a substitute product or demand additional 25-foot ropes from Hang'em. However, they cannot keep the nonconforming ropes without consent from Hang'em.

Quiz 23: Performance and Remedies

Under the doctrine of commercial impracticability,which situation would NOT excuse the seller's performance?