Question 1

A buyer who accepts nonconforming goods cannot revoke the acceptance.

Accepted Answer

The answer of A buyer who accepts nonconforming goods cannot...

Question 2

A buyer who rightfully rejects nonconforming goods can resell the goods and keep the proceeds.

Accepted Answer

The answer of A buyer who rightfully rejects nonconforming goods...

Question 3

An unpaid seller can bring an action to recover the purchase price,on the buyer's breach of a contract,only if the goods are first disposed of.

Accepted Answer

An unpaid seller can bring an action to recover the purchase price even if the goods are not disposed of. However, if the seller has still retained possession of the goods, they may need to sell the goods in a commercially reasonable manner before bringing the action.

Question 4

A buyer who obtains substitute goods to replace goods that a seller did not deliver can also recover damages from the seller.

Accepted Answer

This is the concept of cover under the Uniform Commercial Code (UCC), which allows a buyer to recover the cost of obtaining substitute goods if the seller did not deliver the agreed-upon goods. The buyer can also recover other damages, such as consequential damages, from the seller.

Question 5

If a buyer repudiates a contract,the seller cannot recover damages.

Accepted Answer

If a buyer repudiates a contract, the seller may be able to recover damages. Repudiation is a breach of contract, and the innocent party (in this case, the seller) may be entitled to seek compensation for any losses incurred as a result of the breach. However, the specific circumstances of the case would be taken into account in determining the extent of the damages that could be recovered.

Question 6

A buyer's breach of a contract will not usually give the seller the right to cancel the contract.

Accepted Answer

A buyer's breach of contract can give the seller the right to cancel the contract in certain circumstances as outlined in the contract and applicable law.

Question 7

On a lessee's insolvency,the lessor can stop delivery of the goods.

Accepted Answer

According to the insolvency clause in a lease agreement, if the lessee becomes insolvent, the lessor has the right to stop the delivery of the goods. So, option A is correct.

Question 8

Screen Perfect,Inc.,and TV Stores enter into a contract for a sale of high-definition television sets.Screen Perfect ships goods that do not exactly conform to the contract in some details.TV Stores

Accepted Answer

TV Stores can reject the entire shipment if the goods do not conform to the contract in essential details. This is because nonconformity in essential matters constitutes a breach of contract, entitling the buyer to reject the entire shipment. However, if the nonconformity is minor, TV Stores cannot reject the entire shipment and must accept the conforming portion of the goods.

Question 9

Elegant Carpets,Inc.,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must

Accepted Answer

Under a shipment contract, the seller's duty is to place the goods in the hands of a carrier. The carrier then assumes the responsibility for delivering the goods to the buyer's destination. The buyer must pay for the transportation costs. The buyer also has the right to inspect the goods upon delivery, but cannot reject them for any reason. Therefore, option D is the correct answer.

Question 10

If a buyer breaches a contract while the seller is still in possession of the goods,the seller can resell the goods and hold the buyer liable for any loss.

Accepted Answer

This is known as the seller's right to resell and damages under the Uniform Commercial Code (UCC) in the United States. If a buyer breaches a contract and the seller still has possession of the goods, the seller can resell the goods to mitigate their losses and hold the buyer liable for any difference between the contract price and the resale price, as well as any additional expenses incurred in reselling the goods.

Question 11

If a buyer wrongfully refuses to accept goods that conform to a contract,the seller may recover damages.

Accepted Answer

This is true according to the general rule of contract law. If the buyer refuses to accept goods that conform to the contract without a valid reason, the seller may be entitled to recover damages for the buyer's breach of contract. However, the specific terms of the contract and applicable laws may affect the outcome, so it is important to consult a legal professional for guidance.

Question 12

Business Rental Corporation (BRC)and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,BRC must ship or tender goods to the lessee that

Accepted Answer

Under the perfect tender rule, the goods must exactly conform to the contract in every detail. This means that any deviation from the contract, no matter how small, will be a breach of contract by the seller. Therefore, BRC must provide the hydraulic lifts that meet all the specifications and details specified in the contract with Cartage Trucking Company.

Question 13

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Great Vu,Inc.,which is based in Hawaii.Absent an agreement to the contrary,the place of delivery is in

Accepted Answer

The answer of Clear Day Company,which is based in Delaware,agrees...

Question 14

If a buyer breaches a contract and the seller resells the goods to another party,the seller cannot recover any loss from the breaching buyer.

Accepted Answer

The seller can recover damages from the breaching buyer, including any difference in price between the original contract price and the price received from the resale to another party. However, the seller must make reasonable efforts to mitigate their damages by attempting to resell the goods in a timely manner and for a reasonable price.

Question 15

A buyer may reject a seller's goods under any circumstances.

Accepted Answer

A buyer may only reject a seller's goods if they do not conform to the contract, are delivered late, or are damaged during transit. There must be a legitimate reason for rejecting the goods, and the rejection must be done within a reasonable time frame.

Question 16

If the parties to a sales contract state that a certain remedy is exclusive,then it is the sole remedy.

Accepted Answer

If the parties explicitly state that a certain remedy is exclusive, it means that it is the only available remedy and other remedies cannot be sought.

Question 17

If a lessee wrongfully refuses to accept goods that conform to a contract,the lessor must tender substitute goods.

Accepted Answer

The lessor is not obligated to tender substitute goods in this scenario. The lessee is responsible for accepting conforming goods as per the contract.

Question 18

If a buyer wrongfully refuses to accept goods that conform to a contract,the seller can maintain an action to recover the damages sustained.

Accepted Answer

This is a correct statement in accordance with the Uniform Commercial Code (UCC) § 2-703.

Question 19

If a lessor's tender of delivery fails to conform to a contract in any way,the lessee can reject the goods.

Accepted Answer

This is true according to the UCC (Uniform Commercial Code) which states that if a lessor's tender of delivery fails to conform to the contract in any way, the lessee can reject the goods.

Question 20

International Gem Corporation agrees to sell Jewel Outlets,Inc.(JOI),fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is

Accepted Answer

When a contract does not specify a place of delivery, the default rule under the Uniform Commercial Code (UCC) is that the place of delivery is the seller's place of business.

Quiz 20: Performance Breach of Sales Lease Contracts