Question 1

Leather Products Stores,Inc.,rejects a shipment of goods that does not conform to its contract with Manufactured Cowhide Corporation,but is unable to obtain instructions from the seller.Leather Products may

Accepted Answer

Leather Products can choose to resell the goods, return them to the seller or store them until instructions are obtained. They have the option to do any of these three things, as per the Uniform Commercial Code (UCC) guidelines.

Question 2

BBQ,Inc.,makes and sells grills to Grill Mart,a retailer,which sells one of the grills to Hope,a consumer.BBQ and Grill Mart include in their contracts a limitation on consequential damages for personal injuries arising from a breach of warranty.This is prima facie unconscionable with respect to

Accepted Answer

The limitation on consequential damages for personal injuries arising from a breach of warranty is likely to be unfair to Hope, as they are the end consumer and may not have equal bargaining power or knowledge regarding the terms of the contract. Therefore, it is prima facie unconscionable with respect to Hope only.

Question 3

Natural Foods,Inc.,orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers.Olive Grove ships "Grade B" oil,which Natural Foods accepts.To recover damages for the nonconformity,Natural Foods must give notice of the breach within a reasonable time to

Accepted Answer

Natural Foods only needs to give notice of the breach to Olive Grove, the supplier who shipped the nonconforming goods. There is no requirement to notify Pic 'N Pay or any government agency in this situation.

Question 4

Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer,Tuner TV Store,on May 1,with payment to be made on delivery.Signal tenders delivery in its own truck.Tuner's manager notices that some of the cartons have scrape marks.Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded.Signal assures Tuner that the sets are in perfect condition.Tuner tenders Signal a check,which Signal refuses,claiming that the first delivery to new customers is always for cash.Tuner promises to pay the cash within two days.Signal leaves the sets with Tuner,which stores them in its warehouse pending its "Grand Opening Sale" on May 15.Two days later,Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair.Signal claims Tuner has accepted the sets and is in breach by not paying on delivery.Will Signal succeed on these claims Explain.

Accepted Answer

The answer of Signal Sets Company contracts to deliver one...

Question 5

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks,Inc.,but refuses to deliver.Due to a spice shortage,Roller Rinks cannot obtain pizza elsewhere.Roller Rinks's right to recover the goods from Cheesy is the right of

Accepted Answer

Replevin is the action to recover goods improperly taken or detained, and in this case, since Cheesy Pizza Company refused to deliver the goods, Roller Rinks can use this action to recover the pizzas they contracted to purchase. The other options (cover, cure, and specific performance) do not apply in this scenario.

Question 6

Phil and Kelsey enter into a contract for a sale of Harmonica,a dog.Phil pays the price,but Kelsey does not deliver.Phil can use specific performance as a remedy if

Accepted Answer

Specific performance is a remedy typically used when the subject matter of the contract is unique, such as a work of art or in this case, a dog named Harmonica. Since Harmonica is unique, Phil can use specific performance as a remedy to force Kelsey to deliver the dog as agreed upon in the contract. A, B, and D are not relevant to the use of specific performance in this scenario.

Question 7

Hi-Tech Company contracts to sell fiber optic cable to Internet Services,Inc.Hi-Tech may bring an action to recover the purchase price and incidental damages if Internet

Accepted Answer

The answer of Hi-Tech Company contracts to sell fiber optic...

Question 8

Colby contracts in writing to sell his 2005 Dodge-brand pick-up truck to Efrem for $10,500.Colby agrees to deliver the truck on Friday,and Efrem promises to pay the $10,500 on the following Monday.On Thursday,Efrem tells Colby that he changed his mind and will not buy the truck.Over the weekend,Efrem changes his mind again and tenders $10,500 to Colby on Monday.Colby has not sold the truck to another party but refuses the tender and refuses to deliver.Efrem claims that Colby has breached their contract.Colby contends that Efrem's repudiation released him from his duty to perform under the contract.Who is correct,and why

Accepted Answer

The answer of Colby contracts in writing to sell his...

Question 9

Bayou Boats,Inc.,and Eventide Fishing Tours enter into a contract for a sale of seven swamp boats.Eventide pays for the goods,but Bayou does not deliver.Eventide can use replevin as a remedy if

Accepted Answer

Replevin is a legal remedy that allows a buyer to recover goods wrongfully withheld by the seller. Eventide can use replevin if they are unable to cover (find substitute goods) for the swamp boats.

Question 10

Owen and Pablo enter into a contract for a sale of fifty Western saddles.Pablo pays,but Owen does not deliver.Pablo can normally recover as damages the difference between

Accepted Answer

Normally, if one party fails to deliver goods that were contracted for, the other party is entitled to recover damages in the amount of the difference between the contract price and the market price at the time and place of delivery. Therefore, Pablo can recover the difference between the contract price for the fifty Western saddles and the market price at the time and place where Owen was supposed to deliver the saddles.

Quiz 20: Performance Breach of Sales Lease Contracts