Question 1

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 that requires unique goods, meaning goods that are not easily replaceable on the market. Since Harmonica is a dog and likely unique, Phil can use specific performance as a remedy. None of the other choices are relevant to the availability of specific performance as a remedy.

Question 2

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

The answer of Bayou Boats,Inc. ,and Eventide Fishing Tours enter...

Question 3

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 4

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 5

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 must give notice of the breach within a reasonable time to Olive Grove only as they are the party responsible for delivering non-conforming goods. It is not necessary to involve Pic 'N Pay or the government agency at this stage.

Question 6

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 has the option to resell, return, or store the goods since the seller has not provided any instructions. This gives Leather Products the most flexibility in dealing with the non-conforming shipment.

Question 7

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

The normal measure of damages for a breach of contract for the sale of goods is the difference between the contract price and the market price at the time and place where the goods were supposed to be delivered. Therefore, Pablo can normally recover the difference between the contract price for the fifty Western saddles and the market price for fifty saddles at the time and place where the delivery was supposed to happen.

Question 8

Text Publishers,Inc. ,contracts for a sale of textbooks to University Bookstores,Inc.Vital Shipping Corporation,the carrier,transports the books to Warehouse Storage Company.Text's right to stop delivery is lost when University's rights to the goods are acknowledged by

Accepted Answer

The answer of Text Publishers,Inc. ,contracts for a sale of...

Question 9

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 prima facie unconscionable with respect to Hope only, as it would prevent Hope from seeking damages for personal injuries caused by a defective grill. Both BBQ and Grill Mart have the bargaining power to negotiate the terms of their contract, but Hope has no bargaining power as a consumer. Therefore, such a limitation would be considered unconscionable and could be deemed unenforceable with respect to Hope.

Question 10

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 11

Garden Field Farms and Haute Gourmet Restaurant,Inc. ,enter into a contract for a sale of lettuce before Haute Gourmet declares bankruptcy.Garden Field can stop delivery of the goods in transit

Accepted Answer

According to the Uniform Commercial Code (UCC), if a buyer becomes insolvent before receiving the goods, the seller may stop delivery of the goods in transit regardless of the quantity. Therefore, Garden Field Farms can stop delivery of the lettuce regardless of the quantity, as long as Haute Gourmet Restaurant, Inc. has declared bankruptcy before receiving the goods.

Question 12

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 right to recover specific goods that are wrongfully withheld by another party. Since Roller Rinks cannot obtain pizza elsewhere and Cheesy Pizza Company refuses to deliver, Roller Rinks can exercise their right to replevin and recover the 1,000 cases of frozen pizzas. Choice A (cover) refers to the right to purchase equivalent goods in the marketplace after a breach of contract. Choice B (cure) refers to the right of a seller to remedy a non-conforming delivery of goods. Choice D (specific performance) refers to a court-ordered remedy requiring a party to perform a specific contractual obligation, which may not be suitable for this situation.

Quiz 14: Performance Breach of Sales Lease Contracts