Question 1

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

According to the UCC 2-703, if a buyer wrongfully refuses to accept goods that conform to a contract, the seller can maintain an action to recover the damages sustained, including both the difference between the market price at the time and place for tender and the unpaid contract price, plus any incidental damages.

Question 2

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

Accepted Answer

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Question 3

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

Accepted Answer

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Question 4

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 specify that a particular remedy is exclusive, then it means that it is the only remedy available for that particular issue or dispute. Therefore, all parties will have to rely on this remedy alone, and they cannot seek any other remedy for the same problem.

Question 5

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

If the seller resells the goods to another party, they may be able to recover some or all of their losses from the breaching buyer. However, this will depend on the specific circumstances of the case and any applicable laws or contractual provisions.

Question 6

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 sell "in good faith" and mitigate their losses by reselling the goods. However, the seller must follow certain rules and give appropriate notice to the buyer before reselling the goods.

Question 7

A buyer who accepts nonconforming goods cannot revoke the acceptance.

Accepted Answer

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Question 8

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

Accepted Answer

A buyer cannot reject a seller's goods without a valid reason, such as the goods not meeting the agreed-upon specifications, being defective or damaged, or not being delivered on time. The buyer must provide a valid reason for rejection and typically must follow certain procedures outlined in the sales contract or applicable laws.

Question 9

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

Accepted Answer

According to the UCC (Uniform Commercial Code), if the delivery of goods does not conform to the contract in any way, the lessee (buyer) has the right to reject the goods. This is provided in Section 2-601 of the UCC.

Question 10

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 a contract can give the seller the right to cancel the contract, depending on the terms of the contract and the nature of the breach. However, the seller may also have other remedies available to them, such as suing for damages or specific performance.

Question 11

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 on the buyer's breach of contract without disposing of the goods, as long as the contract allows for such a remedy. The seller may also choose to sue for specific performance, damages, or other legal remedies.

Question 12

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

Accepted Answer

According to the Uniform Commercial Code (UCC), a buyer who obtains substitute goods to replace goods that a seller did not deliver can recover damages from the seller. This includes the cost of obtaining the substitute goods as well as any other consequential damages that resulted from the seller's breach of contract.

Question 13

Primo Pools Company and Aquatic Recreation,Inc.,enter into a contract for a sale of prefabricated swimming pools.Under either a shipment contract or a destination contract,the seller must

Accepted Answer

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Question 14

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

Accepted Answer

When a buyer repudiates a contract, the seller may be able to recover damages. The exact amount and availability of damages will depend on the specifics of the contract, applicable laws, and the nature of the breach.

Question 15

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 16

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

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Question 17

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. Any minor deviation from the terms of the contract would be considered a breach by the seller. Therefore, BRC must tender the hydraulic lifts that exactly match the terms of the lease contract with Cartage Trucking Company.

Question 18

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

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Question 19

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

Accepted Answer

According to the insolvency clause in most leasing contracts, the lessor can stop delivering the goods if the lessee becomes insolvent.

Question 20

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 doctrine of anticipatory repudiation. If the buyer breaches the contract by wrongfully refusing to accept the goods that conform to the contract terms, the seller may seek damages to recover losses caused by the breach.

Quiz 16: Performance Breach of Sales Lease Contracts