Question 1

If a contract does not expressly state where the delivery will take place,the UCC relieves the seller of any obligation to tender goods to the buyer.

Accepted Answer

According to UCC §2-308(1), if a contract does not specify a place of delivery, then the seller is required to tender the goods at the seller's place of business or residence.

Question 2

A buyer who agrees to C.O.D.payment terms continues to have the right to inspect goods before paying for them.

Accepted Answer

False

Question 3

If a seller gives notice to a buyer to return goods sold to him or her,and the buyer refuses the demand,then the seller or lessor may use self-help to reclaim the goods.

Accepted Answer

The use of self-help to reclaim goods sold or leased is generally not allowed under the law. The seller or lessor must go through the legal process of filing a lawsuit or obtaining a court order before taking any action to repossess the goods.

Question 4

Tender of delivery under the UCC requires the seller to transfer and deliver goods to the buyer in accordance with a sales or lease contract.

Accepted Answer

This statement is true. Tender of delivery is a requirement for the seller under the Uniform Commercial Code (UCC) to transfer and deliver goods in accordance with the terms of the sales or lease contract with the buyer. This involves making the goods available at a specific location for the buyer to take possession and complete the transaction.

Question 5

Unless otherwise agreed or circumstances permit,the seller must deliver all goods named in a contract in a single shipment.

Accepted Answer

The answer of Unless otherwise agreed or circumstances permit,the seller...

Question 6

When there is an anticipatory repudiation,the aggrieved party will not have a cause of action until the time that performance was due.

Accepted Answer

When there is an anticipatory repudiation, the aggrieved party can treat the repudiation as a breach of contract and immediately pursue legal action, even if performance was not yet due.

Question 7

The right to cure refers to the seller or lessor's right to repair or replace defective or nonconforming goods.

Accepted Answer

The right to cure is a legal principle that allows the seller or lessor to remedy or fix issues with goods before the buyer or lessee pursues further legal action. This can include repairing or replacing the goods.

Question 8

If a seller cancels a sales or lease contract with a buyer,the cancellation may refer only to the affected goods.

Accepted Answer

The answer of If a seller cancels a sales or...

Question 9

If a seller requires cash as payment,the buyer must be allowed an extension of time to be able to procure the cash.

Accepted Answer

This is due to the Uniform Commercial Code (UCC) which provides protection for buyers in such situations. The UCC requires sellers to allow a reasonable time for the buyer to obtain the necessary funds, even if they initially agreed on cash-only payment.

Question 10

A sales contract requires the seller to deliver 100 shirts to the buyer.Upon inspection the buyer discovers that 99 shirts conform to the contract but one does not.The buyer must return the entire shipment and either ask for a refund or replace the order with the seller.

Accepted Answer

The buyer can request a refund or replacement for the one non-conforming shirt and keep the rest of the shipment. They do not have to return the entire shipment.

Question 11

When goods named in a contract are held by a bailee,tender of delivery occurs when the buyer receives the goods from the bailee.

Accepted Answer

The answer of When goods named in a contract are...

Question 12

If goods are already in transit when a buyer breaches,the seller may stop their delivery.

Accepted Answer

The seller has the right to stop the delivery of goods in transit if the buyer breaches the contract. This is known as the right of stoppage in transit. The seller can exercise this right even if the goods are already in transit. However, the seller must give notice to all parties involved in the transportation of the goods to ensure that the goods are not delivered to the buyer.

Question 13

Generally,a buyer may take physical possession of the goods and inspect them within a reasonable time without having accepted the goods.

Accepted Answer

According to the Uniform Commercial Code (UCC), a buyer may take physical possession of the goods and inspect them within a reasonable time without having accepted the goods. Acceptance of goods means the buyer agrees to keep them and pay for them.

Question 14

If a seller delivers nonconforming goods under an installment contract,the buyer or lessee may reject any noncomforming installment if the value of the installment is impaired and the defect cannot be cured.

Accepted Answer

This statement is true according to the UCC (Uniform Commercial Code) section 2-612. The buyer has the right to reject any nonconforming installment if its value is impaired and the defect cannot be cured by the seller.

Question 15

A replevin action is available whenever the seller or lessor is wrongfully withholding goods.

Accepted Answer

A replevin action allows the rightful owner of goods to obtain possession of them from someone who wrongfully has possession or is wrongfully withholding them. This can include situations where the seller or lessor is wrongfully withholding the goods.

Question 16

If a seller "resells" the goods after a breach by the buyer,the resale must be at a public auction.

Accepted Answer

The seller can resell the goods after a breach by the buyer, but it does not necessarily have to be at a public auction. The seller can choose other methods of resale, such as a private sale or negotiated sale.

Question 17

If a buyer purchases similar goods elsewhere after a breach by the seller,this is known as cover.

Accepted Answer

Cover is the act of a buyer purchasing similar goods elsewhere after a breach by the seller. So, the statement is true.

Question 18

A buyer who rightfully rejects goods must notify the seller of the reasons for rejection to preserve the buyer's rights.

Accepted Answer

According to the Uniform Commercial Code (UCC), a buyer who rightfully rejects goods must notify the seller of the reasons for rejection to preserve the buyer's rights. This is known as the duty to notify the seller. Failure to notify the seller within a reasonable time can result in the loss of the buyer's right to reject the goods.

Question 19

If there is an anticipatory repudiation of a contract for the sale of goods,the nonbreaching party may choose whether to await performance or treat the contract as breached at the time of the repudiation.

Accepted Answer

According to the Uniform Commercial Code Section 2-610, if there is an anticipatory repudiation of a contract for the sale of goods, the nonbreaching party may choose whether to await performance or treat the contract as breached at the time of the repudiation.

Question 20

A party requesting assurance of performance from the other party remains obligated to perform its own obligations even if adequate assurance is not received from the other party.

Accepted Answer

The answer of A party requesting assurance of performance from...

Quiz 12: Remedies for Breach of Sales and Lease Contracts