Question 1

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 deliv?ery is in
A)California.
B)Delaware.
C)Florida.
D)Hawaii.

Accepted Answer

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

Question 2

Rocky and Slim enter into a contract for a sale of five rowboats.Circumstances make it difficult for Rocky to perform,and the contract is breached.Slim looks for remedies.Unlike the common law,under the UCC,remedies are
A)cumulative.
B)exclusive.
C)limited.
D)unlimited.

Accepted Answer

Under the UCC, remedies for breach of contract are cumulative, meaning that the injured party can seek multiple remedies simultaneously for the same breach of contract. For example, the injured party can seek damages for the cost of replacement goods as well as specific performance of the contract.

Question 3

Field Gardens and Gourmet Restaurant,Inc. ,enter into a con?tract for a sale of lettuce.When Field learns that Gourmet is insolvent,Field can stop delivery of the goods in transit
A)only if the quantity is at least a carload.
B)only if the quantity is at least a planeload.
C)only if the quantity is at least a truckload.
D)regardless of the quantity.

Accepted Answer

According to the Uniform Commercial Code (UCC), specifically the doctrine of stoppage in transit, a seller can stop delivery of goods in transit if the buyer is insolvent, regardless of the quantity of goods being shipped. Therefore, Field Gardens can stop delivery of the lettuce even if the quantity is less than a carload, planeload, or truckload.

Question 4

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
A)cover.
B)cure.
C)replevin.
D)specific performance.

Accepted Answer

Replevin allows the buyer to recover specific goods in the possession of the seller, which can be pursued when the seller refuses to deliver the goods.

Question 5

Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments.Consuelo delivers,but Gabriela does not pay.Consuelo can normally recover as damages
A)any profit lost minus any loss avoided.
B)whatever amount the seller wishes to claim.
C)the purchase price plus incidental damages.
D)the market price at the place at which the seller delivered the goods.

Accepted Answer

The seller, Consuelo, can normally recover as damages the purchase price plus any incidental damages. This means that she can recover the amount that was originally agreed upon as the sales price, as well as any reasonable expenses she incurred as a result of Gabriela's failure to pay (such as storage fees or costs associated with attempting to resell the goods).

Question 6

Mitch and Nadine enter into a contract for a sale of seventy-six specially made motion detectors.When Nadine does not deliver within a reasonable time after the agreed delivery date,Mitch files a suit for breach.Nadine asserts the doctrine of commercial impracticability.This doctrine extends only to problems that are
A)foreseen.
B)preventable.
C)unforeseen.
D)ordinarily assumed by a seller or lessor.

Accepted Answer

The doctrine of commercial impracticability applies only to problems that are unforeseen, meaning that they are not part of the ordinary course of business and could not have been anticipated by either party at the time the contract was made. It does not extend to problems that are foreseen, preventable, or part of the ordinary assumptions of the seller or lessor.

Question 7

Amble Country Stables contracts to buy 1,000 horseshoes from Burleigh Blacksmith,Inc. ,for $1 per shoe.When the market price decreases to 50 cents per shoe,Amble refuses to go through with the deal.Burleigh can recover
A)$1,500.
B)$1,000.
C)$500.
D)$0.

Accepted Answer

Since Amble refused to go through with the deal when the market price decreased, Burleigh is entitled to recover damages for the breach of contract. The damages would be the difference between the contract price ($1 per shoe) and the market price when the breach occurred (50 cents per shoe), multiplied by the number of shoes in the contract (1,000). 
Damages = ($1 - $0.50) x 1,000 = $500 
Therefore, Burleigh can recover $500 from Amble.

Question 8

Nature's 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 Nature's Foods accepts.To recover damages for the nonconformity,Nature's Foods must give notice of the breach within a reasonable time to
A)Olive Grove.
B)Pic 'N Pay.
C)no one.
D)the appropriate government agency.

Accepted Answer

Nature's Foods must give notice of the breach to the party responsible for the nonconformity, which is Olive Grove in this case. It is necessary to give notice within a reasonable time in order to seek damages for the nonconformity.

Question 9

Owen and Pablo enter into a contract for a sale of fifty Western saddles.Owen does not deliver.Pablo can normally recover as damages the difference between
A)any loss avoided and any profit gained.
B)the actual price and the hoped-for price.
C)the contract price and the market price.
D)the current prices in the parties' locations.

Accepted Answer

Normally, in a contract for the sale of goods, the buyer can recover damages as 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 recover damages as the difference between the contract price for the fifty Western saddles and the market price of such saddles at the time and place where Owen was supposed to deliver them. Option C correctly reflects this principle. Options A, B, and D do not accurately reflect the measure of damages for a breach of contract for the sale of goods.

Question 10

Nash buys a car under a warranty from Rough Ride Motors.Nash soon discovers that the car has a defect that significantly affects its value and use.In all states and the District of Columbia,Nash may have remedies under
A)a lemon law.
B)a letter of credit.
C)Article 74 of the CISG.
D)the Automobile Dealers' Day in Court Act.

Accepted Answer

The lemon law provides remedies for consumers who have purchased defective vehicles, including the option to receive a refund or replacement vehicle. This is the most likely option for Nash to pursue in this situation. The other options listed do not specifically apply to consumer protection in the sale of a vehicle.

Question 11

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
A)allow the buyer to reject the goods for any reason.
B)deliver the goods to a particular destination.
C)place the goods into the hands of a carrier.
D)provide the buyer with any necessary documents of title.

Accepted Answer

The answer of Primo Pools Company and Aquatic Recreation,Inc. ,enter...

Question 12

Hydraulic Leasing Corporation (HLC)and Dockside Offloading Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,HLC must ship or tender goods to the lessee that
A)approximately conform to the contract description.
B)entirely conform to the contract description in most ways.
C)conform to the contract description in every way.
D)substantially conform to the contract description.

Accepted Answer

The perfect tender rule requires that the goods shipped or tendered by the seller must conform to the contract description in every way. This means that the goods should meet all of the specifications and requirements outlined in the contract in order to be considered acceptable.

Question 13

Screen Perfect,Inc. ,and Vibrant View Stores enter into a contract for a sale of 3D HD TVs with certain specifications.Screen Perfect ships TVs that are not 3D but otherwise meet the specifications.Vibrant View
A)cannot reject the entire shipment.
B)can reject the entire shipment.
C)must accept the entire shipment.
D)must reject the entire shipment.

Accepted Answer

Vibrant View Stores can reject the entire shipment as the TVs are not 3D as specified in the contract. As per the perfect tender rule, the seller is obliged to deliver goods that meet the exact specifications of the contract. The buyer has the right to reject the entire shipment if the goods delivered do not conform to the contract.

Question 14

Richman Manufacturing Company contracts to sell sweaters to Sweet Sweaters store.Before the sweat?ers are delivered,Sweet Sweaters indicates that it will not be able to pay.Richman can
A)force Sweet Sweaters to accept and pay for the sweaters.
B)require Sweet Sweaters to find a buyer for the sweaters.
C)resell the sweaters and recover any damages from Sweet Sweaters.
D)do nothing.

Accepted Answer

Richman can resell the sweaters and recover any damages from Sweet Sweaters. This option allows Richman to mitigate their losses by finding another buyer for the sweaters and potentially recovering some of the costs from Sweet Sweaters. Forcing Sweet Sweaters to accept and pay for the sweaters is not a viable option as they have already expressed their inability to pay. Requiring Sweet Sweaters to find a buyer is also not feasible as Sweet Sweaters has already breached the contract by indicating their inability to pay. Lastly, doing nothing is not an option as Richman would be left with unsold goods and would incur losses.

Question 15

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle.Esau cancels the con?tract ten days later.Double D is unable to sell the cattle to another buyer.Double D can
A)force Esau to accept the cattle and pay for them.
B)recover the contract price from Esau but must hold the cattle for him.
C)recover the contract price from Esau and keep the cattle.
D)recover the contract price from Esau but must destroy the cattle.

Accepted Answer

Since Esau canceled the contract, Double D Ranch is entitled to recover the contract price from Esau. However, in this scenario, Double D Ranch must hold the cattle for Esau as it was unable to sell them to another buyer. Therefore, the best choice would be to recover the contract price from Esau but hold the cattle for him. Option A is not feasible as Double D cannot force Esau to accept the cattle, and option C is not acceptable as Double D cannot keep the cattle without Esau's permission. Option D to destroy the cattle is not a viable solution as it causes unnecessary waste and loss of resources.

Question 16

Bayou Boats,Inc. ,contracts for the sale of seven swamp boats to Tidal Flats Fishing Tours.Bayou repudiates the contract.Tidal Flats's recovery of damages is measured at the time
A)Bayou advertised the goods.
B)Tidal Flats ordered the goods.
C)Tidal Flats learned of the breach.
D)Bayou knew that it would repudiate the contract.

Accepted Answer

Tidal Flats' recovery of damages is measured at the time they learned of the breach, which is when they became aware that Bayou would not fulfill the contract. This is because damages are meant to compensate for the harm suffered as a result of the breach, and Tidal Flats can only determine the extent of their harm at the time they learned that Bayou would not perform.

Question 17

Fact Pattern 21-A1 
Internet Cafés,Inc. ,contracts to buy all of its requirements for coffee,at a minimum of 1 million pounds per year,from Java Corporation for six years.After three years,Internet tells Java that it plans to sell its assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract.
-Refer to Fact Pattern 21-A1.Java can
A)assign its rights under the contract but cannot terminate it.
B)terminate the contract and seek damages.
C)suspend performance under the contract until Java is fully paid.
D)do nothing.

Accepted Answer

Java can terminate the contract and seek damages because Internet's obligation to buy all of its requirements for coffee from Java is a requirements contract, which is based on the needs or requirements of the buyer. Thus, Internet's obligation to buy from Java is conditioned upon its requirements, and if those requirements cease to exist, the contract may be terminated. In this case, Bagel Bistros' refusal to assure Java that it will continue the contract means that Internet's requirements for coffee are uncertain, so Java has the right to terminate the contract and seek damages.

Question 18

Fact Pattern 21-A1 
Internet Cafés,Inc. ,contracts to buy all of its requirements for coffee,at a minimum of 1 million pounds per year,from Java Corporation for six years.After three years,Internet tells Java that it plans to sell its assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract.
-Refer to Fact Pattern 21-A1.Bagel Bistros's refusal is
A)a justified response based on Bagel Bistros's relation to the contract.
B)an assignment of Internet's rights under the contract.
C)a reasonable suspension of performance under the contract.
D)a repudiation of the contract.

Accepted Answer

Bagel Bistros's refusal to assure Java that it will continue Internet's contract is a repudiation of the contract. Repudiation occurs when a party communicates that it will not perform its obligations under the contract. In this case, Bagel Bistros's refusal to continue the contract is a clear indication that they will not perform under the contract.

Question 19

Price-Cut Discount Stores are open to consumers.The UCC requirement of good faith imposes
A)a higher duty on consumers than Price-Cut.
B)a higher duty on Price-Cut than on consumers.
C)no duty on either Price-Cut or consumers.
D)the same duty on Price-Cut and consumers.

Accepted Answer

The answer of Price-Cut Discount Stores are open to consumers.The...

Question 20

Recycle Packaging,Inc. ,agrees to sell 50,000 6-ounce yogurt containers to Organic Dairy Company.Recycle can obtain only 20,000 of the 6-ounce contain?ers,but also ships 30,000 more expensive 8-ounce containers for the same price.Organic rejects the 8-ounce containers.With time for performance not yet expired,Recycle can
A)attempt to cure the defect.
B)cancel the contract.
C)recover the purchase price plus incidental damages.
D)resell or dispose of the goods and hold Organic liable for any loss.

Accepted Answer

Recycle can attempt to cure the defect by finding a way to obtain the remaining 30,000 6-ounce containers or negotiating a suitable substitute with Organic Dairy Company. This option allows Recycle to fulfill the terms of the contract and avoid potential legal disputes or financial losses.

Quiz 21: B: Performance Breach of Sales Lease Contracts

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 deliv?ery is in

Rocky and Slim enter into a contract for a sale of five rowboats.Circumstances make it difficult for Rocky to perform,and the contract is breached.Slim looks for remedies.Unlike the common law,under the UCC,remedies are

Field Gardens and Gourmet Restaurant,Inc. ,enter into a con?tract for a sale of lettuce.When Field learns that Gourmet is insolvent,Field can stop delivery of the goods in transit

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

Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments.Consuelo delivers,but Gabriela does not pay.Consuelo can normally recover as damages

Amble Country Stables contracts to buy 1,000 horseshoes from Burleigh Blacksmith,Inc. ,for $1 per shoe.When the market price decreases to 50 cents per shoe,Amble refuses to go through with the deal.Burleigh can recover

Nature's 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 Nature's Foods accepts.To recover damages for the nonconformity,Nature's Foods must give notice of the breach within a reasonable time to

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

Nash buys a car under a warranty from Rough Ride Motors.Nash soon discovers that the car has a defect that significantly affects its value and use.In all states and the District of Columbia,Nash may have remedies under

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

Hydraulic Leasing Corporation (HLC) and Dockside Offloading Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,HLC must ship or tender goods to the lessee that

Screen Perfect,Inc. ,and Vibrant View Stores enter into a contract for a sale of 3D HD TVs with certain specifications.Screen Perfect ships TVs that are not 3D but otherwise meet the specifications.Vibrant View

Richman Manufacturing Company contracts to sell sweaters to Sweet Sweaters store.Before the sweat?ers are delivered,Sweet Sweaters indicates that it will not be able to pay.Richman can

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle.Esau cancels the con?tract ten days later.Double D is unable to sell the cattle to another buyer.Double D can

Bayou Boats,Inc. ,contracts for the sale of seven swamp boats to Tidal Flats Fishing Tours.Bayou repudiates the contract.Tidal Flats's recovery of damages is measured at the time

Price-Cut Discount Stores are open to consumers.The UCC requirement of good faith imposes