Question 1

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

Accepted Answer

This is known as cover damages, and it allows the buyer to recover the difference between the cost of the substitute goods and the contract price, as well as any incidental and consequential damages.

Question 2

Under no circumstances can a buyer cancel a contract.

Accepted Answer

A buyer may be able to cancel a contract under certain circumstances such as a contingency clause, a breach of contract by the seller, or mutual agreement between both parties. However, it is important to review the contract terms and consult with a legal professional before making any decisions about cancelling a contract.

Question 3

Acceptance of goods precludes a buyer from exercising a right of rejection but not from pursuing other remedies.

Accepted Answer

Accepting goods means that the buyer cannot reject them, but they can still pursue other remedies such as claiming damages or seeking a repair or replacement.

Question 4

If a lessor's tender of delivery fails to conform to a contract in any way,the lessee cannot accept the goods.

Accepted Answer

A lessee can choose to accept non-conforming goods if they wish, although they may have the right to reject them under the contract terms.

Question 5

A lessor's failure to make proper delivery of unique goods under a con?tract will not usu?ally give the lessee the right to specific performance.

Accepted Answer

The answer of A lessor's failure to make proper delivery...

Question 6

A lessee's breach of a contract will usually give the lessor the right to cancel the contract.

Accepted Answer

If the lessee breaches the contract, the lessor can cancel the contract and take legal action as well.

Question 7

Pep Paints agrees to sell to Quality Painters Grade A-1 latex outdoor paint to be delivered May 8.On May 7,Pep tenders Grade B-2 paint.Quality re?jects the Grade B-2 paint.Two days later,Pep tenders Grade C-3 paint with an offer of a price allowance.Pep has

Accepted Answer

Pep has no more time to cure as the delivery date was May 8 and the tender of Grade C-3 paint was two days later, which is after the delivery date.

Question 8

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 still be able to recover some or all of the losses incurred from the breaching buyer through legal action. However, the amount of damages recoverable will depend on various factors such as the terms of the contract, the market value of the goods, and any costs incurred in reselling them.

Question 9

If,while goods are in transit,a seller learns that a buyer is insolvent,the seller can stop the delivery of the goods.

Accepted Answer

According to the Uniform Commercial Code (UCC), if the seller learns that the buyer is insolvent while the goods are in transit, the seller has the right to stop delivery of the goods. This is known as the right of stoppage in transit.

Question 10

When a buyer refuses to pay for goods that conform to the contract,the seller's options do not include the right to cancel the contract.

Accepted Answer

The seller's options may include canceling the contract, as well as pursuing legal action or other remedies such as seeking payment via collection agencies or negotiating a settlement.

Question 11

Incidental damages include all reasonable expenses incurred because of a breach of contract.

Accepted Answer

Incidental damages are expenses that are incurred as a result of a breach of contract, such as costs related to storing or shipping goods, or costs related to attempting to mitigate losses caused by the breach. These expenses are considered reasonable and are recoverable as part of the damages awarded in a lawsuit.

Question 12

If a buyer repudiates a contract,the seller cannot re?cover damages.

Accepted Answer

If a buyer repudiates a contract, the seller can recover damages for the breach of contract. The seller can also seek specific performance or cancel the contract and resell the goods.

Question 13

Clear Sight Company,which is based in Delaware,agrees to sell fifty win?dows,currently stored in Florida,to Great View,Inc. ,which is based in Hawaii.Absent an agreement to the contrary,deliv?ery will occur in

Accepted Answer

In the absence of an agreement to the contrary, delivery typically occurs at the location where the goods are stored, which in this case is Florida.

Question 14

Heavy Concrete Company contracts for a sale of its products to Interstate Construction,Inc.For Heavy to tender delivery of goods,it must

Accepted Answer

Heavy Concrete Company must give Interstate Construction, Inc. notice to take delivery and hold conforming goods at its disposal in order to tender delivery of the goods. This is because the UCC requires a seller to give the buyer notice of the delivery of goods before or at the time of delivery in order to allow the buyer to take possession of the goods. The seller must also hold the conforming goods at the buyer's disposal, meaning that the buyer must be able to take possession of the goods at a reasonable time and place.

Question 15

Custom Tableware,Inc. ,contracts for a sale of cutlery to Diners Cafe un?der a shipment contract.Custom must

Accepted Answer

As per the terms of the shipment contract, Custom Tableware, Inc. is responsible for the transportation of the cutlery to Diners Cafe and to tender the necessary documents to obtain possession of the goods. Therefore, option A is the correct choice as it includes both the necessary actions mentioned in the contract.

Question 16

A buyer who rightfully rejects nonconforming goods can resell the goods and keep the proceeds without accounting to the seller for the amount.

Accepted Answer

A buyer who rightfully rejects nonconforming goods must account to the seller for any proceeds from the resale, after deducting expenses incurred in the process.

Question 17

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 specifically state that a certain remedy is exclusive, then it means that remedy is the only remedy available for resolving any disputes or issues related to the sales contract. Other remedies would be deemed invalid or not applicable. Therefore, it is true that an exclusive remedy is indeed the sole remedy in such cases.

Question 18

Food Packages,Inc. ,agrees to sell 50,000 6-ounce yogurt containers to Great Dairy Company.Food 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.Under these circumstances,Great

Accepted Answer

Great Dairy Company may reject the delivery due to the nonconforming containers. However, since Food Packages, Inc. has agreed to sell 50,000 6-ounce containers, they have breached the contract by only being able to provide 20,000. In this case, notice to Great Dairy Company of Food's intent to cure will give them a reasonable time to replace the nonconforming containers. They cannot simply replace them later without the consent of Great Dairy Company.

Question 19

A buyer who accepts conforming goods cannot revoke the acceptance.

Accepted Answer

According to the Uniform Commercial Code, a buyer who accepts conforming goods cannot revoke the acceptance.

Question 20

A buyer who accepts nonconforming goods cannot revoke the acceptance.

Accepted Answer

The answer of A buyer who accepts nonconforming goods cannot...

Quiz 16: Performance Breach of Sales Lease Contracts