Exam 21: Performance and Remedies

Tiny Tim Toy Company (TTT)entered into a contract with the manufacturing firm of Charles,Dickens,and Scrooge (C,D&S)to purchase Christmas toys.The shipment was due to arrive on September 1,in time for the Christmas sales.By August 15,after hearing from other toy companies that C,D&S were falling far behind on meeting delivery dates,TTT wrote a letter demanding assurances that the goods would arrive as scheduled.The only response received was a letter on C,D&S letterhead that said,"Bah Humbug! You'll get the shipment by November 1." Discuss TTT's possible remedies at this point.

Free

(Essay)

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Question 1

Correct Answer:

Verified

When one party has reasonable doubt about the other party's performance,the Code allows the insecure party to demand written assurances of performance from the other party.It seems that TTT's concerns are reasonable in light of the information received.Until a response is received,performance may be suspended by TTT.Once TTT received the response from C,D&S,the delivery date change repudiated the contract.C,D&S knows that time is of the essence because of retail industry standards.TTT may:1)wait until September 1,hoping for a timely shipment 2)resort to any remedy for breach of contract such as cover and a suit for damages and 3)suspend its own performance.

Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each.If the first installment arrives with 5 pounds of spoilage,then Dessert World may:

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

A homeowner has a contract with a firewood supplier to bring a rick of hardwood at the beginning of each month from October through March.If the supplier has brought a mixture of hard and soft woods for the first three deliveries,the homeowner cannot reject a delivery in January just because it includes some soft wood.

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(True/False)

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Question 3

Correct Answer:

Verified

True

Under the UCC,the seller's right to correct a shipment of non-conforming goods is called:

(Multiple Choice)

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Question 4

A buyer's material breach gives the seller the right to refuse to deliver the goods.

(True/False)

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Question 5

The duties of the buyer include all of the following except:

(Multiple Choice)

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Question 6

If a seller cures within a reasonable amount of time,the contract:

(Multiple Choice)

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Question 7

The common law requirement that the seller make a tender of delivery that conforms in all respects to the contract requirements was retained by drafters of the UCC,although the Code includes sections that limit the rule's effect.

(True/False)

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Question 8

The UCC "perfect tender" provision provides:

(Multiple Choice)

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Question 9

A buyer has an absolute right to reject goods as long as the rejection is timely.

(True/False)

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Question 10

Which of the following statements is not true regarding the buyer's right to cover?

(Multiple Choice)

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Question 11

Neon orders one thousand 25-foot nylon ropes from Hang'em High Co.Upon inspection of the delivery,Neon learns that Hang'em sent five hundred 25-foot ropes and five hundred 20-foot ropes.Neon may:

(Multiple Choice)

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Question 12

The Code's requirement of good faith in the performance and enforcement of every contract imposes:

(Multiple Choice)

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Question 13

A buyer who properly rejects goods:

(Multiple Choice)

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Question 14

A buyer who accepts nonconforming goods may revoke the acceptance under limited circumstances.

(True/False)

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Question 15

A buyer who is unable to obtain cover:

(Multiple Choice)

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Question 16

Under the doctrine of commercial impracticability,which situation would not excuse the seller's performance?

(Multiple Choice)

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Question 17

Bryson Hardware accepted delivery of the 50 door handles it ordered.If it later finds the handles do not conform to the contract specifications,it may return the goods only if:

(Multiple Choice)

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Question 18

Discuss the UCC rules on the limitation of damages in a contract.

(Essay)

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Question 19

Turtle World orders 200 small sea turtles from Reptile World.After the sea turtles had been identified to the contract but before the risk of loss had passed to Turtle World,the turtles were released into the ocean by a militant animal rights group who broke into Reptile World to set the animals free.Under this scenario:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 46

Exam 21: Performance and Remedies

Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each.If the first installment arrives with 5 pounds of spoilage,then Dessert World may:

Under the UCC,the seller's right to correct a shipment of non-conforming goods is called:

A buyer's material breach gives the seller the right to refuse to deliver the goods.

The duties of the buyer include all of the following except:

If a seller cures within a reasonable amount of time,the contract:

The common law requirement that the seller make a tender of delivery that conforms in all respects to the contract requirements was retained by drafters of the UCC,although the Code includes sections that limit the rule's effect.

The UCC "perfect tender" provision provides:

A buyer has an absolute right to reject goods as long as the rejection is timely.

Which of the following statements is not true regarding the buyer's right to cover?

Neon orders one thousand 25-foot nylon ropes from Hang'em High Co.Upon inspection of the delivery,Neon learns that Hang'em sent five hundred 25-foot ropes and five hundred 20-foot ropes.Neon may:

The Code's requirement of good faith in the performance and enforcement of every contract imposes:

A buyer who properly rejects goods:

A buyer who accepts nonconforming goods may revoke the acceptance under limited circumstances.

A buyer who is unable to obtain cover:

Under the doctrine of commercial impracticability,which situation would not excuse the seller's performance?

Bryson Hardware accepted delivery of the 50 door handles it ordered.If it later finds the handles do not conform to the contract specifications,it may return the goods only if:

Discuss the UCC rules on the limitation of damages in a contract.

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