Exam 23: Performance and Obligations Under Sales and Leases

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[Softball Trophies] To recognize softball players on his team, Eduardo ordered from Troy 10 trophies showing a softball player swinging a bat. The trophies were to be delivered on May 1st for an award dinner to be held on May 20th. Troy was at first unable to obtain trophies showing a softball player swinging a bat, but by May 13th, he did locate some trophies with a softball player holding a bat. The difference did not substantially impair the value of the trophies, and thinking that the trophies would be acceptable, Troy delivered them on May 14th. Eduardo glanced at the trophies, paid for them with a check, and said nothing. On May 16th Eduardo looked at the trophies more closely and decided that he did not like them. Eduardo canceled payment on his check, and Troy sued him for payment. -Only considering the issue involving the time set for delivery, what is the likely effect of Troy delivering the trophies after the agreed upon time?

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B

Which of the following is not an exception to the perfect tender rule?

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A

Set forth what the UCC requires in the way of good faith and the duty imposed on both nonmerchants and merchants.

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The UCC requires good faith in the performance and enforcement of every contract. Good faith means honesty in fact. When the parties are merchants, the UCC imposes a higher standard. Between merchants, the UCC imposes not only honesty in fact but also reasonable commercial standards of fair dealing.

Which of the following was the result in the "Case Opener" in which Vitol sued Koch Petroleum for delivering oil one day late causing Vitol to sustain a loss based on its sale to another entity?

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The seller must obtain substitute goods if goods identified to a contract are destroyed through no fault of the parties before the risk of loss passes to the buyer.

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What was the result on appeal in the case in the text Alaska Pacific Trading Co. v. Eagon Forest Products Inc. in which the defendant rejected a shipment of logs, and the plaintiff/seller claimed that its late shipment was excused because the contract did not specify that time was of the essence?

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Which of the following states that when a contract for sale involves repeated occasions for performance by either party with the other's knowledge of the nature of the performance and opportunity for objection to it, any course of performance accepted or acquiesced to without objection is relevant to determine what the parties' agreement means?

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[Smeared cupcakes] Kai orders forty decorated cupcakes from Liu's bakery next door to be sold in his restaurant. During delivery, Lui trips and the box tips over. When Kai opens the box to inspect the cupcakes, the frosted decorations on the cupcakes are smeared. -Must Kai accept the cupcakes?

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Usage of trade is defined by the UCC ________

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A seller need not provide an opportunity for inspection before enforcing payment.

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Letizia, who owns a candy shop, agreed to sell Rudy, a teacher, all the chocolate candy bars in her shop for treats for his class. Unfortunately, through no fault of hers, Letizia's air conditioner broke and the chocolate bars partially melted. What are the rights and duties of the parties in relation to the contract?

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In reference to the case in the text DeJesus v Cat Auto Tech. Corp., what was the effect of the defendant's payment for goods without inspection on the day of delivery, when the delivery was approximately two weeks after the time called for by the contract?

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Under the UCC, non-delivery is not a breach of contract in circumstances in which performance has been made impracticable because a contingency has occurred that was not contemplated when the parties reached an agreement.

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Substantial performance occurs ________

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Under the UCC, which of the following is true if goods are identified at the time the parties entered into a contract and these goods are partially destroyed through no fault of the parties before risk passes to the buyer or lessee?

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Which of the following was the result on appeal in Donovan v. RRL Corporation, the case in the text in which the plaintiff attempted to enforce a price for an automobile contained in an ad, and the defendant car dealership claimed that a mistake was involved?

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[Toshi's Dolls] Toshi owns a specialty doll store and purchases dolls regularly from Yolanda, a doll distributor. For the past few years, Toshi and Yolanda have signed yearly contracts that set forth the terms of the agreement. Although delivery terms are set forth in the agreement, if the delivery comes a day or two late or if Yolanda substitutes doll purses for shoes, Toshi does not complain, as she knows the next shipment will have more shoes than purses. Yolanda has added a new line of designer dolls, and Yolanda asks Toshi to sign a separate agreement with regard to the new doll line which includes a clause that accessories must conform to the order only as to quantity. Toshi's first order of the new line includes a large shipment of dolls and doll purses, but no doll shoes. The first delivery of the new doll line is scheduled to arrive on December 1, however, it arrives on December 2 and includes very few doll shoes and instead includes many doll purses. Yolanda refuses to accept the late shipment and calls Toshi to complain and also tells her that some of the dolls have ugly faces and she is worried they will not sell. Yolanda says that Toshi's been in the doll industry for years and should know that some dolls have flaws on their faces and she has to accept the dolls faces as they are. -On December 6, RoboCo delivers a shipment of 100 of the RoboMan electronic toy. Unfortunately, on inspection, each unit has a faulty battery pack. The performance time under the contract ends on the 8th. Under which circumstances would RoboCo property exercise its right to cure?

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[Smeared cupcakes] Kai orders forty decorated cupcakes from Liu's bakery next door to be sold in his restaurant. During delivery, Lui trips and the box tips over. When Kai opens the box to inspect the cupcakes, the frosted decorations on the cupcakes are smeared. -Lui tells Kai the cupcakes can still be sold. Must Kai accept the cupcakes?

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[Smeared cupcakes] Kai orders forty decorated cupcakes from Liu's bakery next door to be sold in his restaurant. During delivery, Lui trips and the box tips over. When Kai opens the box to inspect the cupcakes, the frosted decorations on the cupcakes are smeared. -Arturo, an exotic animal dealer contracts with Benita, an importer of exotic animals, to purchase several rare lizards. After the contract is executed, the U.S. government issues a ban on the importation of lizards. When Benita fails to deliver the lizards as per the contract, Arturo tells her she is in breach of their contract. What is Benita's best defense?

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Ming-Na orders a certain type of rose from a florist for her event. A disease sweeps through that type of rose, and the florist could only obtain the roses at great cost, if at all. Is there any defense that the florist can use?

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