Exam 23: Performance And Remedies

Buyer Bob breaches his contract for the sale of goods with Seller Suzie.Suzie still has possession of the goods at the time of the breach.Suzie can refuse to deliver the goods and:

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(Multiple Choice)

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Question 1

Correct Answer:

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Define these terms: usage of trade; course of dealing; and course of performance.

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(Essay)

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Question 2

Correct Answer:

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Usage of trade is any practice that members of an industry expect to be part of their dealings.Course of dealing refers to previous commercial transactions between the same two parties.Course of performance refers to the history of dealings between the parties in the same contract and thus assumes that it is the kind of contract demanding an on-going relationship.These terms present three circumstances where the tender may not be perfect in a strict sense.In other words,the buyer may not be able to reject minor flaws if the tender is perfect according to industry standards,or prior contracts between the same parties,or based on a history of dealings between the parties in the same contract.

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:

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

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 4

A seller may not make repairs or adjustments after the goods have been tendered,even if that action will bring the goods into conformity in order to "cure" nonconforming goods.

(True/False)

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Question 5

In some industries it is a routine practice to draft contracts permitting imperfection in the seller's goods,thereby limiting the effect of the perfect tender rule by the parties' agreement.

(True/False)

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Question 6

Liquidated damages are not permitted under the UCC.

(True/False)

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Question 7

Wimble ordered 1,000 pro-quality luminescent orange tennis balls from Sports Unlimited at a cost of $800.On June 1,Sports Unlimited shipped standard white tennis balls,but Wimble rejected them.Wimble bought the same number of pro-quality luminescent orange balls from another supplier the same day for $650.In a suit against Sports Unlimited,Wimble may recover $800.

(True/False)

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Question 8

The UCC "perfect tender" provision provides:

(Multiple Choice)

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Question 9

If a contract does not provide for a time for inspection,the UCC allows inspection:

(Multiple Choice)

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Question 10

Matson agrees to purchase 500 wooden chairs from Woodcarvers,Inc.After Woodcarvers sets the chairs aside in its warehouse,but before the risk of loss passes to Matson,the chairs are destroyed in a fire,which was not the fault of Woodcarvers.The contract between Matson and Woodcarvers is void.

(True/False)

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Question 11

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

(Multiple Choice)

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Question 12

Master Glue Hairspray,Inc.contracts to purchase 100 umbrellas with its logo and slogan,"A spray a day keeps the rain and wind away!" specially printed on the umbrellas and its 1-800 telephone number on the umbrella handle.After the seller completes the order,Master Glue refuses to accept or pay for the umbrellas.Because of the special logo and telephone number,the seller has been unable to find a new buyer.If the seller sues Master Glue,what is the proper measure of the seller's damages?

(Multiple Choice)

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Question 13

Identify six possible remedies for a seller when the buyer breaches a contract.

(Essay)

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Question 14

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 15

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 16

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

(True/False)

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Question 17

Under the "perfect tender rule" the buyer may reject the goods if they fail in any respect to conform to the contract.

(True/False)

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Question 18

Tender means to physically deliver the goods to the buyer.

(True/False)

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Question 19

In the Zion Temple First Pentecostal Church of Cincinnati,Ohio,Inc.v.Brighter Day Bookstore & Gifts case,the court found that,because of an error in the catalog,there was no right to cure a nonconformity with the sleeves of the robes.

(True/False)

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Question 20

Showing 1 - 20 of 46

Exam 23: Performance And Remedies

Buyer Bob breaches his contract for the sale of goods with Seller Suzie.Suzie still has possession of the goods at the time of the breach.Suzie can refuse to deliver the goods and:

Define these terms: usage of trade; course of dealing; and course of 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:

A seller may not make repairs or adjustments after the goods have been tendered,even if that action will bring the goods into conformity in order to "cure" nonconforming goods.

In some industries it is a routine practice to draft contracts permitting imperfection in the seller's goods,thereby limiting the effect of the perfect tender rule by the parties' agreement.

Liquidated damages are not permitted under the UCC.

The UCC "perfect tender" provision provides:

If a contract does not provide for a time for inspection,the UCC allows inspection:

Matson agrees to purchase 500 wooden chairs from Woodcarvers,Inc.After Woodcarvers sets the chairs aside in its warehouse,but before the risk of loss passes to Matson,the chairs are destroyed in a fire,which was not the fault of Woodcarvers.The contract between Matson and Woodcarvers is void.

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

Identify six possible remedies for a seller when the buyer breaches a 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.

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:

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

Under the "perfect tender rule" the buyer may reject the goods if they fail in any respect to conform to the contract.

Tender means to physically deliver the goods to the buyer.

In the Zion Temple First Pentecostal Church of Cincinnati,Ohio,Inc.v.Brighter Day Bookstore & Gifts case,the court found that,because of an error in the catalog,there was no right to cure a nonconformity with the sleeves of the robes.

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