Question 1

The Hessler v.Crystal Lake Chrysler-Plymouth,Inc.case addressed the issue of:

Accepted Answer

A) the buyer's right to cover. 
B) the seller's right to resell. 
C) the seller's right to cure. 
D) the buyer's right to inspect the goods. 
A) the buyer's right to cover. 
B) the seller's right to resell. 
C) the seller's right to cure. 
D) the buyer's right to inspect the goods. A

Question 2

"Course of dealing" refers to prior commercial transactions between the same parties.

Accepted Answer

A) True 
 B)False  True

Question 3

Tim has been remodeling his restaurant for over three months.He ordered 80 brand new white chairs from Chairs,Inc.to be delivered by July 15.On July 2,Tim receives 80 black chairs.As of July 3,Chairs,Inc.:

Accepted Answer

A) may cure before July 15. 
B) may be sued by Tim as they have breached the contract. 
C) may resell the white chairs. 
D) all of the above 
A) may cure before July 15. 
B) may be sued by Tim as they have breached the contract. 
C) may resell the white chairs. 
D) all of the above A

Question 4

Tender means to make conforming goods available to the buyer.

Accepted Answer

A) True 
 B)False

Question 5

Reba orders a pair of custom-made cowboy boots,C.O.D.from Home on the Range Western Wear.When the boots arrive,Reba pays the carrier for the boots,then opens the package,only to discover that the boots are the wrong snake skin color and three sizes too big.At this point:

Accepted Answer

A) she is entitled to inspect the goods after payment (due to the C.O.D.terms) and she can reject the boots because they are nonconforming. 
B) Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments. 
C) Home on the Range can allege that Reba did not conduct a proper inspection; therefore, though Home on the Range must cure, Reba is obligated to pay for the return of the incorrect boots and the shipment of replacement boots. 
D) None of the above. 
A) she is entitled to inspect the goods after payment (due to the C.O.D.terms) and she can reject the boots because they are nonconforming. 
B) Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments. 
C) Home on the Range can allege that Reba did not conduct a proper inspection; therefore, though Home on the Range must cure, Reba is obligated to pay for the return of the incorrect boots and the shipment of replacement boots. 
D) None of the above.

Question 6

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

Accepted Answer

If a buyer breaches a contract,the selle

Question 7

If Chuck buys cheese from Cheese Inc.,then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment,Chuck has accepted the shipment even if there is non-conformity.

Accepted Answer

A) True 
 B)False

Question 8

Meister Bros.shipped 250 radiator belts to fill Braybon's order.Quality control measures had been in place in Meister's factory when the belts were manufactured.When Braybon received the order one day before it was due,it notified Meister that it rejected the belts because of a variation from the contract specifications.Meister,although it believed the original belts met the contract specifications,notified Braybon that it would supply conforming goods within one week.When the conforming goods arrive in one week:

Accepted Answer

A) Braybon does not have to accept them because the contract deadline has passed. 
B) Braybon does not have to accept them because Meister Bros.only has one chance to fill the order correctly. 
C) Braybon should accept them because Meister Bros.has a right to cure even after the contract deadline under these circumstances. 
D) Braybon does not have to accept them because Meister Bros.failed to meet its UCC requirement to deal in good faith. 
A) Braybon does not have to accept them because the contract deadline has passed. 
B) Braybon does not have to accept them because Meister Bros.only has one chance to fill the order correctly. 
C) Braybon should accept them because Meister Bros.has a right to cure even after the contract deadline under these circumstances. 
D) Braybon does not have to accept them because Meister Bros.failed to meet its UCC requirement to deal in good faith.

Question 9

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:

Accepted Answer

A) resell the goods and sue Bob for the total contract price. 
B) either resell the goods or sue, but not both. 
C) resell the goods and sue for any loss on the sale plus incidental damages less expenses saved. 
D) resell the goods and sue only for incidental damages. 
A) resell the goods and sue Bob for the total contract price. 
B) either resell the goods or sue, but not both. 
C) resell the goods and sue for any loss on the sale plus incidental damages less expenses saved. 
D) resell the goods and sue only for incidental damages.

Question 10

A buyer who accepts goods but notifies the seller the goods are non-conforming:

Accepted Answer

A) cannot recover any damages. 
B) can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages. 
C) cannot recover incidental damages. 
D) cannot recover consequential damages. 
A) cannot recover any damages. 
B) can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages. 
C) cannot recover incidental damages. 
D) cannot recover consequential damages.

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

If the seller breaches,the buyer may reasonably obtain substitute goods but may not obtain the difference between the contract price and the cover price.

Accepted Answer

A) True 
 B)False

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

Can the buyer revoke his acceptance? If so,under what circumstances?

Accepted Answer

the buyer has a limited right to revoke

Question 15

A seller may not make minor necessary repairs or adjustments that will bring the goods into conformity in order to "cure" nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

If a buyer does not receive goods by the contract deadline,remedies available include:

Accepted Answer

A) incidental and consequential damages. 
B) cover. 
C) damages for non-delivery. 
D) All of the above. 
A) incidental and consequential damages. 
B) cover. 
C) damages for non-delivery. 
D) All of the above.

Question 18

A buyer may revoke an acceptance of goods if:

Accepted Answer

A) the nonconformity does not impair the value of the goods. 
B) the buyer had a legitimate reason for the initial acceptance. 
C) the buyer knew the nonconformity could not be cured. 
D) the buyer thought they could easily cover. 
A) the nonconformity does not impair the value of the goods. 
B) the buyer had a legitimate reason for the initial acceptance. 
C) the buyer knew the nonconformity could not be cured. 
D) the buyer thought they could easily cover.

Question 19

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

Accepted Answer

A) correction. 
B) cure. 
C) cover. 
D) retender. 
A) correction. 
B) cure. 
C) cover. 
D) retender.

Question 20

A buyer who is unable to obtain cover:

Accepted Answer

A) will be limited to the remedy of incidental damages. 
B) will be limited to the remedy of consequential damages. 
C) will be limited to the remedy of liquidated damages. 
D) may be allowed the remedy of specific performance. 
A) will be limited to the remedy of incidental damages. 
B) will be limited to the remedy of consequential damages. 
C) will be limited to the remedy of liquidated damages. 
D) may be allowed the remedy of specific performance.

Exam 21: Performance and Remedies

The Hessler v.Crystal Lake Chrysler-Plymouth,Inc.case addressed the issue of:

"Course of dealing" refers to prior commercial transactions between the same parties.

Tim has been remodeling his restaurant for over three months.He ordered 80 brand new white chairs from Chairs,Inc.to be delivered by July 15.On July 2,Tim receives 80 black chairs.As of July 3,Chairs,Inc.:

Tender means to make conforming goods available to the buyer.

Reba orders a pair of custom-made cowboy boots,C.O.D.from Home on the Range Western Wear.When the boots arrive,Reba pays the carrier for the boots,then opens the package,only to discover that the boots are the wrong snake skin color and three sizes too big.At this point:

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

If Chuck buys cheese from Cheese Inc.,then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment,Chuck has accepted the shipment even if there is non-conformity.

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:

A buyer who accepts goods but notifies the seller the goods are non-conforming:

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.

If the seller breaches,the buyer may reasonably obtain substitute goods but may not obtain the difference between the contract price and the cover price.

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.

Can the buyer revoke his acceptance? If so,under what circumstances?

A seller may not make minor necessary repairs or adjustments that will bring the goods into conformity in order to "cure" nonconforming goods.

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

If a buyer does not receive goods by the contract deadline,remedies available include:

A buyer may revoke an acceptance of goods if:

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

A buyer who is unable to obtain cover:

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