Exam 21: Performance of Sales Contracts

Campus Bus Service entered into a contract with Smith Bus Company to purchase 10 buses.One week before Campus Bus was scheduled to receive the buses,a fire destroyed Smith's warehouse and the buses inside.As a result,Campus Bus had to purchase its buses at a slightly higher cost from another manufacturer.Campus Bus sues Smith Bus for damages for breach of contract under these circumstances.Assume Campus Bus did not bear the risk of loss of the goods under the contract.In this scenario,_____.

If a buyer wrongfully rejects goods,he is liable to the seller for breach of the sales contract.

_____ refers to a party's decision to suspend its performance under a contract when the other party indicates that it does not wish to fulfill its obligations under the contract.

What does it mean to require parties to act in "good faith" in the performance of a sales contract? Explain and provide an example.

Jamal purchased a motorcycle from Getaway Automobiles,and the motorcycle's electric starter began malfunctioning after a week of the motorcycle's purchase.Jamal returned the motorcycle to the store,and the manager assured him that it was only a minor problem that could be fixed easily.In the next two months,Jamal visited the store five times for rectification of the same issue.Finally,he gave up and demanded that he get a cashback for the faulty motorcycle.Under these circumstances,which of the following is most likely to be true?

A buyer is considered to have accepted a whole commercial unit of goods if:

If the shipping terms are cash on delivery,the buyer must pay for the goods after inspecting them.

If no delivery agreement is made and the seller does not have a place of business,then delivery is to be made at the buyer's home.

In a contract where there is no agreement between two parties for delivery in installments,all the goods _____.

Which of the following terms implies that the seller must make the goods available to the buyer during reasonable hours and for a reasonable period of time so that the buyer can take possession of the goods?

Skyline Builders and Pine Lumber had a contract,calling for Pine Lumber to deliver a certain quantity of bricks to Skyline's place of business on the first of every month for one year.Pine delivered the bricks one week late for the first six months,but Skyline did not object.When Pine delivered the bricks one week late,as usual,in the seventh month,Skyline attempted to cancel the contract because of the late delivery.Which of the following is true about this scenario?

A buyer has the right to retain goods,even if the bank refuses to pay the buyer's check.

A party who has waived rights to a portion of the contract not yet performed may retract the waiver by giving reasonable notice to the other party that strict performance will be required.

In a sales contract,in order to reject goods,the buyer must:

In sales contracts,the seller can exercise the right to cure even when the original time for delivery has expired,if:

By accepting goods,the buyer forfeits remedies against the seller for any nonconformities in the goods.

Normally,a buyer has the right to inspect the goods _____.

Jayden,the owner of a cosmetic store,orders 20 bottles of body lotion and 30 bottles of face cleansing lotion.After the consignment is delivered,he discovers that he has received only 10 bottles of body lotion and 10 bottles of face cleansing lotion.In this scenario,Jayden:

A contract calls for a farmer to send apples growing at his farm to the fruit market every Monday,and he promptly sends fresh stock of apples every Monday as per the contract.If the fruit market does not pay cash but rather sends a check the following week,then _____.

Which of the following holds true of revocation of acceptance by the buyer?