Exam 16: Sales and Lease Contracts: Performance, Warranties, and Remedies

An implied warranty is any description of the good's physical nature or its use,either in general or specific circumstances,that becomes part of the contract.

Which of the following damages may a seller receive if the seller resells goods to another buyer when the original buyer is in breach of contract?

List the exceptions to title warranties.

Conforming goods are goods that conform to contract specifications.

Refused Furniture.Selina arranges to sell furniture from her furniture store to Roland for $3,000.Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments.Selina was to deliver the furniture by February 7.Roland did not pay Selina as promised on February 1.He asked her to wait until March 1,but she refused.She also refused to deliver the furniture.Selina was able to sell the furniture for only $2,500 because of a downturn in the economy.Roland told Selina that she had no right to withhold or sell his furniture and that he was suing.Selina incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased.Selina saved $40 in delivery costs because the subsequent purchaser picked up her own furniture.Which of the following is true regarding any right of Selina to recover the additional advertising fees she incurred from Roland?

A seller may disclaim the implied warranty of fitness for a particular purpose either orally or in writing.

What needs to be shown under the Uniform Commercial Code for goods to be found merchantable?

The obligations of sellers and buyers are determined by which of the following?

Under the Uniform Commercial Code,a delay in delivery is a breach of contract even in circumstances in which performance has been made impracticable because a contingency has occurred that was not contemplated when the parties reached an agreement.

Which of the following is true regarding whether the buyer and seller may negotiate contractually for a shorter time period to sue for breach of contract than the statute of limitations period ordinarily recognized by the Uniform Commercial Code?

A buyer may revoke acceptance of goods if the buyer can show that defects in the goods have caused their value to be ________.

What was the result in Alaska Pacific Trading Co.v.Eagon Forest Products Inc.,the case in the textbook in which the defendant rejected a shipment of logs?

Priscilla,who worked for a dry cleaner,came up with a great new idea for a type of press that speeded up the process immensely.She quit her job,hired labor and purchased materials,and manufactured a number of the presses.She sold the presses to her friend Phil for resale.Phil began advertising and distributing the press,but was notified by ABC Company that the sales violated its patent.After investigation,Phil determined that ABC had the better argument and demanded that Priscilla refund the purchase price.Priscilla declined on the basis that she had no idea that a patent on a similar press was in existence.Who will likely win the dispute and why?

Describe when an implied warranty of fitness for a particular purpose will be found.

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?

Refused Furniture.Selina arranges to sell furniture from her furniture store to Roland for $3,000.Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments.Selina was to deliver the furniture by February 7.Roland did not pay Selina as promised on February 1.He asked her to wait until March 1,but she refused.She also refused to deliver the furniture.Selina was able to sell the furniture for only $2,500 because of a downturn in the economy.Roland told Selina that she had no right to withhold or sell his furniture and that he was suing.Selina incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased.Selina saved $40 in delivery costs because the subsequent purchaser picked up her own furniture.Which of the following is true regarding Roland's claim that Selina had no right to withhold his furniture?

What is the effect of a buyer's failure to comply with the statute of limitations recognized by the Uniform Commercial Code for a breach of contract action?

Which of the following are damages identified before the breach occurs?

The three warranties of quality that arise under the Uniform Commercial Code are the:

An express warranty is a non-material term of a sale or lease contract.