Exam 8: Contracts for the Sale of Goods

In an installment contract,the buyer may reject an installment if the nonconformity substantially impairs the value of that installment or the nonconformity cannot be cured.

Bob's Department Store in New York sends a purchase order to Sam's Sweaters in California ordering 10,000 sweaters.The purchase order includes a breakdown of sizes,styles,colors and states that delivery is to be made to Bob's in New York at Sam's cost.When Sam's sends an acknowledgement form accepting the offer,certain terms are changed.Which of the following would likely not automatically become part of the contract?

The International Chamber of Commerce abbreviation indicating that goods are to be picked up by the buyer and not delivered is:

Goods that exactly meet the specifications of a contract are called ________ goods.

A ________ is one that is regularly engaged in the sale of a particular good.

Article 2 rules for acceptance of offers are more rigid than common law rules.

If a merchant sells goods to a buyer who is not a merchant,Article 2 of the UCC will not apply.

Absent specific agreements between the parties,the reasonableness requirement of the UCC governing delivery of goods requires each of the following except:

In Merchants Acceptance,Inc.v.Jamison,Jamison ordered encyclopedias and the contract specified that delivery was to be made to Jamison's home.Instead the encyclopedias were delivered to her post office box and she never received them.She refuses to pay for them and is sued.

Two merchant companies have entered into a contract for the sale of goods but have had no prior dealings which would establish a course of conduct between them.The UCC will allow gap fillers to apply to their contract regarding missing terms in each of the following situations except:

Home Gardening Corp.,a hardware and gardening chain has ordered 1000 bags of red cedar mulch from Mulch Masters,Inc.Delivery is to be made at the Home Gardening warehouse in Sioux City,Iowa.When the goods arrive in Sioux City,Home Gardening discovers that Mulch Masters has had delivered 1000 bags of black licorice mulch.What option or options does Home Gardening have?

The only state that has not adopted the UCC is:

If a party has been delivered nonconforming goods and has rejected them,if they are forced to cover in order to maintain business operations,they may sue the seller for the difference in price plus consequential damages.

In a shipping contract,the risk of loss passes to the buyer when:

Annie agrees to purchase a television from Huge Buy,a merchant electronics seller.Her agreement is that she will pick the television up on Friday at Huge Buy.On Friday morning Huge Buy calls to verify that the television is marked with her name and is available for pickup.Annie tells them that she can't come until Saturday.Friday evening a huge storm damages the Huge Buy facility caving in the roof and destroying her television.Huge Buy demands payment from Annie claiming that they tendered the goods and if she had picked up the television on Friday as originally agreed there would not have been a loss.Does Annie have to pay? Why or why not.

Just as in the common law,the UCC recognizes the concept of anticipatory repudiation allowing a breach to be declared prior to performance being due.

Which of the following is not true regarding a firm offer?

If two companies enter into a sales contract and the shipping terms are omitted from the agreement,the contract will automatically become a shipping contract.

What is the underlying goal and function of the UCC and why is it crucial to business?

The UCC permits a contract to be considered formed entirely by the parties' conduct even if no definite time of formation can be determined.