Exam 22: Performance Breach of Sales Lease Contracts

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Unless a contract provides otherwise, an installment contract is breached when only one nonconforming installment impairs the value of the whole contract, no matte how slight the impairment.

(True/False)

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Question 21

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that

(Multiple Choice)

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Question 22

When a buyer has breached a sales contract, and the goods are in his or her possession, the seller can sue to recover the purchase price, but not incidental damages.

(True/False)

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Question 23

Acceptance of goods precludes the buyer or lessee from exercising the right of rejection.

(True/False)

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Question 24

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

(True/False)

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Question 25

The United Nations Convention on Contracts for the International Sale of Goods provides international sellers and buyers with remedies very different to those available under the UCC.

(True/False)

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Question 26

When a buyer or lessee is a consumer, any limitation of consequential damages for personal injuries resulting from consumer goods is prima facie unconscionable.

(True/False)

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Question 27

Erin contracts in writing to sell her Ford-brand pick-up truck to Garth for $10,500. Erin agrees to deliver the truck on Friday, and Garth promises to pay the $10,500 on the following Monday. On Thursday, Garth tells Erin that he changed his mind and will not buy the truck. Over the weekend, Garth changes his mind again and tenders $10,500 to Erin on Monday. Erin has not sold the truck to another party but refuses the tender and refuses to deliver. Garth claims that Erin has breached their contract. Erin contends that Garth's repudiation released her from her duty to perform under the contract. Who is correct, and why?

(Essay)

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Question 28

Repair Tools Company contracts to deliver fifty heavy-duty steel floor jacks to Serv-UR-Self Auto Stores on May 1 for which Serv-UR-Self agrees to pay. Repair Tools tells Serv-UR-Self on April 15 that delivery will be delayed until June 1. Serv-UR-Self may do all of the following except

(Multiple Choice)

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Question 29

Lock & Key Storage Pods and Maxi Discount Stores enter into a contract for a lease of ten storage pods of a certain size. Lock & Key delivers ten pods, but they are not the right size. Maxi Discount

(Multiple Choice)

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Question 30

On July 10, Pet Supply Store orders fifty small dog collars from Quality Collars, Inc. to be delivered by July 15. On July 13, Quality Collars tenders fifty large dog collars. Pet Supply rejects the shipment. Quality Collars has

(Multiple Choice)

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Question 31

Sun Power, Inc., sells solar power cells and panels to commercial dealers in the Southwest. With regard to the UCC's good faith requirement, Sun Power can

(Multiple Choice)

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Question 32

Oh! Wow! Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Oh! Wow! Markets can

(Multiple Choice)

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Question 33

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC.

(True/False)

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Question 34

Loading Ramps Plus Inc. contracts to sell sixteen aluminum loading ramps to Moving Services, Inc. Loading Ramps ships the ramps, which Moving Services accepts but does not pay for. Loading Ramps can

(Multiple Choice)

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Question 35

If a buyer or lessee fails to reject the goods within a reasonable amount of time, acceptance will be presumed.

(True/False)

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Question 36

If a buyer wrongfully refuses to accept goods, the seller can bring an action to recover the damages sustained.

(True/False)

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(35)

Question 37

Fact Pattern 22-B1 (Questions B18-B20 apply) Economy Bank issues a letter of credit in favor of Finish & Refining Company, a U.S. firm, to facilitate an international sales contract to buy resources from Global Mining, Ltd., a British company. -Refer to Fact Pattern 22-B1. Economy Bank is bound to

(Multiple Choice)

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(28)

Question 38

BBQ, Inc., makes and sells grills to Cook's Choice and Grill Mart, retailers of kitchen appliances, outdoor cooking equipment, and related utensils. Their contracts limit consequential damages when the loss is commercial in nature. This is prima facie un?conscionable with respect to

(Multiple Choice)

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(36)

Question 39

Almond Farms contracts for the sale of a certain quantity of nuts to Bulk Natural Foods Stores. Almond Farms delivers nonconforming goods. Acceptance will be presumed unless Bulk Natural Foods rejects the goods

(Multiple Choice)

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Question 40

Showing 21 - 40 of 42

Exam 22: Performance Breach of Sales Lease Contracts

Unless a contract provides otherwise, an installment contract is breached when only one nonconforming installment impairs the value of the whole contract, no matte how slight the impairment.

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that

When a buyer has breached a sales contract, and the goods are in his or her possession, the seller can sue to recover the purchase price, but not incidental damages.

Acceptance of goods precludes the buyer or lessee from exercising the right of rejection.

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

The United Nations Convention on Contracts for the International Sale of Goods provides international sellers and buyers with remedies very different to those available under the UCC.

When a buyer or lessee is a consumer, any limitation of consequential damages for personal injuries resulting from consumer goods is prima facie unconscionable.

Repair Tools Company contracts to deliver fifty heavy-duty steel floor jacks to Serv-UR-Self Auto Stores on May 1 for which Serv-UR-Self agrees to pay. Repair Tools tells Serv-UR-Self on April 15 that delivery will be delayed until June 1. Serv-UR-Self may do all of the following except

Lock & Key Storage Pods and Maxi Discount Stores enter into a contract for a lease of ten storage pods of a certain size. Lock & Key delivers ten pods, but they are not the right size. Maxi Discount

On July 10, Pet Supply Store orders fifty small dog collars from Quality Collars, Inc. to be delivered by July 15. On July 13, Quality Collars tenders fifty large dog collars. Pet Supply rejects the shipment. Quality Collars has

Sun Power, Inc., sells solar power cells and panels to commercial dealers in the Southwest. With regard to the UCC's good faith requirement, Sun Power can

Oh! Wow! Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Oh! Wow! Markets can

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC.

Loading Ramps Plus Inc. contracts to sell sixteen aluminum loading ramps to Moving Services, Inc. Loading Ramps ships the ramps, which Moving Services accepts but does not pay for. Loading Ramps can

If a buyer or lessee fails to reject the goods within a reasonable amount of time, acceptance will be presumed.

If a buyer wrongfully refuses to accept goods, the seller can bring an action to recover the damages sustained.

Fact Pattern 22-B1 (Questions B18-B20 apply) Economy Bank issues a letter of credit in favor of Finish & Refining Company, a U.S. firm, to facilitate an international sales contract to buy resources from Global Mining, Ltd., a British company. -Refer to Fact Pattern 22-B1. Economy Bank is bound to

BBQ, Inc., makes and sells grills to Cook's Choice and Grill Mart, retailers of kitchen appliances, outdoor cooking equipment, and related utensils. Their contracts limit consequential damages when the loss is commercial in nature. This is prima facie un?conscionable with respect to

Almond Farms contracts for the sale of a certain quantity of nuts to Bulk Natural Foods Stores. Almond Farms delivers nonconforming goods. Acceptance will be presumed unless Bulk Natural Foods rejects the goods

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