Exam 15: Formation and Performance of Sales and Lease Contracts

The right to cure refers to the right to fix errors in a contractual agreement, such as typographical errors.

A seller or lessor is allowed to resell or dispose of goods when the original buyer is in breach and the goods have not yet been delivered.

List the eight options discussed in the text that may be available to a buyer/lessee when the seller/lessor is in breach.

Under the UCC __________ requires that the seller/lessor have and hold conforming goods at the disposal of the buyer/lessee and give the buyer/lessee reasonable notification to enable him or her to take delivery.

Which of the following are damages for lost profits a buyer or lessee may recover in the event of a breach?

The term "reasonable commercial standards of fair dealing" is often called _____________.

Define "course of dealing" and "course of performance" and how these concepts affect the perfect tender rule.

If a buyer accepts nonconforming goods, the buyer may not also seek damages.

Reference - New Furniture. Penny purchased $3,000 worth of furniture from Bob's furniture shop. Through an arrangement with Bob, Penny financed the purchase through a financing company called Let Us Help You. Twenty-nine days after the goods were delivered to her, Penny had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay. She notified Bob on that day that she was rejecting the goods. Bob claimed that she did not properly reject the furniture and also that she acted in bad faith. Penny says that she properly rejected and denies that she acted in bad faith. She also says that, in any event, she cannot be charged with both wrongful rejection and also bad faith because of double jeopardy. Which of the following is true regarding the standard of good faith that would be applied in regard to Penny?

Good faith as applied to non-merchants under the UCC means _____________.

Under the UCC, the term "cover" refers to substituting goods for those due under a sales or lease agreement when a seller or lessor provides nonconforming goods.

Reference - New Furniture. Penny purchased $3,000 worth of furniture from Bob's furniture shop. Through an arrangement with Bob, Penny financed the purchase through a financing company called Let Us Help You. Twenty-nine days after the goods were delivered to her, Penny had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay. She notified Bob on that day that she was rejecting the goods. Bob claimed that she did not properly reject the furniture and also that she acted in bad faith. Penny says that she properly rejected and denies that she acted in bad faith. She also says that, in any event, she cannot be charged with both wrongful rejection and also bad faith because of double jeopardy. Which of the following is the correct analysis of Penny's claim that she cannot be charged with both a wrongful rejection and bad faith because of the double jeopardy bar?

The UCC defines ______________ as previous commercial transactions between the same parties.

Which of the following is needed in order for the implied warranty of fitness for a particular purpose to be applied?

A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects _____________ the value of the goods and the buyer had a legitimate reason for the initial acceptance.

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

Under the UCC, the buyer must bring a lawsuit on a breached contract within _____________ years of when the breach occurred or when the buyer became aware of it.

When parties are merchants, the UCC requires _____________.

In order to disclaim the implied warranty of fitness for a particular purpose, the seller must disclaim the warranty in writing.

Reference - Hot Toaster. Rebecca bought a toaster from Super Store and brought it home. A friend of hers, Greg, was at her house making toast. The toaster malfunctioned and shocked Greg resulting in a small burn to his hand requiring medical attention. At a garage sale, Rebecca also purchased a blender from a friend, Samantha. When she paid for the blender, Rebecca said that it would be great for making smoothies. Samantha said nothing and just smiled while taking Rebecca's money. Unfortunately, the blender was not powerful enough to make smoothies. Based on the facts presented, what type of warranty did Super Store give Rebecca?