Exam 14: Discharge and Remedies

With a simple delivery contract in which the seller is not a merchant, which party sustains a loss if, through no fault of either party, the goods are destroyed through fire prior to delivery?

Which of the following occurs when the purchased goods are transferred to the buyer from the seller at either the time of the sale or some time later by the seller's delivery?

Under the UCC lease contracts that require payments of _______________ or more must be in writing in order to be enforceable.

Reference - Accidental Sale. ABC Motors ordinarily deals in used cars and also does some amount of repair work. Robby entrusted his automobile to ABC Motors to have the oil changed and get new brakes. The car was parked in the lot along with other cars, some of which were for sale. The manager of ABC Motors accidentally sold the car to Connie because she saw it and took it upon herself to offer a good price. The manager was attempting to increase the shop's profit margin. Connie had no idea that the car did not belong to ABC Motors. When Robby went to pick up the car, he was very upset that it was gone. The manager told Robby that he was very sorry, but that he was not negligent and only made an honest mistake. According to the manager, Robby accepted the risk of this type of loss; and his only recourse was against Connie. Which of the following is true regarding the manager's statement that Robby's only recourse is against Connie?

Reference - Used Car Problems. Marcy purchased a used car from ABC Motors. Six months later the police seized the car from Marcy on the basis that it was a stolen vehicle. Marcy asked for her money back from ABC Motors. The manager there told her that the car was not stolen; that even if it were stolen, ABC Motors acted in good faith with no knowledge of a theft; and that, therefore, no refund was legally required. ABC Motors had also sold a used car to Frank who wrote a bad check for the car and left town but not before he sold the car to Betty who paid $1,100, a fair price for the car, believing that Frank had all rights to sell it. ABC Motors asked Betty to return the car, but she told ABC to forget it. What kind of title did Frank have?

Under the UCC, when is an acceptance effective?

Reference - Wrecked Furniture. Ralph buys new furniture for his living room from Good Times Furniture. It is agreed that the goods will be placed with a common carrier for delivery. The contract between Ralph and Good Times is ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier's hands or whether the seller had the duty to deliver the goods to Ralph's home. Unfortunately, on the way to Ralph's home, through no fault of the delivery driver, the delivery truck wrecked and the furniture was significantly damaged. Which of the following is true regarding the risk of loss at the time the goods were damaged?

In a goods-in-bailment contract, when is an insurable interest created?

What did the court rule on appeal in Alfonso Candela v. Port Motors, Inc., the case in the text in which the plaintiff sued the defendant for breach of warranty of title claiming that he was sold a stolen car?

All states, except Louisiana, follow the _______________ common law.

Which of the following are considered goods under the UCC?

Federal law is the primary method by which to interpret sales contracts.

In an origin contract, when does title pass to the buyer?

Contracts for the sale or lease of goods may be formed even though some terms of the contract or lease are left open.

Which of the following occurs when goods are delivered to a buyer via a common carrier, such as a trucking line?

Reference - Patty, who lives in East Tennessee, developed a new type of printer that required very little ink. As a merchant, she entered into contracts to sell the printer to a number of merchants of office supplies in the East Tennessee area for a charge of $600 each. She further entered into a number of contracts with merchants in other states and also in foreign countries. For printers sold in states other than Tennessee and for printers sold outside the U.S., she charged $1,001 each. Patty was a trusting soul who did not require that her arrangements be in writing because she believed that a person's word was his or her bond. She did, however, send a confirming memo to each client to which she received no objections. Patty manufactured a number of printers; but unfortunately, due to a downturn in the economy, a number of her buyers refused to proceed on their contracts, with several claiming that the contracts were unenforceable because they were not in writing. Assuming the Contract for the International Sale of Goods is in effect, which of the following is true regarding whether the contracts with clients outside the U.S. were required to be in writing?

In a conditional sales contract, a contract is a _______________ if the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.

Reference - Carpet Woes. Beau went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Carpet wrote down the proposed purchase price for him along with a statement that the price would be good for three months. Two months later Beau went back to ABC Carpet to purchase the carpet. Unfortunately, the price had gone up. Beau showed the manager his writing and guaranteed price, but the manager said that the offer was no longer good. Although he had to pay more than the ABC manager had initially promised, Beau proceeded to purchase his carpet from ABC Carpet, and he also contracted with ABC to do the installation. Unfortunately, Beau almost immediately started to have problems with the carpet. Beau told the sales manager of ABC Carpet that he was planning on bringing suit for breach of warranty. The sales manager, however, told him that the breach of warranty provisions only applied to sales of goods and that the carpet purchase was for installation, a service. Which of the following is true regarding whether the UCC applies to the contract Beau had with ABC Carpet?

Which of the following requires that the seller make proper shipping arrangements and deliver goods to the buyer via a common carrier but not require a guarantee of the safety of goods to their destination?

Reference - Used Car Problems. Marcy purchased a used car from ABC Motors. Six months later the police seized the car from Marcy on the basis that it was a stolen vehicle. Marcy asked for her money back from ABC Motors. The manager there told her that the car was not stolen; that even if it were stolen, ABC Motors acted in good faith with no knowledge of a theft; and that, therefore, no refund was legally required. ABC Motors had also sold a used car to Frank who wrote a bad check for the car and left town but not before he sold the car to Betty who paid $1,100, a fair price for the car, believing that Frank had all rights to sell it. ABC Motors asked Betty to return the car, but she told ABC to forget it. Assuming that ABC Motors was an innocent purchaser from the thief, which of the following is true regarding Betty's obligations, if any?