Exam 22: Performance Breach of Sales Lease Contracts

Sweet Fruits contracts with Fruits to You,Inc.,for two hundred pounds of strawberries to be delivered by Keep Kool Trucking,a trucking company with refrigerated trucks.On the day of delivery,the refrigeration units on Keep Kool's trucks are not working.Fruits to You

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

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

Fuel Connector Products,Inc.,agrees to sell Go-Flo,Inc.,a certain quantity of hose couplings and fittings,but the contract does not specify a place of delivery.Go-Flo is expected to pick up the goods.The place of delivery is

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

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

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

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.Global Mining is entitled to payment when it

If a buyer breaches a contract,the seller can choose to simply cancel the contract.

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

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

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

Garden Field Farms and Haute Gourmet Restaurant,Inc.,enter into a contract for a sale of lettuce.After Garden Field ships the lettuce but before Haute Gourmet receives it,the buyer declares bankruptcy.Garden Field can stop delivery of the goods in transit

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

If,before the time for contract performance,one party clearly communicates to the other the intention not to perform,the other party must wait to see if the repudiating party will decide to honor the contract despite the avowed intention to renege.

The parties to a sales or lease contract can expressly provide for remedies in addition to those provided in the UCC.

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 unconscionable with respect to

In the absence of any specific agreements,the buyer or lessee must make payment subsequent to receipt of the goods.

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

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