Question 1

Identify the possible remedies for a seller when the buyer breaches a contract.

Accepted Answer

If a buyer breaches a contract, the sell

Question 2

A homeowner has a contract with a firewood supplier to bring a stack of hardwood at the beginning of each month from October through March. If the supplier has brought a mixture of hard and soft woods for the first three deliveries and the homeowner accepted the deliveries, the homeowner cannot reject a delivery in January just because it includes some soft wood.

Accepted Answer

A) True 
 B)False

Question 3

A buyer who accepts goods but notifies the seller the goods are non-conforming

Accepted Answer

A)  cannot recover any damages. 
B)  can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages. 
C)  cannot recover incidental damages. 
D)  cannot recover consequential damages. 
A)  cannot recover any damages. 
B)  can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages. 
C)  cannot recover incidental damages. 
D)  cannot recover consequential damages.

Question 4

Which is an example of a repudiation?

Accepted Answer

A)  Jaime orders goods to be delivered on May 1; the company does not deliver the goods until May 15. 
B)  Darlene offers to sell her car to Brian for $5,000; Brian tells Darlene he will give her $4,000 for the car. 
C)  Max places an order for five custom-made shirts; two hours later, he changes his mind and notifies the shirt company that he will not pay for the shirts if they are sent. 
D)  Venus orders 100 silk dresses, which she plans to resell; when the order arrives, she finds the dresses are made of cotton, so she refuses to pay for them. 
A)  Jaime orders goods to be delivered on May 1; the company does not deliver the goods until May 15. 
B)  Darlene offers to sell her car to Brian for $5,000; Brian tells Darlene he will give her $4,000 for the car. 
C)  Max places an order for five custom-made shirts; two hours later, he changes his mind and notifies the shirt company that he will not pay for the shirts if they are sent. 
D)  Venus orders 100 silk dresses, which she plans to resell; when the order arrives, she finds the dresses are made of cotton, so she refuses to pay for them.

Question 5

What is the difference between incidental damages and consequential damages?

Accepted Answer

An injured buyer is generally entitled t

Question 6

Under the doctrine of commercial impracticability, which situation would NOT excuse the seller's performance?

Accepted Answer

A)  The seller forgot to include the cost of freight in a C&F contract. 
B)  The seller's source of supply is no longer available because of a governmental embargo prohibiting an export from another country. 
C)  The seller cannot deliver because severe flooding wiped out three-fourths of the state's produce. 
D)  The seller's workforce is out on an unexpected strike. 
A)  The seller forgot to include the cost of freight in a C&F contract. 
B)  The seller's source of supply is no longer available because of a governmental embargo prohibiting an export from another country. 
C)  The seller cannot deliver because severe flooding wiped out three-fourths of the state's produce. 
D)  The seller's workforce is out on an unexpected strike.

Question 7

Under which circumstances has the buyer accepted goods?

Accepted Answer

A)  A shipment of goods was delivered to Kamala, who immediately picked up the box from her porch and placed it on her dining-room table. 
B)  Peter received a shipment of 100 toy soldiers on Monday; by the end of the week, he had already sold half of them. 
C)  Goods were delivered to Lao-tzu, who told the seller that he had received them; two days later, Lao-tzu informed the seller that, upon inspection, the goods were not conforming. 
D)  None of these are correct. 
A)  A shipment of goods was delivered to Kamala, who immediately picked up the box from her porch and placed it on her dining-room table. 
B)  Peter received a shipment of 100 toy soldiers on Monday; by the end of the week, he had already sold half of them. 
C)  Goods were delivered to Lao-tzu, who told the seller that he had received them; two days later, Lao-tzu informed the seller that, upon inspection, the goods were not conforming. 
D)  None of these are correct.

Question 8

Define these terms: usage of trade, course of dealing, and course of performance and identify how they are used according to the UCC.

Accepted Answer

Usage of trade is any practice that memb

Question 9

Under the UCC, a buyer's right to reasonably obtain substitute goods because another party has not honored a contract is called

Accepted Answer

A)  breach. 
B)  cure. 
C)  cover. 
D)  consideration. 
A)  breach. 
B)  cure. 
C)  cover. 
D)  consideration.

Question 10

In some industries it is a routine practice to draft contracts permitting imperfection in the seller's goods, thereby limiting the effect of the perfect tender rule by the parties' agreement.

Accepted Answer

A) True 
 B)False

Question 11

"Course of dealing" refers to prior commercial transactions between the same parties.

Accepted Answer

A) True 
 B)False

Question 12

Wimble ordered 1,000 pro-quality luminescent orange tennis balls from Sports Unlimited at a cost of $800. On June 1, Sports Unlimited shipped standard white tennis balls, but Wimble rejected them. Wimble bought the same number of pro-quality luminescent orange balls from another supplier the same day for $650. In a suit against Sports Unlimited, Wimble may recover $800.

Accepted Answer

A) True 
 B)False

Question 13

Buyer Bob breaches his contract for the sale of goods with Seller Suzie. Suzie still has possession of the goods at the time of the breach. Suzie can refuse to deliver the goods and

Accepted Answer

A)  resell the goods and sue Bob for the total contract price. 
B)  either resell the goods or sue, but not both. 
C)  resell the goods and sue for any loss on the sale plus incidental damages less expenses saved. 
D)  resell the goods and sue only for incidental damages. 
A)  resell the goods and sue Bob for the total contract price. 
B)  either resell the goods or sue, but not both. 
C)  resell the goods and sue for any loss on the sale plus incidental damages less expenses saved. 
D)  resell the goods and sue only for incidental damages.

Question 14

A baseball team ordered 500 wooden baseball bats from Bats, Inc., for delivery on June 1. On May 15, the ball team received 500 aluminum bats instead of the wooden ones. As of May 16, Bats, Inc.

Accepted Answer

A)  may cure before June 1. 
B)  has breached the contract and is liable for damages. 
C)  has breached the contract only if the baseball team rejects the goods. 
D)  may cure if the baseball team gives Bats, Inc. permission to do so. 
A)  may cure before June 1. 
B)  has breached the contract and is liable for damages. 
C)  has breached the contract only if the baseball team rejects the goods. 
D)  may cure if the baseball team gives Bats, Inc. permission to do so.

Question 15

In the Zion Temple First Pentecostal Church of Cincinnati, Ohio, Inc. v. Brighter Day Bookstore & Gifts case, the court found that, because of an error in the company's catalog, there was no right to cure a nonconformity with the sleeves of the choir robes delivered to Zion.

Accepted Answer

A) True 
 B)False

Question 16

A court order requiring the seller to perform as promised is called

Accepted Answer

A)  specific performance. 
B)  cover. 
C)  liquidated damages. 
D)  good faith. 
A)  specific performance. 
B)  cover. 
C)  liquidated damages. 
D)  good faith.

Question 17

A buyer may revoke an acceptance of goods if

Accepted Answer

A)  the nonconformity does not impair the value of the goods. 
B)  the buyer had a legitimate reason for the initial acceptance. 
C)  the buyer knew the nonconformity could not be cured. 
D)  the buyer thought they could easily cover. 
A)  the nonconformity does not impair the value of the goods. 
B)  the buyer had a legitimate reason for the initial acceptance. 
C)  the buyer knew the nonconformity could not be cured. 
D)  the buyer thought they could easily cover.

Question 18

Under the "perfect tender rule" the buyer may reject the goods if they fail in any respect to conform to the contract.

Accepted Answer

A) True 
 B)False

Question 19

Family Time Restaurant has a contract with Prime Meats for Prime to deliver 100 pounds of ground sirloin twice a week for the next three months. If, on one delivery, Prime brings 95 pounds of ground chuck instead of 100 pounds of ground sirloin,

Accepted Answer

A)  Family Time may unquestionably reject the non-conforming goods because they vary in both quantity and quality. 
B)  Family Time may reject the non-conforming installment only if it substantially impairs the value of that installment and cannot be cured. 
C)  Prime has no right to cure. 
D)  the perfect tender rule applies. 
A)  Family Time may unquestionably reject the non-conforming goods because they vary in both quantity and quality. 
B)  Family Time may reject the non-conforming installment only if it substantially impairs the value of that installment and cannot be cured. 
C)  Prime has no right to cure. 
D)  the perfect tender rule applies.

Question 20

The UCC includes sections that limit the perfect tender rule's effect, and courts have a tendency to apply these limitations more enthusiastically than the rule itself.

Accepted Answer

A) True 
 B)False

Exam 23: Performance and Remedies

Identify the possible remedies for a seller when the buyer breaches a contract.

A buyer who accepts goods but notifies the seller the goods are non-conforming

Which is an example of a repudiation?

What is the difference between incidental damages and consequential damages?

Under the doctrine of commercial impracticability, which situation would NOT excuse the seller's performance?

Under which circumstances has the buyer accepted goods?

Define these terms: usage of trade, course of dealing, and course of performance and identify how they are used according to the UCC.

Under the UCC, a buyer's right to reasonably obtain substitute goods because another party has not honored a contract is called

In some industries it is a routine practice to draft contracts permitting imperfection in the seller's goods, thereby limiting the effect of the perfect tender rule by the parties' agreement.

"Course of dealing" refers to prior commercial transactions between the same parties.

Buyer Bob breaches his contract for the sale of goods with Seller Suzie. Suzie still has possession of the goods at the time of the breach. Suzie can refuse to deliver the goods and

A baseball team ordered 500 wooden baseball bats from Bats, Inc., for delivery on June 1. On May 15, the ball team received 500 aluminum bats instead of the wooden ones. As of May 16, Bats, Inc.

In the Zion Temple First Pentecostal Church of Cincinnati, Ohio, Inc. v. Brighter Day Bookstore & Gifts case, the court found that, because of an error in the company's catalog, there was no right to cure a nonconformity with the sleeves of the choir robes delivered to Zion.

A court order requiring the seller to perform as promised is called

A buyer may revoke an acceptance of goods if

Under the "perfect tender rule" the buyer may reject the goods if they fail in any respect to conform to the contract.

Family Time Restaurant has a contract with Prime Meats for Prime to deliver 100 pounds of ground sirloin twice a week for the next three months. If, on one delivery, Prime brings 95 pounds of ground chuck instead of 100 pounds of ground sirloin,

The UCC includes sections that limit the perfect tender rule's effect, and courts have a tendency to apply these limitations more enthusiastically than the rule itself.

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

Consideration

Legality

Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant Law

Personal Property and Bailment

Planning for the Future: Wills, Trusts and Insurance

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