Exam 21: B: Performance Breach of Sales Lease Contracts

If some of the goods delivered do not conform to a contract and the seller or lessor has failed to cure,the buyer or lessee can make a partial acceptance.

Free

(True/False)

4.8/5

(33)

Question 1

Correct Answer:

Verified

True

Signal Sets Company contracts to deliver one hundred 55-inch 3D HD television sets to a new retail customer,Tuner TV Store,on May 1,with payment to be made on delivery.Signal tenders delivery in its own truck.Tuner's manager notices that some of the cartons have scrape marks.Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded.Signal assures Tuner that the sets are in perfect condition.Tuner tenders Signal a check,which Signal refuses,claiming that the first delivery to new customers is always for cash.Tuner promises to pay the cash within two days.Signal leaves the sets with Tuner,which stores them in its warehouse pending its "Grand Opening Sale" on May 15.Two days later,Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair.Signal claims Tuner has accepted the sets and is in breach by not paying on delivery.Will Signal succeed on these claims? Explain.

Free

(Essay)

4.7/5

(39)

Question 2

Correct Answer:

Verified

Signal will lose on both claims.Acceptance of the goods by a buyer takes place when the buyer either signifies that the goods are conforming after inspection or fails to reject af?ter a reasonable time for inspection or acts inconsistently with the seller's ownership.Once the goods are accepted,the buyer loses the right to revoke acceptance of noncon?forming goods unless acceptance was based on a reasonable assurance that the goods were conforming.
In this case,although Tuner accepted the goods,it did so on Signal's assurance that the sets were in perfect condition.Thus,on discovery of the damaged sets,Tuner can revoke acceptance on the basis of substantial im?pairment of value.
In addition,although the contract called for payment on delivery,no method of payment was specified.Therefore,tender of payment is sufficient if it is by any means currently used in the ordinary course of business-a check is such a means.Signal does have a right to demand cash but must give Tuner a reasonable extension of time in which to procure the cash.Thus,Signal's claim of Tuner's breach for non?payment on delivery is not valid.

If goods or tender of delivery fail in any respect to conform to a contract,the buyer or lessee loses the right to accept the goods.

Free

(True/False)

4.8/5

(40)

Question 3

Correct Answer:

Verified

False

Under the UCC,parties to a contract cannot limit or exclude consequential damages.

(True/False)

4.8/5

(48)

Question 4

A shipment contract requires a seller to deliver goods at a particular destination.

(True/False)

4.7/5

(44)

Question 5

Nash buys a car under a warranty from Rough Ride Motors.Nash soon discovers that the car has a defect that significantly affects its value and use.In all states and the District of Columbia,Nash may have remedies under

(Multiple Choice)

5.0/5

(36)

Question 6

If the parties to a sales contract state that a certain remedy is exclusive,then it is the sole remedy.

(True/False)

5.0/5

(33)

Question 7

A buyer may reject a seller's goods only if they fail to conform to a mate?rial term of the contract.

(True/False)

4.8/5

(38)

Question 8

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle.Esau cancels the con?tract ten days later.Double D is unable to sell the cattle to another buyer.Double D can

(Multiple Choice)

4.8/5

(34)

Question 9

Primo Pools Company and Aquatic Recreation,Inc. ,enter into a contract for a sale of prefabricated swimming pools.Under either a shipment contract or a destination contract,the seller must

(Multiple Choice)

4.8/5

(42)

Question 10

Price-Cut Discount Stores are open to consumers.The UCC requirement of good faith imposes

(Multiple Choice)

4.8/5

(34)

Question 11

Revocation of acceptance is not effective until notice is given to the seller or lessor.

(True/False)

4.7/5

(39)

Question 12

Nature's Foods,Inc. ,orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers.Olive Grove ships "Grade B" oil,which Nature's Foods accepts.To recover damages for the nonconformity,Nature's Foods must give notice of the breach within a reasonable time to

(Multiple Choice)

4.8/5

(30)

Question 13

Screen Perfect,Inc. ,and Vibrant View Stores enter into a contract for a sale of 3D HD TVs with certain specifications.Screen Perfect ships TVs that are not 3D but otherwise meet the specifications.Vibrant View

(Multiple Choice)

4.8/5

(44)

Question 14

Occurrences unforeseen by either party when a contract was made may make performance commercially impracticable,but the perfect tender rule still applies.

(True/False)

4.9/5

(31)

Question 15

Unless the parties agree otherwise,the buyer or lessee has an absolute right to inspect the goods before making payment.

(True/False)

4.9/5

(38)

Question 16

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks,Inc. ,but refuses to deliver.Due to a spice shortage,Roller Rinks cannot obtain pizza elsewhere.Roller Rinks's right to recover the goods from Cheesy is the right of

(Multiple Choice)

4.8/5

(30)

Question 17

When a lessor refuses to deliver the goods,a lessee can obtain specific performance only if the goods are not unique.

(True/False)

4.7/5

(28)

Question 18

If a lessee breaches a contract,the lessor can choose to simply cancel the contract.

(True/False)

4.8/5

(38)

Question 19

If a buyer breaches a contract and the seller resells the goods to another party,the seller cannot hold the breaching buyer liable for any loss.

(True/False)

4.7/5

(34)

Question 20

Showing 1 - 20 of 42

Exam 21: B: Performance Breach of Sales Lease Contracts

If some of the goods delivered do not conform to a contract and the seller or lessor has failed to cure,the buyer or lessee can make a partial acceptance.

If goods or tender of delivery fail in any respect to conform to a contract,the buyer or lessee loses the right to accept the goods.

Under the UCC,parties to a contract cannot limit or exclude consequential damages.

A shipment contract requires a seller to deliver goods at a particular destination.

Nash buys a car under a warranty from Rough Ride Motors.Nash soon discovers that the car has a defect that significantly affects its value and use.In all states and the District of Columbia,Nash may have remedies under

If the parties to a sales contract state that a certain remedy is exclusive,then it is the sole remedy.

A buyer may reject a seller's goods only if they fail to conform to a mate?rial term of the contract.

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle.Esau cancels the con?tract ten days later.Double D is unable to sell the cattle to another buyer.Double D can

Primo Pools Company and Aquatic Recreation,Inc. ,enter into a contract for a sale of prefabricated swimming pools.Under either a shipment contract or a destination contract,the seller must

Price-Cut Discount Stores are open to consumers.The UCC requirement of good faith imposes

Revocation of acceptance is not effective until notice is given to the seller or lessor.

Nature's Foods,Inc. ,orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers.Olive Grove ships "Grade B" oil,which Nature's Foods accepts.To recover damages for the nonconformity,Nature's Foods must give notice of the breach within a reasonable time to

Screen Perfect,Inc. ,and Vibrant View Stores enter into a contract for a sale of 3D HD TVs with certain specifications.Screen Perfect ships TVs that are not 3D but otherwise meet the specifications.Vibrant View

Occurrences unforeseen by either party when a contract was made may make performance commercially impracticable,but the perfect tender rule still applies.

Unless the parties agree otherwise,the buyer or lessee has an absolute right to inspect the goods before making payment.

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks,Inc. ,but refuses to deliver.Due to a spice shortage,Roller Rinks cannot obtain pizza elsewhere.Roller Rinks's right to recover the goods from Cheesy is the right of

When a lessor refuses to deliver the goods,a lessee can obtain specific performance only if the goods are not unique.

If a lessee breaches a contract,the lessor can choose to simply cancel the contract.

If a buyer breaches a contract and the seller resells the goods to another party,the seller cannot hold the breaching buyer liable for any loss.

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course

A: Liability,defenses,and Discharge