Deck 20: Performance

Question 1

Tender can be made any time of the day or night whenever the seller is able to deliver the goods.

Answer 1

False

Question 2

In a sale of goods, the seller's tender of performance does not have to conform to the Code's perfect tender rule.

Answer 2

False

Question 3

On April 18, Marco bought a sailboat from a local marina.The boat was defective and did not turn about properly.Marco used the boat extensively all summer and the boat was no longer in the same condition as when it was bought.By September 30, Marco had waived his right to revoke acceptance.

Answer 3

True

Question 4

Revocation and rejection give the buyer the same rights and duties with respect to the goods.

Question 5

Under the CISG, a party may suspend performance of his obligations if, after the conclusion of the contract, it becomes apparent that the other party will not perform a substantial part of his obligations.

Question 6

If no place of tender is indicated by the contract, delivery is presumed to be made at seller's place of business.

Question 7

In an installment contract, if the contract is silent about payment, the Code provides that the seller may demand the price, if it can be apportioned, for each lot.

Question 8

A buyer is obliged to accept conforming goods and to pay for them according to the contract terms.

Question 9

In most sales, the buyer has the right to inspect the goods before he pays.

Question 10

The Code excuses performance based upon commercial impracticability.

Question 11

An anticipatory repudiation may occur only by express communication to the other party to the contract.

Question 12

After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods.

Question 13

Payment of a C.O.D.shipment constitutes an acceptance of the goods.

Question 14

A merchant buyer of goods receives nonconforming goods.The merchant buyer rightfully rejects and appropriately notifies the seller, but the seller has no agent in the buyer's city.The goods are perishable and threaten to decline in value speedily.The merchant buyer has no further duty to the seller other than to await the seller's instructions.

Question 15

A seller has contracted to ship goods to the buyer via overland truck.The trucking company has been subject to a drivers' strike.Although the goods could be shipped via rail at a similar rate and within the agreed time, the Code will excuse the seller from its performance because delivery in the express way provided in the contract is impossible.

Question 16

A merchant buyer who has rightfully rejected goods must follow reasonable instructions from the seller regarding disposal of the goods when the seller has no agent at the place of rejection.

Question 17

Whitley ordered 800 Christmas trees from North Pines Tree Farm to be delivered on November 24.When the trees arrive, the North Pines must accept tender of payment by any means or in any manner current, such as a check, in the ordinary course of business.

Question 18

In the absence of agreement, payment is due at the time and place the buyer is to receive the goods, even though the place of shipment is the place of delivery.

Question 19

Where goods are in the possession of a bailee and are to be delivered without being moved, in most instances the seller may either tender to the buyer a document of title or obtain an acknowledgment by the bailee of the buyer's right to possess the goods.

Question 20

The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract.

Question 21

The CISG:

A)does not follow the perfect tender rule.
B)provides that the seller must, in all cases, deliver the goods within a reasonable time after the conclusion of the contract.
C)provides that in most instances the buyer must pay the contract price before examining the goods.
D)provides no right of "cure."

Question 22

Revocation of acceptance is effective without notice to the seller.

Question 23

A "commercial unit" is a unit of goods that by commercial usage is a single unit and that, if divided, would be materially impaired in character or value.

Question 24

A buyer who sells rejected goods on behalf of the seller is entitled to reasonable expenses and a reasonable selling commission not to exceed ten percent of the gross proceeds.

Question 25

In which of the following circumstances would the buyer or seller be permitted to treat the contract as breached and cancel?

A)Seller delivered conforming goods, but from another manufacturer because he ran out of the brand ordered.
B)Seller delivered the goods to a truck line when railroad delivery had been specified, but the rail line was not running on a suitable schedule.
C)Seller delivered a box of badly overripe pears that were part of an order for 12 "fruits of the month," one to be delivered during the first week of each month for a year.
D)Seller failed to deliver Volume 3 of a set of three books after repeated requests by the buyer.

Question 26

Tender of delivery requires:

A)only that the seller put and hold goods that conform to the contract at the buyer's disposition.
B)that the goods be made available to the buyer for at least one week if they are not perishable.
C)that the seller give the buyer reasonable notice of the tender.
D)that tender occur during the buyer's normal business hours.

Question 27

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may:

A)await performance for a commercially reasonable time.
B)resort to any appropriate remedy for breach.
C)Both (a) and (b) are correct.
D)None of the above.

Question 28

Which of the following best illustrates a shipment contract?

A)C.I.F.
B)F.O.B.place of shipment.
C)F.A.S.seller's port.
D)All of the above are shipment contracts.

Question 29

In the case of partial destruction of identified goods before risk of loss passes to the buyer, the buyer has the option to avoid the contract or to accept the goods with due allowance from the contract price for the deterioration or deficiency.

Question 30

If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may:

A)reject the whole.
B)accept the whole.
C)accept any commercial unit(s) and reject the rest.
D)Any of the above.

Question 31

In their contract for the sale of window shades, Lela Window Treatments, Inc.and Shane agree that Lela will have the right to replace any defective goods that are delivered to Shane.This contractual provision will not have any effect because the perfect tender rule of the UCC will control in a sale of goods transaction.

Question 32

Increased production costs will allow the seller to avoid a contract based upon commercial impracticability.

Question 33

A carpenter ordered 500 sheets of 1/2-inch plywood from her supplier, but received 498 sheets of 1/4-inch plywood.If she rejects these goods, she has no further obligation to her supplier regarding these nonconforming goods.

Question 34

If a contract contains the term "no arrival, no sale," title and risk of loss do not pass to the buyer until the seller makes a tender of the goods after they arrive at their destination.

Question 35

Which of the following terms would indicate a destination contract?

A)F.O.B.city of buyer.
B)F.O.B.city of seller.
C)C.I.F.
D)F.A.S.seller's port.

Question 36

Acceptance of goods, which disallows any later rejection of them, is accomplished only through express words.

Question 37

A buyer in Atlanta enters into a sales contract with a seller in Chicago.If the contract does not mention the place for delivery of the goods, the place of delivery will be:

A)at the seller's business or residence in Chicago.
B)as stated in all destination contracts.
C)at the buyer's business or residence in Atlanta.
D)irrelevant since the contract is void.

Question 38

Revocation of acceptance requires notice to the seller, whereas rejection does not.

Question 39

The court in Moulton Cavity & Mold Inc.v.Lyn-Flex Ind.held that:

A)the sweaters did not conform to the express warranty in the contract.
B)if the seller does not perform his contractual obligations exactly, the buyer has the right to reject the goods.
C)the Code's perfect tender rule continued the policy developed by the common law and the approach favored by Karl Llewellyn, recognized as the primum mobile of the Code's tender provisions.
D)the buyer could not rightfully reject the seller's performance because the defect in the seller's tender was insubstantial.

Question 40

Revocation of acceptance must be done as soon as the buyer discovers the grounds for the revocation.

Question 41

The perfect tender rule requires that the seller's tender of performance must conform exactly to the contract subject to:

A)installment contracts.
B)cure by the seller.
C)Both of the above.
D)Neither of the above.

Question 42

A buyer's cancellation of a contract based on the seller's anticipatory repudiation is effective:

A)only if the buyer expressly notifies the seller of the cancellation.
B)if the cancellation precedes the seller's attempt to retract her repudiation.
C)only if bond has been obtained.
D)All of the above.

Question 43

The Elm Street Accounting Partnership has ordered two maroon office chairs for its waiting room from the Quality Office Supply Company.Quality sends two burgundy-red office chairs that the Elm Street partnership rejects.What, if any, rights does Quality have under the circumstances? Explain.

Question 44

If Mary allows the seller, Sellmart Co., four weeks to repair the defects in her kitchen set and they have tried but have not done a good job at it, she may revoke her acceptance if she:

A)notifies Sellmart of revocation.
B)does not use the table and chairs.
C)could not discover the defects easily.
D)inspected the goods herself.

Question 45

Goods are to be sent from Buffalo, NY to Raleigh, NC by UPS using the delivery terms F.O.B.Buffalo, NY.Where does tender occur?

A)Where the goods are identified.
B)Where the goods are shipped.
C)Where the goods are delivered.
D)Where the goods are taken by the buyer.

Question 46

Which of the following is correct with respect to the Code's approach to impossibility of performance?

A)A significant drop in demand for the goods will excuse the buyer's performance.
B)Increased production costs will excuse performance by the seller.
C)Performance will be excused when it is impractical as a result of one or more unforeseen supervening events that are more than mere hardship or increased cost of performance.
D)All of the above are correct.

Question 47

J & J Co.offers a "subscription" for baby toys to be delivered every two months from the birth of a child.Payment must be made within two weeks of delivery.The Markham family accepted the J & J plan when their son, Timmy, was born.When Timmy was four months old, one J & J toy arrived smashed to pieces.Markham:

A)can treat the whole contract as breached and refuse to pay for past installments as well as future installments.
B)can reject the installment and cancel the contract immediately.
C)can reject the installment and refuse to pay for it if J & J cannot cure it.
D)cannot reject the installment since it is part of a series.

Question 48

Whitaker has reasonable grounds for believing Crosslin will not perform his obligations under their contract.Discuss what Whitaker might do if their contract is governed by: (a) the UCC and (b) the CISG.

Question 49

In which of the following situations does the seller have the right to cure?

A)Where the time for performance under the contract has not yet expired.
B)After the time for performance has expired if the seller had reasonable grounds for believing the buyer would accept a nonconforming tender with or without monetary adjustment.
C)Where the buyer has revoked acceptance.
D)Two of the above, (a) and (b).

Question 50

The concept of the "right to cooperation" includes that:

A)where one party's required cooperation is not timely, the other party is excused from any resulting delay in her own performance.
B)where one party's required cooperation is untimely, the other party is required to tender performance as if the first party had tendered in a timely manner.
C)where neither party is at fault and the agreed manner of delivery becomes impracticable, both parties are required to negotiate a new price.
D)None of the above.

Question 51

Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700.It is to be delivered to Bill's home on July 7.Under the perfect tender rule, which one of the following cases would permit Bill to rightfully reject the goods?

A)Sam delivered an 18-cubic-foot, silver refrigerator on July 7, and Bill calls Sam to complain.
B)Sam sent an 18-cubic-foot, yellow refrigerator with a small dent in it on July 7.Bill refuses delivery but never bothers to call Sam.
C)Sam sent his truck to Bill's home with the 18-cubic-foot, yellow refrigerator on July 7, but Bill was not home.
D)Sam sent 18-cubic-foot, yellow refrigerator without ice cube trays on July 5 and notifies Bill of the defect.

Question 52

On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years.The October shipment consisted of 100 badly defective tires.ZYX Cycle Company:

A)can treat the whole contract as breached.
B)can reject the October shipment if it cannot be cured in a timely manner by Supertread.
C)cannot reject the October shipment since it is part of the installment series.
D)Answers (a) and (b) are acceptable under the UCC.

Question 53

A buyer in a contract for the sale of goods:

A)may not inspect the goods before payment or acceptance, unless the parties agree otherwise.
B)must pay prior to inspection with a C.O.D.sale, which impairs the buyer's remedies.
C)must bear the expenses of inspection, but may recover these costs from the seller if the goods are rightfully rejected.
D)loses the right to reject nonconforming goods by not inspecting them immediately upon delivery.

Question 54

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

A)If he fails to reject the goods after he has had a reasonable opportunity to inspect them.
B)Immediately upon delivery.
C)Only when he pays for them.
D)Only after an express acceptance.

Question 55

Bill orders a custom-made suit from Rooks to be delivered by Friday at 5 p.m.When the suit is delivered to his office on Friday afternoon, he is in conference with a client.He accepts delivery and hangs the suit in his closet.When Bill tries on the suit Saturday evening, he discovers that the pants are cuffed.He had ordered cuffless trousers, so he calls Rooks on Monday and informs them that he is returning the suit.What can he do?

A)He cannot revoke acceptance since the cuffs are not difficult to discover.
B)He can revoke acceptance if the cuffs substantially impair the value of the goods to him and Rooks will not remove the cuffs.
C)He can reject the goods since he had not yet accepted them prior to inspection.
D)He cannot reject the goods because the cuffs are curable.

Question 56

Speedy Stop sells necessities to neighborhood shoppers until 1
a.m.every day.Dairyland delivered its order of milk products as usual around 6
a.m.while Mary, the shopkeeper, was busy with the early coffee and donut crowd.The Dairyland driver left 12 crates in the refrigerator compartment and went on to the rest of his route.At 7:30
a.m., Mary started to shelve the milk products and discovered that all 12 crates contained buttermilk rather than the usual mix of containers of whole milk, 2%, skim milk, and cream she had ordered.What is her obligation with regard to the goods?

Question 57

Vernon is an accountant for a major accounting firm.One day at work, he is discussing his collection of rare coins with one of his co-workers.Vernon tells his co-worker that he keeps his collection at home and that he has recently purchased several Chinese gold Panda coins at an exceptional price.The co-worker expresses an interest in buying two of the coins at an agreed price, and a contract is duly formed.If no place for delivery is expressed, where are the coins to be delivered?

A)At the office of the major accounting firm where the parties to the contract work.
B)At Vernon's home.
C)At the co-worker's home.
D)In the parking lot of the major accounting firm.

Question 58

Seller, through no fault of its own, is unable to deliver the goods to buyer because the agreed type of carrier is unavailable.Explain what the Code requires.

Question 59

A manifestation by the buyer of his unwillingness to become the owner of the goods is:

A)acceptance.
B)revocation.
C)rejection.
D)tender.