Multiple Choice
[Toshi's Dolls] Toshi owns a specialty doll store and purchases dolls regularly from Yolanda, a doll distributor. For the past few years, Toshi and Yolanda have signed yearly contracts that set forth the terms of the agreement. Although delivery terms are set forth in the agreement, if the delivery comes a day or two late or if Yolanda substitutes doll purses for shoes, Toshi does not complain, as she knows the next shipment will have more shoes than purses. Yolanda has added a new line of designer dolls, and Yolanda asks Toshi to sign a separate agreement with regard to the new doll line which includes a clause that accessories must conform to the order only as to quantity. Toshi's first order of the new line includes a large shipment of dolls and doll purses, but no doll shoes. The first delivery of the new doll line is scheduled to arrive on December 1, however, it arrives on December 2 and includes very few doll shoes and instead includes many doll purses. Yolanda refuses to accept the late shipment and calls Toshi to complain and also tells her that some of the dolls have ugly faces and she is worried they will not sell. Yolanda says that Toshi's been in the doll industry for years and should know that some dolls have flaws on their faces and she has to accept the dolls faces as they are.
-Can Toshi reject the dolls because of Yolanda's late delivery?
A) Yes, under the perfect tender rule, the seller must conform to the specifications of the contract.
B) Yes, because the delivery must comply with contract specifications.
C) Probably not, because the course of performance of this contract creates an exception to the perfect tender rule.
D) Probably not, because the course of dealings between the parties creates an exception to the perfect tender rule.
E) Probably not, because the usage of trade exception is inapplicable.
Correct Answer:

Verified
Correct Answer:
Verified
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