Question 1

Refer to Fact Pattern 12-1. Enriched can pursue the following relief

Accepted Answer

Enriched can terminate the contract and seek damages if the other party has breached the contract, which is a common remedy available in contract law.

Question 2

Vehicle Wholesale Company and Walt's Retail Motors enter into a contract for a sale of used cars. Vehicle Wholesale assures Walt's that it has valid title to the vehicles. Under the UCC, warranties of title arise​

Accepted Answer

Under the UCC, warranties of title arise automatically in most sales contracts, meaning that the seller automatically warrants that they have valid title to the goods being sold. It is not necessary for the buyer to ask for such a warranty or for the seller to express it explicitly.

Question 3

Refined Mills orders "Grade A" oats from Sweet Valley Farms to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to​

Accepted Answer

Refined Mills must notify Sweet Valley, the seller, of the breach within a reasonable time to recover damages for the nonconformity.

Question 4

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. In reasonable reliance on this statement, Rachel purchases the painting. Quade's statement is

Accepted Answer

An express warranty is a seller's promise or guarantee that a buyer relies on when they purchase an item. Quade's statement that the painting is by Picasso is an express warranty because Rachel relied on this specific assertion to make her purchase.

Question 5

Oh! Wow! Markets, Inc., rejects a shipment of non-perishable canned turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Oh! Wow! Markets can

Accepted Answer

Oh! Wow! Markets can reship or store the goods for the seller if they do not conform to the contract and instructions from the seller are not available. This is a reasonable action to take when the goods are rejected and the seller has not provided further instructions.

Question 6

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers, but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date​

Accepted Answer

If the contract does not specify the address for delivery and the parties fail to do so before the delivery date, it would be impractical and unfair to hold Pleasant Valley Dairy liable for any resulting delay. It is the responsibility of Coffee & Dessert Caterers to provide a delivery address. Therefore, Pleasant Valley Dairy is excused for any resulting delay.

Question 7

Kramer goes to Lawn & Garden to tune up his mower. Martin, the service tech-ni-cian, learns that Kramer's lawn is overgrown and rocky and advises the use of a certain type of oil, plug, filter, and blade. Later, while Kramer is mowing his lawn, the mower breaks down due to the use of the items recommended by Martin. Kramer may recover from Lawn & Garden for breach of​

Accepted Answer

Martin, the service technician, advised Kramer on the specific items to use for his lawn, indicating a warranty of fitness for a particular purpose. As the mower broke down due to the recommended items, Kramer may recover from Lawn & Garden for breach of an implied warranty of fitness for a particular purpose.

Question 8

Beef Burgers, Inc. contracts to buy five hundred head of cattle from Calf & Cow Farms. Before Calf & Cow delivers, an outbreak of disease causes a quarantine of the farm. In this circumstance, the perfect tender rule​

Accepted Answer

The perfect tender rule states that the goods delivered must perfectly match the contract, in terms of quality, quantity, and delivery. However, if an unforeseen event occurs that makes the delivery impossible, such as a quarantine due to a disease outbreak, the perfect tender rule no longer applies. Both parties are released from their obligations under the contract, as long as the event was truly unforeseeable and beyond their control. Therefore, the correct answer is B, as the perfect tender rule no longer applies to either party.

Question 9

Global Talk Corporation sells phones and other mobile devices. Under most circumstances, Global Talk will be presumed to have warranted that its title to the goods is​

Accepted Answer

The Uniform Commercial Code provides that the seller warrants good and valid title to the goods being sold unless otherwise specified in the contract. Therefore, under most circumstances, Global Talk would be presumed to have warranted that its title to the goods is good and valid.

Question 10

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain

Accepted Answer

The right to obtain substitute goods when a seller fails to deliver is known as the right to "cover" under the Uniform Commercial Code (UCC).

Question 11

Dependable Appliances, Inc., and Elaine enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably​

Accepted Answer

Under the UCC, an implied warranty of merchantability means that the goods are fit for the ordinary purpose for which such goods are used.

Question 12

Pebble Leasing Corporation and Quarry Rock & Gravel Company enter into a lease of three excavators. Under the perfect tender rule, Pebble Leasing must ship or tender goods to Quarry Rock & Gravel that, with respect to the contract description, conform​

Accepted Answer

The perfect tender rule of the Uniform Commercial Code (UCC) requires that the goods shipped or tendered must conform to the contract description in every way. Therefore, Pebble Leasing must ensure that the excavators conform to all the specifications and requirements stated in the lease contract without any defect or deviation. Any non-conformity or defect may give Quarry Rock & Gravel the right to reject the goods or seek remedies under the contract or UCC.

Question 13

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​

Accepted Answer

Loading Ramps Plus Inc. can sue to recover the purchase price plus incidental damages as Moving Services accepted the ramps but did not pay for them. Loading Ramps has fulfilled their contractual obligation by delivering the ramps, therefore they are entitled to recover the purchase price and any incidental damages caused by Moving Services' breach of contract.

Question 14

Watercourse Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates​

Accepted Answer

The answer of Watercourse Pipe Company includes in its contracts...

Question 15

Gold Medical Supply Company and Home & Hospice Care, Inc., enter into a contract for a sale of healthcare equipment and supplies. Under either a shipment contract or a destination contract, the seller must

Accepted Answer

Under both shipment and destination contracts, the seller must provide the buyer with any necessary documents to enable the buyer to obtain delivery and possession of the goods from the carrier.

Question 16

Owen and Pablo enter into a contract for a sale of fifty Western saddles. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between​

Accepted Answer

The normal measure of damages in a contract for the sale of goods is the difference between the contract price and the market price at the time and place for delivery. In this case, the contract price for the fifty Western saddles would be the amount agreed upon by Owen and Pablo, and the market price would be the current price for Western saddles in the location where the delivery was supposed to take place.

Question 17

Fruited Plain, Inc., agrees to sell high-quality grain seed to Grange Co-op. Because only half of the quantity ordered is available, Fruited Plain ships a lesser quality seed in twice the amount of the remainder of the order for the same price. Grange Co-op rejects the lesser quality seed. With time for performance not yet expired, Fruited Plain can​

Accepted Answer

Fruited Plain, Inc. can attempt to cure the defect by providing the correct quality seed before the time for performance expires, as per the Uniform Commercial Code (UCC) which allows sellers to cure defects in goods delivered.

Question 18

Freddi buys bike shoes from Get n' Gear Store, telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Freddi to be injured in a fall. Get n' Gear most likely breached​

Accepted Answer

This is an example of a breach of implied warranty of fitness for a particular purpose because Freddi explicitly told the clerk that she needed the shoes for a specific purpose, and the shoes failed to perform adequately for that purpose.

Question 19

Greg, a salesperson for Home Improvement Center, tells Irena, "This is the best floor sander I've ever seen." This statement is​

Accepted Answer

The statement "This is the best floor sander I've ever seen" is considered puffery, which is a subjective opinion and not a factual statement that can be proven. It is not an express or implied warranty, nor is it a warranty of title.

Question 20

Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." This statement is​

Accepted Answer

This statement is considered puffery, which is a subjective or exaggerated statement that is not meant to be taken literally or as a factual claim. It is unlikely that the statement would be considered a warranty, express or implied, as it does not make any specific promises or guarantees about the product's quality or performance.

Quiz 12: Performance and Breach in Sales and Lease Contracts

Refer to Fact Pattern 12-1. Enriched can pursue the following relief

Vehicle Wholesale Company and Walt's Retail Motors enter into a contract for a sale of used cars. Vehicle Wholesale assures Walt's that it has valid title to the vehicles. Under the UCC, warranties of title arise​

Refined Mills orders "Grade A" oats from Sweet Valley Farms to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to​

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. In reasonable reliance on this statement, Rachel purchases the painting. Quade's statement is

Oh! Wow! Markets, Inc., rejects a shipment of non-perishable canned turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Oh! Wow! Markets can

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers, but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date​

Beef Burgers, Inc. contracts to buy five hundred head of cattle from Calf & Cow Farms. Before Calf & Cow delivers, an outbreak of disease causes a quarantine of the farm. In this circumstance, the perfect tender rule​

Global Talk Corporation sells phones and other mobile devices. Under most circumstances, Global Talk will be presumed to have warranted that its title to the goods is​

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain

Dependable Appliances, Inc., and Elaine enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably​

Pebble Leasing Corporation and Quarry Rock & Gravel Company enter into a lease of three excavators. Under the perfect tender rule, Pebble Leasing must ship or tender goods to Quarry Rock & Gravel that, with respect to the contract description, conform​

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​

Watercourse Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates​

Gold Medical Supply Company and Home & Hospice Care, Inc., enter into a contract for a sale of healthcare equipment and supplies. Under either a shipment contract or a destination contract, the seller must

Owen and Pablo enter into a contract for a sale of fifty Western saddles. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between​

Freddi buys bike shoes from Get n' Gear Store, telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Freddi to be injured in a fall. Get n' Gear most likely breached​

Greg, a salesperson for Home Improvement Center, tells Irena, "This is the best floor sander I've ever seen." This statement is​

Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." This statement is​

Vehicle Wholesale Company and Walt's Retail Motors enter into a contract for a sale of used cars. Vehicle Wholesale assures Walt's that it has valid title to the vehicles. Under the UCC, warranties of title arise

Refined Mills orders "Grade A" oats from Sweet Valley Farms to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers, but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date

Beef Burgers, Inc. contracts to buy five hundred head of cattle from Calf & Cow Farms. Before Calf & Cow delivers, an outbreak of disease causes a quarantine of the farm. In this circumstance, the perfect tender rule

Global Talk Corporation sells phones and other mobile devices. Under most circumstances, Global Talk will be presumed to have warranted that its title to the goods is

Dependable Appliances, Inc., and Elaine enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably

Pebble Leasing Corporation and Quarry Rock & Gravel Company enter into a lease of three excavators. Under the perfect tender rule, Pebble Leasing must ship or tender goods to Quarry Rock & Gravel that, with respect to the contract description, conform

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

Watercourse Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates

Owen and Pablo enter into a contract for a sale of fifty Western saddles. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between

Freddi buys bike shoes from Get n' Gear Store, telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Freddi to be injured in a fall. Get n' Gear most likely breached

Greg, a salesperson for Home Improvement Center, tells Irena, "This is the best floor sander I've ever seen." This statement is

Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." This statement is