Question 1

If a buyer does not receive goods by the contract deadline,remedies available include:
A)incidental and consequential damages.
B)cover.
C)damages for non-delivery.
D)All of the above.

Accepted Answer

If a buyer does not receive goods by the contract deadline, they can pursue multiple remedies. Incidental and consequential damages can be sought if the buyer incurred additional costs as a result of the non-delivery. Cover can be used as a remedy if the seller failed to deliver the goods, allowing the buyer to purchase from another source at a comparable price. Damages for non-delivery can be sought if the buyer suffered losses as a result of the non-delivery. Therefore, all of the above options are available remedies for the buyer.

Question 2

If the seller breaches,the buyer may reasonably obtain substitute goods but may not obtain the difference between the contract price and the cover price.

Accepted Answer

Under the Uniform Commercial Code (UCC), if the seller breaches, the buyer can obtain substitute goods (cover) and may also recover the difference between the contract price and the cover price.

Question 3

Under the UCC,the seller's right to correct a shipment of non-conforming goods is called:
A)correction.
B)cure.
C)cover.
D)retender.

Accepted Answer

The term used under UCC for seller's right to correct a shipment of non-conforming goods is "cure." The seller has the right to fix or replace non-conforming goods within a reasonable time after delivery to the buyer. It allows the seller an opportunity to correct the breach of contract and fulfill their obligations under the sales contract.

Question 4

A seller may not make minor necessary repairs or adjustments that will bring the goods into conformity in order to "cure" nonconforming goods.

Accepted Answer

A seller may make minor necessary repairs or adjustments to bring nonconforming goods into conformity, as long as it doesn't cause unreasonable inconvenience or expense to the buyer. This is known as the right to cure.

Question 5

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

Accepted Answer

Course of dealing refers to the past transactions between the same parties, which can help establish patterns and expectations for future transactions.

Question 6

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

Accepted Answer

The statement is true as the contract mentions the supplier can bring a mixture of hard and soft woods for the first three deliveries, so the homeowner cannot reject the January delivery if it includes soft wood.

Question 7

Courts generally declare illegal agreements whereby parties limit the effect of the perfect tender rule.

Accepted Answer

The answer of Courts generally declare illegal agreements whereby parties...

Question 8

The Hessler v.Crystal Lake Chrysler-Plymouth,Inc.case addressed the issue of:
A)the buyer's right to cover.
B)the seller's right to resell.
C)the seller's right to cure.
D)the buyer's right to inspect the goods.

Accepted Answer

The answer of The Hessler v.Crystal Lake Chrysler-Plymouth,Inc.case addressed the...

Question 9

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 catalog,there was no right to cure a nonconformity with the sleeves of the robes.

Accepted Answer

The statement is incorrect. The court did not address the issue of a right to cure nonconformity with the sleeves of the robes in this case.

Question 10

A buyer who accepts nonconforming goods may revoke the acceptance under limited circumstances.

Accepted Answer

A buyer can revoke acceptance of nonconforming goods if there was fraud, the nonconformity substantially impairs the value of the goods, and the buyer had a reasonable excuse for not discovering the nonconformity earlier.

Question 11

The common law requirement that the seller make a tender of delivery that conforms in all respects to the contract requirements was retained by drafters of the UCC,although the Code includes sections that limit the rule's effect.

Accepted Answer

The statement is true, as the UCC retains the common law requirement of tender of delivery that conforms to the contract, but also includes some limitations to its effect.

Question 12

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

Accepted Answer

The perfect tender rule states that the buyer has the right to reject the goods if they do not meet the contract specifications in any way.

Question 13

Matson agrees to purchase 500 wooden chairs from Woodcarvers,Inc.After Woodcarvers sets the chairs aside in its warehouse,but before the risk of loss passes to Matson,the chairs are destroyed in a fire,which was not the fault of Woodcarvers.The contract between Matson and Woodcarvers is void.

Accepted Answer

The answer of Matson agrees to purchase 500 wooden chairs...

Question 14

Meister Bros.shipped 250 radiator belts to fill Braybon's order.Quality control measures had been in place in Meister's factory when the belts were manufactured.When Braybon received the order one day before it was due,it notified Meister that it rejected the belts because of a variation from the contract specifications.Meister,although it believed the original belts met the contract specifications,notified Braybon that it would supply conforming goods within one week.When the conforming goods arrive in one week:
A)Braybon does not have to accept them because the contract deadline has passed.
B)Braybon does not have to accept them because Meister Bros.only has one chance to fill the order correctly.
C)Braybon should accept them because Meister Bros.has a right to cure even after the contract deadline under these circumstances.
D)Braybon does not have to accept them because Meister Bros.failed to meet its UCC requirement to deal in good faith.

Accepted Answer

Under the UCC, a seller has the right to cure non-conforming goods, even after the contract deadline, if the seller had a reasonable belief that the original goods met the contract specifications. Meister Bros. has notified Braybon that it will supply conforming goods within one week, which implies that it is curing the non-conforming goods. Therefore, Braybon should accept the conforming goods.

Question 15

If Chuck buys cheese from Cheese Inc.,then fails to inspect the cheese within a reasonable amount of time and does not reject the shipment,Chuck has accepted the shipment even if there is non-conformity.

Accepted Answer

According to the Uniform Commercial Code, if a buyer fails to inspect the goods within a reasonable time after their delivery or receipt, and does not reject the shipment, they are considered to have accepted the goods, even if they are non-conforming. This is known as the doctrine of acceptance by conduct or acceptance by silence. Therefore, if Chuck did not inspect the cheese within a reasonable amount of time and did not reject the shipment, he has accepted the cheese from Cheese Inc.

Question 16

The duties of the buyer include all of the following except:
A)acceptance of conforming goods.
B)payment for conforming goods.
C)delivery of the documents of title to the seller as a tender of goods.
D)notifying the seller of rejection of non-conforming goods within a reasonable time.

Accepted Answer

The duty of the buyer is not to deliver the documents of title to the seller as a tender of goods. It is the seller who is responsible for delivering the documents of title to the buyer as a tender of goods. The other three options are duties of the buyer.

Question 17

A buyer has an absolute right to reject goods as long as the rejection is timely.

Accepted Answer

The answer of A buyer has an absolute right to...

Question 18

Wimble ordered $800 worth of pro-quality luminescent orange tennis balls from Sports Unlimited.On June 1,Sports Unlimited shipped standard white tennis balls that were rejected by Wimble.Wimble bought the same number of pro-quality luminescent orange balls from another supplier the same day for $550.In a suit against Sports Unlimited,Wimble may recover $800.

Accepted Answer

Wimble cannot recover $800 from Sports Unlimited because they did not deliver the correct merchandise. The amount they could potentially recover would be the difference between the cost of the correct merchandise ($800) and the cost of the replacement merchandise ($550), which is $250.

Question 19

Tender means to make conforming goods available to the buyer.

Accepted Answer

Tender refers to the act of making conforming goods available to the buyer for inspection and possible acceptance.

Question 20

If the buyer rejected the goods,the seller may reasonably resell them and obtain the difference between the resale price and the contract price.

Accepted Answer

This statement is true according to the common law principle of "mitigation of damages", which allows the seller to minimize their losses by reselling the goods if the buyer refuses to accept them. However, the seller must act in good faith and take reasonable steps to obtain a fair price for the goods. Any expenses incurred in connection with the resale may also be deducted from the resale price.

Quiz 21: Performance and Remedies

If a buyer does not receive goods by the contract deadline,remedies available include: