Q&A Hero

Q: Mitch and Nadine enter into a contract for a sale of seventy-six specially made motion detectors. When Nadine does not deliver within a reasonable time after the agreed delivery date, Mitch files a suit for breach. Nadine asserts the doctrine of commercial impracticability. This doctrine extends only to problems that are a. foreseen. b. preventable. c. unforeseen. d. ordinarily assumed by a seller or lessor.

Q: Beef Burgers, Inc. contracts to buy five hundred steers from Fattening Feedlots. Before Fattening Feedlots can deliver the steers, there is an outbreak of disease in the feedlot, and all the cattle are quarantined. In this case the perfect tender rule a. applies to both parties. b. does not apply. c. applies only to Beef Burgers. d. applies only to Fattening Feedlots.

Q: Mineral Resource Company contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts, the distributor a. can substitute some other material for the tin. b. is excused from the performance of its contracts. c. is liable for breach of contract. d. must still supply the tin needs of its customers.

Q: Sally's Sweet Fruits contracts with Fruits to You, Inc. for a delivery of two hundred pounds of strawberries to be delivered by Keep Kool Trucking, a trucking company with refrigerated trucks. On the day of delivery, the refrigeration units on Keep Kool's trucks are not working. Fruits to You a. may ship the goods to Sally's using another trucking company with refrigerated trucks. b. must refund Sally's money and cancel the contract. c. must wait to ship the strawberries until Keep Kool has fixed its trucks. d. must ship the goods through a different carrier and pay Sally incidental damages.

Q: Levi's Toy Store orders one hundred board games from Big Board Games Warehouse. When the games are delivered, they are all missing pieces. Levi's Toy Store rejects the shipment. Big Board Games wants to cure. Big Board Games must a. promptly notify Levi's Toy Store of the intent to cure. b. pay Levi's Toy store a cure fee. c. send a truck to pick up the nonconforming goods before the end of the business day. d. create a new contract with Levi's Toy Store.

Q: On January 10, Winchester Pet Supplies orders fifty small dog collars from Quality Collars, Inc. to be delivered by January 15. On January 13, Quality Collars tenders fifty large dog collars. Winchester Pet Supplies rejects the shipment. Quality Collars has a. no right to cure. b. until January 15 to cure. c. until the end of the business day on January 13 to cure. d. unlimited time to cure.

Q: Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company. Food can obtain only 20,000 of the 6-ounce containers, but also ships 30,000 more expensive 8-ounce containers for the same price. Under these circumstances, Golden a. cannot reject delivery, and Food cannot later replace the containers. b. cannot reject delivery, but Food can later replace the containers. c. may reject delivery, and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers. d. may reject delivery, but Food cannot later replace the containers.

Q: Kim's Pony Rides orders ten saddles from Little Horse Saddles, Inc. The sales contract states that if the saddles are defective, Kim's will allow Little Horse Saddles to repair or replace them instead of rejecting the shipment. When the saddles arrive, they are defective. In this case, the perfect tender rule a. does not apply. b. applies to both parties. c. applies only to Little Horse Saddles. d. applies only to Kim's Pony Rides.

Q: Vehicle Leasing Agency (VLA) and Wander Trucking Company enter into a contract for a lease of eight cargo vans. VLA delivers eight vans, but they are not cargo-sized. Wander a. cannot reject the entire shipment. b. can reject the entire shipment. c. must accept the entire shipment. d. must reject the entire shipment.

Q: Genuine Seed Company and Hillside Farmers Cooperative enter into a contract for a sale of hybrid seeds. Under the perfect tender rule, Genuine Seed must ship or tender seeds to Hillside that a. approximately conform to all of the details of the contract. b. entirely conform to the contract except in one or two details. c. exactly conform to the contract in every detail. d. substantially conform to the contract in most details.

Q: Screen Perfect, Inc., and TV Stores enter into a contract for a sale of high-definition television sets. Screen Perfect ships goods that do not exactly conform to the contract in some details. TV Stores a. cannot reject the entire shipment. b. can reject the entire shipment. c. must accept the entire shipment. d. must reject the entire shipment.

Q: Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that a. approximately conform to all of the details of the contract. b. entirely conform to the contract except in one or two details. c. exactly conform to the contract in every detail. d. substantially conform to the contract in most details.

Q: Pine Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of plywood. Under a destination contract, the seller must a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. inspect the goods before tendering their delivery. d. place the goods into the hands of a carrier.

Q: Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipment contract, the seller must a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. inspect the goods before shipping them. d. place the goods into the hands of a carrier.

Q: Office Suppliers, Inc. and Little Office Shop enter into a contract for a sale of office supplies. Office Suppliers is the seller. Under a shipment contract, the Office Suppliers does not have to a. obtain and promptly deliver or tender to the buyer any documents necessary to enable the buyer to obtain the goods. b. deliver the goods to a particular destination. c. put the goods in the hands of the carrier. d. promptly notify the buyer when the shipment has been made.

Q: Clear Day Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Far Vu, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of delivery is in a. California. b. Delaware. c. Florida. d. Hawaii.

Q: Big Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Big Eggs cannot reasonably ask Omelet Express to pick up the eggs at a. 1:00 p.m. b. 2:00 p.m. c. 3:00 p.m. d. 4:30 a.m.

Q: Sparkling Gem Corporation agrees to sell Jewel Outlets, Inc. (JOI), fifty new diamonds, but the contract does not specify a place of delivery. JOI is expected to pick up the goods. The place of delivery is a. Sparkling's place of business. b. JOI's place of business. c. the Annual Gems and Jewels Convention in New York City. d. the U.S. Postal Service office nearest to JOI's place of business.

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

Q: If a seller asks a buyer to store nonconforming goods overnight, then the buyer is entitled to reimbursement for the costs involved.

Q: If a seller fails to deliver the goods, the buyer's damages do not include all losses resulting from this course of events.

Q: If a seller repudiates a contract, the buyer's damages do not have to be adjusted to reflect any expenses that were saved as a result of the breach.

Q: A buyer who obtains substitute goods to replace goods that a seller did not deliver can also recover damages from the seller.

Q: A buyer may reject a seller's goods under any circumstances.

Q: If a buyer repudiates a contract, the seller cannot recover damages.

Q: If a buyer wrongfully refuses to accept goods that conform to a contract, the seller can recover damages.

Q: If a buyer breaches a contract while the seller is still in possession of the goods, the seller can resell the goods and hold the buyer liable for any loss.

Q: On a lessee's insolvency, the lessor can stop delivery of the goods.

Q: If, before the time for performance, a buyer communicates an intent not to perform, the seller can consider the buyer in breach and pursue a remedy.

Q: Once the seller has tendered delivery, the buyer is obligated to accept the goods and pay for them.

Q: In general, a buyer's duty to pay for tendered goods becomes absolute before the buyer has had an opportunity to inspect the goods.

Q: Unless otherwise agreed, inspection of goods can take place at any reasonable place and time and in any reasonable manner.

Q: If goods identified to a contract are destroyed through no fault of either party, both parties are excused from performance.

Q: The doctrine of commercial impracticability only extends to problems that are unforeseen.

Q: If a contract specifies a certain carrier, a substitution of a different carrier for any reason breaches the contract.

Q: An installment contract is a single contract that requires or authorizes delivery in two or more separate lots to be paid for in one payment.

Q: An installment contract is breached if a seller tenders any nonconforming goods.

Q: An installment contract is breached if a buyer accepts any nonconforming goods.

Q: Once the time for performance under the contract has expired, the seller or lessor can never exercise the right to cure.

Q: Until the time for performance under a contract expires, the seller has a right to cure.

Q: The term cure refers to the right of the buyer to reject, adjust, or replace nonconforming goods.

Q: Under the UCC, there are no exceptions to the perfect tender rule.

Q: Under the perfect tender rule, if tender is not perfect, the seller is obligated to try again.

Q: If the goods or their tender fail to conform to the contract, the buyer can accept part and reject part.

Q: Under the UCC, a seller's tender of goods that do not conform in every way to a contract is still a valid tender.

Q: In contracts involving a carrier, a seller can complete performance through a shipment contract or a destination contract.

Q: A shipment contract requires that the seller deliver the goods to a particular location.

Q: Under the UCC, if a contract does not designate the place of delivery for the goods, then the goods must be made available at a location halfway between the seller's and the buyer's places of business.

Q: There are no circumstances under which a contract can be tendered by multiple deliveries of goods.

Q: Tender of delivery requires that the seller or lessor hold the goods at the buyer's or lessee's disposal, but not that the goods be conforming.

Q: Tender must occur at a reasonable hour and in a reasonable manner.

Q: The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.

Q: The duty of good faith is imposed on the parties involved in commercial contracts by the Uniform Commercial Code.

Q: Fresh Stuff Company agrees to sell one hundred cases of uncooked burgers, cut potatoes, shredded lettuce, sliced tomatoes, and other specific food items to Good Eats, Inc. The goods, which Good Eats expressly requires to be fresh, are to be shipped "F.O.B. Good Eats distribution center in Brooklyn, NY." When the goods arrive, Good Eats rejects them and informs Fresh Stuff, claiming that the foods do not conform to Good Eats's freshness requirementthe food is old, stale, spoiled, and moldy. A few hours later, the cases are destroyed in a fire at Good Eats's distribution center. Will Fresh Stuff succeed in a suit against Good Eats for the cost of the goods?

Q: In the following situations, two parties claim the same goods. Who is most likely to prevail in each circumstance? Explain.(a) Olan steals Phil's television set and sells it to Quincy, an innocent purchaser, for value. Phil learns Quincy has the set and demands its return.(b) Riley takes his television set for repair to Slick, a merchant who sells new and used television sets. By accident, one of Slick's employees sells the set to Tuna, an innocent purchaser-customer, who takes possession. Riley wants his set back from Tuna.

Q: Summit Sales Corporation orders goods from OverStock Company. Summit plans to market the goods to consumers generally. OverStock identifies the goods. Before they are shipped to Summit, an insurable interest in the goods exists in a. Summit and OverStock, but not consumers generally. b. Summit, OverStock, and consumers generally. c. Summit only. d. OverStock only.

Q: Good Food Corporation buys from Home Farms, Inc., a rice crop that Home Farms plans to plant and harvest during the next growing season. Good Food plans to sell the rice to Interstate Grocery Stores. After the rice is planted, but before it is harvested, an insurable interest in the rice exists in a. Good Food and Home Farms, but not Interstate Grocery. b. Good Food, Home Farms, and Interstate Grocery. c. Good Food only. d. Home Farms only.

Q: Sweetwater Caf orders five gallons of transfat-free cooking oil from Restaurant Supply, Inc. The seller mistakenly ships the wrong oil, which the buyer keeps, despite the nonconformity. The oil is destroyed in a kitchen fire. The loss is suffered by a. Sweetwater and Restaurant Supply, but not Sweetwater customers. b. Sweetwater, Restaurant Supply, and Sweetwater customers. c. Sweetwater only. d. Restaurant Supply only.

Q: A-1 Furnishings, Inc., agrees to lease a desk to Business Resources, Inc. (BRI), which requests that the desk be left outside City Warehouse for BRI to pick up. Before BRI retrieves the desk, it is stolen. The loss is suffered by a. A-1 Furnishings and BRI, but not City Warehouse. b. A-1 Furnishings, BRI, and City Warehouse. c. A-1 Furnishings only. d. BRI only.

Q: Consumers Choice store accepts a shipment of EZ2U-brand tablets from Digital Devices, Inc. Consumers Choice later discovers a defect in the tablets, revokes acceptance, and returns the tablets via GoBack, Inc. During the return, the tablets are lost. The loss is suffered by a. Consumers Choice. b. Digital Devices. c. GoBack. d. Consumers Choice's customers by an increase in prices of other goods.

Q: Garden & Field stores order a specific assortment of rose bulbs from Hybrid Flora Company. Hybrid mistakenly ships a selection of annuals, which Garden & Field rejects and returns via Intra-state Transport, Inc. During the return, the annuals are lost. The loss is suffered by a. Garden & Field. b. Hybrid Flora. c. Intra-state Transport. d. Garden & Field's customers by an increase in prices of other goods.

Q: Stubbs buys a Tred-brand bicycle from his brother, Uriah. Uriah agrees to keep the bike at his house until Stubbs picks it up. During a storm, a tree falls from Victor's yard onto Uriah's garage and destroys the bike. The loss of the bike is suffered by a. Stubbs. b. Uriah. c. Tred. d. Victor.

Q: Drill Makers, Inc., and Edge Mine & Mill Supply Stores enter into a contract for a sale of mining drill bits. The contract indicates that the price includes transportation costs to a specific destination by including the term a. C.I.F. b. delivery ex-ship. c. F.A.S. d. F.O.B.

Q: Quaff n" Quench Caf buys twenty-five bags of Columbia coffee beans from Roasted Bean Brokers, Inc. The parties agree to ship the oranges "F.O.B. Quaff n" Quench " via Swiftline Trucking Company. The oranges rot in transit. The loss is suffered by a. Quaff n" Quench. b. Swiftline. c. Columbia. d. Roasted Bean.

Q: Home Appliance Corporation contracts with Instate Trucking Company to take a selection of appliance repair parts to Journey Airlines, Inc., with Journey to transport the goods to a KeepSafe Company warehouse. Instate Trucking, Journey Airlines, and KeepSafe each acknowledge possession of the goods by a document of title. Instate Trucking, Journey Airlines, and KeepSafe are a. bailees. b. buyers. c. lessees. d. sellers.

Q: Mountainside Coffee Company and Nature's Cuisine, Inc., enter into a contract for a sale of coffee beans. The contract includes the term "F.O.B. Ocean City," which is the location of Nature's Cuisine. This means that the contract is a. a bill of lading. b. a destination contract. c. a shipment contract. d. a warehouse receipt.

Q: Growers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by a. Growers Mart. b. Hilltop Farms. c. Refrigerated Trucking. d. all of the parties as tenants in common in equal measure.

Q: Safety Supply Corporation in New York sells a truckload of protective suits, masks, and other safety gear to Toxic Recovery, Inc., in Connecticut, "F.O.B. New York." Safety Supply arranges with US Truckline to transport the goods. The cost of the transport will be paid by a. Safety Supply. b. Toxic Recovery. c. US Truckline. d. Toxic Recovery's clients by an increase in the price of loss control services.

Q: Fay pays $800 for a new iPad to Global Goods, Inc. Global holds the iPad until Fay picks it up. Global is a. a bailee. b. a consignee. c. a lessee. d. a seller.

Q: Roasters Corporation and Outdoor Barbecue, Inc., enter into a contract for a sale of a commercial grill. The contract requires Roasters to deliver the goods to Speedy Delivery Company for transport to Outdoor. Risk of loss passes to Outdoor when a. Roasters delivers the goods to Speedy. b. Roasters and Outdoor enter into their contract. c. Speedy transports the goods to Outdoor. d. Outdoor begins to use the grill.

Q: Thorpe buys an HD TV from Viewpoint Electronics store, which agrees to keep the TV for Thorpe until he picks it up. Before Thorpe gets the TV, a fire destroys the store and the set. The loss is suffered by a. neither Thorpe nor Viewpoint b. Thorpe and Viewpoint. c. Thorpe only. d. Viewpoint only.

Q: Red's Roofing buys asphalt roofing tiles from Shingles, Inc. The parties agree that the tile will be shipped "F.O.B. Shingles warehouse" to Red's Roofing location via Tristate Shipping Corporation. The tiles are lost in transit. The loss is suffered by a. Tristate Shipping. b. Shingles, Inc. c. Red's Roofing. d. Red's customers by an increase in the prices of goods and services.

Q: Sweets Store buys chocolate from Tasty Candies, Inc. The parties agree that the chocolate will be shipped "F.O.B. Sweets" via United Railroad Corporation. The chocolate is lost in transit. The loss is suffered by a. Sweets and Tasty, but not United. b. Sweets only. c. Sweets, Tasty, and United. d. Tasty only.

Q: Brad leaves an iPod at Computer Sales & Repair (CSR) to have the battery replaced. CSR sells the iPod to Doris, who does not know that it belongs to Brad. Brad can recover from a. no one. b. CSR. c. Doris. d. Apple, Inc., the maker of the iPod.

Q: Elizabeth buys a car from Silas, who is sixteen years old. Elizabeth then wants to sell the car to her neighbor, John. Elizabeth's title to the car is a. valid. b. voidable. c. void. d. good.

Q: Levi, a well-known lumber dealer with a good reputation, buys a load of lumber and pays for it with a check that is later dishonored. Sam, who is unaware of the bad check, buys the lumber from Levi. Sam is a(n) a. good faith purchaser. b. bad faith purchaser. c. insolvent purchaser. d. bailee.

Q: Outdoor Outfitters Store contracts to buy fifty tents from Pitched Camp, Inc. Unless the contract states otherwise, it is assumed to be a. none of the choices. b. a destination contract. c. a shipment contract. d. a delivery ex-ship.

Q: Southern Distribution, Inc., signs a receipt for goods that will also serve as a contract for the goods' transport. This is a. a bill of lading. b. a destination contract. c. a shipment contract. d. a warehouse receipt.

Q: Pipes & Culverts Company orders six irrigation pumps from Quality Plumbing, Inc. The pumps are stored in Restorers Warehouse. Under the terms of the order, Quality must give Pipes & Culverts a warehouse receipt for the goods, which the buyer will then pick up. Title to the goods passes to Pipes & Culverts when a. Quality stores the drives. b. Pipes & Culverts orders the drives. c. Pipes & Culverts picks up the drives. d. Quality gives Pipes & Culverts a warehouse receipt for the drives.

Q: Big Red Drinks, Inc. contracts to buy two tons of cranberries from Super Fruits, Inc. The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight. The contract is a. a bill of lading. b. a destination contract. c. a shipment contract. d. a warehouse receipt.