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Q:
Phil and Kelsey enter into a contract for a sale of Harmonica, a dog. Phil pays the price, but Kelsey does not deliver. Phil can use specific performance as a remedy if
A.Kelsey is lawfully withholding delivery of Harmonica.
B.Phil cannot effectively cure the defect.
C.Harmonica is unique.
D.Harmonica has not been identified to the contract.
Q:
Bayou Boats, Inc., and Eventide Fishing Tours enter into a contract for a sale of seven swamp boats. Eventide pays for the goods, but Bayou does not deliver. Eventide can use replevin as a remedy if
A.Bayou is lawfully withholding the goods.
B.Eventide cannot effectively cure the defect.
C.Eventide is unable to cover for the goods.
D.the goods have not been identified to the contract.
Q:
Hi-Tech Company contracts to sell fiber optic cable to Internet Services, Inc. Hi-Tech may bring an action to recover the purchase price and incidental damages if Internet
A.accepts the cable and pays for it.
B.accepts the cable but does not pay for it.
C.rejects the cable.
D.revokes acceptance of the cable.
Q:
Garden Field Farms and Haute Gourmet Restaurant, Inc., enter into a contract for a sale of lettuce before Haute Gourmet declares bankruptcy. Garden Field can stop delivery of the goods in transit
A.only if the quantity is at least a carload.
B.only if the quantity is at least a planeload.
C.only if the quantity is at least a truckload.
D.regardless of the quantity.
Q:
Text Publishers, Inc., contracts for a sale of textbooks to University Bookstores, Inc. Vital Shipping Corporation, the carrier, transports the books to Warehouse Storage Company. Text's right to stop delivery is lost when University's rights to the goods are acknowledged by
A.the appropriate government agency only.
B.Vital Shipping only.
C.Vital Shipping or Warehouse Storage.
D.Warehouse Storage only.
Q:
Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle. Esau cancels the contract ten days later. Double D is unable to sell the cattle to another buyer. Double D is entitled to
A.force Esau to accept the cattle and recover the contract price.
B.keep the cattle and recover the contract price from Esau.
C.keep the cattle only.
D.recover the contract price from Esau but must destroy the cattle.
Q:
Ramblin' Country Stables contracts to buy 1,000 horseshoes from Blacksmith, Inc., for $1 per shoe. When the market price decreases to 50 cents per shoe, Ramblin' refuses to go through with the deal. Blacksmith can recover
A.$1,500.
B.$1,000.
C.$500.
D.$0.
Q:
Loni and Myra enter into a contract for a sale of clarinets and other wind instruments. Loni delivers, but Myra does not pay. Loni can normally recover as damages the difference between
A.any loss avoided and any profit gained.
B.the actual price and the hoped-for price.
C.the contract price and the market price.
D.the current prices in the parties' locations.
Q:
On May 1, City Auto & Truck Sales agrees to sell a car to Dino. Five days later, Dino refuses delivery and cancels the contract. City is entitled to
A.force Dino to accept the car.
B.recover any damages from Dino but not resell the car.
C.resell the car and recover any damages from Dino.
D.resell the car but not recover any damages from Dino.
Q:
Regal Manufacturing Company contracts to sell sweaters to Superb Styles Store. Before the sweaters are delivered, Superb indicates that it will not be able to pay. Regal can resell the goods
A.either after finishing the job (and identifying the goods), or after stopping the job.
B.only after finishing the job and identifying the goods.
C.only if Regal immediately stops the job.
D.under no circumstances.
Q:
Relax Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay. Relax tells Stuffy on April 15 that delivery will be delayed until June 1. Stuffy may
A.await performance, sue Relax, or suspend its own performance.
B.only await Relax's performance for a commercially reasonable time.
C.only sue Relax for breach of contract.
D.only suspend its own performance.
Q:
Sid and Tony enter a contract for a sale of Sid's collection of electric guitars. Before the time for performance, Sid tells Tony that he does not want to deliver the guitars. Anticipatory repudiation is
A.a breach of contract.
B.a compromise between two parties who are unable to perform.
C.a remedy available only to a breaching party.
D.a remedy available only to a nonbreaching party.
Q:
Fact Pattern 14-1
Internet Cafes, Inc., contracts to buy all of its requirements for coffee, at a minimum of 1 million pounds per year, from Java Corporation for six years. After three years, Internet tells Java that it plans to sell its company to Kwik Eateries, Inc. Kwik refuses to assure Java that it will continue Internet's contract.
Refer to Fact Pattern 14-1. Java can
A.assign its rights under the contract but cannot terminate it.
B.do nothing.
C.suspend performance under the contract until Java is fully paid.
D.terminate the contract and seek damages.
Q:
Fact Pattern 14-1
Internet Cafes, Inc., contracts to buy all of its requirements for coffee, at a minimum of 1 million pounds per year, from Java Corporation for six years. After three years, Internet tells Java that it plans to sell its company to Kwik Eateries, Inc. Kwik refuses to assure Java that it will continue Internet's contract.
Refer to Fact Pattern 14-1. Kwik's refusal constitutes
A.a justified response based on Kwik's relation to the contract.
B.an assignment of Internet's rights under the contract.
C.a reasonable suspension of performance under the contract.
D.a repudiation of the contract.
Q:
Craft Engineering, Inc., contracts for a sale of technical instruments to Detail Design Company. Before the date on which performance is due, Craft notifies Detail that it will not perform. This is
A.anticipatory repudiation.
B.perfect tender.
C.rejection of performance.
D.revocation of acceptance.
Q:
Summit Supply Company contracts for a sale of medical equipment to Valley Immediate Care Corporation. Summit can enforce its right to payment
A.only after Valley has actually inspected the goods.
B.only after Valley has had an opportunity to inspect the goods.
C.only before Valley has inspected the goods.
D.whether or not Valley has had the chance to inspect the goods.
Q:
Citrus Groves contracts with four food companies to sell its entire crop of oranges. When half of the crop is lost to an unexpected insect infestation, Citrus must
A.apportion its surviving crop fairly among its customers.
B.breach some of its contracts.
C.buy elsewhere as many oranges as needed to satisfy its contracts.
D.substitute other fruit for the oranges.
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:
According to the court in Case 14.1, Maple Farms, Inc. v. City School District of Elmira, the defense of commercial impracticability will not excuse the performance of a contractual obligation when there is an increase in the seller's costs while the contract is in force
A.unless the increase in the seller's costs is substantial.
B.under any circumstances.
C.unless the increase in the seller's costs makes it impossible for the seller to perform without losing money.
D.unless the increase in the seller's costs was not foreseeable at the time the contract was formed.
Q:
Pep Paints agrees to sell to Quality Painters Grade A-1 latex outdoor paint to be delivered May 8. On May 7, Pep tenders Grade B-2 paint. Quality rejects the Grade B-2 paint. Two days later, Pep tenders Grade C-3 paint with an offer of a price allowance. Pep has
A.additional, unlimited time to cure.
B.a reasonable, additional time to cure.
C.one more day to cure.
D.no more 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:
Timber 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:
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:
Primo Pools Company and Aquatic Recreation, Inc., enter into a contract for a sale of prefabricated swimming pools. Under either a shipment contract or 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.place the goods into the hands of a carrier.
D.provide the buyer with any necessary documents of title.
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:
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:
Clear Day Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Great 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:
International 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.International's place of business.
B.JOI's place of business.
C.the Annual Gems and Jewels Convention.
D.the U.S. Postal Service office nearest to JOI's place of business.
Q:
If the parties to a sales contract state that a certain remedy is exclusive, then it is the sole remedy.
Q:
A buyer who accepts nonconforming goods cannot revoke the acceptance.
Q:
A buyer may reject a seller's goods under any circumstances.
Q:
A buyer who rightfully rejects nonconforming goods can resell the goods and keep the proceeds.
Q:
If a lessor's tender of delivery fails to conform to a contract in any way, the lessee can reject the goods.
Q:
A buyer who obtains substitute goods to replace goods that a seller did not deliver can also recover damages from the seller.
Q:
On a lessee's insolvency, the lessor can stop delivery of the goods.
Q:
If a buyer wrongfully refuses to accept goods that conform to a contract, the seller may recover damages.
Q:
If a buyer repudiates a contract, the seller cannot recover damages.
Q:
An unpaid seller can bring an action to recover the purchase price, on the buyer's breach of a contract, only if the goods are first disposed of.
Q:
If a buyer wrongfully refuses to accept goods that conform to a contract, the seller can maintain an action to recover the damages sustained.
Q:
If a lessee wrongfully refuses to accept goods that conform to a contract, the lessor must tender substitute goods.
Q:
If a buyer breaches a contract and the seller resells the goods to another party, the seller cannot recover any loss from the breaching buyer.
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:
A buyer's breach of a contract will not usually give the seller the right to cancel the contract.
Q:
A lessee's breach of a contract will usually give the lessor the right to cancel the contract.
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:
If goods fail to conform to a contract in any way, the buyer or lessee must reject 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 the parties agree otherwise, the buyer must make payment at the time and place that the goods are received.
Q:
If goods identified to a contract are destroyed through no fault of either party, both parties are excused from performance.
Q:
A seller can terminate a contract on the basis of commercial impracticability if increases in the seller's costs threaten to undercut its profits.
Q:
The doctrine of commercial impracticability only extends to problems that could have been foreseen.
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 breached if a seller tenders any nonconforming goods.
Q:
If a nonconforming installment substantially impairs the value of a whole contract, the buyer can treat the entire contract as having been breached.
Q:
An installment contract is breached if a buyer accepts any nonconforming goods.
Q:
The term cure refers to the right of the seller to reject, adjust, or replace nonconforming goods.
Q:
Until the time for performance under a contract expires, the seller has a right to cure.
Q:
A buyer has no right to accept goods that fail in any respect to conform to the terms of a contract in every detail.
Q:
Under a destination contract, a seller must deliver the goods via a carrier.
Q:
In contracts involving a carrier, a seller can complete performance only through a shipment contract.
Q:
In contracts involving a carrier, a seller can complete performance only through a destination contract.
Q:
Tender must occur at a reasonable hour and in a reasonable manner.
Q:
Under the UCC, a seller's tender of goods that do not conform in every way to a contract is not a valid tender.
Q:
Tune Products, Inc., offers to sell to Unlimited Sales Company one hundred MP3 players at $50 a piece, subject to certain specific delivery dates. Unlimited replies with a signed purchase order that reads, "Accept your offer for 100 I-appliances at $50 each. Must be delivered to our warehouse." Tune does not respond or deliver the goods. Unlimited files a suit for breach of contract, to which Tune answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Tune. Can Unlimited recover? Explain.
Q:
Clean Machines Company makes washing machines. Over the phone, Clean offers to sell Dealers Appliance Outlet one hundred model EZ2000 washers at a price of $150 per unit. Clean says that it will keep the offer open for ninety days. Dealers responds that within two or three weeks it will decide whether to accept. One week later, Clean faxes, and Dealer receives, notice that the offer is withdrawn. Dealer immediately phones Clean to accept the $150-per-unit offer. When Clean refuses to deliver at that price, Dealer files a suit. Clean asserts, first, that there is no contract and, second, that if there is a contract, it is unenforceable. Discuss Clean's assertions.
Q:
Thermal Appliances Corporation, a U.S. firm, orally agrees to sell six freezers to Pisa Pizza, Ltd., in Italy. Thermal fails to deliver. Under the United Nations Convention on Contracts for the International Sale of Goods (CISG), Pisa Pizza can
A.enforce the agreement.
B.not enforce the agreement because it is not in writing.
C.not enforce the agreement because the CISG does not apply.
D.not enforce the agreement because Thermal is a U.S. firm.
Q:
Quik Sales Corporation orders goods from Re Stock Company. Re plans to market the goods to consumers generally. Re identifies the goods. Before they are shipped to Quik, an insurable interest in the goods exists in
A.Quik and Re, but not consumers generally.
B.Quik only.
C.Quik, Re, and consumers generally.
D.Re only.
Q:
Rodeo, S.A., which is based in Spain, enters into a contract for the sale of seven hydraulic lifts to Tonnage Shipping Company, which is based in the United States. This contract is governed by
A.Spanish law.
B.the provisions in the laws of both countries that are similar.
C.Article 2 of the UCC.
D.the United Nations Convention on Contracts for the International Sale of Goods.
Q:
With a bill of lading, Cartage Common Carrier Company acknowledges possession of certain goods and contracts to deliver them. Cartage is
A.a bailee.
B.a buyer in the ordinary course of business.
C.a good faith purchaser for value.
D.an F.O.B.
Q:
Twyla buys a bicycle from U-Pik-It Bike Store, which agrees to keep the bike for Twyla until she picks it up. Before Twyla gets the bike, a fire destroys the store and the bike. The loss is suffered by
A.neither Twyla nor U-Pik-It
B.Twyla and U-Pik-It.
C.Twyla only.
D.U-Pik-It only.
Q:
Diners 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.Diners and Restaurant Supply, but not Diners's customers.
B.Diners, Restaurant Supply, and Diners's customers.
C.Diners only.
D.Restaurant Supply only.
Q:
Home Products Store buys furniture from Relax Furniture, Inc. The parties agree that the furniture will be shipped "F.O.B. Relax's warehouse" to Home Products via Swifty Shipping Corporation. The furniture is lost in transit. The loss is suffered by
A.Home Products and Relax Furniture, but not Swifty Shipping.
B.Home Products, Relax Furniture, and Swifty Shipping.
C.Home Products only.
D.Relax Furniture only.
Q:
Aromatic Tea Company and Savory Stores, Inc., enter into a contract for a sale of tea. The contract includes the term "F.O.B. Upriver City," which is Savory's location. This means that the contract is
A.a bailment contract.
B.a destination contract.
C.a shipment contract.
D.a transportation contract.
Q:
Fits Like A Glove Shoes, Inc., and Retail Footwear Stores enter into a contract for a sale of shoes. 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:
Silky Material Corporation in New Jersey sells fifty tons of fabric to Tattered Clothing, Inc., in Ohio, "F.O.B. New Jersey." The cost of transporting the fabric to Ohio will be paid by
A.Silky Material.
B.Tattered Clothing.
C.New Jersey.
D.Ohio.
Q:
Ideal Gadgets, Inc., and Jolly Outlets Corporation enter into a contract for a sale of kitchenware. The contract requires Ideal to deliver the goods to Ladle Carrier Company for transport to Jolly's warehouse in Metro City. Risk of loss passes to Jolly when
A.Ideal delivers the goods to Ladle.
B.Ideal identifies the goods to the contract.
C.Ladle transports the goods to Jolly's warehouse.
D.the goods arrive in Metro City.
Q:
EZ Equipment Corporation leases six forklifts to Fresco Refining Company, but as the forklifts are delivered, they are lost in an explosion. Under the UCC, the parties' rights and obligations with respect to the loss depend on the concept of
A.physical possession.
B.product liability.
C.risk of loss.
D.title.
Q:
Raw Material, Inc., and Sewn Fabric Corporation enter into a contract for a sale of muslin. The terms do not clearly indicate whether it is a destination or shipment contract. A court would most likely presume that it is
A.a bailment contract.
B.a destination contract.
C.a shipment contract.
D.a transportation contract.