Exam 22: Performance

J & J Co.offers a "subscription" for baby toys to be delivered every two months from the birth of a child.Payment must be made within two weeks of delivery.The Markham family accepted the J & J plan when their son,Timmy,was born.When Timmy was four months old,one J & J toy arrived smashed to pieces.Markham:

A contract that is FOB Dallas where the seller is in Chicago and the buyer is in Dallas is a destination contract.

In which of the following situations does the seller have the right to cure?

Rightful rejection must be made within a reasonable time after the goods have been tendered or delivered.

Goods are to be sent F.O.B.Buffalo,NY to Raleigh,NC by UPS.Where does tender occur?

A commercial unit may be a group of items,such as a dozen pairs of socks.

In the absence of agreement,payment is due at the time and place the buyer is to receive the goods,even though the place of shipment is the place of delivery.

If no place of tender is indicated by the contract,it is presumed delivery is to be made at the buyer's place of business.

If destruction or casualty to goods,total or partial,occurs after risk of loss has passed to the buyer,who is responsible for losses?

When the nonconformity or default substantially impairs the value of the installment but not the value of the entire contract,the buyer can reject the installment,even if the seller gives adequate assurance of the installment's cure.

A merchant buyer who has rightfully rejected goods must follow reasonable instructions from the seller regarding disposition of the goods if the seller has no agent at the place of rejection.

Payment of a C.O.D.shipment constitutes an acceptance of the goods.

Which of the following terms would indicate a destination contract?

After passage of a week,the buyer of six crates of strawberries will be deemed to have accepted the goods.

Under the CISG:

Knecht contracts to sell $20,000 of goods to Morales.Later,Morales hears from another supplier that Knecht is having financial trouble,and Morales is concerned that Knecht will not be able to fill his order.If Morales has reasonable grounds for insecurity about Knecht's contractual performance:

The Code does not excuse performance based upon commercial impracticability.

Burnside Roofing contracts to sell asphalt and metal shingles to Faubush Contractors.Burnside,through no fault of its own,is unable to deliver the shingles to Faubush by rail as agreed because that type of carrier is unavailable.Explain what the UCC requires.

If a lease contract does not sufficiently cover the particulars of performance,Article 2A provides many gap-filler provisions.

The delivery terms "ex-ship" and "no arrival,no sale" indicate that the contract is a shipment contract.