Exam 12: Performance and Breach in Sales and Lease Contracts

If a buyer repudiates a contract, the seller can bring an action to recover damages.

A product is unmerchantable if an accident could arise in connection with the goods.

There are exceptions to the perfect tender rule under the UCC.

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​

The UCC generally does not permit warranties to be disclaimed or limited in any manner.

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

Roadway Paving Company contracts to buy some paving equipment from Stonework Earthmovers, Inc. Before either party performs, Stonework sells its assets to T-Square Corporation. On learning of the sale, Roadway is concerned about its contract with Stonework. Roadway should​

A warranty of infringement only arises by express representation of the seller of lessor.

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​

A shipment contract requires or authorizes a seller to ship goods by a carrier.

If a buyer wrongfully refuses to accept goods, the seller can bring an action to recover the damages sustained.

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​

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

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​

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings located at Fuel Connector's place of business, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is

In sales law, an express warranty is an assurance by one party of the existence of a fact on which the other party can rely.

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact, but may not seek damages.

To specifically disclaim an implied warrant of merchantability, a seller or lessor must mention the word merchantability.

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​

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​