Exam 20: Performance

The Elm Street Accounting Partnership has ordered two maroon office chairs for its waiting room from the Quality Office Supply Company. Quality sends two burgundy-red office chairs that the Elm Street partnership rejects. What, if any, rights does Quality have under the circumstances? Explain.

A buyer's cancellation of a contract based on the seller's anticipatory repudiation is effective:

Speedy Stop sells necessities to neighborhood shoppers until 1 a.m. every day. Dairyland delivered its order of milk products as usual around 6 a.m. while Mary, the shopkeeper, was busy with the early coffee and donut crowd. The Dairyland driver left 12 crates in the refrigerator compartment and went on to the rest of his route. At 7:30 a.m., Mary started to shelve the milk products and discovered that all 12 crates contained buttermilk rather than the usual mix of containers of whole milk, 2%, skim milk, and cream she had ordered. What is her obligation with regard to the goods?

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, delivery is presumed to be made at seller's place of business.

A buyer in Atlanta enters into a sales contract with a seller in Chicago. If the contract does not mention the place for delivery of the goods, the place of delivery will be:

Tender can be made any time of the day or night, when it is most convenient for the seller to deliver the goods.

A buyer who sells rejected goods on behalf of the seller is entitled to reasonable expenses and a reasonable selling commission not to exceed ten percent of the gross proceeds.

a. Distinguish between a rejection of goods and a revocation of acceptance of goods. b. What is the effect of a rejection? What is the effect of a revocation? c. Does the buyer have any obligations to the seller once she has rejected the goods?

The court in Furlong v. Alpha Chi Omega Sorority held that:

Revocation of acceptance requires notice to the seller, whereas rejection does not.

The perfect tender rule requires that the seller's tender of performance must conform exactly to the contract unless:

If an anticipatory repudiation substantially impairs the value of the contract, the aggrieved party may:

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:

The buyer's rejection of nonconforming goods or tender is rightful under the perfect tender rule.

Although the nonhappening of presupposed conditions may relieve the seller of her contractual duty, if the contingency affects only a part of the seller's capacity to perform, the seller must

In an installment contract, if the contract is silent about payment, the Code provides that the seller may demand the price, if it can be apportioned, for each lot.

Whitaker has reasonable grounds for believing Crosslin will not perform his obligations under their contract. Discuss what Whitaker might do if their contract is governed by: (a) the UCC and (b) the CISG.

Acceptance of goods, which disallows any later rejection of them, is accomplished only through express words.

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