Exam 22: Performance and Breach of Sales and Lease Contracts

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

Hydro Source Company contracts to sell pumps,tanks,and water storage systems to InFlo Irrigation,Inc. Before the goods are delivered,InFlo indicates that it will not be able to pay. Hydro Source can

Stella bought a cup of coffee at the Roasted Bean Drive-Thru. The coffee had been heated to 190 degrees and consequently had dissolved the inside of the cup. When Stella lifted the lid,the cup collapsed,spilling the contents on her lap. To recover for th

Pebble Leasing Corporation and Quarry Rock & Gravel Company enter into a lease of three excavators. Under the perfect tender rule,Pebble Leasing must ship or tender goods to Quarry Rock & Gravel that,with respect to the contract description,conform

Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer,Tuner TV Store,on May 1,with payment to be made on delivery. Signal tenders delivery in its own truck. Tuner's manager notices that some of the cartons have scrape marks. Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded. Signal assures Tuner that the sets are in perfect condition. Tuner tenders Signal a check,which Signal refuses,claiming that the first delivery to new customers is always for cash. Tuner promises to pay the cash within two days. Signal leaves the sets with Tuner,which stores them in its warehouse pending its "Grand Opening Sale" on May 15. Two days later,Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair. Signal claims Tuner has accepted the sets and is in breach by not paying on delivery. Will Signal succeed on these claims? Explain.

When a seller refuses to deliver goods that are unique,a buyer can obtain specific performance.

With an installment contract,a buyer or lessee can reject a single installment on any pretext.

Acceptance of goods precludes the buyer or lessee from exercising the right of rejection.

Unless the parties agree otherwise,the buyer or lessee has an absolute right to inspect the goods before making payment.

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.

Global Talk Corporation sells phones and other mobile devices. Under most cir-cum-stances,Global Talk will be presumed to have warranted that its title to the goods is

Replay Sports Stores and SportsPower Products,Inc.,enter into a contract for a sale of trampolines. SportsPower Productsis a merchant who deals in goods of the kind sold. Under the UCC,an implied warranty of merchantability arises

Loading Ramps Plus Inc. contracts to sell sixteen aluminum loading ramps to Moving Services,Inc. Loading Ramps ships the ramps,which Moving Servicesaccepts but does not pay for. Loading Ramps can

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

In most sales,sellers warrant that they have good and valid title to the goods sold.

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

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe,Arnold can

Express warranties can be found in a seller's brochure.

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. Quade's statement is

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