Question 1

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.

Accepted Answer

The answer of The Elm Street Accounting Partnership has ordered...

Question 2

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

Accepted Answer

A)  only if the buyer expressly notifies the seller of the cancellation. 
B)  if the cancellation precedes the seller's attempt to retract her repudiation. 
C)  only if bond has been obtained. 
D)  only if the seller's repudiation is in writing.

Question 3

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?

Accepted Answer

The answer of Speedy Stop sells necessities to neighborhood shoppers...

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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:

Accepted Answer

A)  at the seller's business or residence in Chicago. 
B)  as stated in all destination contracts. 
C)  at the buyer's business or residence in Atlanta. 
D)  irrelevant since the contract is void.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

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?

Accepted Answer

The answer of a. Distinguish between a rejection of goods...

Question 10

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

Accepted Answer

A)  the UCC did not apply to this situation. 
B)  the design specifications were part of the basis of the bargain and as such became an express warranty. 
C)  rejection of the goods was not rightful even though the sorority seasonably notified the seller within a reasonable time since notice was by phone. 
D)  the law required the sorority to accept Furlong's offer of compromise.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  it is not the seller's fault that her performance does not conform. 
B)  the seller and buyer agree that the seller can cure the defect. 
C)  at least a commercial unit of the goods conform. 
D)  the contract falls under the Uniform Commercial Code.

Question 13

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

Accepted Answer

A)  demand immediate performance. 
B)  cancel any contracts with third parties if those contracts are affected by this one. 
C)  suspend his own performance. 
D)  sue for defamation.

Question 14

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:

Accepted Answer

A)  can treat the whole contract as breached and refuse to pay for past installments as well as future installments. 
B)  can reject the installment and cancel the contract immediately. 
C)  can reject the installment and refuse to pay for it if J & J cannot cure it. 
D)  cannot reject the installment since it is part of a series.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  hold all inventory until she has enough to fulfill all contracts. 
B)  sell what inventory she has so that she can refund all payments. 
C)  fulfill earliest orders first. 
D)  allocate delivery and production in a fair and reasonable manner among her customers.

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

The answer of Whitaker has reasonable grounds for believing Crosslin...

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

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:

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:

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.