Question 1

An installment contract is breached if a seller tenders any nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 2

Fact Pattern 22-1​
Daily Bread Bakeries, Inc., contracts to buy all of its ingredient requirements for bread making, at a certain minimum per year, from Enriched Flour & Grain Corporation for six years. After three years, Daily Bread tells Enriched that it plans to sell its assets to Flat Bread Shops, Inc. Flat Bread refuses to assure Enriched that it will continue Daily Bread's contract.
-Refer to Fact Pattern 22-1. Flat Bread's refusal is​

Accepted Answer

A)  ​a justified response based on Flat Bread's relation to the contract. 
B)  ​an assignment of Daily Bread's rights under the contract. 
C)  ​a reasonable suspension of performance under the contract. 
D)  ​a repudiation of the contract.

Question 3

Tender must occur at a reasonable hour and in a reasonable manner.

Accepted Answer

A) True 
 B)False

Question 4

​TackMaker, Inc., and Silver Stallion Stables enter into a contract for a sale of bridles, saddlery, and other equine equipment. TackMaker delivers, but Silver Stallion does not pay. TackMaker can normally recover as damages

Accepted Answer

A)  ​any profit lost minus any loss avoided. 
B)  ​whatever amount the seller wishes to claim. 
C)  ​the purchase price plus incidental damages. 
D)  ​the market price at the place at which the seller delivered the goods.

Question 5

Under the UCC, a seller's tender of goods that do not conform in every way to a contract is still a valid tender.

Accepted Answer

A) True 
 B)False

Question 6

Dairy Goods agrees to sell a certain quantity of ice cream to Event 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

Accepted Answer

A)  ​the seller is excused for any resulting delay. 
B)  ​the seller is liable for any resulting delay. 
C)  ​the time for delivery is extended with a price adjustment for the delay. 
D)  the contract is canceled.

Question 7

ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must

Accepted Answer

A)  ​promptly notify ABC of the intent to cure. 
B)  ​pay a cure fee. 
C)  ​pick up the nonconforming games before the end of the business day. 
D)  ​enter into a new contract with Axel's.

Question 8

The principle of good faith applies to both parties to a sales contract.

Accepted Answer

A) True 
 B)False

Question 9

Steel Buildings, Inc., agrees to sell four portable garages to Truck Service Center. Five days later, the buyer refuses delivery and cancels the contract. The seller is entitled to

Accepted Answer

A)  ​force the buyer to accept the garages. 
B)  ​recover any damages from the buyer but not resell the garages. 
C)  ​resell the garages and recover any damages from the buyer. 
D)  ​resell the garages but not recover any damages from the buyer.

Question 10

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that

Accepted Answer

A)  ​approximately conform to the contract description. 
B)  ​entirely conform to the contract description except in one or two details. 
C)  ​conform to the contract description in every way. 
D)  ​substantially conform to the contract description in most details.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

If a contract specifies a certain carrier, a substitution of a different carrier for any reason breaches the contract.

Accepted Answer

A) True 
 B)False

Exam 22: Performance and Breach of Sales and Lease Contracts

An installment contract is breached if a seller tenders any nonconforming goods.

Tender must occur at a reasonable hour and in a reasonable manner.

​TackMaker, Inc., and Silver Stallion Stables enter into a contract for a sale of bridles, saddlery, and other equine equipment. TackMaker delivers, but Silver Stallion does not pay. TackMaker can normally recover as damages

Under the UCC, a seller's tender of goods that do not conform in every way to a contract is still a valid tender.

Dairy Goods agrees to sell a certain quantity of ice cream to Event 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

ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must

The principle of good faith applies to both parties to a sales contract.

Steel Buildings, Inc., agrees to sell four portable garages to Truck Service Center. Five days later, the buyer refuses delivery and cancels the contract. The seller is entitled to

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that

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

If a contract specifies a certain carrier, a substitution of a different carrier for any reason breaches the contract.

TackMaker, Inc., and Silver Stallion Stables enter into a contract for a sale of bridles, saddlery, and other equine equipment. TackMaker delivers, but Silver Stallion does not pay. TackMaker can normally recover as damages