Quizzes-Law1-OC-Fall2014
Chapter 21 - Performance and Breach of Sales Contracts
1. Sun Power, Inc., sells solar power cells and panels to commercial dealers in the Southwest. With regard to the UCC’s good faith requirement, Sun Power can
a. avoid it only by a conspicuous written disclaimer.
b. avoid it only by oral disclaimer.
c. avoid it with or without a disclaimer.
d. not disclaim it.
2. Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is
a. Fuel Connector’s place of business.
b. Go-Flo’s place of business.
c. the current location of the hose couplings and fittings.
d. the U.S. Postal Service office nearest to Go-Flo’s place of business.
3. GR8 Daze Products, Inc., and Hot Springs Spas Stores enter into a contract for a sale of hot tubs. Under a shipment contract, the seller must
a. allow the buyer to reject the goods for any reason.
b. deliver the goods to a particular destination.
c. inspect the goods before shipping them.
d. place the goods into the hands of a carrier.
4. Energy Products Corporation and First Response Preparedness.com enter into a contract for a sale of portable generators. Under a destination contract, the seller must
a. allow the buyer to reject the goods for any reason.
b. deliver the goods to a particular destination.
c. inspect the goods before tendering their delivery.
d. place the goods into the hands of a carrier.
5. 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
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.
6. Lock & Key Storage Pods and Maxi Discount Stores enter into a contract for a lease of ten storage pods of a certain size. Lock & Key delivers ten pods, but they are not the right size. Maxi Discount
a. cannot reject the entire shipment.
b. can reject the entire shipment.
c. must accept the entire shipment.
d. must reject the entire shipment.
7. On July 10, Pet Supply Store orders fifty small dog collars from Quality Collars, Inc. to be delivered by July 15. On July 13, Quality Collars tenders fifty large dog collars. Pet Supply rejects the shipment. Quality Collars has
a. no right to cure.
b. until July 15 to cure.
c. until the end of the business day on July 13 to cure.
d. unlimited time to cure.
8. Sweet Fruits contracts with Fruits to You, Inc. for a delivery of two hundred pounds of strawberries to be delivered by Keep Kool Trucking, a trucking company with refrigerated trucks. On the day of delivery, the refrigeration units on Keep Kool’s trucks are not working. Fruits to You
a. may ship the goods to Sweet Fruits using another trucking company with refrigerated trucks.
b. must refund Sweet Fruits’ money and cancel the contract.
c. must wait to ship the strawberries until Keep Kool has fixed its trucks.
d. must ship the goods through a different carrier and pay Sweet Fruits incidental damages.
9. Beef Burgers, Inc. contracts to buy five hundred steers from Fattening Feedlots. Before Fattening Feedlots can deliver the steers, there is an outbreak of disease in the feedlot, and all the cattle are quarantined. In this case the perfect tender rule
a. applies to both parties.
b. does not apply.
c. applies only to Beef Burgers.
d. applies only to Fattening Feedlots.
10. Shane’s Auto Parts orders twenty tires from Tough Tires, Inc. The truck delivering the tires to Shane’s is in an accident and ten of the tires are damaged. Shane’s Auto Parts
a. cannot reject the entire shipment.
b. must still pay for all twenty tires at the original contract price.
c. may inspect the tires and accept the shipment with a reduction in price.
d. must reject the entire shipment.
11. Repair Tools Company contracts to deliver fifty heavy-duty steel floor jacks to Serv-UR-Self Auto Stores on May 1 for which Serv-UR-Self agrees to pay. Repair Tools tells Serv-UR-Self on April 15 that delivery will be delayed until June 1. Serv-UR-Self may do all of the following except
a. force Repair Tools to deliver substitute goods before the time for the contract’s performance.
b. await Repair Tools’ performance for a commercially reasonable time.
c. sue Repair Tools for breach of contract.
d. suspend its own performance.
12. On May 1, Garage Prefabricators, Inc., agrees to sell four portable garages to Hiway Truck Service Center. Five days later, Hiway refuses delivery and cancels the contract. Garage Prefabricators is entitled to
a. force Hiway to accept the garage.
b. recover any damages from Hiway but not resell the garage.
c. resell the garage and recover any damages from Hiway.
d. resell the garage but not recover any damages from Hiway.
13. Garden Field Farms and Haute Gourmet Restaurant, Inc., enter into a contract for a sale of lettuce. After Garden Field ships the lettuce but before Haute Gourmet receives it, the buyer declares bankruptcy. Garden Field can stop delivery of the goods in transit
a. only if the quantity is deficient.
b. only if the quantity exceeds the contract amount.
c. only if the quantity is at least a truckload.
d. regardless of the quantity.
14. Loading Ramps Plus Inc. contracts to sell sixteen aluminum loading ramps to Moving Services, Inc. Loading Ramps ships the ramps, which Moving Services accepts but does not pay for. Loading Ramps can
a. sue to recover the purchase price plus incidental damages.
b. sue to recover the purchase price minus incidental damages.
c. resell the ramps to any buyer willing to reclaim them from Moving Services.
d. require Moving Services to revoke its acceptance of the ramps.
15. Oh! Wow! Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Oh! Wow! Markets can
a. destroy the goods.
b. cure the goods to make them conform to the contract.
c. retain the goods without paying for them.
d. reship or store the goods for the seller.
16. Almond Farms contracts for the sale of a certain quantity of nuts to Bulk Natural Foods Stores. Almond Farms delivers nonconforming goods. Acceptance will be presumed unless Bulk Natural Foods rejects the goods
a. within a reasonable time after delivery.
b. within a reasonable time after ordering the goods.
c. within any time, since hunting rifles are not perishable.
d. before the last day of the current hunting season.
17. BBQ, Inc., makes and sells grills to Cook’s Choice and Grill Mart, retailers of kitchen appliances, outdoor cooking equipment, and related utensils. Their contracts limit consequential damages when the loss is commercial in nature. This is prima facie unconscionable with respect to
a. BBQ.
b. Grill Mart.
c. Cook’s Choice.
d. none of these parties.
Fact Pattern 18–20
Economy Bank issues a letter of credit in favor of Finish & Refining Company, a U.S. firm, to facilitate an international sales contract to buy resources from Global Mining, Ltd., a British company.
18. Refer to Fact Pattern above. Global Mining is entitled to payment when it
a. enters into the contract with Finish & Refining.
b. verifies that Finish & Refining has the money to pay for the purchase.
c. complies with the terms and conditions of the letter of credit.
d. asks to be paid.
19. Refer to Fact Pattern above. Economy Bank is bound to
a. make sure that the parties perform the contract.
b. verify with Finish & Refining that the transaction has been completed.
c. make payment when Global Mining presents the proper documents.
d. pay Global Mining whenever it asks to be paid.
20. Refer to Fact Pattern above. In this letter of credit, the account party is
a. Global Mining.
b. Finish & Refining.
c. Economy Bank.
d. Great Britain.
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