buyer remedies Flashcards

1
Q

How do you properly reject?

A

notify S of rejection in reasonable time

notify S of the defect

hold goods for reasonable time

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2
Q

perfect tender rule?

A

if goods or delivery fail to conform to k, buyer may reject or accept and sue for breach

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3
Q

what is the exception to the perfect tender rule for installment contracts

A

may reject the INSTALLMENT if nonconformity substantially impairs value of that shipment

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4
Q

when can an installment k be fully cancelled?

A

if nonconformity substantially impairs value of entire k

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5
Q

B responsibilities after rejection if he has a security interest in the goods?

A

may sell them in commercially reasonable manner in good faith

give excess over secured interest to S

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6
Q

B responsibilities after rejection if B is unsecured

A

may hold goods w/ reasonable care for time sufficient to let S remove them

if S doesn’t give B instructions, B may store the goods, reship them to S, or resell them for S

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7
Q

seller’s right to cure?

A

By notice + new tender w/n time for performance

S has reasonable grounds to believe goods would be acceptable

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8
Q

B’s damages for accepting nonconforming goods?

A

compensatory damages - amount lost based on defect

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9
Q

B’s options if S fails perfect tender rule?

A

reject or accept

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10
Q

How may B accept the goods?

A

Express acceptance

Using the goods

Failing to reject

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11
Q

When may B revoke acceptance?

A

defect substantially impairs value to B and either

(1) B accepted goods on reasonable belief B would cure defect but didnt OR

(2) B accepted goods w/o discovering defect and acceptance reasonable b/c latent defect or S assurances

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12
Q

What must B do to properly revoke acceptance?

A

notify S of decision w/n reasonable time

stop using goods

hold goods in reasonable care

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13
Q

What are B’s remedies for rejection or revoking acceptance?

A

cancel k

k price - mkt price

incidental damages

foreseeable consequential damages

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14
Q

Does a buyer have to reject all of the goods?

A

no, may reject some and keep the others.

you must inform the seller in rejection which ones you are keeping.

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15
Q

what happens if the buyer sells the nonconforming goods after rejecting them?

A

conversion

liable for fmv at time of conversion

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16
Q

what if you wait too long to reject?

A

you’ve accepted

17
Q

what must you do if you accept conforming goods?

A

pay purchase price

18
Q
A