Chapter 13: Performance Under the UCC

Question 1

no shipment, no warehouser (NSNW)

Answer 1

the most common situation. you purchase a computer at Best Buy.

Question 2

no shipment, warehouser, negotiable document (WN)

Answer 2

for purposes of convenience the seller has stored the goods in a public warehouser prior to sale. the contract btw the seller and buyer provides that the seller will deliver the goods by delivering to the buyer a negotiable warehouse receipt covering the goods

Question 3

no shipment, warehouser, nonnegotiable document (WNN)

Answer 3

the same circumstances as WN, except the seller has delivered to the buyer a nonnegotiable warehouse receipt

Question 4

no shipment, bailee, no document -written direction to bailee (BND-WD)

Answer 4

the goods are in the possession of a bailee that does not issue a document of title like a warehouse receipt. The seller may give written direction (directing the third party to release the goods to you) which you will present to the third party

Question 5

no shipment, bailee, no document-acknowledgment by bailee (BND-A)

Answer 5

another BND situation. in this case the seller procures the acknowledgment of the third party bailee that the bailee understands that the goods should be given to the buyer when the buyer asks for them

Question 6

shipment-shipment contract (SC)

Answer 6

the seller is required by the contract to ship the goods to the buyer using a common carrier but is not responsible for making sure that they get to the buyer at the destination. when the seller is to ship the goods to the buyer it is assumed to be an SC unless it is made a DC

Question 7

shipment destination contract (DC)

Answer 7

the seller is required to ship the goods to the buyer and is responsible for making sure they get to the buyer at the destination

Question 8

basic obligation of the seller

Answer 8

deliver conforming goods -but remember deliver or delivery does not necessarily require the physical movement of the goods from the seller to the buyer

Question 9

no shipment, no warehouser (NSNW) delivery

Answer 9

put and hold goods at buyer disposition that is make the goods available to the buyer

Question 10

no shipment, warehouser, negotiable document (WN) delivery

Answer 10

tender the document -make the document of title available to the buyer

Question 11

no shipment, warehouser, nonnegotiable document (WNN) delivery

Answer 11

tender the document-but buyer can object -buyer is given the right to demand that the seller take other steps to make certain buyer an access the goods held by the bailee if the bailee initially fails to give the goods to the buyer

Question 12

no shipment, bailee, no document -written direction to bailee (BND-WD) delivery

Answer 12

written direction to bailee given by seller to buyer directing bailee to give goods to buyer but buyer can object

Question 13

no shipment, bailee, no document-acknowledgment by bailee (BND-A) delivery

Answer 13

seller procures acknowledgement of bailee that bailee will give goods to buyer

Question 14

shipment contract (SC) delivery

Answer 14

pick appropriate carrier given the nature of the goods forward necessary documents to enable buyer to receive the gods, give notice to buyer that the goods have been shipped

Question 15

destination contract (DC) delivery

Answer 15

tender goods at destination

Question 16

methods of delivery

Answer 16

goods must be delivered in a single lot and not in installments (only applicable when there are multiple units of goods which are being old)

Question 17

place

Answer 17

delivery must occur at the sellers place of business or if he has none his residence

Question 18

time

Answer 18

delivery must occur within reasonable time of contracting

Question 19

rule of perfect tender

Answer 19

a delivery of goods can be non-conforming because the goods do not conform to the contract or the method of delivery does not conform to the contract-in other words, there are 2 ways that a seller can breach the contract with respect to performance

Question 20

FOB shipping point

Answer 20

• seller bears risk and expense of putting carrier in possession of the goods (not the expense of shipment of the risk while the goods are in transit)
• preferred by sellers because for all practical purposes the seller’s responsibilities with respect to the goods ends when conforming goods are turned over to the common carrier

Question 21

FOB destination

Answer 21

• seller bears expense and risk of tendering conforming goods at destination
• preferred by buyers because for all practical purposed the seller’s responsibilities with respect to the goods do not end until conforming goods are delivered to the buyer at the destination

Question 22

performance by the buyer

Answer 22

• generally the buyer must accept the goods
• buyer must facilitate receipt of the goods
• acceptance
• effect of acceptance
• payment

Question 23

acceptance

Answer 23

• express
• buyer does not reject on a timely basis
• buyer acts as if buyer owns the goods (uses; attempts to sell)

Question 24

effect of acceptance

Answer 24

• buyer must pay for the goods in accordance w/ contract
• buyer cannot thereafter reject
• buyer must give timely notice to seller of any breach of contract by the seller or be barred from any remedy-importance of notice to seller to preserve buyer’s rights

Question 25

when must the buyer pay

Answer 25

at the time and place buyer is to receive the goods

Question 26

tender of pmt is condition concurrent to seller’s duty to deliver

Answer 26

that is the seller does not have to tender delivery of the goods to the buyer unless and until buyer offers up payment

Question 27

in any manner concurrent

Answer 27

cash, credit card, check, or any other form of pmt that is typical given the nature of the transaction

Question 28

buyer’s right of inspection

Answer 28

• buyer can inspect before acceptance or pmt
• inspection can be conducted in any reasonable manner
• importance to buyer-to gain knowledge to make rejection decision-are the goods conforming?
• expenses of inspection borne by buyer unless goods or tender is nonconforming
• required pmt before inspection of goods

Question 29

casualty to identified goods

Answer 29

is the seller off the hook because goods have Benn destroyed or damaged and as a result seller cannot make delivery as required by contract?

Question 30

if casualty occurs before offer is accepted

Answer 30

offer is terminated