Non Conforming Goods

Question 1

The Common law requires

Answer 1

Substantial Performance

Question 2

The UCC law uses the

Answer 2

Perfect Tender rule which requires
1) perfect tender
2) perfect goods

Question 3

A buyer who receives non conforming goods can

Answer 3

1) Reject the whole
2) Reject / Accept in part
3) Accept in whole

Question 4

A buyer who rejects must (3) things

Answer 4

1. Notify the seller of the rejection within a reasonable time
2. Notify the seller of the particular defect
3. Hold the goods for a reasonable time so seller can get them back

Question 5

In Virginia, if the notice is unreasonably late, the rejection is not effective and

Answer 5

The goods are treated as impliedly accepted

Question 6

If Buyer accepts the noncforming goods

Answer 6

Buyer pays original contract price

Question 7

If the goods are rightfully rejected and the buyer has paid some/all of the purchase price then the buyer

Answer 7

Has a SI in the rejected goods

Question 8

If the seller fails to give reasonable instructions once the bad goods have been delivered, the buyer has 3 options

Answer 8

1) Store the goods on the sellers account
2) Ship the goods back
3) Sell the goods for the seller

Question 9

When can the buyer revoke acceptance of the goods ?

Answer 9

1) If the non conformity substantially impairs the value of the goods

2) Buyer must notify the seller of the revocation within a reasonable time when the buyer discovers the impairment

3) One of the following grounds must occur
i) Seller promised to cure but never did
II) Seller made assurances regarding the goods
III) The non-conformity is a latent one (not readily visible_

Question 10

When the buyer revokes acceptance he must

Answer 10

Notify the seller of any breach within a reasonable time or be barred from any remedy

Question 11

Seller’s Right to Cure

Answer 11

If the seller fails to tender perfect goods he can cure if;

1) There is time left on the contract; or

2) Seller has reasonable grounds that the buyer would have accepted the non conforming goods

Question 12

If Buyer accepts the noncforming goods

Answer 12

Buyer pays original contract price

Question 13

If Buyer accepts the noncforming goods

Answer 13

Buyer pays original contract price

Question 14

In an installment contract

Answer 14

The buyer can reject an installment that is not perfect only when there is a substantial impairment in the installment that cannot be cured

The buyer can hold the seller in total breach when a shipment impairs the value of the entire contract

Question 15

A buyer has the right to inspect the goods prior to payment unless

Answer 15

The contract requires payment (COD)