Performance and Breach

Question 1

In an installment contract situation, an installment can be rejected by the buyer __________.

Answer 1

if there is a nonconformity that substantially impairs the value of that installment and cannot be cured

Question 2

In a destination contract, the seller must:

Answer 2

Tender delivery of the goods at a particular destination

Question 3

The U.C.C. gives a seller the right to cure a defective shipment within a reasonable time beyond the original time for performance in the contract if:

Answer 3

Prior dealings with the buyer led the seller to reasonably believe that the defective shipment would be acceptable

Question 4

When should the nonbreaching party treat an otherwise minor breach as a material breach?

Answer 4

When the breach is coupled with an anticipatory repudiation

Question 5

What is a buyer’s right of rejection concerning defective shipments under U.C.C. Article 2?

Answer 5

A buyer can always reject a defective shipment in a single delivery contract but cannot reject a defective shipment in an installment contract if the defect can be cured

Question 6

Under Article 2, a buyer can accept goods by:

Answer 6

Affirmatively accepting the goods, failing to reject the goods within a reasonable time, or doing any act inconsistent with the seller’s ownership

Question 7

When a seller has agreed to tender goods at a particular location, this is also known as a:

Answer 7

Destination contract.

Question 8

Under Article 2, a defective shipment in an installment contract cannot be rejected __________.

Answer 8

if the defect can be cured.

Question 9

Under Article 2, unless the contract provides otherwise, a buyer has a right to inspect the goods __________.

Answer 9

at the buyer’s own expense before she pays for the goods

Question 10

Under a U.C.C. Article 2 shipment contract, the seller’s obligation of tender and delivery is fulfilled when the seller puts the goods in the hands of a reasonable carrier, obtains and tenders any documents necessary to enable the buyer to take possession, and _________.

Answer 10

Promptly notifies the buyer of the shipment

Question 11

Under the U.C.C., what is required to cure a defective delivery in a single delivery contract?

Answer 11

Reasonable notice of the intention to cure and a new tender of delivery of conforming goods within the time for performance

Question 12

Characterize a shipment and a destination contracts fulfillment policies.

Answer 12

In a shipment contract, the price is due when the goods are put in the hands of the carrier, and in a destination contract, the price is due when the goods reach the named destination.

Question 13

When a party performs by delivering exactly as promised in the contract, that performance has satisfied the Article 2 requirement of __________.

Answer 13

Perfect Tender

Question 14

Unless the contract provides otherwise, in a destination contract, payment is due __________.

Answer 14

When the goods reach their destination.

Question 15

Under Article 2, a buyer’s right to reject is cut off by __________.

Answer 15

Acceptance of the goods, even if the goods are nonconforming

Question 16

If a seller gives no instructions within a reasonable time after notification of rejection, the buyer may _________________ the goods.

Answer 16

Reship, store, or resell

Question 17

A breach of contract where the obligee gains the substantial benefit of her bargain despite the obligor’s defective performance is commonly known as:

Answer 17

A minor breach

Question 18

Under U.C.C. Article 2, unless the contract provides otherwise, any expenses for inspection of the goods sold will be borne by:

Answer 18

The buyer, but may be recovered from the seller if the goods do not conform and are rejected

Question 19

Generally speaking, if a contract does not address the importance of timeliness of performance in its terms, a failure by the promisor to perform at the time stated in the contract will result in __________.

Answer 19

A minor breach of contract.

Question 20

After a reasonable time, a buyer may resell rejected goods only if:

Answer 20

the buyer holds the proceeds for the seller’s account

Question 21

In a noncarrier case, for proper tender of delivery, the seller must:

Answer 21

Put and hold the goods at the buyer’s disposition for a time sufficient for the buyer to take possession and give the buyer reasonable notice to enable the buyer to take possession of the goods

Question 22

Under a U.C.C. Article 2 shipment contract, the seller need not ___________ but must ___________.

Answer 22

See that the goods reach the buyer; promptly notify the buyer of the shipment

Question 23

Under Article 2, in a noncarrier case, in the absence of an agreement otherwise, the place of delivery is generally__________.

Answer 23

the seller’s place of business.