Performance under the UCC

Question 1

Shipment - shipment contract

Answer 1

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.

assumed shipment

Question 2

Shipment - destination

Answer 2

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 3

Manner of “delivery” by the seller =>

Answer 3

seller must “tender” goods to the buyer

Question 4

Mischellaneous delivery issues (unless otherwise agreed by the parties)

Answer 4

1. Method of delivery - goods must be deivered ina single lot and not in installments
2. Place - delivery must occur at the seller’s place of business, or if he has none, his residence
3. Time - delivery must occur within reasonable time of contracting

Question 5

If the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may:

Answer 5

• reject the whole, or
• accept the whole, or
• accept any commercial unit and reject the rest

Question 6

Under a shipment contract, the seller has to do 3 things -

Answer 6

if the seller fails to ive timely notice of the shipment or fails to pick an appropriate carrier, the buyer would have a right of rejection only if material delay or loss results from either of the seller’s failures - thus mitigating the harshness of the perfect tender rule

Question 7

Importance of notice of intent to cure:

Answer 7

Seller must advise buyer that seller intends to cure in order to have a right to cure )so buyer does not purchase conforming goods from another seller)

Question 8

F.O.B.

Answer 8

Free on boad

place of shipment

Seller bears risk and expense of putting carrier in possession of goods (but not the expense of shipment or 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 9

F.O.B. - place of destination

Answer 9

Seller bears expense and risk of tendering conforming goods at destination

Preferred by buyers because for all practical purposes the seller’s responsibilites with respect to the goods does not end until conforming goods are delivered to the buyer at the destination

Question 10

CIF

Answer 10

Cost insurance freight

Question 11

CF

Answer 11

Cost and freight

Question 12

Buyer’s acceptance of goods

Answer 12

1. Express - buyer uses words to indicate acceptance of the goods
2. buyer does not reject on a timely basis - buyer waits too long to reject the goods and the delay is regarded as an acceptance of the goods
3. Buyer acts as if buyer owns the goods - the buyer uses the goods or attempts to sell them to customer and then later attempts to reject goods

Question 13

Effect of buyer acceptance of goods

Answer 13

1. Buyer must pay for the goods
2. Buyer cannot thereafter reject (it’s too late)
3. 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 14

Buyer’s right of inspection:

Answer 14

1, /buyer can inspect before acceptance or payment

2. Inspection can be conducted in any reasonable manner
3. Importance to buyer
4. Expenses of inspection borne by buyer

Question 15

If casualty occurs before offer is accepted:

Answer 15

then offer is terminated

Question 16

Partial losses

Answer 16

Buyer can elect to avoid contract or accept price adjustment