Business Law Chapter 22

What factors are important for a buyer to determine when deciding which remedies apply when a seller breaches a sales contract? Choose 2 answer choices.

Whether the seller failed to deliver the goods & Whether the seller delivered nonconforming goods

You find an antique roadster for sale. It's one of a kind; exactly the kind of car you've always dreamed of owning! You offer $30,000 for the car, and the owner agrees. Just before you are scheduled to pick up the car, however, the owner changes his mind. Your dream is gone in an instant! What do you think would happen if you sue the owner to force him to honor the deal?

A court would probably require the owner to sell you the car.

What is the term for the right of a seller, under the Uniform Commercial Code (UCC), to correct a delivery of goods that do not conform to contractual terms within the period specified by the contract in order to avoid a breach of contract action?

Cure

Marathon Shoe Store Inc. gives notice to HighFlyer Shoe Co. that Marathon cannot pay for its current shoe order and would like to cancel. HighFlyer has not yet finished making the shoes. What options does HighFlyer have to address the breach of contract by Marathon? Choose 2 answer choices.

HighFlyer can cease manufacturing any unfinished goods and sell the goods for salvage value. & HighFlyer can complete manufacturing and sell the goods, and can sue for any difference between the contract price and the sales price.

The Palace Restaurant purchases goods from Pluto Restaurant Supply House on a regular basis. Pluto breaches the contract with Palace when Pluto runs out of the cooking equipment Palace agreed to purchase. What remedy is NOT available to Palace?

Reclaim the goods from Pluto's other customers

What remedies are available to a buyer when a seller refuses to deliver the goods that are the subject of a contract? Choose 3 answers.

The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy. The buyer may buy other goods and recover damages from the seller. The buyer may cancel the contract.

What actions are valid exceptions to the perfect tender rule? Choose 3 answers.

The contract is unenforceable if the goods which had been identified to the contract are destroyed. The seller may choose a different means of delivery if the agreed upon means becomes unavailable or impractical. The seller has the right to cure nonconforming goods within the contract time for performance.

Breeze Manufacturing agrees to purchase goods from Hawkins Inc. In what situation could Breeze reject a shipment of goods from Hawkins under the perfect tender rule?

The goods do not meet the specifications detailed in the contract.

What key factor determines what remedies are available for a seller in a sales contract when there is a breach by the buyer?

The location of the goods involved in the breach

What rights does the perfect tender rule give buyers of goods? Choose 2 answer choices.

The right to reject the seller's goods if the goods are not exactly as described in the contract & The right to accept delivery of all of the goods

What remedies are available to a seller when the buyer breaches a contract before the goods are delivered to the buyer? Choose 3 answers.

The seller may withhold delivery of the goods. The seller may cancel the contract. The seller may resell the goods and sue to recover damages.

Can the parties to a contract agree to change the time limit for commencing an action for breach of contract under the Uniform Commercial Code (UCC)?

Yes, they may set the time limit to any time between one year and four years.

What is the term for the action of a buyer who, upon learning that the seller will not perform the seller's duty under a contract, makes arrangements to purchase the same goods from a different source?

cover

What is the time limit for commencing an action for breach of contract under the Uniform Commercial Code (UCC)?

four years

What must an aggrieved buyer prove to obtain the remedy of specific performance in the event of a breach by the seller?

that the goods are unique and a substitute will not be equal

What is the term for the doctrine under which a seller must deliver goods that conform exactly to the terms of the contract?

the perfect tender rule

What factors influence the remedies available to a seller when the buyer breaches a contract? Choose 3 answers.

whether the buyer has rejected or accepted the goods whether or not the goods are in transit which party has possession of the goods