BUS251: Chapter 15 Reading & Assessment Questions

Jackie, an orange supplier, contracted with Jimmy's Sushi for the delivery of 50 crates of grade B oranges. Every three months, Jackie regularly sends Jimmy's Sushi 50 crates of grade B oranges. Due to an oversight, Jackie sent Jimmy's Sushi 50 crates of grade A oranges. In this case,

Jimmy's Sushi may accept the goods

In the _______, Inc. v. City School District of Elmira case, the court ruled that an unexpected increase in prices was not sufficient to meet the standard of commercial _______.

Maple Farms; impracticability

If Megan Manufacturer ships nonconforming goods to buyer Rachel Retailer, Rachel may: _______ or _______.

accept or reject the entire shipment; accept part and reject the rest

Under the UCC perfect tender rule, if the seller fails to achieve perfect tender, the buyer has the following options: _______, _______, or _______.

accept partial shipment and reject the rest; accept the entire shipment; reject the entire shipment

Once the buyer has _______ the goods, the buyer must _______ in accordance with how the parties have negotiated and agreed on the details of payments.

accepted; pay for them

The UCC applies the commercial impracticability rule when the delivery or nondelivery of goods has been made impracticable by the occurrence of _________ and said event directly affects a basic assumption of the contract.

an unanticipated event

The UCC applies the commercial impracticability rule when the delivery or nondelivery of goods has been made impracticable by the occurrence of: _______ and _______.

an unforeseeable event; the event affects the basic assumption of the contract

In the absence of a specific contract provision regarding the details of payment, the UCC provides that payment be made in full:

at the time and place that the delivery occurs.

Conforming goods simply means the goods ________ in an agreement.

bargained for

Conforming goods simply means the goods:

bargained for in an agreement

In Furlong v. Alpha Chi Omega Sorority et al, Ohio Misc.2nd 26 (1993), Furlong (the seller):

breached the express warranty and the contract by delivering nonconforming goods

Suppose Samantha Seller ships 100 widgets to Brianna Buyer. Under the UCC, after inspection of the goods, if Brianna properly rejects the goods, she may also _______ and pursue any appropriate legal remedies against Samantha Seller.

cancel the balance of the contract

The UCC applies the _______ rule when the nondelivery of goods has been made impracticable by the occurrence of an unanticipated event, and the unanticipated event directly affects a basic assumption of the contract.

commercial impracticability

Some UCC rules are different for performance of sales contracts compared with contracts formed under _______ law.

common

Fundamentally, the seller's obligation is to transfer and deliver __________ goods to the buyer.

conforming

If Sally Seller has shipped _______ goods to Buyer Betty, then Betty has the duty to _______ and become the owner of the goods in accordance with concepts of title.

conforming

_______ is similar to course of performance in that both refer to patterns of performance by the parties, except that _______ refers to how the parties acted in the past.

course of dealing

__________ is similar to course of performance in that both refer to patterns of performance by the parties.

course of dealing

The ______ is a method to show what the parties intended through their own actions in performing the specific contract in question.

course of peformance

Suppose Tom (seller) and Joe (buyer) have a contract that calls for "top shelf scotch" to be delivered in five installments over the course of a year. The _________ between the parties would be based on the quality of the first installment of scotch delivered by Tom and accepted by Joe.

course of performance

What may be a method to show what the parties intended through their own actions in performing the specific contract in question?

course of performance

Once the time contemplated for performance has expired, the seller's right to _______ also expires.

cure

Once the time contemplated for performance has expired, the seller's right to ________ also expired.

cure

Good faith is defined in the UCC as "honesty in _______ in the conduct or transaction concerned"

fact

In the absence of an agreement, the UCC provides that the buyer must make _______ at the time and place that she has _______ the goods.

full payment; received

Suppose on April 1 Tom contracts with Joe to deliver 100 widgets at $10 per unit to be delivered no later than May 1. Suppose Tom delivers the 100 widgets on April 25, but Joe rejects the goods as nonconforming and notifies Joe. What options does Tom have at this point?

give notice of intent to cure; tender conforming goods on or before May 1

Under the doctrine of tender of delivery, the UCC obligates the seller to: (1) _______, (2) _______, and (3) _______.

give the buyer appropriate notice; allow the buyer to take delivery; tender the goods

If the time for the seller's performance has not expired, the seller may cure by (1) ______ and (2) ______.

giving notice of her intent to cure; tendering conforming goods to replace rejected goods

In the Sons of Thunder v. Borden case, the court held that a buyer breached the duty of _______ by willfully trying to circumvent its contractual obligations to a seller that made a significant investment to carry out its obligations.

good faith

_______ is defined in the UCC as "honesty" in fact in the conduct or transaction

good faith

In every commercial transaction, the UCC has a good faith provision that imposes duties of ______ and _________ the bedrock of any sales contract.

good faith; commercial reasonableness

Commercial _______ is a ______ doctrine as demonstrated in the Maple Farms v. City School District of Elmira case.

impracticability; narrow

The UCC uses a general reasonableness requirement to govern the delivery process which means the good must be delivered: (1) _______, (2) _______, and (3) _______.

in one shipment; in a reasonable manner; at a reasonable hour

The UCC provides that if delivery and billing are done in two or more separate lots for cash flow or other business reasons the parties may do so via the use of a(n) _______ contract.

installment

If the goods are to be picked up, the goods must be ________ to allow the buyer to take possession.

made available at a reasonable time

___________ have a greater duty to act in a commercially reasonable manner.

merchants

______ have the duty to act in a(n) _______ manner by observing industry standards and practices that may be unique to a particular industry or field.

merchants; commercially reasonable

Suppose the UCC governs the transaction between Sam Seller and Bob Buyer, and Bob orders 1,000 widgets from Sam. If the widgets are acceptable when delivered, Bob _______.

must make full payment for the goods

Commercial impracticability is a ________ doctrine.

narrow

If Sammy Seller has shipped _______ parts to to Megan Manufacturer and Megan accepts them, the UCC allows Megan to revoke her acceptance only if the _______ the value of the goods.

nonconforming; nonconformity substantially impairs

Suppose Sam Seller ships 100 widgets to Bob Buyer. Under the UCC, after inspection of the goods, Bob may: (1)_______, or (2)________, or (3)_______.

notify Sam of acceptance; notify Sam of rejection; do nothing

Usage of trade means:

observing industry standards and practices that may be unique to the particular industry

In a contract for the sale of goods is analyzed based on the parties' course of dealing, the goods must be:

of the same quality as found in past contracts

Both industry standards and how the parties have performed in past dealings play an important role in determining the:

parties' obligations and rights

Course of dealings involves _________ which provides a reference point for what the parties reasonably expected in terms of performance on a new contract.

past dealings

If Sammy Seller shipped goods to Megan Manufacturer, Megan's acceptance of the nonconforming goods triggers her obligation to _______.

pay for the nonconforming goods

Under the UCC, the _______ rule requires the seller to deliver the goods in a manner that matches the contract terms in every respect.

perfect tender

Suppose Sam Seller ships 100 widgets to Bob Buyer. Unless the parties have agreed otherwise, under the UCC Bob has a(n) _______ time period to _______ the goods to be sure they conform to the contract.

reasonable; inspect

Suppose Tom ships Joe 1,000 widgets in 10 boxes, 100 widgets each box. When the delivery truck arrives, three of the boxes are very damaged. If Joe wants to accept at least the 7 boxes, what are his rights?

reject the entire shipment; accept all the boxes as is; accept 7 boxes and reject the rest

If the seller has delivered goods and the buyer rejects them under the perfect tender rule, the seller has the right to: _______ or _______ the rejected goods as long as the time period for performance has not expired.

repair; replace

The seller may have a right to cure after the time for performance has passed, but she must ________.

seasonably notify the buyer of her intent to cure

The seller has a duty under the UCC to __________ the goods to the buyer.

tender; perfectly

Absent specific agreements between the parties, the reasonableness requirement of the UCC governing delivery of goods requires each of the following except:

the goods must be delivered on a weekday

Under the perfect tender rule:

the goods must match the contract terms in every respect

Suppose Marvin Manufacturer ships 1,500 widgets to Sally Supplier via an installment contract. After arrival of the widgets, if Sally discovers the widgets in this installment are nonconforming, she has the right under the UCC to reject the entire installment if _______, and _______.

the nonconformity cannot be cured; the nonconformity substantially impairs the value of the entire installment

In Car Transportation Brokerage Company v. Blue Bird Body Co., the court held in favor of:

the seller

The right to cure may exist after the time period for performance has come due, if ________.

the seller believes the nonconforming goods will be acceptable

The right to cure may exist after the time period for performance has come due, if _____________.

the seller believes the nonconforming goods will be acceptable

The buyer's primary obligation is triggered when:

the seller tenders the delivery

If the seller has shipped conforming goods as agreed, the buyer has the duty to accept the and become the owner of the goods in accordance with concepts of __________.

title

If Megan Manufacturer has provided perfect tender to the buyer Rachel Retailer, Rachel's obligation is _______ Megan subject to Rachel's right to inspect.

to pay

Tom manufactures widgets that conform to NASCAR specifications for widgets. If Joe buys 1,000 of Tom's widgets his contractual expectations would be based on ________.

usage of trade

________ refers to any general practice of method of performance that is specific to a particular trade or industry.

usage of trade

___________ refers to any general practice or method of performance that is specific to a particular trade or industry.

usage of trade