chapter 22

. Fruit of the Plant, Inc., agrees to sell a certain quantity of a high-quality grain seed to Grange Co-op. Fruit of the Plant can obtain only half of the quantity ordered, so the seller also ships a lesser quality seed in twice the amount of the remainder of the order for the same price. Grange Co-op rejects the lesser quality seed. With time for performance not yet expired, Fruit of the Plant can a. attempt to cure the defect. b. cancel the contract. c. recover the amount of its expected profit plus incidental damages. d. resell or dispose of the seed and hold Grange Co-op liable for any loss.

a

ABC Toy Store orders one hundred board games from Big Board Games Inc. When the games are delivered, they are all missing pieces. ABC rejects the shipment. To cure, Big Board Games must a. promptly notify ABC of the intent to cure. b. pay a cure fee. c. pick up the nonconforming games before the end of the business day. d. enter into a new contract with Axel's.

a

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Due to a rice shortage, Bob's Bistros cannot obtain the noodles elsewhere. The buyer's right to recover the goods from the seller is the right of a. cover. b. cure. c. tender. d. specific performance.

a

Refined Mills orders "Grade A" oats from Sweet Valley Farm to grind and sell to Town Co-op Grocery. Sweet Valley ships "Grade B" grain, which Refined Mills accepts. To recover damages for the nonconformity, Refined Mills must give notice of the breach within a reasonable time to a. Sweet Valley. b. Town Co-op. c. no one. d. the appropriate state government agency.

a

Dairy Goods agrees to sell a certain quantity of ice cream to Event Caterers, but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date a. the seller is excused for any resulting delay. b. the seller is liable for any resulting delay. c. the time for delivery is extended with a price adjustment for the delay. d. the contract is canceled.

a

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is a. Fuel Connector's place of business. b. Go-Flo's place of business. c. the current location of the hose couplings and fittings. d. the U.S. Postal Service office nearest to Go-Flo's place of business.

a

Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should a. demand assurances of performance from the seller. b. consider the contract repudiated and sue the seller for breach. c. buy the equipment from a different firm and bill the seller for the price. d. buy the equipment from a different firm and bill Excavation for the price.

a

Soft Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay. Soft tells Stuffy on April 15 that delivery will be delayed until June 1. Stuffy may a. await performance, sue Soft, or suspend its own performance. b. only await Soft's performance for a commercially reasonable time. c. only sue Soft for breach of contract. d. only suspend its own performance.

a

Steel Buildings, Inc., agrees to sell four portable garages to Truck Service Center. Five days later, the buyer refuses delivery and cancels the contract. The seller is entitled to a. force the buyer to accept the garages. b. recover any damages from the buyer but not resell the garages. c. resell the garages and recover any damages from the buyer. d. resell the garages but not recover any damages from the buyer.

a

Tarts & Pies Bakery contracts with Sweet Fruits for strawberries to be delivered by Refrigerated Trucking Company. On the day of delivery, the refrigeration on the trucks is not working. Sweet Fruits a. may ship the strawberries to the buyer using a different carrier. b. must cancel the contract. c. must wait to ship the strawberries until the carrier fixes its trucks. d. must ship the goods through a different carrier and pay damages.

a

. Pine Mills Inc. and Quality Lumber Company enter into a contract for a sale of plywood to be delivered under a destination contract. This contract requires Pine Mills, the seller, to a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. inspect the goods before tendering their delivery. d. place the goods into the hands of a carrier.

b

Beef Burgers, Inc. contracts to buy five hundred head of cattle from Cattle Ranch. Before the seller delivers, an outbreak of disease causes a quarantine of the ranch. In this circumstance, the perfect tender rule a. applies to both parties. b. no longer applies. c. applies only to Beef Burgers. d. applies only to Cattle Ranch.

b

Fact Pattern 22-1 Daily Bread Bakeries, Inc., contracts to buy all of its ingredient requirements for bread making, at a certain minimum per year, from Enriched Flour & Grain Corporation for six years. After three years, Daily Bread tells Enriched that it plans to sell its assets to Flat Bread Shops, Inc. Flat Bread refuses to assure Enriched that it will continue Daily Bread's contract. Refer to Fact Pattern 22-1. Enriched can a. assign its rights under the contract but cannot terminate it. b. terminate the contract and seek damages. c. suspend performance under the contract until Enriched is fully paid. d. do nothing.

b

Game Source Stores are open to consumers. The UCC requirement of good faith imposes a. a higher duty on consumers than Game Source. b. a higher duty on Game Source than on consumers. c. no duty on either Game Source or consumers. d. the same duty on Game Source and consumers.

b

Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor a. can substitute some other material for the tin. b. is excused from the performance of its contracts. c. is liable for breach of contract. d. must still supply the tin needs of its customers.

b

On July 10, Pet Supply Store orders fifty small dog collars from Quality Collars, Inc. to be delivered by July 15. On July 13, Quality Collars tenders fifty large dog collars. Pet Supply rejects the shipment. Quality Collars has a. no right to cure. b. until July 15 to cure. c. until the end of the business day on July 13 to cure. d. unlimited time to cure.

b

Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto a. cannot reject the entire shipment. b. can reject the entire shipment. c. must accept the entire shipment. d. must reject the entire shipment.

b

River Gear Company and Scenic Trips, Inc., enter into a contract on August 1 for the sale of fifty inflatable river rafts. Scenic cancels the contract ten days later. River Gear is unable to sell the rafts to another buyer. River Gear can a. force the buyer to accept the rafts and pay for them. b. recover the contract price but must hold the rafts for the buyer. c. recover the contract price and keep the rafts. d. recover the contract price but must destroy the rafts.

b

Banquets & Parties (B&P) contracts to buy 1,000 uninflated balloons from Gas Bags, Inc., for $1 per item. When the market price decreases to 50 cents per balloon, B&P refuses to go through with the deal. Gas Bags can recover a. $1,500. b. $1,000. c. $500. d. $0.

c

Bayou Boats, Inc., contracts for the sale of seven swamp boats to Eventide Fishing Tours. Bayou repudiates the contract. Eventide's recovery is measured at the time a. Bayou advertised the goods. b. Eventide ordered the goods. c. Eventide learned of the breach. d. Bayou knew that it would repudiate the contract.

c

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that a. approximately conform to the contract description. b. entirely conform to the contract description except in one or two details. c. conform to the contract description in every way. d. substantially conform to the contract description in most details.

c

Clear View Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Far Sight, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of delivery is in a. California. b. Delaware. c. Florida. d. Hawaii.

c

EconBank issues a letter of credit in favor of Facile Deals Inc., a U.S. firm, to facilitate an international sales contract to buy certain products from Global Goods, Ltd., a British company. Global is entitled to payment when it a. enters into the contract with the buyer. b. verifies that the buyer has the money to pay for the purchase. c. complies with the terms and conditions of the letter of credit. d. asks to be paid.

c

H2O Company contracts to sell pumps, tanks, and water storage systems to In-Flo Irrigation, Inc. Before the goods are delivered, In-Flo indicates that it will not be able to pay. H2O can a. force the buyer to accept and pay for the goods. b. require the buyer to find a buyer for the goods. c. resell the goods and recover any damages from the buyer. d. do nothing.

c

Owen and Pablo enter into a contract for a sale of irrigation equipment. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between a. any loss avoided and any profit gained. b. the actual price and the hoped-for price. c. the contract price and the market price. d. the current prices in the parties' locations.

c

Precious Stones, Inc., and Sparkling Jewelry stores enter into a contract for a sale of gemstones. Precious Stones does not deliver. The buyer can normally recover as damages the difference between a. any loss avoided and any profit gained. b. the actual price and the hoped-for price. c. the contract price and the market price. d. the current prices in the parties' locations.

c

Quarry Equipment Corporation and Rock & Gravel Inc. enter into a lease of three bulldozers. Under the perfect tender rule, Quarry must ship or tender goods to Rock & Gravel that, with respect to the contract description, conform a. to the best of the lessor's ability under the circumstances. b. to a reasonable extent. c. in every way. d. to a substantial degree.

c

Speedy's Auto Parts orders twenty tires from Tough Tires, Inc. Ten of the tires are delivered in a damaged condition. Speedy's a. cannot reject the entire shipment. b. must pay for all of the tires at the contract price. c. may accept the shipment with a reduction in price. d. must reject the entire shipment.

c

TackMaker, Inc., and Silver Stallion Stables enter into a contract for a sale of bridles, saddlery, and other equine equipment. TackMaker delivers, but Silver Stallion does not pay. TackMaker can normally recover as damages a. any profit lost minus any loss avoided. b. whatever amount the seller wishes to claim. c. the purchase price plus incidental damages. d. the market price at the place at which the seller delivered the goods.

c

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting to be delivered under a shipment contract. This contract requires Elegant Carpets, the seller, to a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. inspect the goods before shipping them. d. place the goods into the hands of a carrier.

d

Fact Pattern 22-1 Daily Bread Bakeries, Inc., contracts to buy all of its ingredient requirements for bread making, at a certain minimum per year, from Enriched Flour & Grain Corporation for six years. After three years, Daily Bread tells Enriched that it plans to sell its assets to Flat Bread Shops, Inc. Flat Bread refuses to assure Enriched that it will continue Daily Bread's contract. Refer to Fact Pattern 22-1. Flat Bread's refusal is a. a justified response based on Flat Bread's relation to the contract. b. an assignment of Daily Bread's rights under the contract. c. a reasonable suspension of performance under the contract. d. a repudiation of the contract.

d

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce. After Field Farms ships the lettuce but before the restaurant receives it, the buyer declares bankruptcy. The seller can stop delivery of the goods in transit a. only if the quantity is at least 50 percent of the contract amount. b. only if the quantity is in a single "unit." c. only if the quantity is at least a truckload. d. regardless of the quantity.

d

Medical Supply Company and Health Care, Inc., enter into a contract for a sale of medical equipment and supplies. Under either a shipment contract or a destination contract, the seller must a. allow the buyer to reject the goods for any reason. b. deliver the goods to a particular destination. c. place the goods into the hands of a carrier. d. give the buyer any necessary documents of title.

d

Natural Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Natural Eggs can not reasonably ask Omelet Express to pick up the eggs at a. 1:00 p.m. b. 2:00 p.m. c. 3:00 p.m. d. 2:00 a.m.

d

Okay Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Okay Markets can a. destroy the goods. b. cure the goods to make them conform to the contract. c. retain the goods without paying for them. d. reship or store the goods for the seller.

d