Module 3
If the acceptance to a sales contract between non-merchants includes terms different from those in the offer, no contract is formed under the UCC
False
Tender can occur at any hour and in any manner—such as by a phone call to the buyer, allowing "fifteen minutes to pick up the goods.
False
The UCC states that an agreement sufficient to constitute a contract cannot exist if the moment of its making is undetermined.
False
The Uniform Commercial Code requires parties to form sales and lease contracts with the same formality used in forming other types of contracts.
False
Under a shipment contract for the sale of a certain quantity of solar panels, the seller is required to deliver conforming goods at a particular destination
False
When a buyer breaches a sales contract, the risk of loss remains with the seller to the extent of any deficiency in the buyer's insurance coverage
False
Generally, when an acceptance to a sales contract between merchants includes terms additional to those in the offer, the terms automatically become part of the deal.
True
If a party to a contract has reasonable grounds to believe that the other party will not perform, he or she can demand in writing assurance of performance.
True
If a person buys cattle at a livestock auction, title will pass to the buyer when the cattle are physically delivered unless the parties agree otherwise.
True
If a sales contract prohibits any changes unless they are in a signed writing, then only those changes agreed to in a signed writing are enforceable.
True
If a seller supplies ten white dishwashers in response to an order for ten black washing machines—"F.O.B. the seller's warehouse"—and the goods are damaged in transit to the buyer's store, the loss falls on the seller.
True
To the extent that it has not been modified by the UCC, the common law of contracts applies to sales contracts.
True
A buyer is required to cover and a failure to do so will bar the buyer from using any other remedies available under the UCC.
False
Corporate stocks and bonds meet the requirements to be among the items of property characterized as goods under the UCC.
False
If a contract for a sale of goods leaves the quantity term open, there is a basis for determining a remedy.
False
If a seller fails to deliver the goods, the buyer can purchase other goods to substitute for those due under the contract, but cannot then sue for consequential damages.
False
The obligation of commercial reasonableness underlies every sales and lease contract.
True
Acceptance of an offer to lease goods can be made by any means reasonable under the circumstances, including a prompt shipment of the goods.
True
An implied warranty can arise as a result of a well-recognized trade custom that a court could infer the parties intended to apply to their contract
True
A contract for a sale of natural gas is a contract for a sale for goods.
True
A seller who tenders nonconforming goods has reasonable grounds to believe that the buyer will accept the tender if it includes a price allowance.
True
In response to an order for a hundred baseballs, the shipment of a hundred basketballs is both an acceptance of the offer and a breach of the contract.
True
Life Products Inc. enters into a contract to sell medical supplies to Med Clinic, which later sells some of the items to Nina, a patient and consumer. Article 2 of the UCC applies to
both transactions.
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
can reject the entire shipment.
Pine Mills Inc. agrees to sell a certain quantity of plywood to Quality Lumber Company under a destination contract. Pine Mills must
deliver the plywood to a particular destination
Rancho Stables orders ten saddles from Saddles, Inc. The sales contract states that if the tack is defective, Rancho will allow Saddles to repair or replace it instead of rejecting the shipment. When the gear arrives, it is defective. In this case, the perfect tender rule
does not apply.
Jake offers to sell Kyle a collection of baseball cards. To qualify as a sale under the UCC, Kyle's payment for the cards must be
in cash, or its equivalent, or in other goods or services.
Business Rents LLC and Cartage Trucking Inc. enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, Business Rents must ship or tender lifts to Cartage that, with regard to the contract specifications, conform
in every way.
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
is excused from the performance of its contracts.
ABC Hardware Store orders one hundred power hand-drills from Best Tools Inc. When the hand-drills are delivered, they are all missing pieces. ABC rejects the shipment. To exercise a right to cure, Best Tools must
promptly notify ABC of the intent to cure.