BLAW ch. 21

What was the court's CONCLUSION (holding, decision) in the Hillerich & Bradsby v Charles Products case?

For Charles Products. H&B unreasonably delayed its revocation of acceptance for over 9 months.

What was the court's CONCLUSION (holding, decision) in the Pittman v Henry Moncure Motors case?

For Pittmans. Conditions necessary for the Pittmans to waive their revocation of acceptance failed to materialize.

What was the court's CONCLUSION (holding, decision) in the Rochester Gas & Electric Corp v Delta Star case?

For RGE. Delta Star's contention that a significant increase in its cost of materials created a commercial impracticability was rejected

What RULE (law) did the court apply in the Weil v Murray case?

Goods that a buyer has in its possession necessarily are accepted or rejected by the time a reasonable opportunity for inspecting them passes.

Assume Ben orders twenty kilos of potatoes from Harry, stating that he (Ben) wants them to be delivered in two days. However, Ben does not specify where he would like them to be delivered. Under the Code, delivery of the potatoes would take place at _______.

Harry's place of business

Under which two circumstances is a seller excused from making a delivery of the goods?

If unforeseen conditions cause a delay in delivery of goods. If unforeseen conditions make performance impracticable

_____ of goods occurs when a buyer, after having a reasonable opportunity to _______ them, either indicates that he or she will take them or fails to reject them.

Inspect Acceptance

What was the main ISSUE (legal question) the court answered in the Pittman v Henry Moncure Motors case?

Does a buyer's conditional possession of a good waive its revocation of the contract?

Under UCC _______, the parties may specify in their agreement that for any modification to be enforceable, ______ is necessary.

2-209 a signed writing

Assurance should be provided by a seller to a buyer within reasonable time not exceeding ______ days.

30

What RULE (law) did the court apply in the Rochester Gas & Electric Corp v Delta Star case?

A rise in the market is not commercially impracticable but wars or unforeseen shutdown of major sources of supply may be Increased cost alone does not excuse performance unless the rise in cost is due to some unforeseen contingency

What was the court's ANALYSIS (legal reasoning) in the Pittman v Henry Moncure Motors case?

Pittmans waived damages via the September 2004 letter, but such waiver was made on condition that the home would be fixed Evidence presented at trial overwhelmingly supported the finding that the home was not fit for use as a dwelling unit.

Pick one of the scenarios below that best represents the process to be followed by a buyer for rejecting defective goods under the UCC.

Sharon returns a defective mobile phone stating that it had a faulty camera.

In one of the situations below, a party is considered to have repudiated a contract.

Suzy fails to provide assurance within 30 days

What was the court's ANALYSIS (legal reasoning) in the Rochester Gas & Electric Corp v Delta Star case?

Testimony from both sides indicated the desired steel was available and that Delta Star was able to secure a new supplier at the higher price In a December 2005 letter, Delta pointed out to RGE that steel was available, although at a higher price.

What RULE (law) did the court apply in the Hillerich & Bradsby v Charles Products case?

There are situations in which a buyer has delayed so extensively that her actions become untimely as a matter of law. Chernick v Casares. Revocation within a "reasonable time" depends on nature, purpose, and circumstances.

What was the main ISSUE (legal question) the court answered in the Hillerich & Bradsby v Charles Products case?

Was H & B's revocation of acceptance done within a reasonable time?

What was the main ISSUE (legal question) the court answered in the Rochester Gas & Electric Corp v Delta Star case?

Whether a seller's contention that a significant cost increase created a commercial impracticability, excusing it from its obligation to perform

What was the main ISSUE (legal question) the court answered in the Weil v Murray case?

Whether the goods a buyer has in its possession are accepted if a reasonable opportunity for inspecting them passes.

What was the court's ANALYSIS (legal reasoning) in the Weil v Murray case?

Without Weil's consent, Murray had the painting cleaned and restored which was inconsistent with Weils' ownership. Murray inspected the Degas at Weils' home and at his gallery at which he continued to possess the painting.

A seller is excused from performing its contractual obligations if __________.

a car manufacturer fails to deliver a car on time due to a hurricane. an IT service provider fails to deliver a project on time due to a sudden change in guidelines by its clients.

If a transaction is between merchants and the buyer rejects the goods, the seller has the right to: _________.

a written statement of all the defects in the goods upon which the buyer bases his right to reject

Under UCC 2-301, the basic duty of the seller is to ________, while the basic duty of the buyer is to ________ if they conform to the contract.

accept and pay for the goods deliver the goods designated in the contract

Assume WeRToys, a toy company, fails to deliver a toy to Stewie on his birthday due to an earthquake disrupting its road transport service. Stewie's father, Peter, had already made the online payment for the toy which arrives three days late. Under this scenario Peter can: _________.

accept the toy with an allowance in the price for the delay reject the delivery and seek refund

A seller who reasonably believes the buyer will accept the nonconforming goods can reship conforming goods in reasonable time, if the buyer _________.

accepts the nonconformed goods

A buyer CAN lawfully reject goods that were initially accepted IF the _______.

buyer reasonably believed at the time of purchase that the nonconformity would be removed.

A(n) _____ is any unit of goods that is treated by commercial usage as a single whole.

commercial unit

Under UCC 2-206(2), if a buyer accepts any part of a(n) ________ of goods, he is considered to have accepted the whole unit.

commercial unit

Under the UCC, __________ when executing a modification or rescission of a contract for the sale of goods.

consideration is not required

If a buyer accepts any part of a commercial unit of goods, she is __________.

considered to have accepted the whole unit

A "tender delivery of goods" requires a seller to _________.

deliver the goods at a reasonable time

Under UCC 2-512(2), the fact that a buyer may have to pay for goods before inspecting them does not deprive the buyer of ________ against the seller if the goods _______.

do not conform to the contract remedies

If a buyer accepts nonconforming goods, she _________.

does not forfeit or waive all remedies against a seller for any nonconformities.

In case of a conflict between the involved parties in a contract, the _______ will prevail.

express terms

The factor that prevails in a conflict between a contract's express terms and its trade usage is the ______.

express terms

A buyer would have the right to reject a shipment IF the seller _________.

fails to make a reasonable contract for delivery that results in a material delay or loss to buyer.

In an installment contract, if the nonconformity is relatively minor, the buyer must accept the installment but the seller may either: _________.

give the buyer an allowance in the price to make up for the nonconformity replace the defective goods

In the case of a merchant, ________ means both honesty in fact as well as the observance of reasonable commercial standards of fair dealing in the trade [2-103(1)(b)]

good faith

Under the UCC, a sales contract becomes void when ________.

goods are destroyed without fault of either party

Under UCC 2-504, after a reasonable contact with the buyer, the seller must notify the buyer that the ________.

goods have been shipped

Assume Luke orders a dozen oranges but only receives 8. If true, Luke would be considered to have accepted the entire unit of oranges if ________.

he accepts the 8 oranges

According to Article 2, good faith means: __________.

honesty in fact

A true statement about a buyer's right of inspection of delivered goods is that _________.

if the shipping terms are cash on delivery(COD), then the buyer must pay for the goods before inspecting them

If the buyer and seller have not agreed upon how the goods are to be delivered, the UCC provides that they are to be delivered: __________.

in a single delivery of all the goods

The _______ and the _______ are most relevant to the interpretation of a present contract between two parties?

interpretation of past contracts past course of dealing

Under UCC 2-602(3), if the buyer wrongfully rejects goods, she is: ___________.

liable to the seller for breach of the sales contract

Identify the conditions for a buyer to reject goods: _________.

notify the seller specify the defect

A contracting party can prevent his or her rights to cancel an agreement from being waived by ________.

objecting to the other party at the earliest

Under UCC 2-601, a buyer can reject an installment delivery IF the nonconformity _______.

of a delivery cannot be corrected by the seller.

An individual can retract a waiver on part of his or her rights in a contract by ________.

providing the other party with reasonable notice about the expected performance

Under Article 2, if the parties agree that the price of the goods will be paid in real property, then under 2-304, the law of ________ will govern the transaction.

real property

The maintenance of _______ standards would help a merchant develop good faith among buyers.

reasonable commercial

In the case of a merchant, good faith means both ________ as well as observance of ________ of fair dealing in the trade.

reasonable commercial dealings honesty in fact

A buyer who receives goods that do not conform to a contract can ________.

reject all of the goods

A(n) _________ can be withdrawn by clearly indicating that the person intends to perform her obligations.

repudiation

A buyer may _______ acceptance of ________ goods where the buyer accepted them because of the difficulty of discovering the nonconformity.

revoke

Assume WalCo contracts to sell 200 red soccer balls to Wanda with delivery to be made by April 1. On March 1, Wanda receives a package from WalCo with 200 all-white balls and she refuses to accept them. WalCo can notify Wanda that it intends to cure the improper delivery by supplying 200 red balls before April 1. This is called the sellers _______.

right to cure

Under Article 2, the seller and buyer may agree in their contract that the price of goods is to be paid in: _________.

services goods money

If one party repudiates the contract, the other party may: ________.

suspend her performance

A seller's basic obligation is to make conforming goods available to the buyer via _________.

tender of delivery

If a buyer receives a notice that the seller's capacity to deliver is only partially affected due to unforeseen circumstances, she may _______.

terminate the contract. agree to accept the allocation.

Under UCC 2-210, the parties may not assign their duties under a contract if: ______.

the contract expressly forbids it the quality of the performance might differ

In a contract for installment delivery of the goods, the buyer may reject an installment delivery only if: ___________ and cannot be corrected by the seller in a timely fashion

the nonconformity substantially affects the value of that delivery

A buyer may revoke acceptance of nonconforming goods where _________.

the nonconformity substantially impairs the value of the goods

If the parties fail to specify a delivery location, and the seller does not have a place of business, the delivery should be made at: __________.

the seller's home

A buyer is required to pay for goods before inspecting them when _________.

the shipping terms are cash on delivery

Under the Code, the term "usage of trade" refers to ________.

the use of technical knowledge known only to people in a business to interpret a contract

Assume Harry receives a gaming console that he ordered on an e-commerce website and it arrives safely. After use, Harry realizes it has a faulty power cable and decides to return the console to the seller. According to the Uniform Commercial Code, to properly reject the product, Harry should _______.

write an e-mail letting the seller know that the console has a faulty power cable