Business Law Chpt 21 Performance and Breach of Lease and Contract

Sid and Tony enter a contract for a sale of Sid's collection of electric guitars. Before the time for performance, Sid tells Tony that he does not want to deliver the guitars. Anticipatory repudiation is a. a breach of contract. b. a compromise between two parties who are unable to perform. c. a remedy available only to a breaching party. d. a remedy available only to a nonbreaching party.

a. a breach of contract.

Quincy buys a car under a warranty from Ride Motors. Quincy soon discovers that the car has a defect that significantly affects its value and use. In all states and the District of Columbia, Quincy may have remedies under a. a lemon law. b. Article 74 of the CISG. c. a transit law. d. the Automobile Dealers' Day in Court Act.

a. a lemon law.

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

a. await performance, sue Relax, or suspend its own performance.

Rocky and Slim enter into a contract for a sale of five rowboats. Circumstance make it difficult for Rocky to perform, and the contract is breached. Slim looks for remedies. Unlike the common law, under the UCC, remedies are a. cumulative. b. exclusive. c. limited. d. unlimited.

a. cumulative.

Regal Manufacturing Company contracts to sell sweaters to Superb Styles Store. Before the sweaters are delivered, Superb indicates that it will not be able to pay. Regal can resell the goods a. either after finishing the job (and identifying the goods), or after stopping the job. b. only after finishing the job and identifying the goods. c. only if Regal immediately stops the job. d. under no circumstances.

a. either after finishing the job (and identifying the goods), or after stopping the job.

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

b. a higher duty on Price-Cut than on consumers.

Hi-Tech Company contracts to sell fiber optic cable to Internet Services, Inc. Hi-Tech may bring an action to recover the purchase price and incidental damages if Internet a. accepts the cable and pays for it. b. accepts the cable but does not pay for it. c. rejects the cable. d. revokes acceptance of the cable.

b. accepts the cable but does not pay for it.

Screen Perfect, Inc., and TV Stores enter into a contract for a sale of high-definition television sets. Screen Perfect ships goods that do not exactly conform to the contract in some details. TV Stores 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. can reject the entire shipment.

Vehicle Leasing Agency (VLA) and Wander Trucking Company enter into a contract for a lease of eight cargo vans. VLA delivers eight vans, but they are not cargo-sized. Wander 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. can reject the entire shipment.

Timber Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of plywood. Under 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. inspect the goods before tendering their delivery. d. place the goods into the hands of a carrier.

b. deliver the goods to a particular destination.

Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle. Esau cancels the contract ten days later. Double D is unable to sell the cattle to another buyer. Double D is entitled to a. force Esau to accept the cattle and recover the contract price. b. keep the cattle and recover the contract price from Esau. c. keep the cattle only. d. recover the contract price from Esau but must destroy the cattle.

b. keep the cattle and recover the contract price from Esau.

Amble Country Stables contracts to buy 1,000 horseshoes from Blacksmith, Inc., for $1 per shoe. When the market price decreases to 50 cents per shoe, Amble refuses to go through with the deal. Blacksmith can recover a. $1,500. b. $1,000. c. $500. d. 0.

c. $500.

Delta Boats, Inc., and Eventide Fishing Tours enter into a contract for a sale of seven custom-made swamp boats. Eventide pays for the goods, but Delta does not deliver. Eventide can use replevy as a remedy if a. Delta is lawfully withholding the goods. b. Eventide cannot effectively cure the defect. c. Eventide is unable to cover for the goods. d. the goods have not been identified to the contract.

c. Eventide is unable to cover for the goods.

Clear Day Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Great Vu, 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. Florida.

BBQ, Inc., makes and sells grills to Grill Mart, a retailer, which sells one of the grills to Hope, a consumer. BBQ and Grill Mart include in their contracts a limitation on consequential damages for personal injuries arising from a breach of warranty. This is prima facie unconscionable with respect to a. all of these parties. b. BBQ and Grill Mart, but not Hope. c. Hope only. d. none of these parties.

c. Hope only.

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 all of the details of the contract. b. entirely conform to the contract except in one or two details. c. exactly conform to the contract in every detail. d. substantially conform to the contract in most details.

c. exactly conform to the contract in every detail.

Genuine Seed Company and Hillside Farmers Cooperative enter into a contract for a sale of hybrid seeds. Under the perfect tender rule, Genuine Seed must ship or tender seeds to Hillside that a. approximately conform to all of the details of the contract. b. entirely conform to the contract except in one or two details. c. exactly conform to the contract in every detail. d. substantially conform to the contract in most details.

c. exactly conform to the contract in every detail.

Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company. Food can obtain only 20,000 of the 6-ounce containers, but also ships 30,000 more expensive 8-ounce containers for the same price. Under these circumstances, Golden a. cannot reject delivery, and Food cannot later replace the containers. b. cannot reject delivery, but Food can later replace the containers. c. may reject delivery, and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers. d. may reject delivery, but Food cannot later replace the containers.

c. may reject delivery, and notice to Golden of Food's intent to cure will give Food a reasonable time to replace the containers.

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks, Inc., but refuses to deliver. Due to a spice shortage, Roller Rinks cannot obtain pizza elsewhere. Roller Rinks's right to recover the goods from Cheesy is the right of a. cover. b. cure. c. replevin. d. specific performance.

c. replevin.

On May 1, City Auto & Truck Sales agrees to sell a car to Dino. Five days later, Dino refuses delivery and cancels the contract. City is entitled to a. force Dino to accept the car. b. recover any damages from Dino but not resell the car. c. resell the car and recover any damages from Dino. d. resell the car but not recover any damages from Dino.

c. resell the car and recover any damages from Dino.

Ghangzhou, Ltd., in China and Hot Togs, Inc., in the United States enter into a contract for a sale of casual clothing. Under the United Nations Convention on Contracts for the International Sale of Goods (CISG), on a breach of the contract, the nonbreaching party 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' two countries.

c. the contract price and the market price.

Loni and Myra enter into a contract for a sale of clarinets and other wind instruments. Loni delivers, but Myra does not pay. Loni 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. the contract price and the market price.

Owen and Pablo enter into a contract for a sale of fifty Western saddles. 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. the contract price and the market price.

Pep Paints agrees to sell to Quality Painters Grade A-1 latex outdoor paint to be delivered May 8. On May 7, Pep tenders Grade B-2 paint. Quality rejects the Grade B-2 paint. Two days later, Pep tenders Grade C-3 paint with an offer of a price allowance. Pep has a. additional, unlimited time to cure. b. a reasonable, additional time to cure. c. one more day to cure. d. no more time to cure.

d. no more time to cure.

Super Resources, Inc., sells unprocessed minerals to commercial processors in Texas. With regard to the UCC's good faith requirement, Super can a. avoid it only by a conspicuous written disclaimer. b. avoid it only by oral disclaimer. c. avoid it with or without a disclaimer. d. not disclaim it.

d. not disclaim it.

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipment contract, the seller must 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. place the goods into the hands of a carrier.

Primo Pools Company and Aquatic Recreation, Inc., enter into a contract for a sale of prefabricated swimming pools. 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. provide the buyer with any necessary documents of title.

d. provide the buyer with any necessary documents of title.

Design Architects, Inc., and Excel Supply Company contract for a sale of office furniture. Design Architects, which is insolvent, breaches the contract. Excel can stop delivery of the goods in transit a. only if the quantity is at least a carload. b. only if the quantity is at least a planeload. c. only if the quantity is at least a truckload. d. regardless of the quantity.

d. regardless of the quantity.

Field Gardens and Gourmet Restaurant, Inc., enter into a contract for a sale of lettuce before Gourmet declares bankruptcy. Field can stop delivery of the goods in transit a. only if the quantity is at least a carload. b. only if the quantity is at least a planeload. c. only if the quantity is at least a truckload. d. regardless of the quantity.

d. regardless of the quantity.

Leather Products Stores, Inc., rejects a shipment of goods that does not conform to its contract with Manufactured Cowhide Corporation, but is unable to obtain instructions from the seller. Leather Products may a. resell or return the goods only. b. resell or store the goods only. c. return or store the goods only. d. resell, return, or store the goods.

d. resell, return, or store the goods.

International Gem Corporation agrees to sell Jewelry Outlets, Inc. (JOI), fifty new diamonds, but the contract does not specify a place of delivery. JOI is expected to pick up the goods. The place of delivery is a. International's place of business. b. JOI's place of business. c. the Annual Gems and Jewels Convention. d. the U.S. Postal Service office nearest to JOI's place of business.

a. International's place of business.

Natural Foods, Inc., orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers. Olive Grove ships "Grade B" oil, which Natural Foods accepts. To recover damages for the nonconformity, Natural Foods must give notice of the breach within a reasonable time to a. Olive Grove only. b. Olive Grove, Pic 'N Pay, and the appropriate government agency. c. Pic 'N Pay only. d. the appropriate government agency only.

a. Olive Grove only.

Text Publishers, Inc., contracts for a sale of textbooks to University Bookstores, Inc. Vital Shipping Corporation, the carrier, transports the books to Warehouse Storage Company. Text's right to stop delivery is lost when University's rights to the goods are acknowledged by a. the appropriate government agency only. b. Vital Shipping only. c. Vital Shipping or Warehouse Storage. d. Warehouse Storage only.

d. Warehouse Storage only.

According the court in Case 22.1, Maple Farms, Inc. v. City School District of Elmira, the defense of commercial impracticability will not excuse the performance of a contractual obligation when there is an increase in the seller's costs while the contract is in force a. unless the increase in the seller's costs is substantial. b. under any circumstances. c. unless the increase in the seller's costs makes it impossible for the seller to perform without losing money. d. unless the increase in the seller's costs was not foreseeable at the time the contract was formed.

d. unless the increase in the seller's costs was not foreseeable at the time the contract was formed.