Chapter 22 Questions
Sullivan contracts with Bristol to sell Bristol 500 pounds of frozen fish. Sullivan carefully places the fish in boxes, notifies Bristol of the shipment, and puts the goods in the carrier's hands. Sullivan does not inform the carrier of the contents of the boxes, and when the fish arrive at Bristol's factory, they are inedible. Bristol:
can reject the shipment and consider the contract breached.
Mitchell and Emma have a contract where Mitchell will sell Emma twenty-four cases of three-inch heels, in black with a red rose on the top of each shoe. Emma will pay Mitchell for the shoes once they are delivered on March 15. On March 1, Emma realizes that roses are no longer the flower of the year, but instead Gerber daisies are the new rage. She calls Mitchell to let him know that she will not pay him for those shoes. Mitchell:
may treat her call like a breach and take steps to minimize his damages.
David contracts to purchase seven bulldozers from Jena. Jena manufactures the bulldozers, but David is unable to pay. After notifying David of her intentions, Jena may:
resell or dispose of the goods in the open market
Troy orders high-end stoves and ranges from a manufacturer, to sell in his appliance store. After the appliances have been loaded onto a truck and are being shipped to Troy, the manufacturer discovers that Troy is insolvent and unlikely to be able to pay for them. The manufacturer can:
stop the delivery
Kelly, a farmer, tells Farm Fresh Onions, Inc., that he will not be able to deliver the quantity of onions agreed to under the contract. If, before the time for performance has occurred, Farm Fresh Onions has not pursued an alternative source for onions and Kelly contacts Farm Fresh Onions to tell them that he can now perform:
the repudiation is retracted
Gary wrongfully rejects a shipment of copier paper, and the paper is shipped back to Pacific Paper. When Gary calls Pacific Paper and demands that the paper be returned to him, Pacific Paper can:
withhold delivery
Smith agrees to buy the lawnmower that Kris advertised in the newspaper. Kris is not a merchant but a private party. Smith and Kris say nothing about delivery in their contract. Under the Uniform Commercial Code, delivery will take place at:
Kris's home
Shara asks George to deliver six rose bushes from his nursery to her house. George brings the bushes, and Shara places them around her property. For several weeks, she admires the bushes, but she does not pay for them. Shara has:
accepted the rose bushes; she had a reasonable time to inspect the plants and has failed to reject them.
Vanessa visits Herman's rare plant store, selects twelve bonsai trees and agrees to buy them. While Herman is in the process of packing the trees, a violent thunderstorm arises. Lightning strikes the greenhouse and destroys the bonsai trees. With respect to the contract:
Herman and Vanessa are excused from performance
The First National Bank of Guatemala issues a letter of credit in which the bank agrees to pay Esteban, a seller of jade, when Esteban delivers a certain amount of jade to a particular location. Esteban is the:
beneficiary
Harvey buys a used Jet Ski from Taylor's Sports Store. Harvey takes the Jet Ski to the river and discovers that it doesn't work. He immediately notifies the seller of the problem. Taylor's can:
cure the defect.
Prasanna contracts to buy ten thousand CDs from Louis. Louis ships the CDs to Prasanna. The CDs are exactly as stipulated in the contract, and Prasanna accepts them. If Prasanna fails to pay Louis for the CDs, Louis can:
file a lawsuit to recover the purchase price.
Kate agrees to buy a sofa from Juan's store. Juan offers free delivery as part of the purchase price, but Kate fails to tell him when to deliver the sofa. After three months of asking when he could deliver, and getting no response, Juan finally leaves the sofa on Kate's front porch on a weekday morning. Unbeknownst to Juan, Kate is away on vacation, and a rainstorm ruins the sofa. Juan is:
not liable, because Kate breached the good faith duty of cooperation.
Susan agrees to sell Ben a truckload of blankets for $10,000. Susan delivers the blankets to Ben's factory on a Sunday at 4:00 a.m. Seeing no one at the factory, Susan waits for twenty minutes and leaves with the goods. Susan has:
not properly provided tender of delivery.
Mason orders a load of T-shirts imprinted with the names of bands he is promoting. He plans to sell the shirts at an outdoor rock concert. The shirts arrive on schedule the day before the concert. Some of the printing on the shirts is imperfect and some of the words are misspelled. Mason decides to keep all of the shirts, even the bad ones. He can:
sue to recover any losses, if he notified the seller of the defects.
