Exam 2 Chapter 20

perfect tender

According to the​ _____ rule, if the goods or tender of a delivery fail in any respect to conform to the​ contract, the buyer may opt to reject the whole​ shipment, accept the whole​ shipment, or reject part and accept part of the shipment

replevy

A lessee has the right to​ _____ goods from a lessor who is wrongfully withholding the goods

obligation; law

A(n) _____ is an action a party to a sales or lease contract is required by​ _____ to carry out.

lost volume; two

A​ _____ seller can recover lost profits from a defaulting buyer even though the seller sold the item to another​ buyer, where the seller has other similar items and would have made​ _____ sales had the original buyer not defaulted

good faith

Every contract or duty within the UCC imposes an obligation of​ _____ in its performance or enforcement.

ten days; recover

If a buyer makes partial or full payment for goods before they are received and the seller becomes insolvent within​ _____ after receiving the first​ payment, the buyer has the right to​ _____ the goods from the insolvent seller.

10; recover

If a lessee makes partial or full payment for goods before they are received and the lessor becomes insolvent within​ _____ days after receiving the first​ payment, the lessee has the right to​ _____ the goods from the insolvent lessor

insolvent; ten

If goods are delivered in a credit sale and the seller then discovers that the buyer was​ _____, the seller has​ _____ days to demand that the goods be returned.

specific

If goods are unique or the remedy at law is​ inadequate, a buyer has the right to obtain​ _____ performance of a sales contract.

adequate; performance

If one party to a contract has reasonable grounds to believe that the other party either will not or cannot perform his or her contractual​ obligations, a(n)​ _____ assurance of​ _____ may be demanded in writing.

three months; bounces

If the buyer misrepresented his or her solvency in writing within​ _____ before delivery or paid for goods in a cash sale with a check that​ _____, the seller may reclaim the goods at any time

-reject the whole -reject any commercial unit -accept the whole -accept any commercial unit

If the​ lessor's tender of delivery fails to conform to the lease contract in any​ way, the lessee has the right to reject the improperly tendered goods and may do all of...

equity; specific performance

Suppose a buyer enters into a sales contract to purchase a specific Rembrandt painting from a seller for​ $25 million. When the buyer tenders​ payment, the seller refuses to sell the painting to the buyer. The buyer may bring​ a(n) _____ action to obtain a decree of​ _____ from the​ court, which orders the seller to sell the painting to the buyer.

void

The UCC provides that if goods identified in a sales or lease contract are totally destroyed without the fault of either party before the risk of loss passes to the buyer or​ lessee, the contract is​ _____.

limitation; four

The UCC statute of​ _____ provides that an action for breach of any written or oral sales or lease contract must commence within​ _____ year(s) after the legal claim accrues

unconscionability

To prove​ _____, there must be proof that the parties had substantially unequal bargaining​ power, that the dominant party misused its power in​ contracting, and that it would be manifestly unfair or oppressive to enforce the contract

inspect

Unless otherwise​ agreed, the lessee has the right to​ _____ goods that are​ tendered, delivered, or identified in a lease contract prior to accepting or paying for them

-accept the whole shipment -recover punitive damages -reject the whole shipment -reject part of the shipment -accept part of the shipment

What is a​ buyer's right under the perfect tender rule if the goods or tender of delivery fail in any respect to conform to the​ contract?

B

Which of the following is an INCORRECT statement regarding acceptance of​ goods? A. Buyers may only accept delivery of a commercial derivative.. Acceptance occurs when the buyer signifies to the seller that the buyer will take or retain their goods despite their nonconformity. C. Acceptance occurs if a buyer acts inconsistently with the​ seller's ownership rights in the goods. D. Acceptance occurs when the buyer fails to effectively reject the goods within a reasonable time after their delivery. E. Acceptance occurs when the buyer signifies to the seller in words that the goods are conforming

A

Which of the following is an INCORRECT statement regarding the right to cancel a​ contract? A. The seller does not have the right to cancel the​ contract; instead, the​ seller's exclusive remedy is to sue the buyer for damages if the buyer is in breach of contract. Your answer is correct.B. A seller has the right to cancel a contract if the buyer breaches the contract by rejecting or revoking acceptance of the goods. C. The cancellation may refer only to the affected goods or to the entire contract if the breach is material. D. A seller has the right to cancel a contract if the buyer repudiates all or any part of the contract. E. A seller has the right to cancel a contract if the buyer fails to pay for the goods.

C

Which of the following is an INCORRECT statement regarding the right to reject nonconforming or improperly tendered​ goods? A. If the buyer chooses to reject the​ goods, he or she must identify defects that are ascertainable by reasonable inspection. B. If the​ contracted-for goods or the​ seller's tender of delivery fails to conform to a sales contract in any​ way, the buyer has the right to accept any commercial unit and reject the rest of the nonconforming or improperly tendered goods. C. The buyer does not have the right to reject nonconforming or improperly tendered​ goods; instead, the buyer must accept the goods and then sue the seller for breach of contract and consequential damages. D. If the​ contracted-for goods or the​ seller's tender of delivery fails to conform to a sales contract in any​ way, the buyer has the right to accept all of the nonconforming or improperly tendered goods. E. If the​ contracted-for goods or the​ seller's tender of delivery fails to conform to a sales contract in any​ way, the buyer has the right to reject all of the nonconforming or improperly tendered goods.

E

Which of the following is an INCORRECT statement regarding the right to withhold​ delivery? A. The right to withhold delivery is available if the buyer wrongfully repudiates the contract. B. The right to withhold delivery is available if the buyer wrongfully rejects or revokes acceptance of the goods. C. A seller may withhold delivery of goods in his or her possession when the buyer breaches the contract. D. The right to withhold delivery is available if the buyer wrongfully fails to make a payment when due. E. The seller does not have the right to withhold delivery of the goods. If the buyer is in breach of​ contract, the seller must deliver the goods and then sue the buyer for damages.

E

Which of the following is an INCORRECT statement regarding the​ buyer's right of​ inspection? A. Unless otherwise​ agreed, the buyer has the right to inspect the goods prior to accepting or paying for them. B. If the goods are rejected for​ nonconformance, the cost of inspection can be recovered from the seller. C. If the inspected goods do not conform to the​ contract, the buyer may reject the goods and not pay for them. D. If the goods are​ shipped, the inspection must take place before their arrival. E. The parties may agree as to the​ time, place, and manner of inspection.

tender

_____ of delivery is the obligation of a seller to transfer and deliver goods to the buyer or lessee in accordance with a sales or lease contract.

-The buyer must reject nonconforming goods within a reasonable time after their delivery. -The buyer must reject improperly tendered goods within a reasonable time after their tender. -The buyer must notify the seller of the rejection. -The buyer must hold any rightfully rejected goods with reasonable care for a reasonable time

statement regarding the​ buyer's right of​ rejection

-The seller has the right to withhold delivery if the buyer wrongfully revokes acceptance of the goods. -The seller has the right to withhold delivery if the buyer wrongfully rejects the goods. -The seller has the right to withhold delivery if the buyer fails to make a payment when due. -The seller has the right to withhold delivery if the buyer repudiates the contract.

what is a statement regarding the​ seller's right to withhold​ delivery?

installment

​A(n) _____ contract requires or authorizes goods to be delivered and accepted in separate lots.

shipment

​A(n) _____ contract requires the seller to send the goods to the​ buyer, but not to a specifically named destination.

breach

​A(n) _____ is the failure of a party to perform an obligation in a sales or lease contract

destination

​A(n) _____contract requires the seller to deliver the goods to the​ buyer's place of business or another specified destination.

replevin

​_____ is an action by a lessor to recover scarce goods wrongfully withheld by a lessor.

revocation

​_____ of acceptance is reversal of acceptance