Exam 2
Lora agrees to make Aubrey a quilt out of all of her past t-shirts for $50.00. Is that a good according to the UCC?
(No)-because the good does not actually exist at the time of agreement
Shylo Art Gallery wrongfully convinces Sally that her painting is a fake painting and offers to pay her $100 which is far under that actual value of the i painting. Shortly thereafter, the painting is sold to Hannah in Shylo Art Gallery for $5000, the true value of the painting. Will Hannah be able to keep the painting?
(Yes)-because Hannah is a good-faith buyer.
Jen is in charge of her child's school picnic and calls Uptown Bakery only to get their answering machine. She leaves the following message, "Hi, this it Jen and I am in kind of a difficult situation. A parent backed out for baking 200 zebra cupcakes for our school picnic tomorrow. I know this is last minute, but would you be able to help out?" The next day, Uptown Bakery shows up to the school with 200 zebra cupcakes. According to the UCC would this be : an agreement?
(Yes)-because Uptown accepted by pertormance
Pick-a-Pie Pizzeria, L.L.C. (Pick-a-Pie) contracted with Acme Ovens, Inc. (Acme) to purchase a new pizza oven for its restaurant. Delivery was scheduled for March 15. At the time of contracting, Acme knew that Pick-a-Pie's current pizza oven was non-functioning, and that the restaurant could not open until a new one was delivered. Acme did not deliver the new pizza oven until seven (7) business after the scheduled delivery date, with Pick-a-Pie's experiencing a total loss in profits of $14,000 (an average of $2,000 each day). Pick-a-Pie's $14,000 in lost profits are BLANK damages resulting from Acme's breach of contract.
Consequential
Suppose that in a "battle of the forms" case involving two merchants, one merchant proposes a certain term in the offering document, but the other ¡ merchant's acceptance states a term that is different from the offer. In such a case, the majority of states use the BLANK to resolve the conflict.
Knockout rule
Clyde contracts with Seaside Resorts to rent an oceanfront room for a romantic weekend with his girlfriend Anne. In fact, Clyde intends to propose to Anne on the beach under the full moon during their stay. He made this decision after booking the room. The contract with Seaside Resorts requires a $250 deposit with the remaining $250 due upon check-in. The deposit is nonrefundable unless the reservation is canceled at least 48 hours prior to check-in. The day before they are to leave for the resort, Clyde and Anne have a huge fight and break up. If Clyde calls Seaside, cancels the reservation, and demands a refund of his deposit, is Seaside legally obligated to refund Clyde's money?
Seaside is not legally obligated to provide a refund. (No)
Mary's attic is being invaded by raccoons through a hole in the roof. Therefore, she hires Daech Roofing to repair her roof and make the attic raccoon proof for $1000.00 to which they agree. On the day that they were supposed to repair the roof, the worker actually just takes a day long nap in the attic and never completes the job. Mary leaves on her vacation believing that her raccoon problem has been solved. Two weeks later she returns home only to find that the raccoons entered into her house through the attic and proceeded into the rest of the house and destroyed it. The carpet was destroyed as was all of her furniture by the raccoons' activities. Which statement below is correct?
She could sue for the actual costs of the contract itself as well as the consequential damages that flowed from that breach which included the destruction by the raccoons of her carpetina and furniture
Ethan is an attorney in Texas practicing contract law involving the sale of goods. He moves his practice to Montana to engage in the same type of : practice of law. Which statement below is correct?
Since every state in the United States has adopted either all or substantially all of the UCC, he will have to learn which portions of the UCC Montana has adopted.
Which of the following requires a written contract to be enforceable?
Stanton's pit bull has just had a litter, and her agrees to sell you a puppy for $500 when the pups are weaned from their mother.
Southeastern Supplies (SS) is a manufacturer and supplier of office equipment. SS contracts to sell University of Florida (UF), a local university, 5,000 UF Gator mousepads at $10 per mousepad for delivery on August 1 and payment of $100,000 due upon delivery. If UF breaches before accepting the goods, SS has the following options for remedies:
Stop or interrupt the delivery of the goods Cancel the contract Be discharged of its performance obligations
Which of the following is true regarding consideration?
The UCC allows contracts to be modified without additional consideration.
A-phone Corporation, a California corporation, enters into an agreement with Matt to sell him a phone. In the contract, Matt specifically states that a ; representative from A-phone must travel to his home in Uganda and deliver it to Matt in person and title will pass once the phone is safely placed in ' Matt's hands in Uganda. A-phone drops the phone in the mail as they realize it is too expensive to travel to Uganda to deliver it in person. Which statement below is correct according to the UCC as to when title actually passed?
The UCC allows the parties to the contract to determine when title passes and the court will enforce the parties' agreement.
Which of the following is true regarding commercial impracticability?
The UCC applies the commercial impracticability rule when the delivery or non-delivery of goods has been made impracticable by the occurrence of an unanticipated event. and the unanticipated event directly affects a basic assumption of the contract.
Ambrosia enters into an employment contract to work as an analyst for Computer Technology Services, Inc. Which of the following is true regarding the application of law to this agreement?
The UCC does not apply to this contract.
Suppose Arnie sells 2,000 golf balls to Jack on credit. Jack agrees to pay Arnie $1,000 plus 6 percent interest on the principal still owed per month for a period of 24 months. After two months, Jack's cash flow is impaired by an unexpected downturn in his business. Arnie and Jack then agree to modify the contract to allow Jack to pay a smaller monthly payment ($500 per month, but at the same interest rate until the balance is paid off in full. Later, Arnie runs into cash flow problems of his own and demands that Jack honor the original credit contract terms. Which of the following is true regarding the rights and liabilities of Arnie and Jack?
The Uniform Commercial Code (UCC) applies to these arrangements; the modified contract is fully enforceable, and the original contract is deemed canceled.
Sharon has contracted with Craig to buy Craig's car. She has agreed to pay $5,000 in cash in exchange for the title and registration for the vehicle. Sharon and Craig agree to meet at 10 a.m. on Wednesday to exchange their consideration. Unfortunately, Craig dies Tuesday evening.
The contract is still valid and Craig's heirs must go through with it based on the agreed terms.
Andy pays Tom $50.00 to buy a case of oil. Tom never delivers the oil. Andy sues Tom for specific performance to force Tom to turn over the case of oil. What would most likely be the outcome of this suit?
The court will not allow for specific performance as it is a sale of goods that are not unique.
Kumbamitwe Construction enters into a business contract with Daniel's Hardware to purchase lumber and supplies for the construction of a house. Daniel's Hardware delivers the lumber, but about 10% of the lumber is warped. The contract is silent on what would occur in the event of substandard products being delivered. According to the UCC, what might occur in this situation?
The parties may use default rule to resolve the problems of the contract not anticipated when the business contract was originally made.
Which of the following would not be considered tangible?
The right of ownership.
Two merchant companies have entered into a contract for the sale of goods but have had no prior dealings that would establish a course of conduct between them. The UCC will allow gap fillers to apply to their contract regarding missing terms in each of the following situations except when
They have failed to specify the quality or grade of the goods to be delivered.
Makubuya Futbol World ordered 500 U.S.A. replica soccer jerseys from Smith Apparel, a sports apparel manufacturer. The jerseys were to be delivered to Makubuya's place of business. When the shipment arrived, Makubuya discovered that it received 500 pairs of replica shorts but no jerseys. Before : Makubuya could notify Smith arid return the shorts, a fire destroyed the building in which the shorts were stored. Which of the following statements is true?
This was a destination contract and the shorts were nonconforming goods, so Smith did not complete the performance and retained the risk of loss.
Suppose that Sam, the owner of a 2015 Chevrolet Camaro, contracts with Ace Automotive Repair, Inc. in Racine, Wisconsin for the sale and installation of a new engine. Per the terms of the contract, the engine will cost $5,000, while the labor charge for the engine installation will cost $1,000. Which of the following is true?
Under the predominant purpose test, Article 2 of the Uniform Commercial Code (UCC) applies to this contract.
Southeastern Supplies (SS) is a manufacturer and supplier of office equipment. SS contracts to sell University of Florida (UF), a local university, 5,000 UF Gator mousepads at $10 per mousepad for delivery on August 1 and payment of $100,000 due upon delivery. SS gets word from a viable source that UF has had trouble paying its suppliers. SS may ask UF for:
adequate written assurances
The UCC applies the commercial impracticability rule when the delivery or nondelivery of goods has been made impracticable by the occurrence of BLANK and said event directly affects a basic assumption of the contract.
an unanticipated event
Suppose that on December 15, 2020, Manager Yang enters into an agreement with Consultant Anderson to provide operation-consulting services for a period of six months to commence on January 2, 2021. On December 20, 2020, Manager Yang is instructed by upper management to cut costs, so he contacts Consultant Anderson the same day by the following e-mail: Dear Consultant Anderson: We don't require your services. Sorry.-Manager Yang." As of December 20, 2020, Manager Yang has BLANK the contract with Consultant Anderson.
anticipatorily repudiated
Harry sees an AK-47 automatic assault rifle in a gun shop window. He inquires about the price and is told that it is $2,500. Harry signs a contract promising to pay the $2,500 on Friday, at which time he will take possession of the rifle. On Thursday, a law is enacted making the ownership, sale, or possession of an automatic rifleillegal. This contract
automatically terminates due to impossibility.
Suppose that Cromartie is involved in an automobile accident with Frazier, and Frazier is clearly at fault for the accident. Cromartie sustains $4,650 in damages to his car. Cromartie's loss is known as __________.
compensatory damages
Timothy contracts with Howard Construction Company to build him a new house for $350,000. In the contract, there is a provision indicating that Timothy must obtain "suitable financing" (defined by the contract as a 3.75 percent annual percentage rate of interest or lower interest rate, for the entire purchase price of the home) before his obligation to purchase the house arises. The "suitable financing" provision in this contract is known as
condition precedent
If the seller is a merchant and promises in a signed writing to keep an offer for the sale of goods open for a period of time, under Uniform Commercial : Code (UCC) Article 2 this action creates a(n) BLANK offer that is BLANK
firm; irrevocable
Suppose that a contract specifies that the seller must put the goods in the possession of a carrier at the place identified, with the buyer then paying for the shipment costs and assuming risk once the goods are in the carrier's possession, and the buyer relying on its own or a carrier's insurance to cover the risk of loss during transit. According to the International Chamber of Commerce (INCO) shipping terms, this is an example of a BLANK contract.
free on board (FOB) place of shipment
Larry has booked and paid for a hotel room for a conference at a rate of $100 per day for five days. When he arrives to check in, Larry is told that the hotel was overbooked and it cannot supply him with a room. Larry is forced to go to the only hotel in town with available rooms and pay $150 per night. If Larry sues the original hotel for damages and wins
he will be entitled to compensatory damages in the amount of $250.
The Uniform Commercial Code (UCC) allows a contract to be enforced based on
past commercial conduct, correspondence or verbal exchanges between the parties, and industry standards and norms
For a writing to satisfy statute of frauds requirements under the UCC, it must include each of the following except Price Quantity The signature of the party against whom enforcement is sought Language that a reasonable person would believe constitutes an intent to form a contract.
price
If the seller fails to achieve perfect tender, the buyer may:
reject entire shipment, accept entire shipment, accept any number of units and reject the remainder of a shipment
What are the opportunities to obtain relief in breach of contract situations?
remedies; judicial actions; potential damages
In a contract cancellation known as a BLANK performing his or her obligations. each party gives up rights under the contract in exchange for the release by the other party
rescission
Equitable relief comes primarily in the form of
specific performance, injunctive relief, or reformation
' The Uniform Commercial Code (UCC) defines goods as property that is. BLANK and BLANK
tangible; movable
The right to cover allows the covering party to bring a lawsuit to recover
the difference between the cost of covering and the original contract value
Absent specific agreements between the parties, the reasonableness requirement of the UCC governing delivery of goods requires each of the following except: the goods must be delivered in one shipment. the goods must be delivered at a reasonable hour. the goods must be delivered on a weekday. the goods must be delivered in a reasonable manner.
the goods must be delivered on a weekday
Under the perfect tender rule:
the goods must match the contract terms in every respect
Aiden ordered encyclopedias and the contract specified that delivery was to be made to Aiden's home. Instead, the encyclopedias were delivered to his post office box and he never received them. He refuses to pay for them and the encyclopedia company sues him. How would a court likely rule?
Aiden does not have to pay because the goods were never tendered to her properly, so the risk of loss never passed.
A major-league baseball team based on the North side of Chicago is in the playoffs and doing well. Behind the left-field wall there is an apartment i building, and the owner advertises, "Space available on the apartment building roof with a clear view of the field for the World Series. Bring a lawn chair, Doints awardec your radio, and a cooler and enjoy the game. Just $50 per game." Bart, a lifelong fan, answers the ad and pays the building owner $100 to reserve space : for the first two games. Unfortunately, the team fails to advance to the World Series.
Bart will get a refund because of frustration of purpose
Jackie, an orange supplier, contracted with Jimmy's Sushi for the delivery of 50 crates of grade B oranges. Every three months, Jackie regularly sends Jimmy's Sushi 50 crates of grade B oranges. Due to an oversight, Jackie sent Jimmy's Sushi 50 crates of grade A oranges. In this case,
Jimmy's Sushi may accept the goods
Which of the following is true of default rules and mandatory rules?
Default rules help courts resolve problems that were not anticipated or addressed by the parties when they made their deal.
Acme Manufacturing Company, Inc. and Thomas Manufacturing Supply Company have entered into a written sales contract for the purchase of Utile i pneumatic tire forklift trucks at $30,000 each. The contract does not indicate the quantity of forklift trucks sold. Which of the following is true regarding this contract?
It violates the statute of frauds.
Commercial impracticability is a BLANK doctrine.
Narrow
Paris hires Donald to mow her lawn tomorrow for $50.00. She states she wil give him the money tomorrow when he shows up. He never shows up, but Steve, Paris' neighbor steps up and offers to mow her lawn for $50.00 to which Paris agrees. For what damages can Paris recover for Donald's breach?
None
In 2021, Nike, Inc. agrees to purchase all of the shoestrings that Lacey Shoelace Company manufactures during the entire year for $1 per pair. The exact quantity of shoestrings is not specified in the contract. This is an example of a(n)
Output contract
Sally has just purchased a home and wants to have an in-ground pool installed. She calls Cool Pools, the company that put in her neighbors' pools. When the company rep comes to her property, he does some soil tests that are standard for the industry and gets the same results as he got when the other pools were put in, so the company gives her a price quote of $16,000. When Cool Pools begins excavating, it discovers solid rock four feet below ground level. The neighbors had no such rock. Cool Pools stops work and informs Sally that it will have to use explosives to remove the rock and the cost of the pool will now be $32.000
Sally can have the contract discharged based on impracticability.
Bryn's Department Store in New York sent a purchase order to Sami's Sweaters in California, ordering 10,000 sweater. The purchase order included a breakdown of sizes, styles and colors, and it stated that delivery was to be made to Bryn's in New York at Sami's cost. When Sami's sent an acknowledgement form accepting the offer, certain terms were changes. Which of the following changes would likely not automatically become part of the contract?
Sami's changed the place of delivery to its factory in California and allocated the cost of shipping to Bryn's in New York.
Rex Radios sells 400 i-pods to Scott Shops for $4000.00. The contract states that the i-pods are to be delivered to Witt's Warehouse until Scott Shops has room to store the i-pods. Rex delivered the i-pods to Witt's and produced the bill of lading to Scott Shop the next morning. A week later, the warehouse burns down destroying all of the i-pod inventory. According to the UCC, who bears the responsibility of the i-pods?
Scott Shops as title was passed once Rex delivered bill of lading to Scott.
UCC rules on acceptance of goods and payment in regard to installment contracts mandate that
acceptance is made separately for each shipment, and payment for each shipment is due on delivery of that shipment.
In which of the following scenarios would enforcement of specific performance be appropriate?
You own the pistol used by Hamilton and contract to buy the pistol used by Burr in the Hamilton-Burr duel to complete your set, but despite the contract the Burr pistol owner refuses to sell at the last minute.
