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Exam 20: Performance

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Question 1

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The Elm Street Accounting Partnership has ordered two maroon office chairs for its waiting room from the Quality Office Supply Company. Quality sends two burgundy-red office chairs that the Elm Street partnership rejects. What, if any, rights does Quality have under the circumstances? Explain.

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Maroon and burgundy-red are almost the s...

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Question 2

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a. What are the obligations of the seller under a shipment contract? b. What are the obligations of the seller under a destination contract?

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a. Under a shipment contract the seller is required to send the goods to the buyer, but the contract does not obligate the seller to deliver them at a particular destination. Under a shipment contract the seller is required to: (1) deliver the goods to a carrier, (2) make a contract for their transportation which is reasonable according to the nature of the goods and other circumstances; (3) obtain and promptly deliver or tender to the buyer any document necessary to enable the buyer to obtain possession of the goods from the carrier; and (4) promptly notify the buyer of the shipment. b. A destination contract requires the seller to tender delivery of conforming goods at a specified destination. The seller must place the goods at the buyer's disposition and give the buyer reasonable notice to enable him to take delivery. If the destination contract involves documents of title, the seller must tender the necessary documents.

Question 3

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Acceptance of goods, which disallows any later rejection of them, is accomplished only through express words.

The Code does not excuse performance based upon commercial impracticability.

Which of the following terms would indicate a destination contract?

Where goods are in the possession of a bailee and are to be delivered without being moved, in most instances the seller may either tender to the buyer a document of title or obtain an acknowledgment by the bailee of the buyer's right to possess the goods.

A buyer in Atlanta enters into a sales contract with a seller in Chicago. If the contract does not mention the place for delivery of the goods, the place of delivery will be:

If no place of tender is indicated by the contract, delivery is presumed to be made at seller's place of business.

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?

The CISG:

The perfect tender rule requires that the seller's tender of performance must conform exactly to the contract subject to:

Which of the following illustrates a shipment contract?

Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700. It is to be delivered to Bill's home on July 7. Under the perfect tender rule, which one of the following cases would permit Bill to rightfully reject the goods?

A merchant buyer of goods receives nonconforming goods. The merchant buyer rightfully rejects and appropriately notifies the seller, but the seller has no agent in the buyer's city. The goods are perishable and threaten to decline in value speedily. The merchant buyer has no further duty to the seller other than to await the seller's instructions.

A buyer's or lessee's right to reject nonconforming goods depends on the size or extent of the breach of the seller's or lessor's duty to tender conforming goods.

Speedy Stop sells necessities to neighborhood shoppers until 1 a.m. every day. Dairyland delivered its order of milk products as usual around 6 a.m. while Mary, the shopkeeper, was busy with the early coffee and donut crowd. The Dairyland driver left 12 crates in the refrigerator compartment and went on to the rest of his route. At 7:30 a.m., Mary started to shelve the milk products and discovered that all 12 crates contained buttermilk rather than the usual mix of containers of whole milk, 2%, skim milk, and cream she had ordered. What is her obligation with regard to the goods?

Les contracts to the sell and deliver to Chan 300 rolls of insulation. Unless the parties agree otherwise, Les must tender all 300 rolls in a single delivery, and Chan's payment is due at the time of the tender.

In their contract for the sale of window shades, Lela Window Treatments, Inc. and Shane agree that Lela will have the right to replace any defective goods that are delivered to Shane. This contractual provision will not have any effect because the perfect tender rule of the UCC will control in a sale of goods transaction.

Increased production costs will allow the seller to avoid a contract based upon commercial impracticability.

Goods are to be sent from Buffalo, NY to Raleigh, NC by UPS using the delivery terms F.O.B. Buffalo, NY. Where does tender occur?