Chapter 18
Performance and Remedies:
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1. When a sales contract is broken by the buyer, the seller can only seek the remedy of damages.
a. True
b. False
2. When a buyer wrongfully rejects goods, the seller may cancel the contract.
a. True
b. False
3. The court in
Alaska Pacific Trading Co v. Eagon Forest Products
dealt with the issue of wrongful rejection of goods.
a. True
b. False
4. A seller has a right to cure a defective tender, which means that the seller will be given a second chance to perform.
a. True
b. False
5. Generally, when a buyer receives a shipment containing both conforming and nonconforming goods, he must accept the conforming goods and reject the nonconforming goods.
a. True
b. False
6. In a COD contract, a buyer always has a right to examine the goods to determine if, in fact, the goods conform to the contract.
a. True
b. False
7. When a seller tenders a mixture of conforming units and nonconforming units, the buyer must reject all or accept all.
a. True
b. False
8. Once goods have been accepted, the buyer may revoke acceptance.
a. True
b. False
9. Specific performance may be ordered by a court when the object of the contract is unique.
a. True
b. False
10. Under both the CISG and the UCC, a buyer may reject goods only if the tender of the goods is a fundamental breach of the contract.
a. True
b. False
11. A buyer may reject a tender of delivery:
a. if it is not perfect.
b. if the goods have been sold on credit.
c. if it does not substantially conform to the contract.
d. if the seller promises to cure the defective tender.
12. A(n) ____________ occurs when one party informs another party that performance will not be given in advance of contract deadlines.
a. repudiation
b. cure
c. anticipatory repudiation
d. assurance of performance
13. Before a buyer may revoke acceptance of goods, he:
a. must show he does not like the goods.
b. must show the goods are dangerously defective.
c. must take action within 60 days of delivery.
d. must show the nonconformity must substantially impairs the value of the goods.
14. Wal-Smart ordered 500 toy trucks from Toyco to resell in its retail store. When the shipment from Toyco did not arrive by the contract deadline, Wal-Smart purchased 500 toy trucks from Truckco. Wal-Smart's remedy is called:
a. cure.
b. breach.
c. cover.
d. correction.
15. Mylar Corp. purchased and accepted goods from LMN, Corp. that were slightly defective on three previous occasions. Mylar would probably be required to accept comparable goods as conforming because of:
a. perfect tender rule.
b. course of performance.
c. usage of trade.
d. course of dealing.
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