Mann_TB_Ch22 - Chapter 22Performance TRUE/FALSE 1. A...

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Chapter 22—Performance TRUE/FALSE 1. 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. ANS: F PTS: 1 2. The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract. ANS: F PTS: 1 3. A merchant buyer who has rightfully rejected goods must follow reasonable instructions from the seller regarding disposition of the goods if the seller has no agent at the place of rejection. ANS: T PTS: 1 4. The seller's tender of performance does not have to conform to the Code's perfect tender rule. ANS: F PTS: 1 5. In the absence of agreement, payment is due at the time and place the buyer is to receive the goods, even though the place of shipment is the place of delivery. ANS: T PTS: 1 6. A contract that is FOB Dallas where the seller is in Chicago and the buyer is in Dallas is a destination contract. ANS: T PTS: 1 7. If no place of tender is indicated by the contract, it is presumed delivery is to be made at seller's resid- ence. ANS: F PTS: 1 8. Unless otherwise agreed, the buyer has the right to inspect the goods before he pays. ANS: T PTS: 1 9. Payment of a C.O.D. shipment constitutes an acceptance of the goods. ANS: F PTS: 1 10. After passage of a week, the buyer of six crates of strawberries will be deemed to have accepted the goods. ANS: T PTS: 1
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11. Rejection is ineffective unless the buyer notifies the seller. ANS: T PTS: 1 12. Parties may not contractually agree to limit the operation of the perfect tender rule. ANS: F PTS: 1 13. On April 1, Marco bought a sailboat from a local marina. The boat was defective and did not turn about properly. Marco used the boat extensively all summer and the boat was no longer in the same condition as when it was bought. By the end of the summer, Marco had waived his right to revoke ac- ceptance. ANS: T PTS: 1 14. Rightful rejection must be made within a reasonable time after the goods have been tendered or de- livered. ANS: T PTS: 1 15. John entered into a contract with Miriam to build her a walnut dining room table for $1,000. A few days later, the price of walnut lumber increased 200%, which will result in John's incurring a $300 loss on the table. Due to the price increase, John is automatically excused from performance under the con- tract. ANS: F PTS: 1 16. Tender can be made any time of the day or night when the seller feels like delivering the goods. ANS: F PTS: 1 17. The Code does not excuse performance based upon commercial impracticability.
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This note was uploaded on 04/13/2011 for the course IDS 371 taught by Professor Staff during the Spring '08 term at Ill. Chicago.

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Mann_TB_Ch22 - Chapter 22Performance TRUE/FALSE 1. A...

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