Assignment:
Q1. Acme, a Dover, Delaware company, is to send widgets to a customer in Elmira, New York, under a destination contract. The contract will read
- F.O.B.Dover, Delaware
- F.O.B.Elmira, New York
- F.A.S.Dover, Delaware
- F.A.S.Elmira, New York
Q2. If goods are destroyed while in the buyer's possession, and the buyer holds the goods under a sale on approval contract, the loss will fall on
- Whichever party has insured the goods.
- The buyer and the seller equally
- The buyer only
- The seller only
Q3. Seller, a Chicago business, sent a shipment of tractor parts to Buyer, a Detroit business, under a contract that read: "F.O.B.Chicago, Illinois." The parts were not those specified in the contract and Buyer rejected them. A few hours after Buyer notified Seller of the rejection, the parts were destroyed in a fire at Buyer's place of business. Which of the following best states the rights and duties of Buyer and Seller in this situation?
- Buyer has the risk of loss because this was a shipment contract.
- Buyer rightfully rejected the tender, but risk of loss did not pass to Seller again until Seller regained physical possession of the goods.
- Seller has the risk of loss because this was a destination contract.
- Seller has the risk of loss because the tender was non-conforming, but only to the extent that Buyer's insurance does not cover the loss.
Q4. Sandy bought a large air conditioner from Big Box Home Store for 525. For an additional 100, the store delivered, installed and programmed the unit. Does this sale come under Article 2 of the Code?
- Yes, because at least one element of the transaction was a sale of goods.
- Yes, because the sale of goods predominates
- No, because this is an employment contract
- No, because this is a contract for the sale of services.
Q5. Which of the following is not a duty that a merchant buyer owes to a seller who sends a non-conforming tender?
- The buyer must accept whatever part of the tender is conforming
- At the seller's request, the buyer must detail in writing the goods' defects or non-conformities.
- The buyer must follow the seller's reasonable instructions for the disposition of the goods.
- The buyer must try to sell the goods for the seller's benefit if the goods are perishable or likely to decline in value rapidly.
Q6. In the past 6 months Supplier has made late deliveries to a number of customers and a good portion of the goods delivered have been defective. Buyer is worried that an important scheduled delivery will be late or non-confirming. He sends a written request to Supplier asking for confirmation that the contract terms will be met. When Buyer purchases these goods from another seller after Supplier repudiates the contract, Buyer has exercised his right of
- Cover
- Cure
- Replevin
- Commercial protection