Performance and Breach - Module 4 of 5


Question 1

Under the Code, a delivery of goods must

Question 2

The risk of loss passes to the buyer when the goods are delivered under a

Question 3

A buyer pays against title. This means that the buyer

Question 4

Wilshire Furniture Sales orders several lamps from the Pacific Furniture Company. Upon delivery Wilshire notices several of the lamps have 40-watt bulbs instead of 60-watt bulbs. The wattage is considered by industry experts to be conforming so long as the bulbs are either 40 or 60. Which of the following is TRUE?

Question 5

Wilshire Furniture Sales orders several coffee tables from Pacific Furniture Company. Some appear scratched and Wilshire uses furniture writing markers to cover up the blemishes. Wilshire then sells several of the marked coffee tables at a 5% discount to its customers. After a year, Wilshire makes a claim against Pacific as having delivered a non-conforming shipment. Which of the following facts would help to indicate that Wilshire may not object to the shipment as non-conforming?

Question 6

Wilshire Furniture Sales orders several end tables from the Pacific Furniture Company. Both parties are merchants for the purposes of the Code. Wilshire notices the glass plate inlays do not seed properly into the grooves in the horizontal wood frames and consequently, the glass plates fall through the horizontal frames and shatter. Wilshire indicates to Pacific that it intends to reject the shipment. Pacific states that it can ship replacement glass of a different tolerance level that will properly seed in the wooden tables. Before it prepares a replacement shipment, Pacific requests that Wilshire send a detailed manifest explaining in detail the defective items and their anomalies. Wilshire refuses. Wilshire

Question 7

Wilshire Furniture Sales ordered several bamboo and mahogany magazine racks from Pacific Furniture Company. Wilshire’s customers expressed dissatisfaction in the styling of the racks. Wilshire rejected the shipment and Pacific indicated it would refund Wilshire’s payment. However, the company discovered that customers liked the bamboo legs on the mahogany stands and vice versa, so the company employees reversed the legs and holders on the racks to produce new hybrid bamboo-mahogany magazine racks. Wilshire then re-accepted the shipment and began selling the new hybrid racks. The rack sales quickly decline and Wilshire attempts to resurrect its earlier revocation of the rack shipment. Pacific would most likely respond that

Question 8

Wilshire Furniture Sales ordered several decorative fake plants from Pacific Furniture Company. Despite entering into a valid and binding agreement with Wilshire, Pacific indicated that a larger competing customer, Sunset Furniture Sales, was willing to pay substantially more money for the same goods. Wilshire insisted on Pacific’s compliance but Pacific indicated it would rather sell to Sunset to get them as a customer. Wilshire

Question 9

Wilshire Furniture Sales ordered several folding chairs and picnic tables from Pacific Furniture Company for the upcoming season. After the parties concluded the contract large monsoon shut down Pacific’s manufacturing plant in Honolulu and Pacific informed Wilshire that manufacturing costs will up by 10% because of the storm. Pacific wishes to cancel the contract because of its increased cost. Wilshire insists that Pacific perform. Pacific

Question 10

Wilshire Furniture Sales accepts a shipment of oversized sofas from Pacific Furniture Company and, given the limited market for their sale, it agrees to return the sofas to Pacific if it cannot sell them. This type of contact is called a