1. John has ordered 10,000 Grade A melons from Mary to be delivered to John’s place of business. The melons he receives are Grade B melons, so he rejects the shipment. Which of the following is true concerning John’s duties to Mary?
A. John has no legal duties to Mary since the goods were nonconforming.
B. If John can reach Mary, he will have to follow her instructions–otherwise he has no duty to her
C. If John is unable to reach Mary, he still has a duty to store the melons to keep them from spoiling until he gets further instructions from Mary
D. John must accept the melons since they are a perishable item
2. John has a contract with Bill to purchase Grade A widgets. Bill is supposed to deliver the widgets on June 1. On May 15, Bill delivers Grade B widgets. John rejects the widgets under the perfect tender rule. Concerning John’s rights in this situation,
A. John can sue Bill alleging breach of contract and recover the full contract price
B. John must accept the Grade B widgets since Bill has substantially performed under the
contract terms
C. John has to allow Bill the opportunity to cure before he can bring an action for breach of
contract
D. John can reject the installment, but not future installments
3. Concerning the above problem, if Bill subsequently calls John and tells him that he will not be able to deliver Grade A widgets by June 1, John:
A. can wait and see if Bill will nevertheless deliver the goods on June 1
B. can treat it as a breach of contract and cover
C. can treat it as an anticipatory repudiation
D. all of the above
4. Which of the following damages are available to a buyer who has covered for a seller’s breach?
A. Difference between cost of cover and contract price
B. Incidental damages
C. Consequential damages
D. All of the above
5. Jane has delivered 10,000 boxes of widgets to John and tells John they are red
widgets, which is what he has ordered. John accepts the widgets but later
determines that they are green widgets when he opens the boxes. Concerning
John’s rights:
A. John must accept the widgets
B. John cannot return the widgets because he did not conduct an inspection
C. John can revoke his acceptance because of Jane’s assurances
D. John has to resell the green widgets and then seek cover damages
ScholarMatic: Explanation & Answer
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