BUL3350 Bailey Exam 2 Latest Update
A lessor of goods may be in rightful possession of the leased goods after a default
by the lessee. In this circumstance, a lessor - ---✔✔✔ANSWER----May
dispose of the goods by a lease agreement and recover damages.
A provision in a contract for the sale of goods providing that the seller may
accelerate payment at will when (s)he deems him/herself insecure - ---
✔✔✔ANSWER----Is enforceable subject to the good faith belief of the
seller.
Badger Corporation sold goods to Watson. Watson has arbitrarily refused to pay
the purchase price. Under what circumstances will Badger not be able to recover
the price if it seeks this remedy instead of other possible remedies? - ---
✔✔✔ANSWER----If Watson refused to accept delivery and the goods were
resold in the ordinary course of business.
, Bush Hardware ordered 300 Ram hammers from Ajax Hardware. Ajax accepted
the order in writing. On the final date allowed for delivery, Ajax discovered it did
not have enough Ram hammers to fill the order. Instead, Ajax sent 300 Strong
hammers. Ajax stated on the invoice that the shipment was sent only as an
accommodation. Which of the following statements is true? - ---
✔✔✔ANSWER----Ajax's shipment of Strong hammers is a breach of
contract.
Cara Fabricating Co. and Taso Corp. agreed orally that Taso would custom
manufacture a compressor for Cara at a price of $120,000. After Taso completed
the work at a cost of $90,000, Cara notified Taso that the compressor was no
longer needed. Taso is holding the compressor and has requested payment from
Cara. Taso has been unable to resell the compressor for any price. Taso incurred
storage fees of $2,000. If Cara refused to pay Taso and Taso sues Cara, the most
Taso will be entitled to recover is - ---✔✔✔ANSWER----$122,000
Dara bought an automobile needing repairs from Chevalier Motors, Inc. (CMI).
CMI promised to repair it, but 1 month later had not yet completed the repairs.
Dara was using the car anyway (1 month after purchase) when a fire in the
dashboard rendered the vehicle inoperable. Dara returned the automobile
immediately and orally informed a representative of CMI that she was demanding
the purchase price. Dara sent a written notice of rescission 3 months later and
filed suit 3 months after that. Who will most likely prevail, and what is the legal
theory that best supports the result? - ---✔✔✔ANSWER----Dara, because
she made a justifiable revocation of acceptance.
Devold Manufacturing, Inc., contracted to sell to Hillary Company 3,000 CB radios
at $30 each. After delivery of the first 500 radios, a minor defect was discovered,
A lessor of goods may be in rightful possession of the leased goods after a default
by the lessee. In this circumstance, a lessor - ---✔✔✔ANSWER----May
dispose of the goods by a lease agreement and recover damages.
A provision in a contract for the sale of goods providing that the seller may
accelerate payment at will when (s)he deems him/herself insecure - ---
✔✔✔ANSWER----Is enforceable subject to the good faith belief of the
seller.
Badger Corporation sold goods to Watson. Watson has arbitrarily refused to pay
the purchase price. Under what circumstances will Badger not be able to recover
the price if it seeks this remedy instead of other possible remedies? - ---
✔✔✔ANSWER----If Watson refused to accept delivery and the goods were
resold in the ordinary course of business.
, Bush Hardware ordered 300 Ram hammers from Ajax Hardware. Ajax accepted
the order in writing. On the final date allowed for delivery, Ajax discovered it did
not have enough Ram hammers to fill the order. Instead, Ajax sent 300 Strong
hammers. Ajax stated on the invoice that the shipment was sent only as an
accommodation. Which of the following statements is true? - ---
✔✔✔ANSWER----Ajax's shipment of Strong hammers is a breach of
contract.
Cara Fabricating Co. and Taso Corp. agreed orally that Taso would custom
manufacture a compressor for Cara at a price of $120,000. After Taso completed
the work at a cost of $90,000, Cara notified Taso that the compressor was no
longer needed. Taso is holding the compressor and has requested payment from
Cara. Taso has been unable to resell the compressor for any price. Taso incurred
storage fees of $2,000. If Cara refused to pay Taso and Taso sues Cara, the most
Taso will be entitled to recover is - ---✔✔✔ANSWER----$122,000
Dara bought an automobile needing repairs from Chevalier Motors, Inc. (CMI).
CMI promised to repair it, but 1 month later had not yet completed the repairs.
Dara was using the car anyway (1 month after purchase) when a fire in the
dashboard rendered the vehicle inoperable. Dara returned the automobile
immediately and orally informed a representative of CMI that she was demanding
the purchase price. Dara sent a written notice of rescission 3 months later and
filed suit 3 months after that. Who will most likely prevail, and what is the legal
theory that best supports the result? - ---✔✔✔ANSWER----Dara, because
she made a justifiable revocation of acceptance.
Devold Manufacturing, Inc., contracted to sell to Hillary Company 3,000 CB radios
at $30 each. After delivery of the first 500 radios, a minor defect was discovered,
