Multiply Choice 1. Cara Fabricating Co. and Taso Corp. agreed orally that Taso would custom-manufacture a compressor

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Multiply Choice
1. 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 refuses to pay Taso and Taso sues Cara, the most Taso will be entitled to recover is:
(a) $92,000
(b) $105,000
(c) $120,000
(d) $122,000

2. On February 15, Mazur Corp. contracted to sell 1,000 bushels of wheat to Good Bread, Inc., at $6 per bushel, with delivery to be made on June 23. On June 1, Good advised Mazur that it would not accept or pay for the wheat. On June 2, Mazur sold the wheat to another customer at the market price of $5 per bushel. Mazur had advised Good that it intended to resell the wheat. Which of the following statements is correct?
(a) Mazur can successfully sue Good for the difference between the resale price and the contract price.
(b) Mazur can resell the wheat only after June 23.
(c) Good can retract its anticipatory breach at any time before June 23.
(d) Good can successfully sue Mazur for specific performance.

3. Under the UCC, to tender delivery, a seller must:
(a) Make the goods available at a reasonable time
(b) Keep the goods available for a reasonable period
(c) Deliver to the buyer any documents that it needs to take possession
(d) All of the above
(e) None of the above

4. Blackburn FC (go Rovers!) orders 10,000 soccer jerseys from Alpha Co. to sell in its stadium store. They are to be delivered on July 10. When they arrive early on July 2, Blackburn is disappointed because the collars, which are supposed to be white, are blue. Blackburn notifies Alpha of the error. Alpha says that it wants a chance to “make it right.” If Alpha delivers another shipment of 10,000 conforming jerseys on July 10, Blackburn .
(a) Absolutely must accept the new shipment
(b) Must accept the new shipment if Alpha offers a reasonable discount
(c) Must accept the new shipment if it has suffered no measureable losses
(d) May accept the new shipment, but has the option to reject it

5. Assume that a year has passed, and Blackburn FC once again orders 10,000 soccer jerseys from Alpha, to be delivered on July 10. This time, nonconforming jerseys are delivered on July 10. Alpha thoroughly inspected the shirts before shipping and had no reason to spot the error. When Blackburn notifies Alpha of the problem, Alpha says that it intends to cure the defect. If Blackburn cannot show that it will suffer any serious harm, does the UCC require Blackburn to give Alpha a chance to cure this time?
(a) No, because the contract’s deadline has passed.
(b) Yes, it must give Alpha until July 17 to cure.
(c) Yes, it must give Alpha until July 20 to cure.
(d) Yes, it must give Alpha a reasonable amount of time to cure.

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Business Law and the Legal Environment

ISBN: 978-1111530600

6th Edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Dean A. Bredeson

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