Business Law II BA 304-01: N/A
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Chapter 26 - Obligations and Performance - Review

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1) The UCC imposes a higher degree of good faith on a merchant seller or buyer of goods than on a nonmerchant seller or buyer of goods.

3) Good faith means the absence of knowledge of any defects or problems.

3) In a cash sale not requiring the physical movement of goods, each party has the right to demand that the other perform at the same time.

4) When one party informs another party that performance will not be given in advance of contract deadlines an anticipatory repudiation has occurred.

5) Repudiation is the result of a buyer or seller refusing to perform the contract as stated.

6) When a party refuses to perform a contract at the time of performance, a repudiation has occurred.

7) A party to a sales contract who is afraid that the other party will not perform may seek to gain additional confidence by demanding some form of assurance.

8) If appropriate assurance is not given on demand, a demanding party may treat the contract as repudiated.

9) After a proper demand has been made, for assurance of performance to be adequate, it must be sufficient to assure a reasonable person that the contract will be performed.

10) If a person upon whom the assurance is demanded does not have a good reputation or economic position, a guarantee of performance or a pledge of security may be required.

11) If adequate assurance of performance is not given, the party demanding assurance may make a substitute contract with a third party.

12) The obligatios of the parties to a sales contract include the seller's duty to deliver the goods, the buyer's duty to acept the goods, and the buyer's duty to pay for the goods.

13) A delivery is sufficient if it is made in accordance with the terms of the contract to sell.

14) The obligations of the parties to a sales contract include the buyer's duty to pay for the goods.

15) The duty of a seller to deliver imposes the obligation of making the goods available to the buyer.

16) If a contractually specified mode of transportation is not available, the seller must make delivery by a commercially reasonable substitute.

17) Unless otherwise agreed, the proper place for the delivery of goods is the seller's place of business.

18) After an attempted delivery of nonconforming goods, if time still remains for performance under the contract, a cure may be planned through a second tender when notice is given even if the cure will occur after the time for performance under the contract.

19) A delivery is sufficient if it is made in accordance with the terms of the contract to sell.

20) When a contract to sell identified goods does not specify a place of delivery, but both parties know that the goods are in a place other than the seller's place of business, that other place is the place of delivery.

21) A buyer has a right to insist that all the goods be delivered at one time.

22) The right of a seller to cure defective tender means that the seller will be given a second chance to perform.

23) Acceptance of goods is not shown by a lapse of time, resale of the goods by the buyer, express statement of approval by the buyer, modifying the goods, or use of the goods by the buyer in manufacturing other goods.

24) When a buyer shows in some way that the goods conform to the contract, the buyer has made an acceptance of the goods.

25) The doctrine of commercial impracticability is based on common law and employs an objective test.

26) The standard for determining commercial impracticability is objective, not subjective.

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