Performance under the UCC - Next Generation Bar Exam

1. Under UCC 2-606, when does a buyer accept goods?

   On signifying acceptance after a chance to inspect, failing to reject, or acting inconsistently with the seller's ownership. Once goods are accepted, the buyer may not reject them but may still recover damages or revoke acceptance.

2. A buyer orders 100 red chairs for delivery by June 1. On May 20 the seller delivers 99. What right does the seller have after the buyer rejects?

   To cure by notifying the buyer and delivering a conforming tender by June 1. The perfect tender rule permits rejection, but the contract time has not expired, so the seller may cure.

3. Under UCC 2-612, when may a buyer reject a nonconforming installment?

   When the nonconformity substantially impairs the value of that installment and cannot be cured. Installment contracts are an exception to the perfect tender rule.

4. Under UCC 2-508, when may a seller cure a nonconforming tender before the time for performance has expired?

   By giving seasonable notice and making a conforming delivery within the contract time. The right to cure before the deadline does not depend on the seller's reasons for the defect.

5. Under UCC 2-608, what nonconformity permits a buyer to revoke acceptance?

   One that substantially impairs the value of the goods to the buyer. The buyer must also have accepted reasonably, expecting cure or unaware of a hard-to-discover defect, and revoke within a reasonable time.

6. Under the perfect tender rule of UCC 2-601, when may a buyer reject goods?

   If the goods or the tender of delivery fail in any respect to conform to the contract. The rule is subject to exceptions for cure and installment contracts.

7. Under UCC 2-508, when may a seller cure after the time for performance has expired?

   When it had reasonable grounds to believe the tender would be acceptable, by seasonably notifying the buyer. The seller then has a further reasonable time to substitute a conforming tender.

8. Under UCC 2-504, what must a seller do to tender delivery in a shipment contract?

   Deliver the goods to a carrier under a reasonable contract, provide needed documents, and promptly notify the buyer. Failure to make a proper contract or to notify justifies rejection only if material delay or loss results.

9. Under UCC 2-602, how must a buyer reject goods?

   Within a reasonable time after delivery, with seasonable notice to the seller. A rejection that is not timely or not communicated is ineffective.

10. Under UCC 2-513, what right does a buyer have before paying for or accepting goods?

    The right to inspect the goods. The right does not apply where the contract calls for payment against documents or on delivery, such as C.O.D.

11. Under UCC 2-612, when does a nonconforming installment breach the whole contract?

    When the nonconformity substantially impairs the value of the whole contract. The buyer reinstates the contract if it accepts a later installment without seasonably notifying cancellation.

12. Under UCC 2-603, what must a merchant buyer do with rightfully rejected goods in its possession when the seller has no local agent?

    Follow the seller's reasonable instructions or, absent instructions, make reasonable efforts to sell perishable goods. The buyer may recover its reasonable expenses of caring for and selling the goods.

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