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Breach of Contract Situations

1) Retail Music Inc. offer to buy Super Products Corporation (SPC) 1,000 blank CD's of a certain brand. Without notifying Retail, SPC timely ships CDs of a different brand. This shipment is
A) an acceptance of the offer and a breach of the parties contract (B) an acceptance of the offer and a fulfillment of the parties contract (C) a refusal of the offer and a breach of the parties contract (D) a refusal of the offer and a fulfillment of the parties contract.

2) Kelly offers to buy 1,000 gallons of oil from Jim for fifty cents per gallon. Jim believes Kelly offers $1 per gallon and orally agrees to the sale. When the parties later dispute the price in court, Jim's claim of $1 and Kelly testimony that she offered fifty cents
A) support an enforceable contract for a price of $1 per gallon (B) support an enforceable contract for a price of seventy-five cent per gallon. (C) support an enforceable contract for a price for fifty cent per gallon (D) prevent the enforcement of any contract between these parties

3) Overseas Corporation , an American Firm, orally agrees to sell six large freezers to Pisa Pizza, Ltd., in Italy. Overseas fails to deliver. Under the CISG, Pisa Pizza can
A) enforce the agreement (B) not enforce the agreement because it not in writing.(C) not enforce the agreement because the price term is not specified. (D) not enforce the agreement because there is no consideration.

4) Quality Farms Supply, Inc. sells farm machinery to Rob and other grain farmers. Of these products, fungible goods includes
A) grain only (B) grain and machinery (C) machine only (D) neither grain nor machinery

5) Dick steals Eve's necklace and sells it to Fiona. Eve can recover the necklace from Fiona,
A) only if Fiona did not know that the necklace was stolen. (B) only if Fiona gave legally sufficient consideration for the necklace (C) only if Fiona knew that the necklace was stolen (D) under any circumstances

6) Fine Textile Corporation in New Jersey sells fifty tons of fabric to Good Clothing Inc. in Ohio, F.O.B New Jersey. The cost of transporting the fabric to Ohio will be paid by
A) Fine Textiles (B) Good Clothing (C) New Jersey (D) none of above

7) Alan buys a bicycle from Bike -a Rama . Bike-a- Rama agrees to keep the bike for Alan until he picks it up. Bike-a-Rama is burned to the ground by an arsonist and the bike is destroyed. The loss is suffered by
A) Alan only (B) Bike a Rama only (C) Alan and Bike-a-Rama (D) none of the above

8) Little Jewelry Store orders display racks from Market Supplies, Inc. (MSI) MSI mistakenly ships racks of wrong size and colors. Which little rejects and returns via New Shipping Company. During the return , the rack is lost. The lost is suffered by.
A) Little only (B) Little and MSI, but not New Shipping. (C) Little MSI and New Shipping (D) MSI only

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1) Retail Music Inc. offer to buy Super Products Corporation (SPC) 1,000 blank CD's of a certain brand. Without notifying Retail, SPC timely ships CDs of a different brand. This shipment is
A) an acceptance of the offer and a breach of the parties contract (B) an acceptance of the offer and a fulfillment of the parties contract (C) a refusal of the offer and a breach of the parties contract (D) a refusal of the offer and a fulfillment of the parties contract.

Answer:
(C) a refusal of the offer and a breach of the parties contract
Since Retail Music ships CDs of a different brand, it rejects the offer and breaches the contract.

2) Kelly offers to buy 1,000 gallons of oil from Jim for fifty cents per gallon. Jim believes Kelly offers $1 per gallon and orally agrees to the sale. When the parties later dispute the price in court, Jim's claim of $1 and Kelly testimony that she offered fifty cents
A) Support an enforceable contract for a price of $1 per gallon (B) ...

Solution Summary

This solution looks at scenarios that involves a breach of contract and identifies the correct solution with explanations.

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