OH Bar Contracts and Sales 5

Question 1

A seller ships nonconforming goods in response to a buyer's purchase order but includes a note stating the goods are offered "only as an accommodation." What is the legal effect under the UCC?

Accepted Answer

The shipment is a counteroffer, not an acceptance, so there is no breach if the buyer rejects

Answer

Under UCC 2-206, shipment of nonconforming goods with a seasonable accommodation notice operates as a counteroffer rather than an acceptance and breach.

Question 2

A buyer contracts to purchase a machine, and after the seller's breach, the buyer purchases a reasonable substitute machine for $2,000 more than the contract price. What are the buyer's direct damages under the UCC?

Accepted Answer

$2,000, the difference between the cover price and the contract price, plus incidental damages

Answer

Under UCC 2-712, a buyer who covers in good faith recovers the difference between the cover price and the contract price plus incidental and consequential damages.

Question 3

During negotiations to sell a violin both parties believe is a Stradivarius, they set the price at $500,000. It is later discovered to be a copy worth $2,000. What is the buyer's best argument to avoid the contract?

Accepted Answer

Mutual mistake as to a basic assumption that materially affects the exchange

Answer

A contract is voidable where both parties share a mistaken belief about a basic assumption of fact that has a material effect on the agreed exchange.

Question 4

A contract states, "Payment is due only upon the architect's issuance of a certificate of completion." The builder performs fully, but the architect unreasonably and in bad faith withholds the certificate. Must the owner pay?

Accepted Answer

Yes, because the condition is excused when its non-occurrence results from bad faith or prevention

Answer

An express condition is excused where its fulfillment is prevented or withheld in bad faith, allowing recovery despite non-occurrence.

Question 5

A consumer signs a form contract containing a hidden clause allowing the seller to repossess all items ever purchased if any single installment is missed. The consumer challenges the clause. What doctrine best supports striking it?

Accepted Answer

Unconscionability, given both the oppressive term and unfair surprise at formation

Answer

As in Williams v. Walker-Thomas, courts may refuse to enforce terms that are procedurally and substantively unconscionable at the time of contracting.

(OH Bar) Ohio Bar Exam Practice Test

(OH Bar) Ohio Bar Exam Practice Test

OH Bar Contracts and Sales 5