East Mississippi Community College ECON 2123 Chapter 26-OBLIGATIONS AND PERFORMANCE TRUE/FALSE 1)The obligation of all parties to perform in good faith is the same because everyone is required to be honest

East Mississippi Community College

ECON 2123

Chapter 26-OBLIGATIONS AND PERFORMANCE

TRUE/FALSE

1)The obligation of all parties to perform in good faith is the same because everyone is required to be honest.

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

4. The UCC imposes a good faith requirement that non-merchants must observe “reasonable commercial standards of fair dealing in the trade.”

5. When a party refuses to perform a contract when the time for performance arises, an anticipatory repudiation has occurred.

6. The statement, "I doubt that I can perform the contract," is a repudiation of the contract.

7. When an anticipatory repudiation has occurred, the aggrieved party has been notified that the contract will never be performed.

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

9. A party to a sales contract may demand at any time that the other party provide adequate assurance of performance.

10. If the party on whom demand for assurance of performance is made has an established reputation, a reaffirmation of the contract obligation and a statement that it will be performed may be sufficient to assure a reasonable person that it will be performed.

11. The person on whom a demand for assurance is made must reply in writing for the assurance to be deemed "adequate."

12. The UCC specifies the form that the assurance of performance is to take.

13. 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.

14. If adequate assurance of performance is not given within five (5) business days from the time of the demand for assurance, the demanding party may treat the contract as repudiated.

15. A seller's duty to deliver goods requires the seller to transport the goods to the place designated by the buyer.

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

17. Unless otherwise specified, the place of delivery is the seller's place of business.

18. When a method of transportation called for by a contract becomes unavailable for any reason, the contract is automatically voided.

19. 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.

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

21. A buyer always has a right to examine the goods to determine if, in fact, the goods conform to the