Reference no: EM133683857

Questions 

Chapter 22

1. R-P Packaging manufactured cellophane wrapping material that was used by Kern's Bakery in packaging its product. Kerns decided to change its system for packaging cookies from a tied bread bag to a tray covered with printed cellophane wrapping. R-P took measurements to determine the appropriate size for the cellophane wrapping and designed the artwork to be printed on the wrapping. After agreeing that the artwork was satisfactory, Kern placed a verbal order for the cellophane at a total cost of $13,000. When the printed wrapping material was received, Kern complained that it was too short for the trays and that the artwork was not centered. The material, however, conformed exactly to the order placed by Kern. Kern returned the material to R-P by over- night express. R-P sued Kern. Kern claimed that because there was no written contract, the suit was barred by the statute of frauds. What result? [Flowers Baking Co. v. R-P Packaging, Inc., 329 S.E.2d 462 (Va.)]

2. Richard, a retailer of video equipment, telephoned Craft Appliances and ordered a $1,000 videotape recorder for his business. Craft accepted Richard's order and sent him a copy of the purchase memo- randum that stated the price, quantity, and model ordered and that was stamped "order accepted by Craft." Richard, however, did not sign or return the purchase memorandum and refused to accept deliv- ery of the recorder when Craft delivered it to him three weeks later. Craft sued Richard, who raised the statute of frauds as a defense. Will Richard prevail? Why or why not?

Chapter 23

1. Bond purchased a painting from Wool, who is not in the business of selling art. Wool tendered delivery of the painting after receiving payment in full of Bond. Bond informed Wool that Bond would be unable to take possession of the painting until later that day. Thieves stole the painting before Bond returned. The risk of loss:

a. Passed to Bond at Wool's tender of delivery. b. Passed to Bond at the time the contract was. formed and payment was made.

c. Remained with Wool because the parties agreed on a later time of delivery.

d. Remained with Wool because Bond had not yet received the painting.

2. When do title and risk of loss for conforming goods pass to the buyer under a shipment contract covered by the Sales Article of the UCC?

a. When the goods are identified and designated for shipment.

b. When the goods are given to a common carrier.

c. When the goods arrive at their destination.

d. When the goods are tendered to the buyer at their destination.