Question

Big Distributor, Inc. (“BD”), a wholesale distributor of computer tablets from various manufacturers, enters into a contract for the sale of 1,000 Macbook Pro's to Local Computers, LLC. (“LC”), a retailer of computer equipment. The contract specifies that the computers to be delivered must have at least 16 GB of RAM, and that they must be delivered by Friday. BD ships 1,000 computers to LC, but the computers only have 4 GB of RAM. The delivery shows up on Friday. If LC fails to notify BD of the problem with the computers,

	a.	LC is free to pay less than the contract price to BD for BD's breach.
	b.	BD must ship conforming goods to cure its breach of the contract.
	c.	LC must accept the tablets because the parties entered into an installment contract.
	d.	BD has fulfilled its contract with LC.

Kathleen offers to buy Richard’s prize stallion for $10,000 only if a licensed veterinarian certifies that the horse is sound for breeding. After inspecting the stallion, the veterinarian concludes that the stallion is sterile and thus not fit for breeding. Kathleen

	a.	must still buy the stallion for its depreciated value.
	b.	does not have to buy the stallion.
	c.	must buy the stallion and pay for the veterinary inspection.
	d.	does not have to buy that particular stallion, but is still bound to buy another horse from Richard.

Jason enters into a contract for the purchase of a new 2015 BMW Hybrid, which has just been released for sale. After accepting delivery, the BMW begins to develop problems, and the rechargeable battery in the car explodes while being charged at a parking garage. No one is injured, but the car is a total loss. If Jason sues BMW on a theory of breach of contract or breach of warranty, which types of damages or relief are available to Jason:

	a.	punitive damages.
	b.	compensatory damages.
	c.	express damages.
	d.	implied damages.

Sarah goes to a used car dealer, Jerry's Super Duper Used Cars, in search of a new sports utility vehicle. A sales agent, Perry, shows Sarah around on the lot. Each of the cars she views have stickers on the driver's side window that describe the amenities in the car. Most of the cars she looks at have a general 30-day guarantee that indicates Jerry's will repair major problems with the drivetrain or engine 30 days after purchase on notice by the buyer. Which of the following are true concerning any warranty for the vehicles should Sarah decide to make a purchase?

	a.	Jerry's has only made an express warranty if Perry tells Sarah the specifics of the warranty for the car.
	b.	Jerry has effectively disclaimed any express warranties.
	c.	Jerry can only be liable to Sarah for compensatory but not consequential damages.
	d.	Jerry's has probably made an express warranty as listed on the driver's side window.

Answer 1

Answer 1: Option B : BD must ship conforming goods to cure its breach of the contract.

Because as per the contract BD is suppose to provide the 1000 computers to LC with 16 GB of memory by the Friday. IF BD fails to this product supply with the target timeline, then it will be breach of contract. So In order to avoid the breach of contract BD must supply the products as per contract.

Answer 2: Option B : does not have to buy the stallion.

Kathleen is not supposed to buy the stallion because as per Kathleen’s terms, the stallion is not meets the requirement and it failed in the test. Hence Kathleen is not liable for any purchase.