ExpertHard1 markMultiple Choice
CPA · Question 16 · Area 2: Business Law
Under UCC Article 2, the 'Perfect Tender Rule' allows a buyer to reject goods if they fail to conform to the contract in any respect. To which of the following does this rule NOT apply?
Under UCC Article 2, the 'Perfect Tender Rule' allows a buyer to reject goods if they fail to conform to the contract in any respect. To which of the following does this rule NOT apply?
Answer options:
A.
Single delivery contracts.
B.
Installment contracts.
C.
Sales between merchants.
D.
Sales of specially manufactured goods.
How to approach this question
Memorize the exception: Installment contracts require 'Substantial Impairment' to reject, not just any defect.
Full Answer
B.Installment contracts.✓ Correct
Installment contracts.
UCC §2-612 states that in installment contracts, a buyer may reject an installment only if the nonconformity substantially impairs the value of that installment and cannot be cured.
Common mistakes
Applying perfect tender rule to all UCC contracts.
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