1. What does it mean to require parties to act in "good faith" in the performance of a sales contract? Explain and provide an example.

2. Kanbar Novelties is a wholesaler of costumes and costume accessories in the U.S. Gwen's Barrow is retail store in Iowa that sells Halloween costumes. Gwen's Barrow placed an order for 75 ninja swords, made of glass, from Kanbar Novelties. Kanbar placed the swords in cardboard boxes and shipped them by railroad, without wrapping them in protective material. Moreover, Kanbar failed to indicate that the box contained fragile goods. As a result, there was no care taken to ensure that the box was handled safely. The box was placed under other heavier goods which crushed the glass swords in the box. Kanbar claimed that its obligations ended with the delivery to the carrier and that the risk of loss was on Gwen's Barrow. What argument would you make in favor of Gwen's Barrow?

3. Liu orders a music player from Spark Appliances and intends on using it during her upcoming vacation. She notices a button missing from its console but accepts the order because she is leaving town the next day. Liu returns from her vacation a week later, takes the music player to Spark and rejects the purchase because of the missing button. Does Liu have a right to reject the purchase? Explain what is most likely to happen in this scenario.

4. Can a buyer reject goods for nonconformity in contracts that call for delivery of the goods in separate installments? If yes, under what circumstances can he reject such goods?

5. PC Corp. entered into a contract with KPL University (KPLU) to supply 500 PCs for use in KPLU's new computer facility. A week before the PCs were to be delivered, KPLU indicated that it would not go through with the purchase. PC Corp. immediately stopped assembling the computers for KPLU and sold the already assembled computers to another buyer. Three days later, KPLU decided to go through with the purchase and asked PC Corp. to deliver the 500 PCs on the delivery date as agreed in the contract. Is PC Corp. obligated to deliver the PCs as required by the contract? Why or why not?

6. Apply an interesting concept in the chapter to a real-life situation.