Question 1

The Code's remedies are cumulative; therefore, a seller may both withhold delivery of the goods and identify goods to the contract.

Accepted Answer

A) True 
 B)False  True

Question 2

The fair market value of a 10-foot fishing boat is $1,000. In a special promotion, J's Marina purchases a 10-foot fishing boat for $900. The boat is badly scratched when it arrives. J's Marina, however, accepts the shipment and notifies the seller of the defect. The boat as delivered has a value of $800. If the damaged boat is a breach of warranty by the seller, the buyer may recover from the seller:

Accepted Answer

A)  $100. 
B)  $100 plus incidental and consequential damages. 
C)  $200. 
D)  $200 plus incidental and consequential damages. 
A)  $100. 
B)  $100 plus incidental and consequential damages. 
C)  $200. 
D)  $200 plus incidental and consequential damages. D

Question 3

Any action for breach of a sales contract must be begun within:

Accepted Answer

A)  four years after the cause of action accrued. 
B)  five years after the cause of action accrued. 
C)  whatever period of time the parties have set in their contract. 
D)  two years of when the breach actually occurred or within five years of its discovery. 
A)  four years after the cause of action accrued. 
B)  five years after the cause of action accrued. 
C)  whatever period of time the parties have set in their contract. 
D)  two years of when the breach actually occurred or within five years of its discovery. A

Question 4

If Andrews Manufacturing Company has repudiated its contract to sell 500 computers to a retailer, the retailer:

Accepted Answer

A)  must await the seller's performance. 
B)  can recover punitive damages. 
C)  can seek specific performance. 
D)  can "cover" by procuring goods elsewhere and then sue Andrews for incidental and consequential damages. 
A)  must await the seller's performance. 
B)  can recover punitive damages. 
C)  can seek specific performance. 
D)  can "cover" by procuring goods elsewhere and then sue Andrews for incidental and consequential damages.

Question 5

Al agrees to sell goods to Betty for a contract price of $3,000 due on delivery. Betty wrongfully rejects the goods and refuses to pay anything. Al resells the goods in strict compliance with the Code for $2,000. He incurs incidental damages for sales commissions of $200 but saves $150 in expenses because of the resale. Al is entitled to recover
$1,050 from Betty.

Accepted Answer

A) True 
 B)False

Question 6

William rents a backhoe for six months from Hunter Leasing but fails to make timely payment of the rent. Hunter Leasing may recover:

Accepted Answer

A)  only the backhoe itself. 
B)  the difference between the present values of the rent due under the original lease and the market rent for the remainder of the term of the original lease. 
C)  only the contract amount of rent. 
D)  the market rent for the period of time covered by William's nonpayment. 
A)  only the backhoe itself. 
B)  the difference between the present values of the rent due under the original lease and the market rent for the remainder of the term of the original lease. 
C)  only the contract amount of rent. 
D)  the market rent for the period of time covered by William's nonpayment.

Question 7

Which of the following remedies are mutually exclusive and could not be obtained simultaneously?

Accepted Answer

A)  Cover, incidental and consequential damages 
B)  Identification of the goods and withholding delivery 
C)  Withholding delivery and suit to recover incidental and consequential damages 
D)  None of these. The Code's remedies are cumulative, unless under the facts of an individual case one remedy bars another. 
A)  Cover, incidental and consequential damages 
B)  Identification of the goods and withholding delivery 
C)  Withholding delivery and suit to recover incidental and consequential damages 
D)  None of these. The Code's remedies are cumulative, unless under the facts of an individual case one remedy bars another.

Question 8

A contract between the seller and buyer may not provide for remedies in addition to or instead of those provided in the Code.

Accepted Answer

A) True 
 B)False

Question 9

Breach of one installment of an installment contract is never considered to impair the value of the whole contract.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a remedy available to an unpaid seller against the buyer?

Accepted Answer

A)  Recovery of the price 
B)  Cover and suit for damages 
C)  Recovery of incidental damages 
D)  Cancellation of the contract 
A)  Recovery of the price 
B)  Cover and suit for damages 
C)  Recovery of incidental damages 
D)  Cancellation of the contract

Question 11

Contract remedies provided as exclusive will not preclude Code remedies if circumstances cause the remedy to fail in its essential purpose.

Accepted Answer

A) True 
 B)False

Question 12

Incidental damages do not include expenses in connection with effecting cover.

Accepted Answer

A) True 
 B)False

Question 13

A buyer may not recover consequential damages that could have been prevented by cover.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is correct with respect to consequential damages under the Code?

Accepted Answer

A)  Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods. 
B)  Consequential damages include damages for lost profits from a contract to resell goods which the seller never delivers. 
C)  Particular needs of the buyer need to be made known to the seller before the seller can be held responsible for consequential damages relating to those needs. 
D)  All of these are correct. 
A)  Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods. 
B)  Consequential damages include damages for lost profits from a contract to resell goods which the seller never delivers. 
C)  Particular needs of the buyer need to be made known to the seller before the seller can be held responsible for consequential damages relating to those needs. 
D)  All of these are correct.

Question 15

Specific performance is a remedy at law which seeks to compel the party in breach to perform the contract according to its terms.

Accepted Answer

A) True 
 B)False

Question 16

Seth and Maricela enter into a contract for a sale of goods for a contract price of $1,200 and Maricela has made a down payment of $200. Seth delivers nonconforming goods to Maricela who rightfully rejects them. The best remedy available to Maricela is to:

Accepted Answer

A)  cancel the contract and recover her $200 plus whatever other damages she can prove. 
B)  reclaim the goods and cover. 
C)  resell the goods and recover damages. 
D)  stop delivery of the nonconforming goods and recover payments made. 
A)  cancel the contract and recover her $200 plus whatever other damages she can prove. 
B)  reclaim the goods and cover. 
C)  resell the goods and recover damages. 
D)  stop delivery of the nonconforming goods and recover payments made.

Question 17

A company may be considered insolvent under the Code if it is unable to pay its debts as they come due.

Accepted Answer

A) True 
 B)False

Question 18

Under the CISG, if the buyer fails to perform any obligations, the seller may:

Accepted Answer

A)  set an additional period of time of reasonable length for performance. 
B)  require the buyer to pay the price. 
C)  receive damages. 
D)  All of these. 
A)  set an additional period of time of reasonable length for performance. 
B)  require the buyer to pay the price. 
C)  receive damages. 
D)  All of these.

Question 19

Compare the remedies of withholding delivery of the goods and stopping delivery of the goods. How are they alike?
How are they different?

Accepted Answer

The right to withhold delivery of the go

Question 20

Under the CISG, if the seller fails to perform any of his obligations under the contract or the CISG, the buyer may require the seller to perform or may fix an additional reasonable period of time for the seller to perform.

Accepted Answer

A) True 
 B)False

Exam 25: Sales Remedies

The Code's remedies are cumulative; therefore, a seller may both withhold delivery of the goods and identify goods to the contract.

Any action for breach of a sales contract must be begun within:

If Andrews Manufacturing Company has repudiated its contract to sell 500 computers to a retailer, the retailer:

William rents a backhoe for six months from Hunter Leasing but fails to make timely payment of the rent. Hunter Leasing may recover:

Which of the following remedies are mutually exclusive and could not be obtained simultaneously?

A contract between the seller and buyer may not provide for remedies in addition to or instead of those provided in the Code.

Breach of one installment of an installment contract is never considered to impair the value of the whole contract.

Which of the following is not a remedy available to an unpaid seller against the buyer?

Contract remedies provided as exclusive will not preclude Code remedies if circumstances cause the remedy to fail in its essential purpose.

Incidental damages do not include expenses in connection with effecting cover.

A buyer may not recover consequential damages that could have been prevented by cover.

Which of the following is correct with respect to consequential damages under the Code?

Specific performance is a remedy at law which seeks to compel the party in breach to perform the contract according to its terms.

Seth and Maricela enter into a contract for a sale of goods for a contract price of $1,200 and Maricela has made a down payment of $200. Seth delivers nonconforming goods to Maricela who rightfully rejects them. The best remedy available to Maricela is to:

A company may be considered insolvent under the Code if it is unable to pay its debts as they come due.

Under the CISG, if the buyer fails to perform any obligations, the seller may:

Compare the remedies of withholding delivery of the goods and stopping delivery of the goods. How are they alike? How are they different?

Under the CISG, if the seller fails to perform any of his obligations under the contract or the CISG, the buyer may require the seller to perform or may fix an additional reasonable period of time for the seller to perform.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property

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