Question 1

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. D

Question 2

Upon rightful rejection or justifiable revocation of acceptance, the buyer loses all property interest in the goods.

Accepted Answer

A) True 
 B)False  False

Question 3

According to the UCC, if the buyer of defective goods recovers incidental damages, he will be unable to recover compensatory damages.

Accepted Answer

A) True 
 B)False  False

Question 4

For purposes of the statute of limitations contained in Article 2, a cause of action generally accrues when a breach occurs, without regard to whether the injured party knows of the breach at that time.

Accepted Answer

A) True 
 B)False

Question 5

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.

Question 6

Where the seller fails to make delivery, the buyer can cancel the contract, but he must give the seller notice of his cancellation.

Accepted Answer

A) True 
 B)False

Question 7

Dual purposes of remedies for breach of a contract for the sale of goods under the Code are compensation and deterrence of wrongdoing; therefore, compensatory and punitive damages are common remedies.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Robert paid William $1,000 for a rare first edition of an Edgar Allen Poe novel.The sales contract states that the book is to be delivered within ten days.William, however, refused to deliver the book as promised.In order to sue for the UCC remedy of specific performance, Robert must prove that money damages will not be adequate compensation for his loss.

Accepted Answer

A) True 
 B)False

Question 10

One hundred crystal flower vases have been identified to the contract and a down payment of $1,000 of the $10,000 purchase price has been paid.If the seller becomes insolvent, the buyer may still pay $9,000 and get the goods.

Accepted Answer

A) True 
 B)False

Question 11

As the result of a seller's breach, a buyer may ask for incidental damages.Incidental damages include costs incurred in:

Accepted Answer

A) storing goods in a warehouse. 
B) making calls to obtain replacement goods. 
C) inspecting the goods. 
D) All of these. 
A) storing goods in a warehouse. 
B) making calls to obtain replacement goods. 
C) inspecting the goods. 
D) All of these.

Question 12

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 13

After a breach by the seller, buyer may replevy the goods that have been identified to the contract if:

Accepted Answer

A) he acts within 30 days. 
B) he cannot, after a reasonable effort, buy replacement goods. 
C) the seller is insolvent. 
D) the goods have an unsatisfied security interest. 
A) he acts within 30 days. 
B) he cannot, after a reasonable effort, buy replacement goods. 
C) the seller is insolvent. 
D) the goods have an unsatisfied security interest.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

The right of the buyer to recover from an insolvent seller the goods in which he has a special property interest existed at common law before being included in the Code.

Accepted Answer

A) True 
 B)False

Question 16

The right of the seller to stop delivery of the goods ceases when:

Accepted Answer

A) a negotiable document of title covering the goods is negotiated to the buyer. 
B) the buyer receives the goods. 
C) Either of these events occurs. 
D) It never ceases. 
A) a negotiable document of title covering the goods is negotiated to the buyer. 
B) the buyer receives the goods. 
C) Either of these events occurs. 
D) It never ceases.

Question 17

The Code defines cancellation as one party's ending a contract by that party's breach.

Accepted Answer

A) True 
 B)False

Question 18

The seller may recover the full contract price when:

Accepted Answer

A) there is no ready market available for the resale of the goods identified to the contract. 
B) the buyer has accepted the goods. 
C) conforming goods have been lost or damaged after the risk of loss passed to the buyer. 
D) Any of these situations occurs. 
A) there is no ready market available for the resale of the goods identified to the contract. 
B) the buyer has accepted the goods. 
C) conforming goods have been lost or damaged after the risk of loss passed to the buyer. 
D) Any of these situations occurs.

Question 19

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 20

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

Exam 25: Sales Remedies

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

Upon rightful rejection or justifiable revocation of acceptance, the buyer loses all property interest in the goods.

According to the UCC, if the buyer of defective goods recovers incidental damages, he will be unable to recover compensatory damages.

For purposes of the statute of limitations contained in Article 2, a cause of action generally accrues when a breach occurs, without regard to whether the injured party knows of the breach at that time.

Where the seller fails to make delivery, the buyer can cancel the contract, but he must give the seller notice of his cancellation.

Dual purposes of remedies for breach of a contract for the sale of goods under the Code are compensation and deterrence of wrongdoing; therefore, compensatory and punitive damages are common remedies.

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:

One hundred crystal flower vases have been identified to the contract and a down payment of $1,000 of the $10,000 purchase price has been paid.If the seller becomes insolvent, the buyer may still pay $9,000 and get the goods.

As the result of a seller's breach, a buyer may ask for incidental damages.Incidental damages include costs incurred in:

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

After a breach by the seller, buyer may replevy the goods that have been identified to the contract if:

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

The right of the buyer to recover from an insolvent seller the goods in which he has a special property interest existed at common law before being included in the Code.

The right of the seller to stop delivery of the goods ceases when:

The Code defines cancellation as one party's ending a contract by that party's breach.

The seller may recover the full contract price when:

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

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

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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