Question 1

Which type of contractual provision affects remedies?

Accepted Answer

A)  Cover. 
B)  Liquidation or limitation of damages. 
C)  Modification or limitation of remedy. 
D)  Both limitation of damages  and limitation of remedy are correct. 
A)  Cover. 
B)  Liquidation or limitation of damages. 
C)  Modification or limitation of remedy. 
D)  Both limitation of damages  and limitation of remedy are correct. D

Question 2

Under the CISG, if the contract is avoided and the seller has resold the goods in a reasonable manner and within a reasonable time after avoidance, the seller may recover:

Accepted Answer

A)  the difference between the contract price and the resale price. 
B)  incidental damages only. 
C)  consequential damages. 
D)  Both the difference between the contract price and the resale price  and consequential damages. 
A)  the difference between the contract price and the resale price. 
B)  incidental damages only. 
C)  consequential damages. 
D)  Both the difference between the contract price and the resale price  and consequential damages. D

Question 3

A seller's incidental damages for a buyer's breach would include all but which one of the following?

Accepted Answer

A)  Cost to store the widgets in buyer's city after breach. 
B)  Cost to ship widgets back to seller. 
C)  Cost to initially ship the widgets to buyer. 
D)  Cost to reload widgets onto seller's truck at buyer's city. 
A)  Cost to store the widgets in buyer's city after breach. 
B)  Cost to ship widgets back to seller. 
C)  Cost to initially ship the widgets to buyer. 
D)  Cost to reload widgets onto seller's truck at buyer's city. C

Question 4

The availability of some buyer's remedies depends on the buyer's actions.

Accepted Answer

A) True 
 B)False

Question 5

a. Under the Code, when can an injured party seek the remedy of specific performance? 
b. How does this rule differ from the common law? 
c. Compare the remedies of replevin and specific performance. How are they alike? How are they different?

Accepted Answer

a. The Code seeks to further a more libe

Question 6

A contractual remedy is optional unless the parties expressly agree that it is to be exclusive.

Accepted Answer

A) True 
 B)False

Question 7

On February 21, Cara wrote to Pandora Mfg. asking for shipment of 100 swimsuits on 90-day credit. In the letter, she gave references that indicated that her store was financially sound. Actually she had bills that she could not pay and hoped to turn the business around with the summer swimsuit sales. Pandora shipped the suits on April 2; they were received April 15. Cara immediately put them on display and 27 were sold by April 30 when Pandora discovered that Cara had lied. Pandora could:

Accepted Answer

A)  recover 73 suits plus incidental damages. 
B)  recover 10 suits provided that Pandora acted within 10 days of discovering the misrepresentation. 
C)  recover no suits since it had been more than 10 days since delivery. 
D)  recover 73 suits. 
A)  recover 73 suits plus incidental damages. 
B)  recover 10 suits provided that Pandora acted within 10 days of discovering the misrepresentation. 
C)  recover no suits since it had been more than 10 days since delivery. 
D)  recover 73 suits.

Question 8

Specific performance is an equitable remedy which seeks to compel the party in breach to perform the contract according to its terms.

Accepted Answer

A) True 
 B)False

Question 9

After a breach by the seller, buyer may replevy the goods after identification 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)  he cannot buy replacement goods or the seller is insolvent. 
A)  he acts within 30 days. 
B)  he cannot, after a reasonable effort, buy replacement goods. 
C)  the seller is insolvent. 
D)  he cannot buy replacement goods or the seller is insolvent.

Question 10

In what three situations will a seller recover the price of goods plus incidental damages?

Accepted Answer

The Code permits the seller to recover t

Question 11

Which of the following is not a remedy of the buyer?

Accepted Answer

A)  The buyer has the right of cover and to receive damages. 
B)  The buyer has the right to stop delivery of the goods. 
C)  The buyer may have the right to obtain specific performance. 
D)  The buyer may have the right to recover incidental and consequential damages. 
A)  The buyer has the right of cover and to receive damages. 
B)  The buyer has the right to stop delivery of the goods. 
C)  The buyer may have the right to obtain specific performance. 
D)  The buyer may have the right to recover incidental and consequential damages.

Question 12

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

Question 13

In the Bigelow-Sanford, Inc. v. Gunny Corp. case, the court found:

Accepted Answer

A)  the buyer did not purchase substitute goods in good faith and without unreasonable delay. 
B)  the Code permits a buyer to cover by buying substitute goods if the buyer acts in good faith and without unreasonable delay. 
C)  since the buyer did not specifically allocate the spot market replacements to the individual sellers' accounts, the cost of cover could not be determined in this case. 
D)  the buyer was required to obtain cover and its failure to do so bars other Code remedies. 
A)  the buyer did not purchase substitute goods in good faith and without unreasonable delay. 
B)  the Code permits a buyer to cover by buying substitute goods if the buyer acts in good faith and without unreasonable delay. 
C)  since the buyer did not specifically allocate the spot market replacements to the individual sellers' accounts, the cost of cover could not be determined in this case. 
D)  the buyer was required to obtain cover and its failure to do so bars other Code remedies.

Question 14

A seller's remedies upon the buyer's default:

Accepted Answer

A)  may be goods oriented, money oriented, or obligation oriented. 
B)  are subject to the doctrine of election of remedies. 
C)  are, under the UCC, the same as a buyer's remedies for the seller's breach. 
D)  are the same under the UCC and CISG. 
A)  may be goods oriented, money oriented, or obligation oriented. 
B)  are subject to the doctrine of election of remedies. 
C)  are, under the UCC, the same as a buyer's remedies for the seller's breach. 
D)  are the same under the UCC and CISG.

Question 15

When the buyer breaches a sales contract, if the difference between the contract price and the market price will not place the seller in as good a position as performance would have, then the seller may recover the lost profit.

Accepted Answer

A) True 
 B)False

Question 16

A buyer's right to purchase, in good faith and without unreasonable delay, substituted goods from Seller B when Seller A breaches a sales contract is:

Accepted Answer

A)  cover. 
B)  specific performance. 
C)  replevin. 
D)  reclamation. 
A)  cover. 
B)  specific performance. 
C)  replevin. 
D)  reclamation.

Question 17

The contract between the buyer and the seller can provide for additional remedies more than those allowed in the Code.

Accepted Answer

A) True 
 B)False

Question 18

Perry is building his house and orders a hot water heater from Jones Co. to be installed by them. The hot water heater they sent has a 45-gallon capacity, but Perry had ordered a 60-gallon capacity. Jones cannot provide a 60-gallon heater for two months, so Perry cancels the contract and gets a heater from another company. Jones Co. says it must be allowed to install the replacement heater. What result?

Accepted Answer

A)  Jones wins; Perry can only cancel the portion of the contract regarding the goods. 
B)  Jones wins; Perry can only cancel if installation is also delayed two months. 
C)  Perry wins since the contract breach concerns the whole contract. 
D)  Perry can cancel the whole contract, but he is then limited in his recovery of damages. 
A)  Jones wins; Perry can only cancel the portion of the contract regarding the goods. 
B)  Jones wins; Perry can only cancel if installation is also delayed two months. 
C)  Perry wins since the contract breach concerns the whole contract. 
D)  Perry can cancel the whole contract, but he is then limited in his recovery of damages.

Question 19

If the buyer is insolvent and has not paid for goods it has received, the seller may reclaim the goods.

Accepted Answer

A) True 
 B)False

Question 20

Under the Code, what rights do the parties have to affect the possible remedies available in the case of breach?

Accepted Answer

Within specified limits, the Code permit

Exam 23: Sales Remedies

Which type of contractual provision affects remedies?

Under the CISG, if the contract is avoided and the seller has resold the goods in a reasonable manner and within a reasonable time after avoidance, the seller may recover:

A seller's incidental damages for a buyer's breach would include all but which one of the following?

The availability of some buyer's remedies depends on the buyer's actions.

a. Under the Code, when can an injured party seek the remedy of specific performance? b. How does this rule differ from the common law? c. Compare the remedies of replevin and specific performance. How are they alike? How are they different?

A contractual remedy is optional unless the parties expressly agree that it is to be exclusive.

Specific performance is an equitable remedy which seeks to compel the party in breach to perform the contract according to its terms.

After a breach by the seller, buyer may replevy the goods after identification if:

In what three situations will a seller recover the price of goods plus incidental damages?

Which of the following is not a remedy of the buyer?

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

In the Bigelow-Sanford, Inc. v. Gunny Corp. case, the court found:

A seller's remedies upon the buyer's default:

When the buyer breaches a sales contract, if the difference between the contract price and the market price will not place the seller in as good a position as performance would have, then the seller may recover the lost profit.

A buyer's right to purchase, in good faith and without unreasonable delay, substituted goods from Seller B when Seller A breaches a sales contract is:

The contract between the buyer and the seller can provide for additional remedies more than those allowed in the Code.

If the buyer is insolvent and has not paid for goods it has received, the seller may reclaim the goods.

Under the Code, what rights do the parties have to affect the possible remedies available in the case of breach?

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

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 Wills

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