Question 1

The buyer's incidental damages resulting from the seller's breach include:

Accepted Answer

A)  expenses reasonably incurred in inspection of rightfully rejected goods. 
B)  any reasonable expenses connected to the delay. 
C)  any commercially reasonable charges or commissions in connection with obtaining cover. 
D)  All of these. 
E)  None of these. 
A)  expenses reasonably incurred in inspection of rightfully rejected goods. 
B)  any reasonable expenses connected to the delay. 
C)  any commercially reasonable charges or commissions in connection with obtaining cover. 
D)  All of these. 
E)  None of these. D

Question 2

Quality Appliances sells a flat top range to Ryan for his home.The contract of sale excludes liability for consequential damages.When Ryan turns on the range , it catches fire, burning Ryan severely.Ryan cannot recover for his injuries because of the exclusion of damages clause.

Accepted Answer

A) True 
 B)False  False

Question 3

If the breach by the seller concerns the whole contract, the buyer may cancel the entire contract.

Accepted Answer

A) True 
 B)False  True

Question 4

A buyer's incidental damages include reasonable expenses or commissions in effecting cover.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Article 2A authorizes liquidated damages payable by either party for default or any other act or omission.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  Consequential damages include damages for lost profits from a contract to resell goods which the seller never delivers. 
B)  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. 
C)  Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods. 
D)  All of these are correct. 
A)  Consequential damages include damages for lost profits from a contract to resell goods which the seller never delivers. 
B)  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. 
C)  Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods. 
D)  All of these are correct.

Question 8

The seller may resell the goods identified to a contract:

Accepted Answer

A)  only if the goods are sold as a unit. 
B)  at a public or private sale. 
C)  only if the goods are perishable. 
D)  only at a public sale. 
A)  only if the goods are sold as a unit. 
B)  at a public or private sale. 
C)  only if the goods are perishable. 
D)  only at a public sale.

Question 9

Under what circumstances may the buyer seek the remedy of replevin?

Accepted Answer

A)  Where the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied. 
B)  Where the buyer has been unable to obtain cover. 
C)  Where the goods are specially manufactured but can be purchased from another source. 
D)  Both if ​ the buyer has been unable to obtain cover  and where  the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied. 
A)  Where the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied. 
B)  Where the buyer has been unable to obtain cover. 
C)  Where the goods are specially manufactured but can be purchased from another source. 
D)  Both if ​ the buyer has been unable to obtain cover  and where  the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied.

Question 10

What is the purpose of the Code remedies for breach of sales contracts? How is this purpose accomplished?

Accepted Answer

The purpose of the Code is to put the ag

Question 11

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 liber

Question 12

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

Accepted Answer

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

Question 13

A seller has breached his contract by providing unfit seed for the planting of beans.Damages would include:

Accepted Answer

A)  the cost of keeping the defective seed in a storeroom. 
B)  the cost of replacement seed. 
C)  the lost profits from a contract to sell the bean crop. 
D)  All of these. 
A)  the cost of keeping the defective seed in a storeroom. 
B)  the cost of replacement seed. 
C)  the lost profits from a contract to sell the bean crop. 
D)  All of these.

Question 14

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

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

On July 30 Christina, in Knoxville, agrees to sell machine-stitched quilts to Deanna, in Los Angeles for $2,500 C.O.D., with delivery by October 1.When Christina fails to deliver the quilts, Deanna suffers incidental damages of $400 and consequential damages of $300.Deanna may recover:

Accepted Answer

A)  damages equal to the difference between the market price on July 30 in Knoxville and $2,500 in addition to the remedy of cover. 
B)  the difference between the market price on July 30 and October 1 in Los Angeles, plus $400 and $300, less expenses saved because of Christina's breach. 
C)  the difference between the market price on October 1 in Knoxville and $2,500, plus $400 and $300, less expenses saved because of Christina's breach. 
D)  only through the equitable remedy of specific performance. 
A)  damages equal to the difference between the market price on July 30 in Knoxville and $2,500 in addition to the remedy of cover. 
B)  the difference between the market price on July 30 and October 1 in Los Angeles, plus $400 and $300, less expenses saved because of Christina's breach. 
C)  the difference between the market price on October 1 in Knoxville and $2,500, plus $400 and $300, less expenses saved because of Christina's breach. 
D)  only through the equitable remedy of specific performance.

Question 17

The contract between the buyer and the seller cannot provide for any additional remedies other than those specified in the Code.

Accepted Answer

A) True 
 B)False

Question 18

If the buyer received goods on credit while he was insolvent by misrepresenting his solvency in writing within three months prior to deliver of the goods, the seller is able to reclaim the goods only if the seller makes a demand on the buyer within ten days after the buyer has received the goods.

Accepted Answer

A) True 
 B)False

Question 19

Under the UCC, the aggrieved party must choose one remedy to ask for and forfeit the others.

Accepted Answer

A) True 
 B)False

Question 20

If the seller has the right to cancel, he may recover damages for breach without having to tender any further performance.

Accepted Answer

A) True 
 B)False

Exam 23: Sales Remediespart V: Negotiable Instruments

The buyer's incidental damages resulting from the seller's breach include:

Quality Appliances sells a flat top range to Ryan for his home.The contract of sale excludes liability for consequential damages.When Ryan turns on the range , it catches fire, burning Ryan severely.Ryan cannot recover for his injuries because of the exclusion of damages clause.

If the breach by the seller concerns the whole contract, the buyer may cancel the entire contract.

A buyer's incidental damages include reasonable expenses or commissions in effecting cover.

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

Article 2A authorizes liquidated damages payable by either party for default or any other act or omission.

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

The seller may resell the goods identified to a contract:

Under what circumstances may the buyer seek the remedy of replevin?

What is the purpose of the Code remedies for breach of sales contracts? How is this purpose accomplished?

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?

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

A seller has breached his contract by providing unfit seed for the planting of beans.Damages would include:

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

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

On July 30 Christina, in Knoxville, agrees to sell machine-stitched quilts to Deanna, in Los Angeles for $2,500 C.O.D., with delivery by October 1.When Christina fails to deliver the quilts, Deanna suffers incidental damages of $400 and consequential damages of $300.Deanna may recover:

The contract between the buyer and the seller cannot provide for any additional remedies other than those specified in the Code.

If the buyer received goods on credit while he was insolvent by misrepresenting his solvency in writing within three months prior to deliver of the goods, the seller is able to reclaim the goods only if the seller makes a demand on the buyer within ten days after the buyer has received the goods.

Under the UCC, the aggrieved party must choose one remedy to ask for and forfeit the others.

If the seller has the right to cancel, he may recover damages for breach without having to tender any further performance.

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

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 Remediespart Iv: Sales

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 Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

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 Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

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

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

Filters