Exam 23: Sales Remedies

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:

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:

Powers sells 5,000 insulators to Falconbury and issues a negotiable document of title for the goods. The insulators are stored in the Southside Warehouse. When Powers discovers that Falconbury is insolvent, he may effectively stop delivery of the goods by notifying Southside not to deliver the goods to Falconbury.

A lessor retains title to the goods and has the right to recover possession of them upon default by the lessee.

Which type of contractual provision affects remedies?

Massey Fabrications sells some equipment to Keiser Co., warranting its suitability for Keiser's purpose. The equipment, which is not suitable for Keiser's purpose, causes $5,000 in damage to Keiser's property and $12,000 in personal injuries. Keiser can recover $17,000 in consequential damages.

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

An aggrieved seller who resells wrongfully rejected goods is accountable to the original buyer for any profit made on the resale.

Vandehal Company's total liabilities are $520,000 and its total assets are $460,000, and the company is unable to pay debts as they become due. Vandehal's situation falls within the bankruptcy meaning, but not the Code's definition, of insolvency.

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

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

Andrews Manufacturing Company has repudiated its contract to sell 500 computers to a computer store. What recourse does the retailer have under the circumstances?

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?

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

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

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

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.

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

The seller may resell the goods identified to a contract:

A buyer's commercially reasonable charges for the care and custody of goods that a buyer has rightfully rejected are known as: