Question 1

Limitations on damages in sales contracts

Accepted Answer

A)  are generally allowed if reasonable. 
B)  are not allowed in case of personal injury involving a consumer transaction. 
C)  are not allowed in case of personal injury in any sales transaction. 
D)  are only allowed "as between merchants." 
E)  may not include liquidated damages 
A)  are generally allowed if reasonable. 
B)  are not allowed in case of personal injury involving a consumer transaction. 
C)  are not allowed in case of personal injury in any sales transaction. 
D)  are only allowed "as between merchants." 
E)  may not include liquidated damages

Question 2

If Seller learns that Buyer is insolvent, Seller may stop goods en route, or refuse to deliver the goods except for cash.

Accepted Answer

A) True 
 B)False

Question 3

Liquidated damages set out in a sales contract will always be enforced.

Accepted Answer

A) True 
 B)False

Question 4

In the event of a contract breach, a seller refuses to send the remaining shipment. The remedy used here is 'resell'.

Accepted Answer

A) True 
 B)False

Question 5

A revocation of acceptance means that once the buyer has accepted and exercised ownership of the goods, he cannot return the goods and get his money back.

Accepted Answer

A) True 
 B)False

Question 6

The parties have to strictly adhere to the Uniform Commercial Code guidelines on what "conforming goods" means.

Accepted Answer

A) True 
 B)False

Question 7

Betty Buyer contracted with Dubious to buy a 2017 Bulgemobile four-door sedan, colored "avocado green"; Dubious had five such cars on his lot. But on the day Betty was to pick the car up, she telephoned Dubious: Ring, ring; ring, ring: "I'm sorry, but I changed my mind. I'm not going to buy the car." Dubious put down the telephone receiver, and just as he did Dewey Donkers-a customer-approached him, saying, "I'll buy that green four-door there," pointing to the car Betty was going to buy. And Donkers bought the car for the same price Buyer was to have paid.
Ring, ring; ring, ring. "Hello, Dubious? This is Zach Zeller. The good news is we found the Bulgemobile car parts you wanted in Los Angeles. The bad news is we placed the order as you requested, but the parts were destroyed en route to you in a freeway collision while on board Zippo Trucking Company's truck. More later, 'bye for now." Ring, ring; ring ring. "Hello, Dubious? Yeah, Roger here, at Mufflers R Us. I got your request making sure we'd deliver the muffler and exhaust parts by two weeks from Tuesday, as we contracted to do. I don't know-we had problems with our pipe-bending machine for making the exhaust parts up. We might not make the deadline. Just a heads up to you. Goodbye."
Ring, ring; ring, ring. "Hello, Dubious? Carr here. If you haven't sent that 1948 Bulgemobile to Franklin yet, I suggest you don't. He just told me he's gonna have to declare bankruptcy tomorrow. Best regards."
Each of the following questions starts with this phrase: "What remedy, if any, has . . ."
-a) . . . Dubious regarding the contract with Betty Buyer? b) . . . Dubious for the value of the car parts that Zach Zeller mentioned?

Accepted Answer

a) Dubious is entitled as damages from B

Exam 19: Performance and Remedies

Limitations on damages in sales contracts

If Seller learns that Buyer is insolvent, Seller may stop goods en route, or refuse to deliver the goods except for cash.

Liquidated damages set out in a sales contract will always be enforced.

In the event of a contract breach, a seller refuses to send the remaining shipment. The remedy used here is 'resell'.

A revocation of acceptance means that once the buyer has accepted and exercised ownership of the goods, he cannot return the goods and get his money back.

The parties have to strictly adhere to the Uniform Commercial Code guidelines on what "conforming goods" means.

Introduction to Law and Legal Systems

Corporate Social Responsibility and Business Ethics

Courts and the Legal Process

Constitutional Law and Us Commerce

Administrative Law

Criminal Law

Introduction to Tort Law

Introduction to Contract Law

The Agreement

Real Assent

Consideration

Legality

Form and Meaning

Third-Party Rights

Discharge of Obligations

Remedies

Introduction to Sales and Leases

Title and Risk of Loss

Products Liability

Bailments and the Storage, Shipment, and Leasing of Goods

Nature and Form of Commercial Paper

Negotiation of Commercial Paper

Holder in Due Course and Defenses

Liability and Discharge

Legal Aspects of Banking

Consumer Credit Transactions

Secured Transactions and Suretyship

Mortgages and Nonconsensual Liens

Bankruptcy

Introduction to Property: Personal Property and Fixtures

Intellectual Property

The Nature and Regulation of Real Estate and the Environment

The Transfer of Real Estate by Sale

Landlord and Tenant Law

Estate Planning: Wills, Estates, and Trusts

Insurance

Relationships Between Principal and Agent

Liability of Principal and Agent; Termination of Agency

Partnerships: General Characteristics and Formation

Partnership Operation and Termination

Hybrid Business Forms

Corporation: General Characteristics and Formation

Legal Aspects of Corporate Finance

Corporate Powers and Management

Securities Regulation

Corporate Expansion, State and Federal Regulation of Foreign Corporations, and Corporate Dissolution

Antitrust Law

Unfair Trade Practices and the Federal Trade Commission

Employment Law

International Law

Liability and Regulation of Accountants

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