Exam 24: Remedies for Breach of Sales and Lease Contracts

Bernice purchased a new trampoline from ABC Trampolines. The purchase agreement signed provided that she released ABC Trampolines from any consequential damages for personal injury. Unfortunately, the trampoline ripped while she was using it causing Bernice to fall and break her leg. She asked ABC for damages but the manager refused. The manager referenced her agreement whereby she signed away her rights to consequential damages for personal injury. Is the manager right, and why or why not?

"Fixture Mishap." Trudy owns a hardware shop that also sells expensive bathroom fixtures. Theresa, a whiz with tools, purchased for $400 some expensive powder room fixtures for her bathroom. Trudy had only one set of the fixtures Theresa wanted. Although Theresa noticed a slight discoloration on one of the faucets, she went ahead with the contract because Trudy indicated that she would remedy the situation should the problem become worse. Because they were friends and attended the same church, Trudy gave Theresa 90 days in which to pay. A month later and before she paid for the fixtures, Theresa called Trudy and told her that the fixtures were corroding, the discoloration had worsened, and the fixtures looked terrible. Trudy told her that she would get replacements, but six months later they had not arrived. Trudy told Theresa that they were on back order. At that point, Theresa purchased fixtures elsewhere for $500 and informed Trudy that she could pick up the corroded fixtures at her front door. Trudy picked up the fixtures. They were obviously defective, but Trudy was able to resell them for $100. Trudy told Theresa that she would have gladly provided fixtures that would not corrode if she had only a bit more time, that Theresa should have given her a chance to do so, and that as far as Trudy is concerned, Theresa owes $300. -Which of the following most accurately describes the action taken by Theresa?

Liquidated damages are identified after a contract breach occurs.

"Refused Furniture." Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments. Selina was to deliver the furniture by February 7. Roland did not pay Selina as promised on February 1. He asked her to wait until March 1, but she refused. She told him that the contract was canceled, and she refused to deliver the furniture at all. Selina was able to sell the furniture for only $2,500 because of a downturn in the economy. Roland told Selina that she had no right to withhold or sell his furniture and that he was suing. Selina also incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased. Selina saved $40 in delivery costs because she did not have to deliver the furniture to Roland. The subsequent purchaser picked up her own furniture. -Which of the following is true regarding Roland's claim that Selina had no right to withhold his furniture?

What are the rights of the parties under the UCC to provide for remedies in addition to those provided by the UCC?

Under the UCC buyers and lessees may recover goods identified in the contract if the seller or lessor becomes insolvent within ______ after receiving the first payment due under the agreement.

Which of the following was the result in Almetals Inc., v. Wickeder Westfalenstahl, GMBH, the case in the text involving the sale of a specialty metal in which the plaintiff sued the defendant for breach of contract seeking specific performance?

What does the UCC provide regarding liquidated damages if the parties do not agree to them?

What does the UCC provide regarding the availability of punitive damages?

Regarding the "Case Opener," what did the court rule regarding the liability of Abbott Industries following its supply of 1.2 million tubes of bad eye medication to Altana, a customer, for resale?

Which of the following is true regarding how the obligations of sellers/lessors and buyers/lessees are determined?

If a buyer accepts nonconforming goods, the buyer may not also seek damages.

Which of the following damages, if any, may a seller receive who sells goods to another buyer when the original buyer is in breach?

What was the result on appeal in Figgie International Inc., v. Destileria Serralles Inc, the case in the text involving a dispute over bottle-labeling equipment that did not perform as expected and whether usage of trade limited the buyer's remedy to repair, replacement, or return?

Which of the following is true regarding revocation of accepted nonconforming goods?

"Refused Furniture." Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments. Selina was to deliver the furniture by February 7. Roland did not pay Selina as promised on February 1. He asked her to wait until March 1, but she refused. She told him that the contract was canceled, and she refused to deliver the furniture at all. Selina was able to sell the furniture for only $2,500 because of a downturn in the economy. Roland told Selina that she had no right to withhold or sell his furniture and that he was suing. Selina also incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased. Selina saved $40 in delivery costs because she did not have to deliver the furniture to Roland. The subsequent purchaser picked up her own furniture. -Which of the following is true regarding Roland's claim that Selina had no right to sell the furniture he initially purchased?

Which of the following is the right of a buyer and lessee to substitute goods for those due under a sales or lease agreement?

Discuss when specific performance is available as a remedy against a seller or lessor when the sale of goods is involved, and what is involved if specific performance is decreed.

Under UCC 2-702(2), under which of the following circumstances may a seller reclaim goods when a buyer is in possession of goods and is in breach?

What is the basic premise of contract law?