Question 1

Exclusion of consequential damages for personal injuries resulting from breach of warranty in the sale of consumer goods is prima facie unconscionable.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following remedies is available to the seller or manufacturer of goods upon a breach by buyer by repudiation of the contract?

Accepted Answer

A)  The manufacturer may resell any unfinished goods. 
B)  The manufacturer may identify goods to the contract. 
C)  The seller may sell the unfinished goods for scrap. 
D)  The seller may do all of these. 
A)  The manufacturer may resell any unfinished goods. 
B)  The manufacturer may identify goods to the contract. 
C)  The seller may sell the unfinished goods for scrap. 
D)  The seller may do all of these. D

Question 3

Under the CISG,the aggrieved party in a breach of contract has no duty to mitigate the loss.

Accepted Answer

A) True 
 B)False  False

Question 4

A buyer may not recover consequential damages that could have been prevented by cover.

Accepted Answer

A) True 
 B)False

Question 5

On January 3,Cara wrote to SunTime 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.SunTime ships the suits on March 1;they are received March 15.Cara immediately puts them on display and seven are sold by March 20 when SunTime discovers that Cara has lied.SunTime may:

Accepted Answer

A)  recover 93 suits plus incidental damages. 
B)  recover 100 suits provided that SunTime acts in ten days from the delivery date. 
C)  recover no suits since it has been ten days since the suits were shipped. 
D)  recover 93 suits. 
A)  recover 93 suits plus incidental damages. 
B)  recover 100 suits provided that SunTime acts in ten days from the delivery date. 
C)  recover no suits since it has been ten days since the suits were shipped. 
D)  recover 93 suits.

Question 6

Breach of one installment of an installment contract does not impair the value of the whole contract.

Accepted Answer

A) True 
 B)False

Question 7

Taylor agrees to sell Kai goods for $2,000.The value of the goods accepted is $1,500.If the goods had been as warranted,their value would have been $2,600.What are the buyer's damages for breach of warranty?

Accepted Answer

A)  $500 
B)  $600 
C)  $1,100 
D)  Damages cannot be determined in this case because they are not calculable with mathematical precision. 
A)  $500 
B)  $600 
C)  $1,100 
D)  Damages cannot be determined in this case because they are not calculable with mathematical precision.

Question 8

Under Article 2A,a lessor retains title to the goods and therefore has the right to recover possession of them upon default by the lessee.

Accepted Answer

A) True 
 B)False

Question 9

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 may have the right to obtain specific performance. 
C)  The buyer may have the right to recover incidental and consequential damages. 
D)  All of these may be remedies of the buyer. 
A)  The buyer has the right of cover and to receive damages. 
B)  The buyer may have the right to obtain specific performance. 
C)  The buyer may have the right to recover incidental and consequential damages. 
D)  All of these may be remedies of the buyer.

Question 10

Replevin is an action at law to recover from the defendant's possession specific goods which are being unlawfully withheld from the plaintiff.

Accepted Answer

A) True 
 B)False

Question 11

The seller may recover the full contract price when:

Accepted Answer

A)  there is no ready market available for the resale of the goods identified to the contract. 
B)  the buyer has accepted the goods. 
C)  conforming goods have been lost or damaged after the risk of loss passed to the buyer. 
D)  Any of these situations occurs. 
A)  there is no ready market available for the resale of the goods identified to the contract. 
B)  the buyer has accepted the goods. 
C)  conforming goods have been lost or damaged after the risk of loss passed to the buyer. 
D)  Any of these situations occurs.

Question 12

A seller's incidental damages for a buyer's breach would include all but the cost to:

Accepted Answer

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

Question 13

Any action for breach of a sales contract must be begun within:

Accepted Answer

A)  four years after the cause of action accrued. 
B)  five years after the cause of action accrued. 
C)  whatever period of time the parties have set in their contract. 
D)  two years of when the breach actually occurred or within five years of its discovery. 
A)  four years after the cause of action accrued. 
B)  five years after the cause of action accrued. 
C)  whatever period of time the parties have set in their contract. 
D)  two years of when the breach actually occurred or within five years of its discovery.

Question 14

Under Article 2A a lessor may recover compensation for loss to his residual interest in the goods caused by the lessee's default.

Accepted Answer

A) True 
 B)False

Question 15

Under the Code,damages have to be "calculable with mathematical precision."

Accepted Answer

A) True 
 B)False

Question 16

Upon the seller's breach,the buyer must protect himself by obtaining "cover" or he is barred from any other remedy under the Code.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following remedies are mutually exclusive and could not be obtained simultaneously?

Accepted Answer

A)  Cover,incidental and consequential damages 
B)  Identification of the goods and withholding delivery 
C)  Withholding delivery and suit to recover incidental and consequential damages 
D)  None of these.The Code's remedies are cumulative,unless under the facts of an individual case one remedy bars another. 
A)  Cover,incidental and consequential damages 
B)  Identification of the goods and withholding delivery 
C)  Withholding delivery and suit to recover incidental and consequential damages 
D)  None of these.The Code's remedies are cumulative,unless under the facts of an individual case one remedy bars another.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The right of the seller to stop delivery of the goods ceases when:

Accepted Answer

A)  a negotiable document of title covering the goods is negotiated to the buyer. 
B)  the buyer receives the goods. 
C)  Either of these events occurs. 
D)  It never ceases. 
A)  a negotiable document of title covering the goods is negotiated to the buyer. 
B)  the buyer receives the goods. 
C)  Either of these events occurs. 
D)  It never ceases.

Question 20

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

Exam 25: Sales Remedies

Exclusion of consequential damages for personal injuries resulting from breach of warranty in the sale of consumer goods is prima facie unconscionable.

Which of the following remedies is available to the seller or manufacturer of goods upon a breach by buyer by repudiation of the contract?

Under the CISG,the aggrieved party in a breach of contract has no duty to mitigate the loss.

A buyer may not recover consequential damages that could have been prevented by cover.

Breach of one installment of an installment contract does not impair the value of the whole contract.

Taylor agrees to sell Kai goods for $2,000.The value of the goods accepted is $1,500.If the goods had been as warranted,their value would have been $2,600.What are the buyer's damages for breach of warranty?

Under Article 2A,a lessor retains title to the goods and therefore has the right to recover possession of them upon default by the lessee.

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

Replevin is an action at law to recover from the defendant's possession specific goods which are being unlawfully withheld from the plaintiff.

The seller may recover the full contract price when:

A seller's incidental damages for a buyer's breach would include all but the cost to:

Any action for breach of a sales contract must be begun within:

Under Article 2A a lessor may recover compensation for loss to his residual interest in the goods caused by the lessee's default.

Under the Code,damages have to be "calculable with mathematical precision."

Upon the seller's breach,the buyer must protect himself by obtaining "cover" or he is barred from any other remedy under the Code.

Which of the following remedies are mutually exclusive and could not be obtained simultaneously?

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

The right of the seller to stop delivery of the goods ceases when:

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

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: 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

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Securities Regulation

Accountants Legal Liability

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 Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management