Exam 25: Sales Remedies

A contract between the seller and buyer may not provide for remedies in addition to or instead of those provided in the Code.

A buyer who has rightfully rejected or justifiably revoked acceptance of goods that remain in her possession or control has a security interest in these goods to the extent any payment of the price has been made.

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

A seller has breached his contract by providing unfit seed,which breach was undetectable until the bean crop was to be harvested.Remedies would include:

Which of the following would be considered consequential damages?

According to the UCC,if the buyer of defective goods recovers incidental damages,he will be unable to recover compensatory damages.

Specific performance is a remedy at law which seeks to compel the party in breach to perform the contract according to its terms.

A seller may default in three different ways and the Code provides remedies,each of which is available for any type of default.

Which of the following remedies are available to either a buyer or seller following a breach by the other party?

Wes breached a contract he had with Blake.In addition to other remedies available,Blake may be able to recover commercially reasonable expenses incurred as a result of the breach.These expenses are:

The Code defines cancellation as one party's ending a contract by that party's breach.

After a breach by the seller,buyer may replevy the goods that have been identified to the contract if:

For purposes of the statute of limitations contained in Article 2,a cause of action generally accrues when a breach occurs,without regard to whether the injured party knows of the breach at that time.

Seth and Maricela enter into a contract for a sale of goods for a contract price of $1,200 and Maricela has made a down payment of $200.Seth delivers nonconforming goods to Maricela who rightfully rejects them.The best remedy available to Maricela is to:

Upon the lessor's breach,the lessee may protect himself by leasing substitute goods.

Damages a buyer may recover for loss resulting from requirements,the needs of which the seller had reason to know at the time of contracting and which could not reasonably be prevented by cover,are:

Under the CISG,if the seller fails to perform any of his obligations under the contract or the CISG,the buyer may require the seller to perform or may fix an additional reasonable period of time for the seller to perform.

Ewing's of Dallas placed a $10,000 order for dresses,F.O.B.Dallas from Marvelous Manufacturing Co.in New York,for their October 1 Fall Showing.The dresses were to be shipped at a cost of $300 to the seller.In New York,Marvelous dresses were the rage,but the boom had not yet reached Dallas.By September 15,Ewing's realized that the shop could not afford all of these dresses and called Marvelous to cancel the contract.On September 15,the market price for the dresses in New York was $9,000 and in Dallas,$5,000.On October 1,the market price had risen to $9,500 in New York and to $7,000 in Dallas.What may Marvelous do? What are the alternatives for damages from Ewing's?

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

Al agrees to sell goods to Betty for a contract price of $3,000 due on delivery.Betty wrongfully rejects the goods and refuses to pay anything.Al resells the goods in strict compliance with the Code for $2,000.He incurs incidental damages for sales commissions of $200 but saves $150 in expenses because of the resale.Al is entitled to recover $1,050 from Betty.