Exam 25: Sales Remedies

Dual purposes of remedies for breach of a contract for the sale of goods under the Code are compensation and deterrence of wrongdoing; therefore, compensatory and punitive damages are common remedies.

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

In what ways may a seller default, and what remedies are available to the buyer in such a case?

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

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, if the contract is avoided and the seller has resold the goods in a reasonable manner, he may recover the difference between the contract and resale prices.

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:

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

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

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

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

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

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

Robert paid William $1,000 for a rare first edition of an Edgar Allen Poe novel. The sales contract states that the book is to be delivered within ten days. William, however, refused to deliver the book as promised. In order to sue for the UCC remedy of specific performance, Robert must prove that money damages will not be adequate compensation for his loss.

Upon rightful rejection or justifiable revocation of acceptance, the buyer loses all property interest in the goods.

Buyer breaches a contract for the sale of goods and seller resells the goods, although the seller acts in bad faith and not in a commercially reasonable manner. Because of the seller's actions, the seller:

One hundred crystal flower vases have been identified to the contract and a down payment of $1,000 of the $10,000 purchase price has been paid. If the seller becomes insolvent, the buyer may still pay $9,000 and get the goods.

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

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

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