Exam 25: Sales Remedies

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

The contract between the buyer and the seller may expressly limit or exclude consequential damages so long as the contract is not unconscionable.

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 the Code, what rights do the parties have to affect the possible remedies available in the case of breach?

The bankruptcy and the equity definitions of insolvency are the same.

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.

The statute of limitations provided by Article 2 is five years, which can be reduced or extended by the parties' contract.

In which of the following situations would the seller's right to stop delivery continue?

Perry is building his house and orders a hot water heater from Jones Co. to be installed by them. The hot water heater they sent has a 45-gallon capacity when Perry ordered a 60-gallon capacity. Jones cannot provide a 60-gallon heater for two months, so Perry cancels the contract and gets a heater from Stosill's. Jones Co. says it must be allowed to install the heater purchased from Stosill's. What result?

A buyer's right to purchase, in good faith and without unreasonable delay, substituted goods from Seller B when Seller A breaches a sales contract is:

If the buyer is insolvent and has not paid for goods received, the seller may reclaim the goods.

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:

How are remedies of the seller for breach of contract by the buyer categorized by their orientation? What remedies are within each of the categories?

Which of the following would be considered consequential damages?

The seller may resell the goods identified to a contract:

Under the CISG, what are the damages for breach of contract by one party? Does the aggrieved party have any responsibility after the breach occurs?

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:

Taylor agrees to sell Pedro 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?

Where the seller fails to make delivery, the buyer can cancel the contract, but he must give the seller notice of his cancellation.

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