Exam 25: Sales Remedies

As the result of a seller's breach, a buyer may ask for incidental damages. Incidental damages include costs incurred in:

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:

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

If a seller withholds delivery of goods to the buyer because of the buyer's failure to make timely payment, the seller may resell the goods and is accountable to the original buyer for any profit made on the resale.

Which of the following would not be a remedy available to the seller on account of buyer's breach?

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

Smith's of Dallas placed a $10,000 order for dresses, F.O.B. Dallas from Magnifique 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, Magnifique dresses were the rage, but the boom had not yet reached Dallas. By September 15, Smith's realized that the shop could not afford all of these dresses and called Magnifique 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 Magnifique do? What are the alternatives for damages from Smith's?

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.

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

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