Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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:

Accepted Answer

A) can recover from the buyer the difference between the resale price and the contract price, plus incidental damages. 
B) may only recover damages for nonacceptance or repudiation. 
C) may choose between the remedy for resale and the remedy of recovery of damages for nonacceptance or repudiation. 
D) is denied any remedies. 
A) can recover from the buyer the difference between the resale price and the contract price, plus incidental damages. 
B) may only recover damages for nonacceptance or repudiation. 
C) may choose between the remedy for resale and the remedy of recovery of damages for nonacceptance or repudiation. 
D) is denied any remedies.

Question 3

Under the CISG, if the buyer fails to perform any obligations, the seller may:

Accepted Answer

A) set an additional period of time of reasonable length for performance. 
B) require the buyer to pay the price. 
C) receive damages. 
D) All of these. 
A) set an additional period of time of reasonable length for performance. 
B) require the buyer to pay the price. 
C) receive damages. 
D) All of these.

Question 4

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

Question 5

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 6

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

Accepted Answer

Basically, a seller may default in three

Question 7

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

Accepted Answer

A) Where the buyer has been able to effect cover 
B) Where the goods have been shipped under reservation of a security interest and the buyer has satisfied that interest 
C) Where the goods are specially manufactured but can be purchased from another source 
D) All of these are correct. 
A) Where the buyer has been able to effect cover 
B) Where the goods have been shipped under reservation of a security interest and the buyer has satisfied that interest 
C) Where the goods are specially manufactured but can be purchased from another source 
D) All of these are correct.

Question 8

Which of the following would be considered consequential damages?

Accepted Answer

A) Commissions paid to effect cover 
B) Expenses reasonably incurred for inspection of the goods 
C) Damages to personal property and personal injury resulting from the malfunction of a machine warranted by the seller to be suitable for the buyer's purpose. 
D) Storage charges for rejected nonconforming goods 
A) Commissions paid to effect cover 
B) Expenses reasonably incurred for inspection of the goods 
C) Damages to personal property and personal injury resulting from the malfunction of a machine warranted by the seller to be suitable for the buyer's purpose. 
D) Storage charges for rejected nonconforming goods

Question 9

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?

Accepted Answer

Sellers' remedies can be categorized as

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

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.

Question 12

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

Accepted Answer

A) True 
 B)False

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

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

Accepted Answer

A) Canceling the contract and recovering incidental damages 
B) Covering and suing for incidental damages 
C) Obtaining specific performance and stopping delivery of the goods 
D) Canceling the contract and suing to recover the price 
A) Canceling the contract and recovering incidental damages 
B) Covering and suing for incidental damages 
C) Obtaining specific performance and stopping delivery of the goods 
D) Canceling the contract and suing to recover the price

Question 15

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?

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 16

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

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

A) True 
 B)False

Question 19

Contract remedies provided as exclusive will not preclude Code remedies if circumstances cause the remedy to fail in its essential purpose.

Accepted Answer

A) True 
 B)False

Question 20

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:

Accepted Answer

A) cover. 
B) specific performance. 
C) replevin. 
D) reclamation. 
A) cover. 
B) specific performance. 
C) replevin. 
D) reclamation.

Exam 25: Sales Remedies

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

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:

Under the CISG, if the buyer fails to perform any obligations, the seller may:

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

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

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

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

Which of the following would be considered consequential damages?

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?

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.

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

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

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

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

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?

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

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.

Contract remedies provided as exclusive will not preclude Code remedies if circumstances cause the remedy to fail in its essential purpose.

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:

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

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

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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