Exam 25: Sales Remedies

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

If Andrews Manufacturing Company has repudiated its contract to sell 500 computers to a retailer, the retailer:

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

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.

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:

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

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

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:

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?

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?

The Code's remedies are cumulative; therefore, a seller may both withhold delivery of the goods and identify goods to the contract.

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

Incidental damages do not include expenses in connection with effecting cover.

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

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:

Compare the remedies of withholding delivery of the goods and stopping delivery of the goods.How are they alike? How are they different?

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

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 is correct with respect to consequential damages under the Code?