Question 1

Under the CISG, if the buyer fails to perform contractual obligations, the seller may require the buyer to do all of the following except:

Accepted Answer

A)  pay the price. 
B)  take immediate delivery. 
C)  perform the contractual obligations within a reasonable time. 
D)  pay damages. 
A)  pay the price. 
B)  take immediate delivery. 
C)  perform the contractual obligations within a reasonable time. 
D)  pay damages.

Question 2

If the breach by the seller concerns the whole contract, the buyer may cancel the entire contract.

Accepted Answer

A) True 
 B)False

Question 3

Ronald agrees to sell Mack 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)  $1,000. 
D)  $1,100. 
A)  $500. 
B)  $600. 
C)  $1,000. 
D)  $1,100.

Question 4

Smith's of Dallas agreed to buy $10,000 worth of dresses F.O.B. Dallas from Magnifique Manufacturing Co. in New York for their October 1 Fall Showing. The cost of shipping the dresses is $300. 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 before the goods were shipped. 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 damages may be sought from Smith's?

Accepted Answer

Magnifique may withhold delivery, cancel

Question 5

A lessor retains title to the goods and has the right to recover possession of them upon default by the lessee.

Accepted Answer

A) True 
 B)False

Question 6

Angus has rightfully rejected nonconforming goods that were delivered to him. Explain his interest in those goods in his possession and his rights and duties regarding the goods.

Accepted Answer

Angus has a security interest in the rej

Question 7

If the buyer makes a wrongful rejection, the seller may resell the goods in good faith and in a commercially reasonable manner and the seller may recover from the buyer the difference between the contract price and the resale price, plus any incidental damages, minus expenses saved.

Accepted Answer

A) True 
 B)False

Question 8

As the result of a seller's breach, a buyer may ask for incidental damages. Which of the following is not an example of costs that would lead to incidental damages?

Accepted Answer

A)  storing goods in a warehouse 
B)  making calls to obtain replacement goods 
C)  inspecting the goods 
D)  the difference between the cost of the goods in the contract and the replacement goods. 
A)  storing goods in a warehouse 
B)  making calls to obtain replacement goods 
C)  inspecting the goods 
D)  the difference between the cost of the goods in the contract and the replacement goods.

Question 9

Under the CISG, avoidance of a contract cancels any provision for settlement of disputes.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  Where the buyer has been unable to obtain cover. 
B)  Where the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied. 
C)  Where the goods are specially manufactured but can be purchased from another source. 
D)  Both if the buyer has been unable to obtain cover  and where  the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied. 
A)  Where the buyer has been unable to obtain cover. 
B)  Where the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied. 
C)  Where the goods are specially manufactured but can be purchased from another source. 
D)  Both if the buyer has been unable to obtain cover  and where  the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied.

Question 11

Amy agrees to buy goods from Van for a contract price of $2,000 payable on delivery. Amy repudiates the contract and refuses to pay anything. Van resells the goods in compliance with the Code for $1,700, incurring $200 in sales commissions but saving $250 in shipping costs. Van would recover from Amy:

Accepted Answer

A)  the contract price of $2,000. 
B)  $500. 
C)  $350. 
D)  $250. 
A)  the contract price of $2,000. 
B)  $500. 
C)  $350. 
D)  $250.

Question 12

Which of the following remedies are mutually exclusive and could not be obtained simultaneously?

Accepted Answer

A)  Cover, incidental and consequential damages. 
B)  Identification of the goods and withholding delivery. 
C)  Withholding delivery and suit to recover incidental and consequential damages. 
D)  None of these. The Code's remedies are cumulative unless under the facts of an individual case one remedy bars another. 
A)  Cover, incidental and consequential damages. 
B)  Identification of the goods and withholding delivery. 
C)  Withholding delivery and suit to recover incidental and consequential damages. 
D)  None of these. The Code's remedies are cumulative unless under the facts of an individual case one remedy bars another.

Question 13

The seller may resell the goods identified to a contract:

Accepted Answer

A)  only at a public sale. 
B)  only if the goods are sold as a unit. 
C)  at a public or private sale. 
D)  only if the goods are perishable. 
A)  only at a public sale. 
B)  only if the goods are sold as a unit. 
C)  at a public or private sale. 
D)  only if the goods are perishable.

Question 14

A buyer's incidental damages include reasonable expenses or commissions in effecting cover.

Accepted Answer

A) True 
 B)False

Question 15

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:

Accepted Answer

A)  incidental. 
B)  consequential. 
C)  punitive. 
D)  liquidated. 
A)  incidental. 
B)  consequential. 
C)  punitive. 
D)  liquidated.

Question 16

Sabrina contracts to buy 50 porch swings for her retail store.  The swings have been identified to the contract and a down payment of $200 of the $1,250 purchase price has been paid. If the seller becomes insolvent, Sabrina may still pay $1,050 and get the swings.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  Stop delivery of the goods by the carrier. 
B)  Require the financially sound buyer to return the goods. 
C)  Recover the price. 
D)  Cancel the contract. 
A)  Stop delivery of the goods by the carrier. 
B)  Require the financially sound buyer to return the goods. 
C)  Recover the price. 
D)  Cancel the contract.

Question 18

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

Accepted Answer

Damages for breach of contract by one pa

Question 19

On July 30 Christina, in Knoxville, agrees to sell machine-stitched quilts to Deanna, in Los Angeles for $2,500 C.O.D., with delivery by October 1. When Christina fails to deliver the quilts, Deanna suffers incidental damages of $400 and consequential damages of $300. Deanna may recover:

Accepted Answer

A)  damages equal to the difference between the market price on July 30 in Knoxville and $2,500 in addition to the remedy of cover. 
B)  the difference between the market price on October 1 in Knoxville and $2,500, plus $400 and $300, less expenses saved because of Christina's breach. 
C)  the difference between the market price on July 30 and October 1 in Los Angeles, plus $400 and $300, less expenses saved because of Christina's breach. 
D)  only through the equitable remedy of specific performance. 
A)  damages equal to the difference between the market price on July 30 in Knoxville and $2,500 in addition to the remedy of cover. 
B)  the difference between the market price on October 1 in Knoxville and $2,500, plus $400 and $300, less expenses saved because of Christina's breach. 
C)  the difference between the market price on July 30 and October 1 in Los Angeles, plus $400 and $300, less expenses saved because of Christina's breach. 
D)  only through the equitable remedy of specific performance.

Question 20

Breach of one installment of an installment contract may give rise to breach under the whole contract.

Accepted Answer

A) True 
 B)False

Exam 23: Sales Remedies

Under the CISG, if the buyer fails to perform contractual obligations, the seller may require the buyer to do all of the following except:

If the breach by the seller concerns the whole contract, the buyer may cancel the entire contract.

Ronald agrees to sell Mack 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?

A lessor retains title to the goods and has the right to recover possession of them upon default by the lessee.

Angus has rightfully rejected nonconforming goods that were delivered to him. Explain his interest in those goods in his possession and his rights and duties regarding the goods.

If the buyer makes a wrongful rejection, the seller may resell the goods in good faith and in a commercially reasonable manner and the seller may recover from the buyer the difference between the contract price and the resale price, plus any incidental damages, minus expenses saved.

As the result of a seller's breach, a buyer may ask for incidental damages. Which of the following is not an example of costs that would lead to incidental damages?

Under the CISG, avoidance of a contract cancels any provision for settlement of disputes.

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

Which of the following remedies are mutually exclusive and could not be obtained simultaneously?

The seller may resell the goods identified to a contract:

A buyer's incidental damages include reasonable expenses or commissions in effecting cover.

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:

Sabrina contracts to buy 50 porch swings for her retail store. The swings have been identified to the contract and a down payment of $200 of the $1,250 purchase price has been paid. If the seller becomes insolvent, Sabrina may still pay $1,050 and get the swings.

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

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

On July 30 Christina, in Knoxville, agrees to sell machine-stitched quilts to Deanna, in Los Angeles for $2,500 C.O.D., with delivery by October 1. When Christina fails to deliver the quilts, Deanna suffers incidental damages of $400 and consequential damages of $300. Deanna may recover:

Breach of one installment of an installment contract may give rise to breach under the whole contract.

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

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 Wills

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