Exam 23: Sales Remedies

If the seller has failed to comply with Code requirements in making a resale of goods that were wrongfully rejected, a good faith purchaser at the resale takes the goods subject to rights of the original buyer.

Article 2A authorizes liquidated damages payable by either party for default or any other act or omission.

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

What is the purpose of the Code's remedies for breach of sales contracts? How is this purpose accomplished?

Andrews Manufacturing Company has repudiated its contract to sell 500 computers to a computer store. What recourse does the retailer have under the circumstances?

An aggrieved seller who resells wrongfully rejected goods is accountable to the original buyer for any profit made on the resale.

Under the UCC, the aggrieved party must choose one remedy to ask for and forfeit the others.

A company may be considered insolvent under the Code only if it is unable to pay its debts as they are due.

Frances paid Abbey $1,200 for a rare first edition of a Charles Dickens novel. The sales contract states that the book is to be delivered within ten days. Abbey , however, became sentimental about the book and refused to deliver it as promised. In order to sue for specific performance under the UCC, Frances must prove that money damages will not be adequate compensation for his loss.

The amount of liquidated damages included in a contract that would be upheld by a court:

Overby, Inc. sells some woodworking equipment to American Furniture, warranting its suitability for American Furniture 's purpose. The equipment, which is not suitable for American Furniture 's purpose, causes $8,000 in damage to American Furniture 's property and $12,000 in personal injuries. American Furniture can recover only $8,000 in consequential damages.

A buyer's commercially reasonable charges for the care and custody of goods that a buyer has rightfully rejected are known as:

If the buyer received goods on credit while he was insolvent by misrepresenting his solvency in writing within three months prior to deliver of the goods, the seller is able to reclaim the goods only if the seller makes a demand on the buyer within ten days after the buyer has received the goods.

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