Question 1

Breach of one installment of an installment contract never gives rise to breach under the whole contract.

Accepted Answer

A) True 
 B)False

Question 2

Specific performance is an equitable remedy which seeks to compel the party in breach to perform the contract according to its terms.

Accepted Answer

A) True 
 B)False

Question 3

The fair market value of a 10-foot fishing boat is $1,000. In a special promotion, J's Marina purchases a 10-foot fishing boat for $900. The boat is badly scratched when it arrives. J's Marina, however, accepts the shipment and notifies the seller of the defect. The boat as delivered has a value of $800. If the damaged boat is a breach of warranty by the seller, the buyer may recover from the seller:

Accepted Answer

A)  $100. 
B)  $100 plus incidental and consequential damages. 
C)  $200. 
D)  $200 plus incidental and consequential damages. 
A)  $100. 
B)  $100 plus incidental and consequential damages. 
C)  $200. 
D)  $200 plus incidental and consequential damages.

Question 4

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

Accepted Answer

The purpose of the Code is to put the ag

Question 5

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 6

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.

Question 7

On the seller's breach, if the buyer makes substitute purchases in good faith and without unreasonable delay, she may recover, as damages, the difference between the cost of cover and the contract price, plus incidental damages but minus any expenses she saved because of the seller's breach.

Accepted Answer

A) True 
 B)False

Question 8

Demrow Co., which contracted to buy 400 fishing poles from Royal Industries, anticipatorily breached the contract. Royal may proceed to identify to the contract conforming goods in its possession so that it can exercise the remedy of resale of the goods.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

Rachel agrees to sell Bill 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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

A contractual remedy is optional unless the parties expressly agree that it is to be exclusive.

Accepted Answer

A) True 
 B)False

Question 16

One hundred crystal flower vases have been identified to the contract and a down payment of $1,000 of the $10,000 purchase price has been paid. If the seller becomes insolvent, the buyer may still pay $9,000 and get the goods.

Accepted Answer

A) True 
 B)False

Question 17

When the buyer breaches a sales contract, if the difference between the contract price and the market price will not place the seller in as good a position as performance would have, then the seller may recover the lost profit.

Accepted Answer

A) True 
 B)False

Question 18

The contract between the buyer and the seller may expressly limit or exclude consequential damages so long as the contract is not unconscionable.

Accepted Answer

A) True 
 B)False

Question 19

The contract between the buyer and the seller cannot provide for any additional remedies other than those specified in the Code.

Accepted Answer

A) True 
 B)False

Question 20

The Code permits the seller to recover the price plus incidental damages in which of the following situation(s)?

Accepted Answer

A)  Where the buyer has accepted the goods. 
B)  Where conforming goods have been lost or damaged before risk of loss has passed to the buyer. 
C)  Where the goods have been identified to the contract and there is a ready market available for their resale at a reasonable price. 
D)  None of these. 
E)  All of these. 
A)  Where the buyer has accepted the goods. 
B)  Where conforming goods have been lost or damaged before risk of loss has passed to the buyer. 
C)  Where the goods have been identified to the contract and there is a ready market available for their resale at a reasonable price. 
D)  None of these. 
E)  All of these.

Exam 23: Sales Remedies

Breach of one installment of an installment contract never gives rise to breach under the whole contract.

Specific performance is an equitable remedy which seeks to compel the party in breach to perform the contract according to its terms.

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

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:

On the seller's breach, if the buyer makes substitute purchases in good faith and without unreasonable delay, she may recover, as damages, the difference between the cost of cover and the contract price, plus incidental damages but minus any expenses she saved because of the seller's breach.

Demrow Co., which contracted to buy 400 fishing poles from Royal Industries, anticipatorily breached the contract. Royal may proceed to identify to the contract conforming goods in its possession so that it can exercise the remedy of resale of the goods.

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

Rachel agrees to sell Bill 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?

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

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.

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

A contractual remedy is optional unless the parties expressly agree that it is to be exclusive.

One hundred crystal flower vases have been identified to the contract and a down payment of $1,000 of the $10,000 purchase price has been paid. If the seller becomes insolvent, the buyer may still pay $9,000 and get the goods.

When the buyer breaches a sales contract, if the difference between the contract price and the market price will not place the seller in as good a position as performance would have, then the seller may recover the lost profit.

The contract between the buyer and the seller may expressly limit or exclude consequential damages so long as the contract is not unconscionable.

The contract between the buyer and the seller cannot provide for any additional remedies other than those specified in the Code.

The Code permits the seller to recover the price plus incidental damages in which of the following situation(s)?

Introduction to Law

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Performance, Breach, and Discharge

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Introduction to Sales and Leases

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Product Liability: Warranties and Strict Liability

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Transfer and Holder in Due Course

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