Question 1

A defrauded buyer may avoid the contract and recover damages.

Accepted Answer

A) True 
 B)False

Question 2

To revoke acceptance of goods:

Accepted Answer

A)  any defect or nonconformity must be discovered. 
B)  the goods must be dangerously defective. 
C)  the nonconformity must substantially impair the value of the goods. 
D)  action must be taken by the buyer within 60 days of delivery. 
A)  any defect or nonconformity must be discovered. 
B)  the goods must be dangerously defective. 
C)  the nonconformity must substantially impair the value of the goods. 
D)  action must be taken by the buyer within 60 days of delivery.

Question 3

If a buyer procures the same or similar goods as those involved in the sales contract breached by the seller, the buyer:

Accepted Answer

A)  loses all rights to prosecute for breach. 
B)  is said to have validated the seller's action. 
C)  is said to have covered. 
D)  is also in breach. 
A)  loses all rights to prosecute for breach. 
B)  is said to have validated the seller's action. 
C)  is said to have covered. 
D)  is also in breach.

Question 4

The commercially reasonable charges incurred by a seller in caring for goods after the buyer's breach are recoverable by the seller in an action for damages as:

Accepted Answer

A)  contract damages. 
B)  punitive damages. 
C)  additional damages. 
D)  incidental damages. 
A)  contract damages. 
B)  punitive damages. 
C)  additional damages. 
D)  incidental damages.

Question 5

Under the CISG, a buyer may reject goods

Accepted Answer

A)  consistent with the right of rejection set forth in the UCC. 
B)  if the goods are nonconforming to the contract in any way. 
C)  only if the tender is a fundamental breach of the contract. 
D)  only if the tender is illegal in subject matter and/or purpose. 
A)  consistent with the right of rejection set forth in the UCC. 
B)  if the goods are nonconforming to the contract in any way. 
C)  only if the tender is a fundamental breach of the contract. 
D)  only if the tender is illegal in subject matter and/or purpose.

Question 6

A buyer may reject the goods or revoke the acceptance for any defects in the goods.

Accepted Answer

A) True 
 B)False

Question 7

A buyer revokes her acceptance when she returns a raincoat to the seller that shrank in the rain.

Accepted Answer

A) True 
 B)False

Question 8

Proof of substantial impairment of the value of a contract to the buyer is required to justify revocation of acceptance.

Accepted Answer

A) True 
 B)False

Question 9

A sales contract may provide that in case of breach, no damages may be recovered or no consequential damages may be recovered.

Accepted Answer

A) True 
 B)False

Question 10

When a seller breaches a contract for the sale of goods to a buyer, the buyer is entitled to specific performance of the contract if the:

Accepted Answer

A)  goods are unique. 
B)  market cost of the goods has increased. 
C)  goods can be purchased in any major city in the country. 
D)  buyer's customers will be disappointed if the buyer does not obtain the goods. 
A)  goods are unique. 
B)  market cost of the goods has increased. 
C)  goods can be purchased in any major city in the country. 
D)  buyer's customers will be disappointed if the buyer does not obtain the goods.

Question 11

Consequential damages are available to the buyer but not to the seller.

Accepted Answer

A) True 
 B)False

Question 12

The statute of limitations for breach of a sales contract:

Accepted Answer

A)  may be reduced between merchants to one year. 
B)  may be expanded by the buyer and the seller to six years. 
C)  begins to run from the signing of the contract. 
D)  always requires a notice to the seller to activate the statute. 
A)  may be reduced between merchants to one year. 
B)  may be expanded by the buyer and the seller to six years. 
C)  begins to run from the signing of the contract. 
D)  always requires a notice to the seller to activate the statute.

Question 13

Buyers often also experience ______ damages, which are those damages the buyer experiences with respect to a third party as a result of the seller's breach.

Accepted Answer

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

Exam 26: Remedies for Breach of Sales Contracts

A defrauded buyer may avoid the contract and recover damages.

To revoke acceptance of goods:

If a buyer procures the same or similar goods as those involved in the sales contract breached by the seller, the buyer:

The commercially reasonable charges incurred by a seller in caring for goods after the buyer's breach are recoverable by the seller in an action for damages as:

Under the CISG, a buyer may reject goods

A buyer may reject the goods or revoke the acceptance for any defects in the goods.

A buyer revokes her acceptance when she returns a raincoat to the seller that shrank in the rain.

Proof of substantial impairment of the value of a contract to the buyer is required to justify revocation of acceptance.

A sales contract may provide that in case of breach, no damages may be recovered or no consequential damages may be recovered.

When a seller breaches a contract for the sale of goods to a buyer, the buyer is entitled to specific performance of the contract if the:

Consequential damages are available to the buyer but not to the seller.

The statute of limitations for breach of a sales contract:

Buyers often also experience ______ damages, which are those damages the buyer experiences with respect to a third party as a result of the seller's breach.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environment of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters