Exam 23: Sales Remedies

On January 21, Cara wrote to Pandora 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 bathing suit sales.Pandora ships the suits on March 1; they are received March 15.Cara immediately puts them on display and 27 are sold by March 30 when Pandora discovers that Cara has lied.Pandora may:

Match each statement with the correct term below.a.Unfairness in the bargaining process.b.An action at law to recover specific goods in the possession of a defendant that are being unlawfully withheld from the plaintiff.c.An amount specified by the parties that is recoverable in the event of a breach.d.A seller makes available to a buyer goods conforming to the contract and so notifies the buyer.e.The inability of a person to pay his debts in the ordinary course of business or as they become due.f.Total liabilities exceeding the total value of all assets.g.Commercially reasonable expenses directly resulting from a breach.h.Expenses resulting from the buyer's requirements of which the seller had reason to know at the time of contracting; also injury to person or property resulting from breach of warranty.i.A buyer's purchase of goods in substitution for those not delivered by a breaching seller.j.Oppressive or grossly unfair contractual provisions.k.Clear indication before performance is due of an unwillingness or inability to perform contractual duties.l.The right of a seller under the Code to correct a nonconforming delivery of goods to the buyer.m.The manifestation by a buyer of unwillingness to become the owner of the goods.n.Interest in personal property or fixtures ensuring payment or performance of an obligation. -procedural unconscionability

In what three situations will a seller recover the price of goods plus incidental damages?

Replevin is an equitable remedy compelling the recovery of specific goods in the possession of the defendant which are being unlawfully withheld from the plaintiff.

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

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

MATCHING Part IV Matching Match each statement with the correct term below.a.A sequence of previous conduct between parties establishing a basis for interpreting their agreement.b.A practice or method of dealing regularly observed and followed in a place, vocation, or trade.c.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or accepts the goods.e.A contract in which the seller bears the risk of loss and expense until the goods are delivered to the carrier for shipment.f.Transfer of right to possession and use of goods for a term in return for consideration.g.A contract to hold open an offer.h.An offer in writing by a merchant that gives assurance it will be kept open for a period of time up to three months.i.A contract in which goods are sold and delivered to the buyer with an option to return them to the seller; the risk of loss is on the buyer until she returns the goods.j.Delivery term for a shipment contract, free on board.k.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective product.n.Historically, a contractual relationship between the plaintiff and the defendant that was necessary at common law to maintain a lawsuit.o.An affirmation of fact or promise about the goods or a description, including a sample of the goods, which becomes part of the basis of the bargain.p.A contract in which the seller is required to tender delivery of the goods at a particular destination; title passes to the buyer on tender of the goods at that destination.q.A negation of a warranty.r.Designation of specific goods as goods to which the contract of sale refers.s.A person who is a dealer in the goods, or who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved, or who employs an agent or broker whom he holds out as having such knowledge or skill.t.Honesty in fact in the conduct or transaction concerned. -sale or return

After a breach by the seller, buyer may replevy the goods after identification if:

As the result of a seller's breach, a buyer may ask for incidental damages.Incidental damages include costs incurred in:

The recovery for a lessee's wrongful repudiation of a lease is the difference between the present value of the old rent due under the original lease and the market rent.

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

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

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

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?

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

MATCHING Part IV Matching Match each statement with the correct term below.a.A sequence of previous conduct between parties establishing a basis for interpreting their agreement.b.A practice or method of dealing regularly observed and followed in a place, vocation, or trade.c.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or accepts the goods.e.A contract in which the seller bears the risk of loss and expense until the goods are delivered to the carrier for shipment.f.Transfer of right to possession and use of goods for a term in return for consideration.g.A contract to hold open an offer.h.An offer in writing by a merchant that gives assurance it will be kept open for a period of time up to three months.i.A contract in which goods are sold and delivered to the buyer with an option to return them to the seller; the risk of loss is on the buyer until she returns the goods.j.Delivery term for a shipment contract, free on board.k.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective product.n.Historically, a contractual relationship between the plaintiff and the defendant that was necessary at common law to maintain a lawsuit.o.An affirmation of fact or promise about the goods or a description, including a sample of the goods, which becomes part of the basis of the bargain.p.A contract in which the seller is required to tender delivery of the goods at a particular destination; title passes to the buyer on tender of the goods at that destination.q.A negation of a warranty.r.Designation of specific goods as goods to which the contract of sale refers.s.A person who is a dealer in the goods, or who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved, or who employs an agent or broker whom he holds out as having such knowledge or skill.t.Honesty in fact in the conduct or transaction concerned. -identification

MATCHING Part IV Matching Match each statement with the correct term below.a.A sequence of previous conduct between parties establishing a basis for interpreting their agreement.b.A practice or method of dealing regularly observed and followed in a place, vocation, or trade.c.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or accepts the goods.e.A contract in which the seller bears the risk of loss and expense until the goods are delivered to the carrier for shipment.f.Transfer of right to possession and use of goods for a term in return for consideration.g.A contract to hold open an offer.h.An offer in writing by a merchant that gives assurance it will be kept open for a period of time up to three months.i.A contract in which goods are sold and delivered to the buyer with an option to return them to the seller; the risk of loss is on the buyer until she returns the goods.j.Delivery term for a shipment contract, free on board.k.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective product.n.Historically, a contractual relationship between the plaintiff and the defendant that was necessary at common law to maintain a lawsuit.o.An affirmation of fact or promise about the goods or a description, including a sample of the goods, which becomes part of the basis of the bargain.p.A contract in which the seller is required to tender delivery of the goods at a particular destination; title passes to the buyer on tender of the goods at that destination.q.A negation of a warranty.r.Designation of specific goods as goods to which the contract of sale refers.s.A person who is a dealer in the goods, or who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved, or who employs an agent or broker whom he holds out as having such knowledge or skill.t.Honesty in fact in the conduct or transaction concerned. -firm offer

MATCHING Part IV Matching Match each statement with the correct term below.a.A sequence of previous conduct between parties establishing a basis for interpreting their agreement.b.A practice or method of dealing regularly observed and followed in a place, vocation, or trade.c.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or accepts the goods.e.A contract in which the seller bears the risk of loss and expense until the goods are delivered to the carrier for shipment.f.Transfer of right to possession and use of goods for a term in return for consideration.g.A contract to hold open an offer.h.An offer in writing by a merchant that gives assurance it will be kept open for a period of time up to three months.i.A contract in which goods are sold and delivered to the buyer with an option to return them to the seller; the risk of loss is on the buyer until she returns the goods.j.Delivery term for a shipment contract, free on board.k.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective product.n.Historically, a contractual relationship between the plaintiff and the defendant that was necessary at common law to maintain a lawsuit.o.An affirmation of fact or promise about the goods or a description, including a sample of the goods, which becomes part of the basis of the bargain.p.A contract in which the seller is required to tender delivery of the goods at a particular destination; title passes to the buyer on tender of the goods at that destination.q.A negation of a warranty.r.Designation of specific goods as goods to which the contract of sale refers.s.A person who is a dealer in the goods, or who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved, or who employs an agent or broker whom he holds out as having such knowledge or skill.t.Honesty in fact in the conduct or transaction concerned. -destination contract

Match each statement with the correct term below.a.Unfairness in the bargaining process.b.An action at law to recover specific goods in the possession of a defendant that are being unlawfully withheld from the plaintiff.c.An amount specified by the parties that is recoverable in the event of a breach.d.A seller makes available to a buyer goods conforming to the contract and so notifies the buyer.e.The inability of a person to pay his debts in the ordinary course of business or as they become due.f.Total liabilities exceeding the total value of all assets.g.Commercially reasonable expenses directly resulting from a breach.h.Expenses resulting from the buyer's requirements of which the seller had reason to know at the time of contracting; also injury to person or property resulting from breach of warranty.i.A buyer's purchase of goods in substitution for those not delivered by a breaching seller.j.Oppressive or grossly unfair contractual provisions.k.Clear indication before performance is due of an unwillingness or inability to perform contractual duties.l.The right of a seller under the Code to correct a nonconforming delivery of goods to the buyer.m.The manifestation by a buyer of unwillingness to become the owner of the goods.n.Interest in personal property or fixtures ensuring payment or performance of an obligation. -tender of delivery

MATCHING Part IV Matching Match each statement with the correct term below.a.A sequence of previous conduct between parties establishing a basis for interpreting their agreement.b.A practice or method of dealing regularly observed and followed in a place, vocation, or trade.c.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or accepts the goods.e.A contract in which the seller bears the risk of loss and expense until the goods are delivered to the carrier for shipment.f.Transfer of right to possession and use of goods for a term in return for consideration.g.A contract to hold open an offer.h.An offer in writing by a merchant that gives assurance it will be kept open for a period of time up to three months.i.A contract in which goods are sold and delivered to the buyer with an option to return them to the seller; the risk of loss is on the buyer until she returns the goods.j.Delivery term for a shipment contract, free on board.k.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective product.n.Historically, a contractual relationship between the plaintiff and the defendant that was necessary at common law to maintain a lawsuit.o.An affirmation of fact or promise about the goods or a description, including a sample of the goods, which becomes part of the basis of the bargain.p.A contract in which the seller is required to tender delivery of the goods at a particular destination; title passes to the buyer on tender of the goods at that destination.q.A negation of a warranty.r.Designation of specific goods as goods to which the contract of sale refers.s.A person who is a dealer in the goods, or who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved, or who employs an agent or broker whom he holds out as having such knowledge or skill.t.Honesty in fact in the conduct or transaction concerned. -sale on approval