Exam 23: Sales Remedies

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:

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. -security interest

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. -anticipatory repudiation

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. -vertical privity

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. -good faith

Which of the following is not a remedy of the buyer?

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. -bankruptcy insolvency

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. -incidental damages

Tom breached a contract he had with Jim.In addition to other remedies available, Jim may be able to recover commercially reasonable expenses incurred as a result of the breach.These expenses are:

Which of the following is correct with respect to consequential damages under the Code?

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. -replevin

A seller's incidental damages for a buyer's breach would include all but which one of the following?

A seller has breached his contract by providing unfit seed for the planting of beans.Damages would include:

An aggrieved seller may:

Under the CISG, if the contract is avoided and the seller has resold the goods in a reasonable manner and within a reasonable time after avoidance, the seller may recover:

Robert paid William $1,000 for a rare first edition of an Edgar Allen Poe novel.The sales contract states that the book is to be delivered within ten days.William, however, refused to deliver the book as promised.In order to sue for specific performance under the UCC, Robert must prove that money damages will not be adequate compensation for his loss.

The seller may resell the goods identified to a 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. -rejection of the goods

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

Denver 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.