Exam 23: Sales Remedies

The right of the buyer to recover from an insolvent seller the goods in which he has a special property interest and for which he has paid, existed at common law before being included in the Code.

If the buyer received goods on credit while he was insolvent by misrepresenting in writing his solvency, 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 follows the doctrine of election of remedies.

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. -option

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. -liquidated damages

If the buyer is insolvent and has not paid for goods it has received, the seller may reclaim the goods.

Which type of contractual provision affects remedies?