Question 1

If a seller elects to resell the goods remaining in the seller's possession after the buyer breaks the contract,the seller:

Accepted Answer

A)  must always give notice of the sale to the original buyer. 
B)  is never required to give notice of the sale to the original buyer. 
C)  is required to follow strict standards in the resale of the goods. 
D)  is not required to give notice of the sale to the original buyer when the goods are perishable. 
A)  must always give notice of the sale to the original buyer. 
B)  is never required to give notice of the sale to the original buyer. 
C)  is required to follow strict standards in the resale of the goods. 
D)  is not required to give notice of the sale to the original buyer when the goods are perishable.

Question 2

A buyer who breaches a contract after making a down payment generally will be subject to the rule that the seller may retain the full down payment as damages.

Accepted Answer

A) True 
 B)False

Question 3

Under both the CISG and the UCC,a buyer may reject goods only if the tender of the goods is a fundamental breach of the contract.

Accepted Answer

A) True 
 B)False

Question 4

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 5

When a buyer has broken a sales contract,the seller may resell the goods or the balance of them in the seller's possession.

Accepted Answer

A) True 
 B)False

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 may reject a tender of delivery:

Accepted Answer

A)  if the goods do not conform to the contract in some way . 
B)  only if the goods have a substantial defect. 
C)  unless the seller promises to cure the defective tender. 
D)  unless the goods have been sold on credit. 
A)  if the goods do not conform to the contract in some way . 
B)  only if the goods have a substantial defect. 
C)  unless the seller promises to cure the defective tender. 
D)  unless the goods have been sold on credit.

Question 8

Some courts allow sellers to recover the profits they would have made if the buyer had completed the transaction.

Accepted Answer

A) True 
 B)False

Question 9

Consumer defenses:

Accepted Answer

A)  are preserved by a FTC regulation. 
B)  are provided for by the CISG. 
C)  are contained in UCC Article 2. 
D)  none of the above. 
A)  are preserved by a FTC regulation. 
B)  are provided for by the CISG. 
C)  are contained in UCC Article 2. 
D)  none of the above.

Question 10

When a plaintiff sues on the basis of strict tort liability,the action is subject to:

Accepted Answer

A)  the UCC statute of limitations. 
B)  the appropriate state's tort statute of limitations. 
C)  no statute of limitations. 
D)  FTC approval. 
A)  the UCC statute of limitations. 
B)  the appropriate state's tort statute of limitations. 
C)  no statute of limitations. 
D)  FTC approval.

Question 11

A liquidated damages clause is a contractual provision stipulating the amount of damages to be paid in the event of default or breach of contract.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Which of the following is not an example of incidental damages recoverable by a seller?

Accepted Answer

A)  expenses for the care of the goods after the buyer's breach 
B)  expenses for transportation of the goods after the buyer's breach 
C)  expenses for resale of the goods after the buyer's breach 
D)  expenses for the attorney's fees after the buyer's breach 
A)  expenses for the care of the goods after the buyer's breach 
B)  expenses for transportation of the goods after the buyer's breach 
C)  expenses for resale of the goods after the buyer's breach 
D)  expenses for the attorney's fees after the buyer's breach

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A seller may cancel a sales contract if the buyer:

Accepted Answer

A)  wrongfully rejects the goods. 
B)  repudiates the contract. 
C)  fails to make a payment due on or before delivery. 
D)  all of the above. 
A)  wrongfully rejects the goods. 
B)  repudiates the contract. 
C)  fails to make a payment due on or before delivery. 
D)  all of the above.

Question 16

On January 15,2012,Anders brought an action against Barnes for breach of a contract for the sale of electronic parts.The breach occurred on January 10,2008,and Anders discovered the breach on January 20,2008.The state statute of limitations for contract actions is five years.Barnes raised the UCC statute of limitations as a defense to the action.Is this defense valid?

Accepted Answer

Yes.Judgment will be for Barnes.Contract

Question 17

A liquidation of damages clause in a consumer contract is enforceable if it:

Accepted Answer

A)  is not in excess of twice the provable damages. 
B)  is agreed to by both parties to the contract. 
C)  reasonably attempts to estimate the actual harm caused by a breach. 
D)  is a reasonable amount designed to punish the breaching party. 
A)  is not in excess of twice the provable damages. 
B)  is agreed to by both parties to the contract. 
C)  reasonably attempts to estimate the actual harm caused by a breach. 
D)  is a reasonable amount designed to punish the breaching party.

Question 18

A buyer can be barred from claiming a breach if the sales contract expressly states that the buyer will not assert any defenses against the seller.

Accepted Answer

A) True 
 B)False

Question 19

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 20

A seller's right to retain possession of goods until the seller has been paid is called a:

Accepted Answer

A)  seller's lien. 
B)  buyer's lien. 
C)  merchandise estoppel. 
D)  nonpayment tort. 
A)  seller's lien. 
B)  buyer's lien. 
C)  merchandise estoppel. 
D)  nonpayment tort.

Exam 27: Remedies for Breach of Sales Contracts

If a seller elects to resell the goods remaining in the seller's possession after the buyer breaks the contract,the seller:

A buyer who breaches a contract after making a down payment generally will be subject to the rule that the seller may retain the full down payment as damages.

Under both the CISG and the UCC,a buyer may reject goods only if the tender of the goods is a fundamental breach of the contract.

To revoke acceptance of goods:

When a buyer has broken a sales contract,the seller may resell the goods or the balance of them in the seller's possession.

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

A buyer may reject a tender of delivery:

Some courts allow sellers to recover the profits they would have made if the buyer had completed the transaction.

Consumer defenses:

When a plaintiff sues on the basis of strict tort liability,the action is subject to:

A liquidated damages clause is a contractual provision stipulating the amount of damages to be paid in the event of default or breach of contract.

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:

Which of the following is not an example of incidental damages recoverable by a seller?

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

A seller may cancel a sales contract if the buyer:

A liquidation of damages clause in a consumer contract is enforceable if it:

A buyer can be barred from claiming a breach if the sales contract expressly states that the buyer will not assert any defenses against the seller.

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

A seller's right to retain possession of goods until the seller has been paid is called a:

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Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

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Nature and Classes of Contracts: Contracting on the Internet

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