Exam 22: Remedies for Breach of Sales Contracts

________ include expenses that the buyer incurs in receiving,inspecting,transporting,and storing goods shipped by the seller that do not conform to those called for in the contract.

Any attempt to limit consequential damages for injury caused to a person by consumer goods is considered prima facie ________.

Sue delivers defective widgets to Boz.The widgets were not as warranted.In seeking to recover damages from Sue,Boz:

If the buyer has misrepresented his solvency to the seller in writing within three months before the delivery of the goods:

Liability for consequential damages resulting from a breach of contract may also be limited or excluded by agreement.Will this limitation or exclusion be always enforced?

Bart agreed to deliver fruits worth $1,000 to a retail store.Bart and the store owner agree that if delivery is not made on time,Bart will pay the store some amount as liquidated damages,for the lost sales.Which of the following amounts would most likely be considered penal if they settle for it?

A buyer claiming lost profits caused by the seller's breach of contract is claiming for ________.

Normally,a breach of warranty is considered to have occurred:

Under the UCC,if a liquidated damages clause in a contract turns out to be unenforceable,the injured party can sue for special damages.

S agrees to sell B 10,000 widgets at a price of $1 per widget.After B breaches the contract,S resells the widgets for $0.90 per widget.As a result of selling the widgets at a lower price,S loses $100 in sales commissions.What amount can S recover from B?

If the buyer and seller have agreed to the manner in which the resale is to be made,the courts will enforce the agreement unless it is found to be unconscionable.

In Jewish Federation of Greater Des Moines v.Cedar Forrest Products Co. ,the case in the text,the court held that:

In the case in the text,Helena Chemical Co.v.Williamson,the court considered many factors in determining whether Williamson was able to seek consequential damages.Which of the following was not one of those factors?

If the seller fails or refuses to deliver the goods called for in the contract,the buyer can purchase substitute goods and recover as damages from the seller the difference between the contract price and the cost of the substitute goods.

When would the amount of liquidated damages agreed to by both parties in a contract be considered unconscionable?

Joe agreed on April 1 to sell and deliver 1,000 bushels of wheat to a grain elevator on June 1 for $10 per bushel.He then refused to deliver on June 1 because the market price was then $15 per bushel.How much can the grain elevator recover in damages from Joe?

A contract requires Jim,a farmer,to ship 1,000 dozen eggs to Tim,a grocer.The shipment states "FOB Jim's Farm." If the eggs are lost or damaged:

Which of the following remedies would be unavailable to a buyer that could buy the same kind of goods from elsewhere?

Which of the following is true about the seller's right to reclaim goods from an insolvent buyer?

Ace Computers (AC)is a manufacturer.It entered into a contract with a retailer,Reliable Computer (RC)for the sale of 100 new XYZ model computers at $1,000 each,for delivery in six months.AC would thus make a profit of $50,000.Six months later however,the XYZ model has become almost obsolete;its market price is only $100 at that time.RC refuses to accept or pay for those computers.If AC sues,how much should it be entitled to in damages? (Ignore any incidental expenses or cost savings to AC. )