Exam 22: Remedies for Breach of Sales Contracts

Wonder Widgets agrees to sell Bill Buyer 10,000 of its "Grade A" widgets at a price of $3 per widget.After Wonder breaches the contract by failing to deliver,Bill buys substitute widgets at a price of $3.20 per widget.Bill also incurs $200 in reasonable expenses associated with the purchase.Bill then sues Wonder for $2,200.What,if anything,can Bill actually recover?

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 unconscionable if they settle for it?

In which of the following transactions is the buyer most likely to be entitled to specific performance of the contract?

If goods from a breached contract are resold at a public sale,the seller must:

In case of resale of goods arising out of a breach of contract,if the seller sets aside goods intended for the contract or completes the manufacture of such goods,he is:

The UCC has incorporated the common law concept of rescission as a remedy available to a buyer in a breach of contract dispute.

Which section of the UCC indicates that upon breach of a contract,a buyer can purchase substitute goods,which is referred to as cover?

As demonstrated in the case in the text,Green Wood Industrial Company v.Forceman International Development Group,problems appear with allowing damages based on a third-party claim.This is because:

Under the UCC,a remedy limitation blocking recovery for personal injury caused by consumer goods is prima facie unconscionable.

For warranties that cover the future performance of goods,a breach of warranty occurs:

If the seller delivers defective goods to the buyer,the buyer can recover the value of the goods as warranted minus the value of the goods received.

Which of the following statements about consequential damages is false?

Tire Depot sells Jake a tire for his car,warranting it to be four-ply construction.Jake unintentionally drives over a nail,which punctures the tire.The tire goes flat and Jake discovers that the tire is really only two-ply.Jake promptly notifies Tire Depot of the breach.Which of the following is the likely result?

If the seller is in the process of manufacturing the goods when the buyer breaches the contract,one of the seller's options is to complete the manufacture of the goods and then resell them so long as this minimizes the loss to the seller.

Under the Convention on Contracts for the International Sale of Goods,an aggrieved seller has five potential remedies when the buyer breaches the contract.Which of the following is not one of the remedies available?

Which of the following is a common way in which sellers breach contracts?

Spokes Bicycles has a contract with Trail Parts,Inc.that requires Spokes to buy 200 bicycle gears from Trail at a price of $50 per gear.For an unknown reason,Spokes cancels the contract after Trail has already finished manufacturing all 200 gears.Trail offers the gears to ACE Bikes for $20 each.ACE is shocked by the great deal because these types of gears normally retail for $50.ACE agrees to purchase the gears.Trail then sues Spokes for its lost profits.Which of the following is true?

A buyer breaches a contract with a seller.If the contract states the manner in which resale of the goods is to be made,which of the following statements is false?

Which section of the UCC,governs liquidated damages in a contract dispute?

On October 1,2009,Dave purchased four new tires for his truck.Each tire came with a four year or 40,000 mile warranty.After driving on the tires for exactly 3 years and 25,000 miles,he discovered a defect.Assuming Dave discovered the defect in a reasonable amount of time,when would he need to bring his claim for breach of warranty?