Exam 23: Sales Remedies

Powers sells 5,000 insulators to Falconbury and issues a negotiable document of title for the goods.The insulators are stored in the Southside Warehouse.When Powers discovers that Falconbury is insolvent,he may effectively stop delivery of the goods by notifying Southside not to deliver the goods to Falconbury.

Perry is building his house and orders a hot water heater from Jones Co.to be installed by them.The hot water heater they sent has a 45-gallon capacity,but Perry had ordered a 60-gallon capacity.Jones cannot provide a 60-gallon heater for two months,so Perry cancels the contract and gets a heater from another company.Jones Co.says it must be allowed to install the replacement heater.What result?

Match each statement with the correct term below. -warranty of merchantability

The availability of some buyer's remedies depends on the buyer's actions.

Under the CISG,avoidance of a contract cancels any provision for settlement of disputes.

Damages a buyer may recover for loss resulting from requirements,the needs of which the seller had reason to know at the time of contracting and which could not reasonably be prevented by cover,are:

Under the CISG,if the buyer fails to perform any obligations,the seller may either require the buyer to pay the price or fix an additional period of time for the buyer to perform.

A lessor retains title to the goods and has the right to recover possession of them upon default by the lessee.

Which type of contractual provision affects remedies?

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

On the seller's breach,if the buyer makes substitute purchases in good faith and without unreasonable delay,she may recover,as damages,the difference between the cost of cover and the contract price,plus incidental damages but minus any expenses she saved because of the seller's breach.

One hundred crystal flower vases have been identified to the contract and a down payment of $1,000 of the $10,000 purchase price has been paid.If the seller becomes insolvent,the buyer may still pay $9,000 and get the goods.

Specific performance is an equitable remedy which seeks to compel the party in breach to perform the contract according to its terms.

Match each statement with the correct term below. -statute of repose

Match each statement with the correct term below. -perfect tender rule

Under the CISG,if the buyer fails to perform contractual obligations,the seller may require the buyer to:

The contract between the buyer and the seller may expressly limit or exclude consequential damages so long as the contract is not unconscionable.

Match each statement with the correct term below. -cure

Rachel agrees to sell Bill goods for $2,000.The value of the goods accepted is $1,500.If the goods had been as warranted,their value would have been $2,600.What are the buyer's damages for breach of warranty?

Match each statement with the correct term below. -replevin