Exam 23: Sales Remedies

If the seller has failed to comply with Code requirements in making a resale of goods that were wrongfully rejected,a good faith purchaser at the resale takes the goods subject to rights of the original buyer.

Which of the following remedies are mutually exclusive and could not be obtained simultaneously?

Match each statement with the correct term below. -usage of trade

If the buyer received goods on credit while he was insolvent by misrepresenting his solvency in writing within three months prior to deliver of the goods,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 buyer's incidental damages resulting from the seller's breach include:

Match each statement with the correct term below. -revocation of acceptance

If the seller has the right to cancel,he may recover damages for breach without having to tender any further performance.

The seller may resell the goods identified to a contract:

A buyer's right to purchase,in good faith and without unreasonable delay,substituted goods from Seller B when Seller A breaches a sales contract is:

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

What is the purpose of the Code remedies for breach of sales contracts? How is this purpose accomplished?

A contractual remedy is optional unless the parties expressly agree that it is to be exclusive.

Match each statement with the correct term below. -shipment contract

A seller's remedies upon the buyer's default:

Massey Fabrications sells some equipment to Keiser Co.,warranting its suitability for Keiser's purpose.The equipment,which is not suitable for Keiser's purpose,causes $5,000 in damage to Keiser's property and $12,000 in personal injuries.Keiser can recover $17,000 in consequential damages.

Amy agrees to buy goods from Van for a contract price of $2,000 payable on delivery.Amy repudiates the contract and refuses to pay anything.Van resells the goods in compliance with the Code for $1,700,incurring $200 in sales commissions but saving $250 in shipping costs.Van would recover from Amy:

Breach of one installment of an installment contract never gives rise to breach under the whole contract.

Match each statement with the correct term below. -equity insolvency

Tom breached a sales contract to purchase goods from Jim.In addition to other remedies available,Jim may be able to recover commercially reasonable expenses incurred as a result of the breach.These expenses are:

Match each statement with the correct term below. -FOB