Question 1

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

Accepted Answer

A) Unfairness in the bargaining process. 
B) An action at law to recover specific goods in the possession of a defendant that are being unlawfully withheld from the plaintiff. 
C) An amount specified by the parties that is recoverable in the event of a breach. 
D) A seller makes available to a buyer goods conforming to the contract and so notifies the buyer. 
E) The inability of a person to pay his debts in the ordinary course of business or as they become due.
F)Total liabilities exceeding the total value of all assets.
G)Commercially reasonable expenses directly resulting from a breach.
H)Expenses resulting from the buyer's requirements and which the seller had reason to know at the time of contracting; also injury to person or property proximately resulting from breach of warranty.
I)A buyer's purchase of goods in substitution for those not delivered by a breaching seller.
J)Oppressive or grossly unfair contractual provisions.
K)The Code rule that a seller's tender of performance must exactly conform to the contract terms.
L)The right of a seller under the Code to correct a nonconforming delivery of goods to the buyer.
M)The manifestation by a buyer of unwillingness to become the owner of the goods.
N)Rescission of a buyer's acceptance of the goods based upon a nonconformity which substantially impairs their value. 
A) Unfairness in the bargaining process. 
B) An action at law to recover specific goods in the possession of a defendant that are being unlawfully withheld from the plaintiff. 
C) An amount specified by the parties that is recoverable in the event of a breach. 
D) A seller makes available to a buyer goods conforming to the contract and so notifies the buyer. 
E) The inability of a person to pay his debts in the ordinary course of business or as they become due.
F)Total liabilities exceeding the total value of all assets.
G)Commercially reasonable expenses directly resulting from a breach.
H)Expenses resulting from the buyer's requirements and which the seller had reason to know at the time of contracting; also injury to person or property proximately resulting from breach of warranty.
I)A buyer's purchase of goods in substitution for those not delivered by a breaching seller.
J)Oppressive or grossly unfair contractual provisions.
K)The Code rule that a seller's tender of performance must exactly conform to the contract terms.
L)The right of a seller under the Code to correct a nonconforming delivery of goods to the buyer.
M)The manifestation by a buyer of unwillingness to become the owner of the goods.
N)Rescission of a buyer's acceptance of the goods based upon a nonconformity which substantially impairs their value.

Question 2

As the result of a seller's breach,a buyer may ask for incidental damages.Incidental damages include costs incurred in:

Accepted Answer

A) storing goods in a warehouse. 
B) making calls to obtain replacement goods. 
C) inspecting the goods. 
D) All of the above. 
A) storing goods in a warehouse. 
B) making calls to obtain replacement goods. 
C) inspecting the goods. 
D) All of the above.

Question 3

A buyer who does not cover is precluded from consequential damages that could have been prevented if the buyer did obtain cover.

Accepted Answer

A) True 
 B)False

Question 4

Smith's of Dallas agreed to buy $10,000 worth of dresses F.O.B.Dallas from Magnifique Manufacturing Co.in New York for their October 1 Fall Showing.The cost of shipping the dresses is $300.In New York,Magnifique dresses were the rage,but the boom had not yet reached Dallas.By September 15,Smith's realized that the shop could not afford all of these dresses and called Magnifique to cancel the contract before the goods were shipped.On September 15,the market price for the dresses in New York was $9,000 and in Dallas,$5,000.On October 1,the market price had risen to $9,500 in New York and to $7,000 in Dallas.What may Magnifique do? What damages may be sought from Smith's?

Accepted Answer

a.The Code seeks to further a more liber

Question 5

After a breach by the seller,buyer may replevy the goods after identification if:

Accepted Answer

A) he acts within 30 days. 
B) he cannot, after a reasonable effort, buy replacement goods. 
C) the seller is insolvent. 
D) he cannot buy replacement goods or the seller is insolvent. 
A) he acts within 30 days. 
B) he cannot, after a reasonable effort, buy replacement goods. 
C) the seller is insolvent. 
D) he cannot buy replacement goods or the seller is insolvent.

Question 6

The contract between the buyer and the seller cannot provide for any additional remedies other than those specified in the Code.

Accepted Answer

A) True 
 B)False

Question 7

The amount of liquidated damages included in a contract that would be upheld by a court:

Accepted Answer

A) must be reasonable in light of the inconveniences or lack of feasibility of obtaining an adequate remedy. 
B) may be so high as to be punitive to the breaching party. 
C) may be regarded as a penalty. 
D) All of the above. 
E) None of the above. 
A) must be reasonable in light of the inconveniences or lack of feasibility of obtaining an adequate remedy. 
B) may be so high as to be punitive to the breaching party. 
C) may be regarded as a penalty. 
D) All of the above. 
E) None of the above.

Question 8

Which of the following is correct with respect to consequential damages under the Code?

Accepted Answer

A) Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods. 
B) Consequential damages include damages for lost profits from a contract to resell goods which the seller never delivers. 
C) Particular needs of the buyer need to be made known to the seller before the seller can be held responsible for consequential damages relating to those needs. 
D) All of the above are correct. 
A) Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods. 
B) Consequential damages include damages for lost profits from a contract to resell goods which the seller never delivers. 
C) Particular needs of the buyer need to be made known to the seller before the seller can be held responsible for consequential damages relating to those needs. 
D) All of the above are correct.

Question 9

Under the UCC,the aggrieved party must choose one remedy to ask for and forfeit the others.

Accepted Answer

A) True 
 B)False

Question 10

If the breach by the seller concerns the whole contract,the buyer may cancel the entire contract.

Accepted Answer

A) True 
 B)False

Question 11

A seller has breached his contract by providing unfit seed for the planting of beans.Damages would include:

Accepted Answer

A) the lost profits from a contract to sell the bean crop. 
B) the cost of keeping the defective seed in a storeroom. 
C) the cost of replacement seed. 
D) All of the above. 
A) the lost profits from a contract to sell the bean crop. 
B) the cost of keeping the defective seed in a storeroom. 
C) the cost of replacement seed. 
D) All of the above.

Question 12

Match each statement with the correct term below.
-course of dealing

Accepted Answer

A) A sequence of previous conduct between parties establishing a basis for interpreting their agreement. 
B) A practice or method of dealing regularly observed and followed in a place, vocation, or trade. 
C) Contractual obligation arising by operation of law providing the goods are reasonably fit for the ordinary purposes for which they are used. 
D) Transfer of possession without title to buyer for a trial period; title and risk of loss remain with seller until buyer accepts the goods. 
E) A contract in which the seller bears the risk of loss and expense until the goods are delivered to the carrier for shipment.
F)Transfer of right to possession and use of goods in return for consideration.
G)Transfer of title to goods from seller to buyer for a price.
H)An offer in writing by a merchant that gives assurance it will be kept open for a period of time up to three months.
I)A contract in which goods are sold and delivered to the buyer with an option to return them to the seller; the risk of loss is on the buyer until she returns the goods.
J)Delivery term for a shipment contract, free on board.
K)Movable personal property.
L)Concept under which the Code excuses performance when an unforeseen supervening event, not within the contemplation of the parties at the time of contracting, occurs.
M)Limits the time period for which a manufacturer is liable for injury caused by its product.
N)Historically, a contractual relationship between the plaintiff and the defendant that was necessary at common law to maintain a lawsuit.
O)An affirmation of fact or promise about the goods or a description, including a sample of the goods, which becomes part of the basis of the bargain.
P)A contract in which the seller is required to tender delivery of the goods at a particular destination; the seller bears the risk of loss until the goods are tendered to the buyer.
Q)A negation of a warranty.
R)Designation of specific goods as goods to which the contract of sale refers.
S)A person who is a dealer in the goods, or who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved, or who employs an agent or broker whom he holds out as having such knowledge or skill.
T)Honesty in fact in the conduct or transaction concerned. 
A) A sequence of previous conduct between parties establishing a basis for interpreting their agreement. 
B) A practice or method of dealing regularly observed and followed in a place, vocation, or trade. 
C) Contractual obligation arising by operation of law providing the goods are reasonably fit for the ordinary purposes for which they are used. 
D) Transfer of possession without title to buyer for a trial period; title and risk of loss remain with seller until buyer accepts the goods. 
E) A contract in which the seller bears the risk of loss and expense until the goods are delivered to the carrier for shipment.
F)Transfer of right to possession and use of goods in return for consideration.
G)Transfer of title to goods from seller to buyer for a price.
H)An offer in writing by a merchant that gives assurance it will be kept open for a period of time up to three months.
I)A contract in which goods are sold and delivered to the buyer with an option to return them to the seller; the risk of loss is on the buyer until she returns the goods.
J)Delivery term for a shipment contract, free on board.
K)Movable personal property.
L)Concept under which the Code excuses performance when an unforeseen supervening event, not within the contemplation of the parties at the time of contracting, occurs.
M)Limits the time period for which a manufacturer is liable for injury caused by its product.
N)Historically, a contractual relationship between the plaintiff and the defendant that was necessary at common law to maintain a lawsuit.
O)An affirmation of fact or promise about the goods or a description, including a sample of the goods, which becomes part of the basis of the bargain.
P)A contract in which the seller is required to tender delivery of the goods at a particular destination; the seller bears the risk of loss until the goods are tendered to the buyer.
Q)A negation of a warranty.
R)Designation of specific goods as goods to which the contract of sale refers.
S)A person who is a dealer in the goods, or who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved, or who employs an agent or broker whom he holds out as having such knowledge or skill.
T)Honesty in fact in the conduct or transaction concerned.

Question 13

Match each statement with the correct term below.
-consequential damages

Accepted Answer

A) Unfairness in the bargaining process. 
B) An action at law to recover specific goods in the possession of a defendant that are being unlawfully withheld from the plaintiff. 
C) An amount specified by the parties that is recoverable in the event of a breach. 
D) A seller makes available to a buyer goods conforming to the contract and so notifies the buyer. 
E) The inability of a person to pay his debts in the ordinary course of business or as they become due.
F)Total liabilities exceeding the total value of all assets.
G)Commercially reasonable expenses directly resulting from a breach.
H)Expenses resulting from the buyer's requirements and which the seller had reason to know at the time of contracting; also injury to person or property proximately resulting from breach of warranty.
I)A buyer's purchase of goods in substitution for those not delivered by a breaching seller.
J)Oppressive or grossly unfair contractual provisions.
K)The Code rule that a seller's tender of performance must exactly conform to the contract terms.
L)The right of a seller under the Code to correct a nonconforming delivery of goods to the buyer.
M)The manifestation by a buyer of unwillingness to become the owner of the goods.
N)Rescission of a buyer's acceptance of the goods based upon a nonconformity which substantially impairs their value. 
A) Unfairness in the bargaining process. 
B) An action at law to recover specific goods in the possession of a defendant that are being unlawfully withheld from the plaintiff. 
C) An amount specified by the parties that is recoverable in the event of a breach. 
D) A seller makes available to a buyer goods conforming to the contract and so notifies the buyer. 
E) The inability of a person to pay his debts in the ordinary course of business or as they become due.
F)Total liabilities exceeding the total value of all assets.
G)Commercially reasonable expenses directly resulting from a breach.
H)Expenses resulting from the buyer's requirements and which the seller had reason to know at the time of contracting; also injury to person or property proximately resulting from breach of warranty.
I)A buyer's purchase of goods in substitution for those not delivered by a breaching seller.
J)Oppressive or grossly unfair contractual provisions.
K)The Code rule that a seller's tender of performance must exactly conform to the contract terms.
L)The right of a seller under the Code to correct a nonconforming delivery of goods to the buyer.
M)The manifestation by a buyer of unwillingness to become the owner of the goods.
N)Rescission of a buyer's acceptance of the goods based upon a nonconformity which substantially impairs their value.

Question 14

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

Accepted Answer

A) A sequence of previous conduct between parties establishing a basis for interpreting their agreement. 
B) A practice or method of dealing regularly observed and followed in a place, vocation, or trade. 
C) Contractual obligation arising by operation of law providing the goods are reasonably fit for the ordinary purposes for which they are used. 
D) Transfer of possession without title to buyer for a trial period; title and risk of loss remain with seller until buyer accepts the goods. 
E) A contract in which the seller bears the risk of loss and expense until the goods are delivered to the carrier for shipment.
F)Transfer of right to possession and use of goods in return for consideration.
G)Transfer of title to goods from seller to buyer for a price.
H)An offer in writing by a merchant that gives assurance it will be kept open for a period of time up to three months.
I)A contract in which goods are sold and delivered to the buyer with an option to return them to the seller; the risk of loss is on the buyer until she returns the goods.
J)Delivery term for a shipment contract, free on board.
K)Movable personal property.
L)Concept under which the Code excuses performance when an unforeseen supervening event, not within the contemplation of the parties at the time of contracting, occurs.
M)Limits the time period for which a manufacturer is liable for injury caused by its product.
N)Historically, a contractual relationship between the plaintiff and the defendant that was necessary at common law to maintain a lawsuit.
O)An affirmation of fact or promise about the goods or a description, including a sample of the goods, which becomes part of the basis of the bargain.
P)A contract in which the seller is required to tender delivery of the goods at a particular destination; the seller bears the risk of loss until the goods are tendered to the buyer.
Q)A negation of a warranty.
R)Designation of specific goods as goods to which the contract of sale refers.
S)A person who is a dealer in the goods, or who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved, or who employs an agent or broker whom he holds out as having such knowledge or skill.
T)Honesty in fact in the conduct or transaction concerned. 
A) A sequence of previous conduct between parties establishing a basis for interpreting their agreement. 
B) A practice or method of dealing regularly observed and followed in a place, vocation, or trade. 
C) Contractual obligation arising by operation of law providing the goods are reasonably fit for the ordinary purposes for which they are used. 
D) Transfer of possession without title to buyer for a trial period; title and risk of loss remain with seller until buyer accepts the goods. 
E) A contract in which the seller bears the risk of loss and expense until the goods are delivered to the carrier for shipment.
F)Transfer of right to possession and use of goods in return for consideration.
G)Transfer of title to goods from seller to buyer for a price.
H)An offer in writing by a merchant that gives assurance it will be kept open for a period of time up to three months.
I)A contract in which goods are sold and delivered to the buyer with an option to return them to the seller; the risk of loss is on the buyer until she returns the goods.
J)Delivery term for a shipment contract, free on board.
K)Movable personal property.
L)Concept under which the Code excuses performance when an unforeseen supervening event, not within the contemplation of the parties at the time of contracting, occurs.
M)Limits the time period for which a manufacturer is liable for injury caused by its product.
N)Historically, a contractual relationship between the plaintiff and the defendant that was necessary at common law to maintain a lawsuit.
O)An affirmation of fact or promise about the goods or a description, including a sample of the goods, which becomes part of the basis of the bargain.
P)A contract in which the seller is required to tender delivery of the goods at a particular destination; the seller bears the risk of loss until the goods are tendered to the buyer.
Q)A negation of a warranty.
R)Designation of specific goods as goods to which the contract of sale refers.
S)A person who is a dealer in the goods, or who by his occupation holds himself out as having knowledge or skill peculiar to the goods or practices involved, or who employs an agent or broker whom he holds out as having such knowledge or skill.
T)Honesty in fact in the conduct or transaction concerned.

Question 15

Where the seller fails to make delivery,the buyer can cancel the contract,but he must give the seller notice of his cancellation.

Accepted Answer

A) True 
 B)False

Question 16

When the buyer breaches a sales contract,if the difference between the contract price and the market price will not place the seller in as good a position as performance would have,then the seller may recover the lost profit.

Accepted Answer

A) True 
 B)False

Question 17

The right of the buyer to recover from an insolvent seller the goods in which he has a special property interest and for which he has paid,existed at common law before being included in the Code.

Accepted Answer

A) True 
 B)False

Question 18

Replevin is an action at law to recover specific goods in the possession of the defendant which are being unlawfully withheld from the plaintiff.

Accepted Answer

A) True 
 B)False

Question 19

An aggrieved seller who resells wrongfully rejected goods is accountable to the original buyer for any profit made on the resale.

Accepted Answer

A) True 
 B)False

Question 20

Under the CISG,what are the damages for breach of contract by one party? Does the aggrieved party have any responsibilities after the breach occurs?

Accepted Answer

Damages for breach of contract by one pa

Exam 23: Sales Remedies

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

As the result of a seller's breach,a buyer may ask for incidental damages.Incidental damages include costs incurred in:

A buyer who does not cover is precluded from consequential damages that could have been prevented if the buyer did obtain cover.

After a breach by the seller,buyer may replevy the goods after identification if:

The contract between the buyer and the seller cannot provide for any additional remedies other than those specified in the Code.

The amount of liquidated damages included in a contract that would be upheld by a court:

Which of the following is correct with respect to consequential damages under the Code?

Under the UCC,the aggrieved party must choose one remedy to ask for and forfeit the others.

If the breach by the seller concerns the whole contract,the buyer may cancel the entire contract.

A seller has breached his contract by providing unfit seed for the planting of beans.Damages would include:

Match each statement with the correct term below. -course of dealing

Match each statement with the correct term below. -consequential damages

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

Where the seller fails to make delivery,the buyer can cancel the contract,but he must give the seller notice of his cancellation.

When the buyer breaches a sales contract,if the difference between the contract price and the market price will not place the seller in as good a position as performance would have,then the seller may recover the lost profit.

The right of the buyer to recover from an insolvent seller the goods in which he has a special property interest and for which he has paid,existed at common law before being included in the Code.

Replevin is an action at law to recover specific goods in the possession of the defendant which are being unlawfully withheld from the plaintiff.

An aggrieved seller who resells wrongfully rejected goods is accountable to the original buyer for any profit made on the resale.

Under the CISG,what are the damages for breach of contract by one party? Does the aggrieved party have any responsibilities after the breach occurs?

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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