Deck 20: Remedies for Breach of Sales and Lease Contracts

Question 1

If there is an anticipatory repudiation of a contract for the sale of goods,the nonbreaching party may choose whether to await performance or treat the contract as breached at the time of the repudiation.

Answer 1

True

Question 2

If goods are already in transit when a buyer breaches,the seller may stop their delivery.

Answer 2

True

Question 3

If a seller requires cash as payment,the buyer must be allowed an extension of time to be able to procure the cash.

Answer 3

True

Question 4

If a seller "resells" the goods after a breach by the buyer,the resale must be at a public auction.

Question 5

A sales contract requires the seller to deliver 100 shirts to the buyer.Upon inspection the buyer discovers that 99 shirts conform to the contract but one does not.The buyer must return the entire shipment and either ask for a refund or replace the order with the seller.

Question 6

The right to cure refers to the seller or lessor's right to repair or replace defective or nonconforming goods.

Question 7

If a seller gives notice to a buyer to return goods sold to him or her,and the buyer refuses the demand,then the seller or lessor may use self-help to reclaim the goods.

Question 8

If a contract does not expressly state where the delivery will take place,the UCC relieves the seller of any obligation to tender goods to the buyer.

Question 9

A buyer who agrees to C.O.D.payment terms continues to have the right to inspect goods before paying for them.

Question 10

Unless otherwise agreed or circumstances permit,the seller must deliver all goods named in a contract in a single shipment.

Question 11

A replevin action is available whenever the seller or lessor is wrongfully withholding goods.

Question 12

Generally,a buyer may take physical possession of the goods and inspect them within a reasonable time without having accepted the goods.

Question 13

When goods named in a contract are held by a bailee,tender of delivery occurs when the buyer receives the goods from the bailee.

Question 14

A buyer who rightfully rejects goods must notify the seller of the reasons for rejection to preserve the buyer's rights.

Question 15

If a buyer purchases similar goods elsewhere after a breach by the seller,this is known as cover.

Question 16

If a seller delivers nonconforming goods under an installment contract,the buyer or lessee may reject any noncomforming installment if the value of the installment is impaired and the defect cannot be cured.

Question 17

A party requesting assurance of performance from the other party remains obligated to perform its own obligations even if adequate assurance is not received from the other party.

Question 18

When there is an anticipatory repudiation,the aggrieved party will not have a cause of action until the time that performance was due.

Question 19

If a seller cancels a sales or lease contract with a buyer,the cancellation may refer only to the affected goods.

Question 20

Tender of delivery under the UCC requires the seller to transfer and deliver goods to the buyer in accordance with a sales or lease contract.

Question 21

Under the UCC,the parties are free to set the statute of limitations applicable to a contract to whatever length of time that they agree to.

Question 22

Under the perfect tender rule,when a buyer receives a shipment of 1,000 identical items,20 of which are nonconforming,which ones can the buyer reject?

A) none,because the quantity that do not conform is immaterial
B) the 20 nonconforming units
C) all 1,000 units
D) seven of the nonconforming units and 150 of the conforming units
E) A,B,C,or D

Question 23

If a seller has delivered nonconforming goods that have been rejected by the buyer,the seller has a right to cure:

A) only if the time for performance has not yet expired
B) under some circumstances,even if the original time for performance has passed
C) only if the contract specifically allows for cure
D) only if the buyer agrees
E) only if the seller can do so within 10 days

Question 24

Assuming that goods are nonconforming and that the nonconformity substantially impairs their value to the buyer,which of the following additional factors must be present for a valid revocation of the acceptance of goods?

A) Nothing else is needed.
B) The goods must have been accepted before the nonconformity was discovered,and the nonconformity must have been difficult to discover.
C) The goods must have been accepted on the reasonable assumption that the seller could and would cure the nonconformity.
D) Both B and C are required to revoke the acceptance of the goods.
E) If either B or C is present,the acceptance of the goods can be revoked.

Question 25

Which of the following statements is true regarding installment contracts?

A) To be an installment contract,the contract must state that each delivery is a separate contract or words to that effect.
B) The buyer may reject the entire contract for any nonconformity.
C) The buyer may reject the entire contract only if the nonconformity of one shipment affects the value of the entire contract.
D) A,B,and C are true.
E) A and C only are true.

Question 26

The basic obligation of a seller of goods to transfer and deliver goods to the buyer in accordance with the terms of the contract is known as:

A) performance of delivery
B) tender of delivery
C) delivery as agreed
D) anticipatory delivery

Question 27

The buyer or lessee may obtain specific performance of a sales or lease contract if the goods are unique or the remedy at law is inadequate.

Question 28

If a seller delivers nonconforming goods prior to the date that delivery is due,the seller has the opportunity to make the shipment conform under the:

A) time to conform rule
B) right to make perfect
C) reasonable delay doctrine
D) right to cure

Question 29

A destination contract requires that the seller:

A) deliver the goods to a common carrier
B) deliver the goods to the buyer
C) give proper and adequate notice to the buyer
D) A and C
E) B and C

Question 30

Which of the following would constitute a valid acceptance of goods?

A) The buyer tells the seller that the nonconforming goods that were shipped will be kept and paid for.
B) The buyer waits for 3 months before notifying the seller that the goods are nonconforming.
C) The buyer immediately resells the nonconforming goods.
D) A,B,and C
E) A and C only

Question 31

Which of the following must be met in every instance in order to revoke an acceptance of goods?

A) The nonconformity must substantially impair the value of the goods.
B) The seller's promise to cure the nonconformity must not have not been met.
C) The goods must have been accepted before discovery of the nonconformity and the nonconformity must have been one that was difficult to discover.
D) The goods must have been accepted before discovery of the nonconformity and the seller must have assured the buyer that the goods were conforming.

Question 32

Which of the following is true about a buyer's right of inspection?

A) This right must be agreed to in the contract in order for it to apply.
B) This right exists even if not mentioned in the contract,and the seller has the sole right to determine the time and place the right may be exercised.
C) This right exists even if not mentioned in the contract,and the buyer has the sole right to determine the time and place the right may be exercised.
D) If not mentioned in the contract,the buyer has the right to inspect goods in a reasonable time,place,and manner prior to accepting or paying for them.
E) If not mentioned in the contract,the buyer has the right to inspect goods in a reasonable time,place,and manner once the goods have been accepted.

Question 33

In a noncarrier contract for the sale of goods where the goods are held by a bailee,tender of delivery can occur upon the happening of the following EXCEPT which of the following?

A) The seller tenders to the buyer a negotiable document of title covering the goods.
B) The seller tenders to the buyer acknowledgment from the seller's bank that the goods have been sold.
C) The seller procures acknowledgment from the bailee of the buyer's right to possession of the goods.
D) The seller tenders to the buyer a nonnegotiable document of title.
E) The seller tenders to the buyer a written direction to the bailee to deliver the goods to the buyer.

Question 34

The right to cure extends beyond the date that delivery is called for under the contract:

A) only if the contract allows
B) in all contracts covered by the UCC
C) in any situation where it is commercially reasonable that it extend
D) in any situation where cure by the original delivery date would impose a hardship on the seller
E) in any situation where the seller reasonably believed that the buyer would accept the nonconforming goods

Question 35

In a shipment contract,the buyer must do all of the following EXCEPT:

A) locate the most cost-effective common carrier for the shipment of the goods
B) place the goods in the possession of the carrier
C) contract for the proper and safe transportation of the goods
D) obtain and deliver any appropriate documents related to the sale and shipment
E) notify the buyer of the shipment

Question 36

Which of the following is generally true about provisions in a contract under the UCC that provide specific remedies?

A) These specific remedies are always in addition to those provided by the UCC.
B) These specific remedies are unenforceable because the UCC remedy provisions control.
C) The UCC remedies also apply unless the contract states that the contract remedies are exclusive.
D) The specific contract remedies will be considered to be unconscionable.

Question 37

When the goods identified to a contract are totally destroyed through the fault of neither party before risk of loss passes to the buyer,which of the following is true?

A) The contract is void.
B) The seller is obligated to find replacement goods.
C) The contract is voidable by the buyer.
D) The seller is liable to the buyer for damages.

Question 38

Which of the following statements is true about acceptance of goods and the revocation of that acceptance?

A) In order to reject nonconforming goods,the nonconformity must be one that substantially impairs the value of the goods to the buyer.
B) An acceptance of goods can be revoked in any circumstance where the goods could have been rejected initially.
C) Goods can be rejected in more circumstances than those where an acceptance of goods can be revoked.
D) If the buyer actually saw and inspected the goods prior to acceptance,the acceptance of those goods cannot be revoked.

Question 39

Common provisions in contracts that modify the perfect tender rule include the following EXCEPT which of the following?

A) Only the defective goods can be rejected.
B) The seller has the opportunity to replace nonconforming goods.
C) The seller has the opportunity to repair defective goods.
D) The buyer can reject any or all goods in a nonconforming shipment.
E) The buyer will accept nonconforming goods with an appropriate price concession from the seller.

Question 40

The requirement that goods tendered to a buyer must conform in all ways to the terms of the contract is called the:

A) complete performance rule
B) perfect tender rule
C) no right to cure rule
D) substantial performance rule

Question 41

If a seller breaches a contract for the sale of goods and the buyer then acquires similar goods from another supplier,this is known as the right of:

A) alternate acquisition
B) specific performance
C) cover
D) contract cancellation

Question 42

A ski shop orders 500 pairs of downhill ski boots from a ski equipment manufacturer to be delivered to the ski shop on November 1.Late in the day on November 1,the ski shop receives a delivery.After the shop closes for the day,shop employees notice that the shipment consists of 500 pairs of skis,not ski boots.Which is true regarding the manufacturer's right to cure?

A) The manufacturer has a reasonable time to cure.
B) There is no right to cure because this breach was substantial.
C) There is no right to cure because the time for performance has passed.
D) The manufacturer has a right to cure,but only if the value of the skis received is at least as great as the value of the ski boots that were ordered.

Question 43

If one party to a contract anticipatorily repudiates the contract,the aggrieved party may:

A) treat the repudiation as a breach at that time
B) await performance for a commercially reasonable time
C) suspend his/her own performance
D) all of the above

Question 44

Liquidated damages under the UCC:

A) are not permissible
B) are not permissible anytime both parties have agreed to them
C) are permissible only if other remedies are inadequate
D) are permissible if reasonable,considering actual damages and the difficulties in computing actual damages

Question 45

When a party retracts an anticipatory repudiation,it means that the party:

A) performed the contract,but is now taking back that performance
B) breached a similar contract in the past,but will perform the current contract
C) is breaching the current contract due to circumstances beyond its control,but will be able to perform all similar contracts in the future
D) had previously indicated that it would not perform the current contract,but has now indicated that it will perform the current contract
E) is demanding that the other party to a contract live up to its obligations

Question 46

A buyer who has knowingly accepted nonconforming goods with no assurance of cure:

A) has given up any right to later reject the good for this nonconformity
B) may nonetheless recover damages resulting from the nonconformity
C) may recover damages only if the buyer covers
D) may recover damages only if the buyer can prove lost profits

Question 47

The seller can recover the purchase price for the goods only under certain circumstances,including which of the following situations?

A) The buyer accepts,but fails to pay for the goods.
B) The goods are destroyed after risk of loss passes to the buyer.
C) The buyer rejects specially manufactured goods that cannot be resold.
D) A,B,and C
E) A and B only

Question 48

If the seller or lessor tenders nonconforming goods and the buyer or lessee accepts them,what remedies are available to the buyer?

A) sue for ordinary damages
B) deduct damages from the unpaid purchase price
C) punitive damages
D) A only
E) A and B only

Question 49

Which of the following statements is not true regarding the buyer's right to cover?

A) The buyer must cover.
B) The measure of damages in a cover is cover price less contract price.
C) Cover must be done in a commercially reasonable manner and without undue delay.
D) Consequential damages can be recovered in addition to the cover damages.
E) The seller may not cover.

Question 50

If a merchant buyer rejects goods,and the seller does not have an agent or place of business at the market where the goods were rejected,the buyer must:

A) follow any reasonable instructions from the seller
B) if no instructions come from the seller,sell the goods
C) if the goods are not perishable,sell the goods
D) A and B only
E) A and C only

Question 51

Which of the following is not a seller's remedy?

A) right to withhold delivery
B) right to resell goods
C) right to cancel the contract
D) right to cover
E) Neither C nor D is a seller's remedy.

Question 52

Which of the following is NOT a buyer's remedy?

A) right to reject
B) right to specific performance
C) right to cancel the contract
D) right to recover damages
E) right to resell

Question 53

Lessee contracts to deliver 50 luxury automobiles to lessor no later than August 15th.On August 1st,Lessee delivers the wrong model of automobile.How much time will the lessee have to cure the defect?

A) None. Once delivery is made,it must be perfect tender.
B) Ten days from the date of the original delivery (August 11th).
C) At least until August 15th.
D) Ten days after August 15th (August 25th).

Question 54

A computer dealer whose place of business is in Chicago contracts on March 15 to sell 100 personal computers to a CPA firm whose place of business is in Milwaukee.The contract does not mention anything about the time or place of delivery.What are the delivery requirements for this contract?

A) at a reasonable place within a reasonable time from March 15
B) at a reasonable place on March 15
C) at the computer dealer within a reasonable time from March 15
D) at the CPA firm within a reasonable time from March 15
E) The parties are obligated to reach an agreement for delivery,and its terms will be controlling.

Question 55

If a seller fails to deliver conforming goods,which of the following remedies is NOT available to the buyer?

A) cover and collect damages equal to the cover price less the contract price
B) not cover,but collect damages equal to the fair market value of the goods less the contract price
C) cover and collect damages equal to the contract price less the cover price
D) sue and collect for lost profits

Question 56

If a party to a contract anticipatorily repudiates a contract,then:

A) that repudiation may not be retracted
B) that repudiation may be retracted under any circumstances
C) that repudiation may be retracted only if the aggrieved party has not changed its position,canceled the contract,or otherwise indicated that the repudiation is final
D) that repudiation may be retracted only with the consent of the other party

Question 57

Which of the following is true about the statute of limitations under the UCC?

A) The statute of limitations is always 4 years.
B) The statute of limitations cannot exceed 4 years.
C) The statute of limitations cannot be less than 2 years.
D) The statute of limitations depends only on the terms of the specific contract.

Question 58

What is the right to replevy goods?

A) It is a seller's remedy to find an alternate buyer for goods.
B) It is a seller's right to make nonconforming goods conforming.
C) It is a buyer's right to seek specific performance for unique goods.
D) It is a buyer's right to recover scarce goods improperly being held by a seller.
E) It is available only if the contract provides.

Question 59

Which of the following statements is NOT true regarding the seller's right to withhold a shipment of goods?

A) If a seller learns of the buyer's insolvency,the seller can stop a shipment of any size.
B) If a solvent buyer repudiates the contract,the seller can stop shipment only of a full carload,truckload,or other type of delivery.
C) The carrier must be given adequate notice for the shipment to be stopped prior to delivery.
D) The seller can stop a shipment even if a negotiable bill of lading has been issued and is outstanding.

Question 60

In a contract for the sale of a unique good such as an antique,specific performance would be available as a remedy for which party(ies)?

A) buyer only
B) seller only
C) both the seller and the buyer
D) neither the seller nor the buyer

Question 61

John needs a new car and goes to the local dealer for Worldwide Motors,a global car manufacturer.John negotiates a deal with the local dealer to buy a new midsize model,the Albatross,for $22,000.The dealer cost on this car is $19,000.John then decided against the Albatross and breached the contract.Later,the dealer sold this car to another customer for $21,600.The dealer also incurred $200 in costs connected with John's canceled order.Assuming that the dealer is allocated only 12 Albatrosses for the year and can get no more,how much can it recover in damages from John? Assume that John has not paid anything to the dealer.

A) $400
B) $600
C) $3,000
D) $3,200
E) $2,600

Question 62

John needs a new car and goes to the local dealer for Worldwide Motors,a global car manufacturer.John negotiates a deal with the local dealer to buy a new midsize model,the Albatross,for $22,000.The dealer cost on this car is $19,000.John then decided against the Albatross and breached the contract.Later the dealer sold this car to another customer for $21,600.The dealer also incurred $200 in costs connected with John's canceled order.Assuming that the dealer can get as many Albatrosses as it wants,how much can it recover in damages from John? Assume that John has not paid anything to the dealer.

A) $400
B) $600
C) $3,000
D) $3,200
E) $2,600

Question 63

Jane,a private individual,has her only piano for sale.Roger contracts to buy it for $500; however,Roger never accepts or pays for it.Jane then sells it to Mark for $550.Jane had no additional costs or expenses.If Jane sues Roger for breach of contract,the proper measure of Jane's damages would be which of the following?

A) contract price less resale price
B) contract price less fair market value
C) contract price
D) lost profits
E) Jane suffered no damage.

Question 64

An outdoor clothing store ordered 1,000 pairs of hiking shorts in various sizes and two colors.The color mix was 48 percent khaki and 52 percent olive green.The supplier delivered the proper size mix on the date called for in the contract,but delivered 50 percent khaki and 50 percent olive green.In this circumstance,the buyer can:

A) not reject any of the shipment because there is substantial performance
B) reject only the portion of the shipment that was incorrect
C) reject the whole shipment,but only if the buyer covers within a reasonable time
D) reject the entire shipment,or part of the shipment

Question 65

An oil refiner in the United States contracts on April 1 with a broker to buy crude oil from a specific foreign country with delivery to be made on July 15.On June 15,civil war breaks out in the nation that is the source of the oil,disrupting most exports.The oil refiner immediately writes to the broker demanding assurance of performance,and gets no reply.In this situation,which of the following is true?

A) The oil refiner must wait until July 15 before suspending its own performance.
B) The oil refiner can suspend its performance and consider the contract to be repudiated.
C) The oil refiner can suspend its performance before July 15 only if the broker confirms that it will not be able to deliver the crude oil.
D) The oil refiner must cover at this point in order to be able to suspend its performance on the original contract.

Question 66

John buys some vinyl siding from JKL Construction Company,which installs it on John's house.The siding comes with a 10-year warranty against peeling and chipping.During the fifth year after installation,the siding starts to peel and chip excessively.John sues JKL in the sixth year,but JKL claims that the statute of limitations has run.In these circumstances,which of the following is true?

A) JKL wins; the statute of limitations is 4 years.
B) JKL wins; the statute of limitations is 2 years.
C) John wins; the statute of limitations is 6 years.
D) John wins; the statute of limitations does not start to run until the warranty is breached.
E) John wins; the statute of limitations does not start to run until John files a lawsuit.

Question 67

A buyer contracts to buy an automobile from a seller (an individual who is not a car dealer)for $1,000.The buyer fails to accept and pay for this car,so the seller sells it to another party for $1,200.This second sale cost the seller an extra $50 in advertising.The seller sues the buyer for damages for breach of contract.In this situation,which of the following is true?

A) The seller can collect $250.
B) The seller can collect $200.
C) The seller can collect $50.
D) The seller collects nothing,but keeps the extra amount received.
E) The seller collects nothing,but must give buyer the extra $150.

Question 68

Sustainable Earth Clothiers is a retailer who sells only natural fiber clothing made from fibers that are organically raised.Because of the store's heavy advertising that it sells only products made from organically raised fibers,it simply cannot sell any clothing that is not made from such fibers.Sustainable Earth buys 1,000 cotton shirts that are delivered and accepted after an inspection.Three weeks later it is learned that these shirts were made from cotton that was not organically grown.The market value of the shirts is not affected by the fact that the cotton is nonorganic.Assuming that it is difficult to determine by observing the shirts that they were made from nonorganic cotton,which of the following is true?

A) Sustainable Earth must keep the shirts because it accepted them after the inspection.
B) Sustainable Earth must keep the shirts because the market value of the nonconforming shirts is the same as that for conforming shirts.
C) Sustainable Earth will be able to revoke acceptance of the nonconforming shirts.
D) Sustainable Earth will be able to revoke acceptance of the shirts only if it can show that the contract would be unconscionable if it were not allowed to revoke the acceptance.

Question 69

A store orders 100 bicycles from a manufacturer.Upon delivery,it is discovered that 75 bicycles conform to the contract specifications and 25 do not.According to the perfect tender rule,what are the options available to the store?

A) It may reject the entire shipment.
B) It may accept 75 and reject 25.
C) It may accept the entire shipment and seek remedies from the manufacturer.
D) All of the above are true.

Question 70

A seller contracts to sell some rare coins to a collector for $10,000,to be delivered 2 months after the date of the contract.On the date that delivery is due,the coins are worth $12,000,but the seller refuses to deliver.The collector acquires similar coins the following week for $13,000,the best price he can find.What can the collector recover from the seller?

A) $1,000
B) $2,000
C) $3,000
D) $5,000
E) Nothing,because she chose to enter into a separate contract for the purchase of coins from another seller.

Question 71

A seller contracted to deliver goods for a contract price of $20,000.At the time of delivery,the seller delivered nonconforming goods,worth only $12,000.If the buyer covers,its cost would be $22,000.If the buyer does not cover,the fair market value of conforming goods is $25,000.Which of the following remedies is NOT available to the buyer?

A) return the nonconforming goods,cover,and collect $2,000 in damages
B) return the nonconforming goods,not cover,and collect $5,000 in damages
C) accept the nonconforming goods and collect $8,000 in damages
D) return the nonconforming goods,not cover,and collect $20,000 in damages

Question 72

A food processing plant enters into a contract with a farmers' cooperative for the purchase of several thousand bushels of wheat at $6.50 per bushel to be delivered on November 15.The contract provides that there will be liquidated damages of $10,000 for each bushel of wheat that the cooperative fails to deliver.Which is true?

A) Liquidated damages clauses are always valid if entered into before the actual breach.
B) Because $10,000 is a relatively small amount,this liquidated damages clause is valid.
C) This liquidated damages clause is invalid because it is excessive and because actual damages would be easy to compute if the wheat is not delivered.
D) The liquidated damages clause would be reformed to $6.50 per undelivered bushel.

Question 73

LMN contracts to deliver 1,000 barrels of lubrication oil to the buyer on or before June 15.On May 15,LMN informs the buyer that it will be unable to deliver the oil as required.The buyer demands that LMN perform the contract,but to no avail.Which of the following best describes the buyer's rights in this situation?

A) The buyer must treat the contract as breached on May 15.
B) The buyer must wait until June 15 to determine if there has been a breach.
C) The buyer may treat the contract as breached on May 15.
D) The buyer may wait until June 15 to see if the seller performs.
E) either C or D

Question 74

A seller,a manufacturer of videocassette recorders (VCRs),contracts to deliver 100 VCRs to a buyer.The VCRs are delivered at 5 p.m.on a Friday.The buyer unloads the VCRs onto his dock.About 1 month later,the goods are inspected.It is discovered that all the VCRs have a defect,so the buyer notifies the seller of its rejection of the VCRs.The seller claims that the buyer has already accepted the shipment.Which of the following best describes this situation?

A) The unloading of the VCRs onto its dock constitutes an acceptance by the buyer.
B) The rejection was not made within a reasonable time,which constitutes an acceptance.
C) The buyer cannot reject this shipment unless the nonconformity significantly impairs the value of the goods.
D) Keeping the VCRs for over a month was an act inconsistent with the seller's ownership,which constitutes an acceptance.
E) The buyer has the right to inspect,this delay was reasonable,and the buyer may reject this shipment.

Question 75

A seller hears that one of its customers has filed for bankruptcy.The seller demands in writing assurance of performance by the buyer.If the buyer does give written assurance that it will perform,which of the following is true?

A) The written assurance will require that the seller deliver the goods.
B) The seller may withhold delivery of the goods despite the assurance of performance.
C) The seller may withhold delivery only if the insolvency will prevent payment of this debt.
D) The seller must deliver the goods to the custody of the bankruptcy trustee.

Question 76

On March 15,a buyer received goods under a contract calling for delivery by March 20.The buyer immediately noticed that the goods contained a nonconformity that substantially impaired their value to the buyer.The buyer accepted the goods when received even though they were nonconforming and the seller made no promise to cure the nonconformity.If the buyer wants to revoke its acceptance of these nonconforming goods:

A) it must do so by March 20
B) it must do so within a reasonable time
C) it may do so only if the seller fails to cure
D) it cannot revoke its acceptance in this situation

Question 77

Seller,a television manufacturer,contracts to deliver one hundred 20" color televisions sets with silver cabinets to the buyer on or before December 1 at a stated price.On November 25,seller delivers the sets to the buyer,but all have black cabinets.The buyer rejects these goods.Which of the following best describes this situation?

A) The buyer cannot reject these goods because the nonconformity does not significantly impair the value of the sets.
B) The seller has a right to cure,but only on or before December 1.
C) The seller has a right to cure,and may make a conforming delivery within a reasonable time.
D) The seller may cure,but only if the buyer agrees.
E) This is an anticipatory repudiation.

Question 78

Roger contracts with Music Company to buy one of its pianos for $2,000.Music Company has several of these pianos in stock and can buy an unlimited number from the manufacturer.Roger refuses to accept this piano,and Music sells it to another customer for $1,900.If Music sues Roger for breach of contract,the proper measure of Music's damages would be which of the following?

A) contract price less resale price
B) contract price less fair market value
C) contract price
D) lost profits
E) Music suffered no damage.

Question 79

A buyer and seller have contracted for goods that are to be delivered C.O.D.Which is true?

A) The C.O.D. clause is unconscionable unless there were past payment problems.
B) The seller is unable to inspect the goods prior to paying for them,but remains able to reject them if inspection after payment uncovers nonconformities.
C) The seller is unable to reject the goods or to inspect the goods prior to paying for them
D) The payment of the C.O.D. amount is an irrevocable acceptance of the goods.

Question 80

Avco Restaurants contracts to purchase $10,000 worth of specially manufactured tablecloths and napkins with its distinctive logo on them.After the seller completes them,Avco wrongfully refuses to accept or pay for these goods.These goods cannot be sold in the open market.If the seller sues Avco,what is the proper measure of damages?

A) contract price less resale price
B) fair market value less contract price
C) contract price
D) cover price less contract price
E) lost profits