Question 1

The objective of the UCC in regards to remedies for contract breach is to punish the offending party.

Accepted Answer

The objective of the UCC remedies to put the injured party in the same position that he would have been in if the contract had been performed.The UCC remedies are not meant to punish an offending party.

Question 2

Under the UCC an injured party in a contract dispute cannot recover punitive damages.

Accepted Answer

Under the UCC an injured party may not recover consequential or punitive damages.

Question 3

The UCC provides that a lawsuit for breach of a sales contract must be filed within a year after the breach occurs.

Accepted Answer

The Code provides that a lawsuit for breach of a sales contract must be filed within four years after the breach occurs.

Question 4

Consequential damages do not include an injury to a person or property caused by a breach of warranty.

Accepted Answer

Consequential damages can also include an injury to a person or property caused by a breach of warranty.

Question 5

Even if a buyer breaches a contract,the seller is accountable to the buyer for any profit that the seller makes on a resale.

Accepted Answer

The seller is not accountable to the buyer for any profit that the seller makes on a resale.

Question 6

The seller is obligated to resell the goods in cases where the buyer refuses to accept goods that conform to the contract.

Accepted Answer

If the seller sets aside goods intended for the contract or completes the manufacture of such goods,he is not obligated to try to resell the goods to someone else.

Question 7

Even if the buyer has misrepresented his solvency to the seller in writing within three months before the delivery of the goods,the 10-day limitation on the seller's right to reclaim the goods still applies.

Accepted Answer

If the buyer has misrepresented his solvency to the seller in writing within three months before the delivery of the goods,the 10-day limitation on the seller's right to reclaim the goods does not apply.

Question 8

Under the UCC if a liquidated damage clause in a contract turns out to be non-enforceable then the injured party can sue for actual damages.

Accepted Answer

Under the UCC if a liquidated damages clause is not enforceable because it is a penalty or unconscionable,the injured party can recover the actual damages suffered.

Question 9

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 manufacture of the goods and then resell them so long as this minimizes the loss to the seller.

Accepted Answer

If the seller sets aside goods intended for the contract or completes the manufacture of such goods,he is not obligated to try to resell the goods to someone else.

Question 10

Under UCC section 2-712 the buyer is required to seek cover,or buy substitute goods,during a breach of contract dispute.

Accepted Answer

Under UCC section 2-712 the buyer is not required to cover,however if he does not cover other remedies are still available under the UCC.

Question 11

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

Accepted Answer

Any attempt to limit consequential damages for injury caused to a person by consumer goods is considered prima facie unconscionable.

Question 12

Under the UCC the parties to a contract can shorten the statute of limitations on a breach of contract but cannot extend it longer than four years.

Accepted Answer

Under the UCC the parties to a contract may shorten the period of statute of limitations for breach of contract to one year,but they may not extend it for longer than four years.

Question 13

If the buyer and seller have agreed to the manner in which the resale is to be made,the courts will enforce the agreement unless it is found to be unconscionable.

Accepted Answer

If the buyer and seller have agreed as to the manner in which the resale is to be made,the courts will enforce the agreement unless it is found to be unconscionable.

Question 14

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.

Accepted Answer

The buyer is entitled to recover the difference between the value of the goods received and the value of the goods would have had if they had been as warranted.

Question 15

The buyer cannot recover any incidental damages.

Accepted Answer

Incidental damages include expenses that the buyer incurs in receiving,inspecting,transporting,and storing goods shipped by the seller that do not conform to those called for in the contract.

Question 16

If the seller has justifiably withheld delivery of the goods because of the buyer's breach,the buyer may recover any money or goods he has delivered to the seller over and above the agreed amount of liquidated damages.

Accepted Answer

If the seller has justifiably withheld delivery of the goods because of the buyer's breach,the buyer may recover any money or goods he has delivered to the seller over and above the agreed amount of liquidated damages.

Question 17

If the seller fails or refuses to deliver the goods called for in the contract,the buyer can purchase substitute goods and recover as damages from the seller.

Accepted Answer

If the seller fails or refuses to deliver the goods called for in the contract,the buyer can purchase substitute goods;this is known as cover.

Question 18

Edna Boyle contracts with The Melonville Times to advertise her garage sale to be held this Saturday.The ad is to run in the Friday and Saturday morning edition.If the ad does not run on time,The Melonville Times agrees to pay Edna $50.00.This liquidated damages clause is most likely enforceable.

Accepted Answer

An agreement for liquidated damages is enforced if the amount is reasonable and if actual damages would be difficult to prove in the event of a breach of the contract.

Question 19

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

Accepted Answer

While the UCC does not explicitly use the Common Law term recission,it does incorporate the concept.

Question 20

Because all goods are fungible,specific performance is not available under the UCC.

Accepted Answer

Sometimes,the goods covered by a contract are unique and it is not possible for a buyer to obtain substitute goods.When this is the case,the buyer is entitled to specific performance of the contract.

Quiz 22: Remedies for Breach of Sales Contracts

The objective of the UCC in regards to remedies for contract breach is to punish the offending party.

Under the UCC an injured party in a contract dispute cannot recover punitive damages.

The UCC provides that a lawsuit for breach of a sales contract must be filed within a year after the breach occurs.

Consequential damages do not include an injury to a person or property caused by a breach of warranty.

Even if a buyer breaches a contract,the seller is accountable to the buyer for any profit that the seller makes on a resale.

The seller is obligated to resell the goods in cases where the buyer refuses to accept goods that conform to the contract.

Even if the buyer has misrepresented his solvency to the seller in writing within three months before the delivery of the goods,the 10-day limitation on the seller's right to reclaim the goods still applies.

Under the UCC if a liquidated damage clause in a contract turns out to be non-enforceable then the injured party can sue for actual damages.

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 manufacture of the goods and then resell them so long as this minimizes the loss to the seller.

Under UCC section 2-712 the buyer is required to seek cover,or buy substitute goods,during a breach of contract dispute.

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

Under the UCC the parties to a contract can shorten the statute of limitations on a breach of contract but cannot extend it longer than four years.

If the buyer and seller have agreed to the manner in which the resale is to be made,the courts will enforce the agreement unless it is found to be unconscionable.

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.

The buyer cannot recover any incidental damages.

If the seller has justifiably withheld delivery of the goods because of the buyer's breach,the buyer may recover any money or goods he has delivered to the seller over and above the agreed amount of liquidated damages.

If the seller fails or refuses to deliver the goods called for in the contract,the buyer can purchase substitute goods and recover as damages from the seller.

Edna Boyle contracts with The Melonville Times to advertise her garage sale to be held this Saturday.The ad is to run in the Friday and Saturday morning edition.If the ad does not run on time,The Melonville Times agrees to pay Edna $50.00.This liquidated damages clause is most likely enforceable.

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

Because all goods are fungible,specific performance is not available under the UCC.