Deck 23: Sales Remedies

Question 1

Since the purpose of remedies under the Code is compensation, punitive damages are generally available.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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.

Answer 3

True

Question 4

Robert paid William $1,000 for a rare first edition of an Edgar Allen Poe novel.The sales contract states that the book is to be delivered within ten days.William, however, refused to deliver the book as promised.In order to sue for specific performance under the UCC, Robert must prove that money damages will not be adequate compensation for his loss.

Question 5

Replevin is an equitable remedy compelling the recovery of specific goods in the possession of the defendant which are being unlawfully withheld from the plaintiff.

Question 6

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

Question 7

Demrow Co., which contracted to buy 400 fishing poles from Royal Industries, anticipatorily breached the contract.Royal may proceed to identify to the contract conforming goods in its possession so that it can exercise the remedy of resale of the goods.

Question 8

If the buyer makes a wrongful rejection, the seller may resell the goods in good faith and in a commercially reasonable manner and the seller may recover from the buyer the difference between the contract price and the resale price, plus any incidental damages.

Question 9

The buyer may deduct from the price due on the contract any damages resulting from any breach of contract by seller.

Question 10

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

Question 11

The recovery for a lessee's wrongful repudiation of a lease is the difference between the present value of the old rent due under the original lease and the market rent.

Question 12

The remedy of identification of goods to the contract enables the seller to also exercise the remedy of resale of goods.

Question 13

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.

Question 14

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

Question 15

The Code's remedies are cumulative, therefore, a seller may both withhold delivery of the goods and identify goods to the contract.

Question 16

The Code follows the doctrine of election of remedies.

Question 17

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

Question 18

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

Question 19

If the buyer received goods on credit while he was insolvent by misrepresenting in writing his solvency, 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.

Question 20

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

Question 21

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.

Question 22

An aggrieved seller may:

A)withhold delivery.
B)resell or recover damages for nonacceptance or recover the price.
C)recover incidental damages.
D)cancel the contract.
E)All of the above.

Question 23

A buyer's incidental damages include reasonable expenses or commissions in effecting cover.

Question 24

Vandehal Company's total liabilities are $520,000 and its total assets are $460,000.It falls within the bankruptcy meaning, but not the Code's definition, of insolvency.

Question 25

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

Question 26

When existing goods are identified to the contract of sale, the buyer acquires a special property interest in the goods.

Question 27

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

Question 28

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.

Question 29

Under the Code, to be recoverable, damages have to be "calculable with mathematical precision."

Question 30

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

A)The buyer has the right of cover and to receive damages.
B)The buyer has the right to stop delivery of the goods.
C)The buyer may have the right to obtain specific performance.
D)The buyer may have the right to recover incidental and consequential damages.

Question 31

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.

Question 32

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

Question 33

If upon the seller's breach 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.

Question 34

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.

Question 35

A contract between a seller and buyer may not:

A)limit consequential damages for personal injuries resulting from breach of warranty in the sale of consumer goods.
B)limit consequential damages for personal injuries resulting from breach of warranty in the sale of commercial goods.
C)expressly provide for remedies in addition to or instead of those provided in the Code.
D)All of the above.

Question 36

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

Question 37

Article 2A authorizes liquidated damages payable by either party for default or any other act or omission expressed in the contract.

Question 38

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

Question 39

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

Question 40

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

Question 41

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 heater.What result?

A)Jones wins; Perry can only cancel the portion of the contract regarding the goods.
B)Jones wins; Perry can only cancel if installation is also delayed two months.
C)Perry wins since the contract breach concerns the whole contract.
D)Perry can cancel the whole contract, but he is then limited in his recovery of damages.

Question 42

On January 21, Cara wrote to Pandora Mfg.asking for shipment of 100 swimsuits on 90-day credit.In the letter, she gave references that indicated that her store was financially sound.Actually she had bills that she could not pay and hoped to turn the business around with the summer bathing suit sales.Pandora ships the suits on March 1; they are received March 15.Cara immediately puts them on display and 27 are sold by March 30 when Pandora discovers that Cara has lied.Pandora may:

A)recover 73 suits plus incidental damages.
B)recover 10 suits provided that Pandora acts in 10 days.
C)recover no suits since it's been 10 days since delivery.
D)recover 73 suits.

Question 43

Which type of contractual provision affects remedies?

A)Cover.
B)Liquidation or limitation of damages.
C)Modification or limitation of remedy.
D)Both (b) and (c) are correct.

Question 44

Under the CISG, the seller may require the buyer to:

A)pay the price.
B)take delivery.
C)perform the contractual obligations.
D)All of the above.

Question 45

A seller's incidental damages for a buyer's breach would include all but which one of the following?

A)Cost to store the widgets in buyer's city.
B)Cost to ship widgets back to seller.
C)Cost to initially ship the widgets to buyer.
D)Cost to reload widgets onto seller's truck at buyer's city.

Question 46

Tom breached a contract he had with 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:

A)incidental damages.
B)punitive damages.
C)liquidated damages.
D)extraordinary damages.

Question 47

The seller may resell the goods identified to a contract:

A)only at a public sale.
B)only if the goods are sold as a unit.
C)at a public or private sale.
D)only if the goods are perishable.

Question 48

Which of the following is not a remedy available to an unpaid seller against the buyer?

A)Recovery of the price.
B)Cover and sue for damages.
C)Recovery of incidental damages.
D)Cancellation of the contract.

Question 49

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:

A)cover.
B)specific performance.
C)replevin.
D)reclamation.

Question 50

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

A)incidental.
B)consequential.
C)punitive.
D)liquidated.

Question 51

Under the CISG, if the contract is avoided and the seller has resold the goods in a reasonable manner and within a reasonable time after avoidance, the seller may recover:

A)the difference between the contract price and the resale price.
B)incidental damages only.
C)consequential damages.
D)Both (a) and (c).

Question 52

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

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 53

Under what circumstances may the buyer seek the remedy of replevin?

A)Where the buyer has been unable to obtain cover.
B)Where the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied.
C)Where the goods are specially manufactured but can be purchased from another source.
D)Both (a) and (b) above are correct.

Question 54

Which of the following would not be a remedy available to the seller on account of buyer's breach?

A)Stop delivery of the goods by the carrier.
B)Require the financially sound buyer to return the goods.
C)Recover the price.
D)Cancel the contract.

Question 55

In the Bigelow-Sanford, Inc.v.Gunny Corp.case, the court found:

A)the buyer did not purchase substitute goods in good faith and without unreasonable delay.
B)the Code permits a buyer to cover by buying substitute goods if the buyer acts in good faith and without unreasonable delay.
C)since the buyer did not specifically allocate the spot market replacements to the individual sellers' accounts, the cost of cover could not be determined in this case.
D)the buyer was required to obtain cover and its failure to do so bars other Code remedies.

Question 56

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

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

Question 57

Commercially reasonable charges for the care and custody of goods that a buyer has rejected are known as:

A)incidental damages.
B)liquidated damages.
C)consequential damages.
D)cover charges.

Question 58

The buyer's incidental damages resulting from the seller's breach include:

A)expenses reasonably incurred in inspection of goods rightfully rejected.
B)any commercially reasonable charges or commissions in connection with obtaining cover.
C)any reasonable expenses connected to the delay.
D)All of the above
E)None of the above.

Question 59

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

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)None of the above.

Question 60

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?

A)$500.
B)$600.
C)$1,000.
D)$1,100.

Question 61

MATCHING
Part IV Matching
Match each statement with the correct term below.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.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or 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 for a term in return for consideration.g.A contract to hold open an offer.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.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective 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; title passes to the buyer on tender of the goods at that destination.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.
usage of trade

Question 62

Compare the remedies of withholding delivery of the goods and stopping delivery of the goods.How are they alike? How are they different?

Question 63

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

Question 64

MATCHING
Part IV Matching
Match each statement with the correct term below.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.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or 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 for a term in return for consideration.g.A contract to hold open an offer.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.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective 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; title passes to the buyer on tender of the goods at that destination.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.
merchant

Question 65

MATCHING
Part IV Matching
Match each statement with the correct term below.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.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or 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 for a term in return for consideration.g.A contract to hold open an offer.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.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective 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; title passes to the buyer on tender of the goods at that destination.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.
option

Question 66

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

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 67

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

A)Cover, incidental and consequential damages.
B)Identification of the goods and withholding delivery.
C)Withholding delivery and suit to recover incidental damages.
D)None of the above.The Code's remedies are cumulative unless under the facts of an individual case one remedy bars another.

Question 68

Denver has rightfully rejected nonconforming goods that were delivered to him.Explain his interest in those goods in his possession and his rights and duties regarding the goods.

Question 69

The Code permits the seller to recover the price plus incidental damages in which of the following situation(s)?

A)Where the buyer has accepted the goods.
B)Where conforming goods have been lost or damaged before risk of loss has passed to the buyer.
C)Where the goods have been identified to the contract and there is a ready market available for their resale at a reasonable price.
D)None of the above.
E)All of the above.

Question 70

The fair market value of a 10-foot fishing boat is $1,000.In a special promotion, J's Marina purchases a 10-foot fishing boat for $900.The boat is badly scratched when it arrives.J's Marina, however, accepts the shipment and notifies the seller of the defect.The boat as delivered has a value of $800.If the damaged boat is a breach of warranty by the seller, the buyer may recover from the seller:

A)$100.
B)$100 plus incidental and consequential damages.
C)$200.
D)$200 plus incidental and consequential damages.

Question 71

MATCHING
Part IV Matching
Match each statement with the correct term below.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.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or 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 for a term in return for consideration.g.A contract to hold open an offer.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.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective 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; title passes to the buyer on tender of the goods at that destination.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.
course of dealing

Question 72

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?

Question 73

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

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

Question 74

In what three situations will a seller recover the price of goods plus incidental damages?

Question 75

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:

A)the contract price of $2,000.
B)$500.
C)$300.
D)$250.

Question 76

Andrews Manufacturing Company has repudiated its contract to sell 500 computers to a computer store.What recourse does the retailer have under the circumstances?

A)It must await the seller's performance.
B)It can recover punitive damages.
C)It can seek a security interest in the computers.
D)It can "cover" by procuring goods elsewhere and then sue for any difference between the cost of cover and the contract price, plus incidental and consequential damages less expenses saved by the breach.

Question 77

MATCHING
Part IV Matching
Match each statement with the correct term below.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.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or 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 for a term in return for consideration.g.A contract to hold open an offer.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.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective 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; title passes to the buyer on tender of the goods at that destination.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.
good faith

Question 78

MATCHING
Part IV Matching
Match each statement with the correct term below.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.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or 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 for a term in return for consideration.g.A contract to hold open an offer.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.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective 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; title passes to the buyer on tender of the goods at that destination.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.
lease

Question 79

MATCHING
Part IV Matching
Match each statement with the correct term below.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.The transfer of a major part of one's inventory not in the ordinary course of business.d.A contract in which the risk of loss remains with the seller until the buyer "approves" or 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 for a term in return for consideration.g.A contract to hold open an offer.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.The obligation of the seller to convey the right to ownership without a lien.l.A doctrine determining who in the chain of distribution is liable for a breach of warranty.m.Limits the time period for which a manufacturer is liable for injury caused by its defective 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; title passes to the buyer on tender of the goods at that destination.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.
firm offer

Question 80

Under the Code, what rights do the parties have to affect the possible remedies available in the case of breach?