Question 1

A seller's remedies upon the buyer's default:
A) may be goods oriented, money oriented, or obligation oriented.
B) are subject to the doctrine of election of remedies.
C) are, under the UCC, the same as a buyer's remedies for the seller's breach.
D) are the same under the UCC and CISG.

Accepted Answer

Under the UCC, a seller's remedies upon the buyer's default can be goods oriented (e.g., withholding delivery), money oriented (e.g., recovering the price), or obligation oriented (e.g., canceling the contract).

Question 2

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

Accepted Answer

The answer of Under the Code, what rights do the...

Question 3

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.

Accepted Answer

Requiring a financially sound buyer to return the goods is not a typical remedy for the seller in case of the buyer's breach. Remedies usually involve stopping delivery, recovering the price, or canceling the contract, not retrieving goods already delivered to a buyer who is financially capable.

Question 4

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

Accepted Answer

The answer of In what three situations will a seller...

Question 5

Under the CISG, if the buyer fails to perform contractual obligations, the seller may require the buyer to do all of the following except:
A) pay the price.
B) take immediate delivery.
C) perform the contractual obligations within a reasonable time.
D) pay damages.

Accepted Answer

Under the CISG, the seller can require the buyer to pay the price, perform the contractual obligations within a reasonable time, and pay damages. However, requiring the buyer to take immediate delivery is not specifically mentioned as a remedy for the seller when the buyer fails to perform contractual obligations.

Question 6

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) $350.
D) $250.

Accepted Answer

The answer of Amy agrees to buy goods from Van...

Question 7

A seller has breached his contract by providing unfit seed for the planting of beans. Damages would include all of the following except:
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) the cost of the farm land not being used for growing beans.

Accepted Answer

The cost of the farmland not being used for growing beans is not typically considered a direct damage from the breach, as it is more related to opportunity cost rather than a direct financial loss incurred due to the breach.

Question 8

a. Under the Code, when can an injured party seek the remedy of specific performance? 
b. How does this rule differ from the common law? 
c. Compare the remedies of replevin and specific performance. How are they alike? How are they different?

Accepted Answer

The answer of a. Under the Code, when can an...

Question 9

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

The answer of Smith's of Dallas agreed to buy $10,000...

Question 10

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

Accepted Answer

The answer of What is the purpose of the Code's...

Question 11

Angus 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.

Accepted Answer

The answer of Angus has rightfully rejected nonconforming goods that...

Question 12

The buyer's incidental damages resulting from the seller's breach include all of the following except:
A) expenses reasonably incurred in inspection of rightfully rejected goods.
B) any commercially reasonable charges or commissions in connection with obtaining cover.
C) any reasonable expenses connected to the delay.
D) loss of sales revenue from the unsellable goods.

Accepted Answer

Incidental damages typically cover expenses directly related to the breach, such as inspection, cover charges, and delay expenses, but not indirect losses like lost sales revenue.

Question 13

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

The answer of Under the CISG, what are the damages...

Question 14

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 specific performance.
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.

Accepted Answer

The retailer can "cover" by purchasing substitute goods and then sue for the difference between the cost of cover and the contract price, along with any incidental and consequential damages, minus any expenses saved due to the breach. This is a common remedy under the Uniform Commercial Code (UCC) for buyers when a seller repudiates a contract.

Quiz 23: Sales Remedies

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

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

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

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

Under the CISG, if the buyer fails to perform contractual obligations, the seller may require the buyer to do all of the following except:

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

a. Under the Code, when can an injured party seek the remedy of specific performance? b. How does this rule differ from the common law? c. Compare the remedies of replevin and specific performance. How are they alike? How are they different?

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

Angus 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.

The buyer's incidental damages resulting from the seller's breach include all of the following except:

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?

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