Question 1

If the parties to a sales contract state that a certain remedy is exclusive,then it is the sole remedy.

Accepted Answer

If the parties have clearly expressed that a certain remedy is exclusive, then it is the only remedy available to them in case of any breach or dispute.

Question 2

An unpaid seller can bring an action to recover the purchase price,on the buyer's breach of a contract,only if the goods are first disposed of.

Accepted Answer

An unpaid seller can bring an action to recover the purchase price on the buyer's breach of contract even if the goods are not disposed of, as long as the contract allows for such action. However, if the seller chooses to exercise his right to resell the goods after the buyer's default, he may only recover the difference between the resale price and the contract price, not the full purchase price.

Question 3

Elegant Carpets,Inc. ,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must

Accepted Answer

Under a shipment contract, the seller's obligation is to place the goods into the hands of a carrier, who will then transport and deliver the goods to the buyer. The buyer is responsible for any damages or losses that occur during shipping, but the seller is still responsible for ensuring that the goods are properly packaged and labeled for shipment.

Question 4

If a buyer repudiates a contract,the seller cannot recover damages.

Accepted Answer

If a buyer repudiates a contract, the seller can recover damages for any losses suffered as a result of the breach.

Question 5

A buyer who rightfully rejects nonconforming goods can resell the goods and keep the proceeds.

Accepted Answer

The answer of A buyer who rightfully rejects nonconforming goods...

Question 6

A buyer who obtains substitute goods to replace goods that a seller did not deliver can also recover damages from the seller.

Accepted Answer

This is known as the doctrine of cover, which allows a buyer to recover damages from the seller if the buyer had to obtain substitute goods due to the seller's breach of contract. The damages would include the cost difference between the contract price and the price paid for the substitute goods, as well as any incidental and consequential damages.

Question 7

On a lessee's insolvency,the lessor can stop delivery of the goods.

Accepted Answer

According to the principle of termination upon insolvency, if the lessee becomes insolvent, the lessor is entitled to terminate the lease contract and stop the delivery of goods.

Question 8

If a buyer wrongfully refuses to accept goods that conform to a contract,the seller may recover damages.

Accepted Answer

This statement is true. If the buyer wrongfully refuses to accept goods that meet the contractual requirements, the seller may be entitled to recover damages for the buyer's breach of contract.

Question 9

If a buyer breaches a contract while the seller is still in possession of the goods,the seller can resell the goods and hold the buyer liable for any loss.

Accepted Answer

This is known as the right of resale or the right of disposal. If the buyer breaches the contract while the seller is still in possession of the goods, the seller can resell the goods to mitigate their damages and hold the buyer liable for any loss incurred as a result of the breach. This is a common law principle recognized in many jurisdictions.

Question 10

A buyer may reject a seller's goods under any circumstances.

Accepted Answer

A buyer cannot reject a seller's goods without a valid reason such as if the goods are damaged, defective or not as described. The rejection must be in accordance with the terms of the sale agreement and applicable laws.

Question 11

If a lessee wrongfully refuses to accept goods that conform to a contract,the lessor must tender substitute goods.

Accepted Answer

The answer of If a lessee wrongfully refuses to accept...

Question 12

If a buyer wrongfully refuses to accept goods that conform to a contract,the seller can maintain an action to recover the damages sustained.

Accepted Answer

This is a correct statement and is based on the legal principle of breach of contract. If the buyer wrongfully refuses to accept goods that conform to a contract, the seller can sue the buyer to recover damages. The damages may include the difference between the contract price and the market price of the goods, as well as any additional costs incurred by the seller due to the breach.

Question 13

International Gem Corporation agrees to sell Jewel Outlets,Inc.(JOI),fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is

Accepted Answer

The answer of International Gem Corporation agrees to sell Jewel...

Question 14

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Great Vu,Inc. ,which is based in Hawaii.Absent an agreement to the contrary,the place of delivery is in

Accepted Answer

The place of delivery is typically where the goods are currently stored, in this case, Florida.

Question 15

If a buyer breaches a contract and the seller resells the goods to another party,the seller cannot recover any loss from the breaching buyer.

Accepted Answer

The seller can recover the difference between the contract price and the resale price from the breaching buyer as long as the resale was made in a commercially reasonable manner. This is known as "resale damages" or "cover damages".

Question 16

A buyer's breach of a contract will not usually give the seller the right to cancel the contract.

Accepted Answer

A seller may have the right to cancel a contract if the buyer breaches it, depending on the terms of the contract and applicable law.

Question 17

If a lessor's tender of delivery fails to conform to a contract in any way,the lessee can reject the goods.

Accepted Answer

According to the UCC (Uniform Commercial Code), if there is a non-conformity in the goods delivered by the lessor, the lessee has the right to reject them.

Question 18

Screen Perfect,Inc. ,and TV Stores enter into a contract for a sale of high-definition television sets.Screen Perfect ships goods that do not exactly conform to the contract in some details.TV Stores

Accepted Answer

TV Stores can reject the entire shipment if the goods do not conform to the contract in essential details. This is because nonconformity in essential matters constitutes a breach of contract, entitling the buyer to reject the entire shipment. However, if the nonconformity is minor, TV Stores cannot reject the entire shipment and must accept the conforming portion of the goods.

Question 19

A buyer who accepts nonconforming goods cannot revoke the acceptance.

Accepted Answer

The answer of A buyer who accepts nonconforming goods cannot...

Question 20

Business Rental Corporation (BRC)and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,BRC must ship or tender goods to the lessee that

Accepted Answer

Under the perfect tender rule, the goods must exactly conform to the contract in every detail. Any discrepancies or defects may give the lessee the right to reject the goods.

Quiz 14: Performance Breach of Sales Lease Contracts