Question 1

Which of the following is true of remedies provided by the UCC?

Accepted Answer

A)  The remedies must be liberally administered to punish the wrongdoing party
B)  The remedies must be liberally administered to put the aggrieved party in as good a position as if the other party had fully performed
C)  The remedies must be liberally administered to put the aggrieved party in a better position than he would have been in had performance occurred.
D)  The remedies must be narrowly administered to ensure justice.
E)  The UCC does not provide remediesF) A) and E)
G) D) and E)

Question 2

A buyer can never revoke acceptance of nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 3

Discuss when specific performance is available as a remedy against a seller or lessor when the sale of goods is involved,and what is involved if specific performance is required.

Accepted Answer

UCC Sections 2-7161)and 2A-5211)allow bu...

Question 4

What are the rights of the parties under the UCC to provide for remedies in addition to those provided by the UCC?

Accepted Answer

A)  Parties to a commercial sales agreement may provide for remedies in addition to those provided by the UCC only if both sides are represented by an attorney.
B)  Parties to a commercial sales agreement may not provide for remedies in addition to those provided by the UCC.
C)  Parties to a commercial sales agreement may provide for remedies in addition to those provided by the UCC only if both parties are merchants.
D)  Parties to a commercial sales agreement may provide for remedies in addition to those provided by the UCC.
E)  Parties to a commercial sales agreement may provide for remedies in addition to those provided by the UCC only in transactions involving over $10,000 in value.F) B) and D)
G) A) and E)

Question 5

If a seller resells goods after the original buyer breaches the contract,who gets to keep any profits made on the resale?

Accepted Answer

A)  The buyer and seller split the profits.
B)  The seller.
C)  It depends on the contract.
D)  The UCC prohibits making profits on resold goods after a breach of contract.
E)  The buyer.F) B) and D)
G) All of the above

Question 6

Which statement is true regarding a liquidated damages clause?

Accepted Answer

A)  A provision for liquidated damages is voidable because of public policy.
B)  A provision for liquidated damages will be enforced regardless of whether it is punitive in nature.
C)  A provision for liquidated damages is illegal.
D)  A provision for liquidated damages is enforceable so long as it is not punitive in nature.
E)  A provision for liquidated damages is void because of public policy.F) None of the above
G) B) and C)

Question 7

When does the UCC allow buyers and lessees to seek the remedy of specific performance?

Accepted Answer

A)  The UCC allows buyers and lessees to seek the remedy of specific performance when goods are unique,when a remedy at law is inadequate,or when goods are worth more than $500.
B)  The UCC allows buyers and lessees to seek the remedy of specific performance when goods are unique or when a remedy at law is inadequate.
C)  The UCC only allows buyers and lessees to seek the remedy of specific performance when a remedy at law is inadequate.
D)  The UCC only allows buyers and lessees to seek the remedy of specific performance when goods are worth more than $500.
E)  The UCC only allows buyers and lessees to seek the remedy of specific performance when goods are unique.F) A) and B)
G) A) and C)

Question 8

A seller who sells goods to another buyer after the original buyer breaches the contract,may receive which of the following damages?

Accepted Answer

A)  The difference between the resale price and the contract price minus expenses without any allowance for incidental damages.
B)  The difference between the resale price and the contract price,plus incidental damages and minus expenses saved.
C)  Damages are not available because a seller has no rights to resell goods when the original buyer is in breach.The remedy is a suit for damages.
D)  The difference between the resale price and the contract price only.
E)  The difference between the resale price and the contract price,plus incidental damages,with no deduction for expenses saved.F) None of the above
G) A) and B)

Question 9

Under the UCC buyers and lessees may recover goods identified in the contract if the seller or lessor becomes insolvent within ________ after receiving the first payment due under the agreement.

Accepted Answer

A)  5 days
B)  10 days
C)  30 days
D)  60 days
E)  15 daysF) C) and D)
G) B) and E)

Question 10

[Fixture Mishap] Samantha owns a hardware shop that also sells expensive bathroom fixtures.Maddie,a whiz with tools,purchased some expensive fixtures for her bathroom for $400.Samantha had only one set of the fixtures that Maddie wanted.Although Maddie noticed a slight discoloration on one of the faucets,she went ahead with the contract because Samantha indicated that she would remedy the situation should the problem become worse.Because they were friends and attended the same church,Samantha gave Maddie 90 days in which to pay.A month later,and before she paid for the fixtures,Maddie called Samantha and told her that the fixtures were corroding,the discoloration had worsened,and the fixtures looked terrible.Samantha said that she would provide Maddie replacements,but six months later they had not arrived,and Samantha told Maddie that they were on back order.At that point,Maddie purchased fixtures elsewhere for $500 and informed Samantha that she could pick up the corroded fixtures at her front door.Samantha picked up the fixtures,and although they were obviously defective,Samantha was able to resell them for $100.Samantha told Maddie that she would have gladly provided fixtures that would not corrode if she had only a bit more time,that Maddie should have given her a chance to do so,and that as far as Samantha was concerned,Maddie owed her$300.
-Which of the following most accurately describes the action taken by Maddie?

Accepted Answer

A)  Maddie engaged in a trade modification
B)  Maddie revoked acceptance and covered
C)  Maddie breached the contract
D)  Maddie canceled the contract and exchanged
E)  Maddie substantially performedF) None of the above
G) D) and E)

Question 11

Cancelling a contract is a remedy of first resort from the UCC's perspective.

Accepted Answer

A) True 
 B)False

Question 12

What does the UCC say regarding a limitation of consequential damages for injury to the person in the case of consumer goods?

Accepted Answer

A)  A limitation of consequential damages for injury to the person is acceptable so long as any consumer was represented by an attorney.
B)  A limitation of consequential damages for injury to the person is analyzed in the same way as a limitation of consequential damages where the loss is commercial.
C)  A limitation of consequential damages for injury to the person is acceptable so long as the injuries are not life threatening.
D)  A limitation of consequential damages for injury to the person is prima facie unconscionable.
E)  A limitation of consequential damages for injury to the person is acceptable so long as both parties are represented by an attorney.F) A) and B)
G) B) and E)

Question 13

A lessee in possession of a leased piece of equipment fails to make payments on the equipment as required.What remedy does UCC 2A-5252) provide to the lessor?

Accepted Answer

A)  The right to reclaim the goods
B)  The right to sue the lessee.
C)  The right to put a lien on the lessee.
D)  The right to bring a tort action
E)  No remedy is provided.F) C) and E)
G) C) and D)

Question 14

Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces.Miguel fails to pay and Fred's Fireplaces sells the fireplaces to Phillips Outdoor Store instead.However,Phillips Outdoor Store pays $500 less than Miguel had agreed to pay.What rights does Fred have?

Accepted Answer

A)  None because he did not notify Miguel before selling the fireplaces to someone else.
B)  None because he chose to sell the goods.
C)  He can sue Miguel for the entire amount Miguel was supposed to pay for the fireplaces.
D)  He can sue Miguel for $500,the difference between the resale price and the contract price.
E)  None because Miguel did not agree to allow him to sell the fireplaces to Phillip.F) D) and E)
G) C) and D)

Question 15

Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces.Miguel fails to pay and Fred's Fireplaces sells the fireplaces to Phillips Outdoor Store instead.Did Fred's Fireplaces act appropriately?

Accepted Answer

A)  No because selling goods to another buyer is never appropriate.
B)  No,because the UCC requires sellers to notify buyers within 100 days of selling goods to another buyer in the event of a breach.
C)  Yes,because the UCC allows a seller to sell the goods to someone else if the buyer breaches the contract before the seller has delivered the goods.
D)  No because selling goods to another buyer is appropriate in the event of breach only if the contract is for at least 50 units of goods.
E)  No because filing a lawsuit is required before selling goods to another buyer.F) A) and B)
G) A) and C)

Question 16

Which of the following statements is true regarding whether Maya had a right to cancel the contract?

Accepted Answer

A)  Luke was in breach,but Maya had no right to cancel the contract because Luke was available for service of process.
B)  Luke was in breach,but Maya had no right to cancel the contract because a consumer transaction was involved.
C)  Luke was in breach,but Maya had no right to cancel the contract because Luke had the right to cover.
D)  Luke was in breach giving Maya the right to cancel the contract.
E)  Luke was only in partial breach,and Maya had no right to cancel the contract.F) A) and D)
G) A) and C)

Question 17

Which term refers to the right of a buyer and lessee to substitute goods for those due under a sales or lease agreement?

Accepted Answer

A)  Shift
B)  Reallocate
C)  Swap
D)  Cover
E)  RearrangeF) C) and D)
G) A) and C)

Question 18

What is the UCC rule regarding punitive damages?

Accepted Answer

A)  That the nonbreaching seller may claim against a breaching buyer who is guilty of malice 30 percent of the purchase price or $1,000,whichever is more,as punitive damages.
B)  That the nonbreaching seller may claim against a breaching buyer who is guilty of malice 20 percent of the purchase price or $500,whichever is less,as punitive damages.
C)  That the nonbreaching seller may claim against a breaching buyer who is guilty of malice 30 percent of the purchase price or $1,000,whichever is less,as punitive damages.
D)  The UCC does not address punitive damages,other than voiding liquidated damages that are punitive in nature.
E)  That the nonbreaching seller may claim against a breaching buyer who is guilty of malice 20 percent of the purchase price or $500,whichever is more,as punitive damages.F) B) and D)
G) None of the above

Question 19

Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces.Fred does not deliver the fireplaces,so Miguel purchases fireplace from Joe's Chimney's instead.Joe's charges significantly above market rate,but Miguel pays anyway because Miguel intends to sue Fred for the difference.Did Miguel act appropriately?

Accepted Answer

A)  Yes,because a buyer can always cover,even at an unreasonable price.
B)  No because obtaining substitute goods is permitted only if the quantity shipped is large
C)  No because Miguel did not act in good faith and he overpaid for the goods.
D)  No because obtaining substitute goods in the event of breach is appropriate only if the contract is for at least 50 units of goods.
E)  No,because the UCC requires buyers to notify sellers before obtaining substitute goods.F) A) and B)
G) D) and E)

Question 20

What is the preferred remedy for a non-breaching seller when a buyer fails to pay and pick up goods?

Accepted Answer

A)  Cover
B)  A suit for incidental damages
C)  A suit for consequential damages
D)  Liquidated damages
E)  ResaleF) D) and E)
G) B) and C)

Exam 24: Remedies for Breach of Sales and Lease Contracts

If a seller resells goods after the original buyer breaches the contract,who gets to keep any profits made on the resale?

Correct Answer
verified

Discuss when specific performance is available as a remedy against a seller or lessor when the sale of goods is involved,and what is involved if specific performance is required.

Correct Answer
verified
UCC Sections 2-7161)and 2A-5211)allow bu...
View Answer

A seller who sells goods to another buyer after the original buyer breaches the contract,may receive which of the following damages?

Correct Answer
verified

Which statement is true regarding a liquidated damages clause?

Correct Answer
verified

Correct Answer
verified

When does the UCC allow buyers and lessees to seek the remedy of specific performance?

Correct Answer
verified

A buyer can never revoke acceptance of nonconforming goods.

Correct Answer
verified

Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces.Miguel fails to pay and Fred's Fireplaces sells the fireplaces to Phillips Outdoor Store instead.Did Fred's Fireplaces act appropriately?

Correct Answer
verified

Which of the following statements is true regarding whether Maya had a right to cancel the contract?

Correct Answer
verified

Correct Answer
verified

Which term refers to the right of a buyer and lessee to substitute goods for those due under a sales or lease agreement?

Correct Answer
verified

What is the preferred remedy for a non-breaching seller when a buyer fails to pay and pick up goods?

Correct Answer
verified

Which of the following is true of remedies provided by the UCC?

Correct Answer
verified

Under the UCC buyers and lessees may recover goods identified in the contract if the seller or lessor becomes insolvent within ________ after receiving the first payment due under the agreement.

Correct Answer
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Correct Answer
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What does the UCC say regarding a limitation of consequential damages for injury to the person in the case of consumer goods?

Correct Answer
verified

Cancelling a contract is a remedy of first resort from the UCC's perspective.

Correct Answer
verified

What are the rights of the parties under the UCC to provide for remedies in addition to those provided by the UCC?

Correct Answer
verified

What is the UCC rule regarding punitive damages?

Correct Answer
verified

A lessee in possession of a leased piece of equipment fails to make payments on the equipment as required.What remedy does UCC 2A-5252) provide to the lessor?

Correct Answer
verified

Exam 24: Remedies for Breach of Sales and Lease Contracts

If a seller resells goods after the original buyer breaches the contract,who gets to keep any profits made on the resale?

Correct AnswerverifiedShow Answer

Discuss when specific performance is available as a remedy against a seller or lessor when the sale of goods is involved,and what is involved if specific performance is required.

Correct AnswerverifiedUCC Sections 2-7161)and 2A-5211)allow bu...View AnswerShow Answer

A seller who sells goods to another buyer after the original buyer breaches the contract,may receive which of the following damages?

Correct AnswerverifiedShow Answer

Which statement is true regarding a liquidated damages clause?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When does the UCC allow buyers and lessees to seek the remedy of specific performance?

Correct AnswerverifiedShow Answer

A buyer can never revoke acceptance of nonconforming goods.

Correct AnswerverifiedShow Answer

Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces.Miguel fails to pay and Fred's Fireplaces sells the fireplaces to Phillips Outdoor Store instead.Did Fred's Fireplaces act appropriately?

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding whether Maya had a right to cancel the contract?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which term refers to the right of a buyer and lessee to substitute goods for those due under a sales or lease agreement?

Correct AnswerverifiedShow Answer

What is the preferred remedy for a non-breaching seller when a buyer fails to pay and pick up goods?

Correct AnswerverifiedShow Answer

Which of the following is true of remedies provided by the UCC?

Correct AnswerverifiedShow Answer

Under the UCC buyers and lessees may recover goods identified in the contract if the seller or lessor becomes insolvent within ________ after receiving the first payment due under the agreement.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What does the UCC say regarding a limitation of consequential damages for injury to the person in the case of consumer goods?

Correct AnswerverifiedShow Answer

Cancelling a contract is a remedy of first resort from the UCC's perspective.

Correct AnswerverifiedShow Answer

What are the rights of the parties under the UCC to provide for remedies in addition to those provided by the UCC?

Correct AnswerverifiedShow Answer

What is the UCC rule regarding punitive damages?

Correct AnswerverifiedShow Answer

A lessee in possession of a leased piece of equipment fails to make payments on the equipment as required.What remedy does UCC 2A-5252) provide to the lessor?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
UCC Sections 2-7161)and 2A-5211)allow bu...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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