Question 1

The UCC does not allow a seller to cancel a contract if the buyer is in breach.

Accepted Answer

A) True 
 B)False

Question 2

Is Trudy likely correct in that she owes Theresa no obligation?

Accepted Answer

A)   Yes, Trudy is correct but only because a consumer transaction with a nonmerchant is involved.
B)   Yes, but only because the fixtures were incorporated into real property.
C)   Yes, because that is the only remedy she must provide under any circumstances.
D)   Yes, but only because the fixtures had not yet been paid for by the buyer.
E)   No, because Theresa had the right to revoke acceptance and cover.F) B) and D)
G) A) and E)

Question 3

If a buyer accepts nonconforming goods,the buyer may not also seek damages.

Accepted Answer

A) True 
 B)False

Question 4

The UCC adopts several common law principles.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following are damages identified before the breach occurs?

Accepted Answer

A)   Nominal damages
B)   Compensatory damages
C)   Reliance damages
D)   Liquidated damages
E)   Consequential damagesF) C) and D)
G) B) and C)

Question 6

Define punitive damages,set forth how the UCC handles the issue of punitive damages,and discuss whether you believe they should be available in breach of contract actions.

Accepted Answer

Punitive damages are awarded typically i...

Question 7

Which of the following is true regarding whether usage of trade may impose a remedy in the event of a breach?

Accepted Answer

A)   Usage of trade may not impose a remedy in the event of a breach.
B)   Usage of trade may impose a remedy in the event of a breach but it may not impose an exclusive remedy.
C)   Usage of trade may impose an exclusive remedy in the event of a breach.
D)   Usage of trade may impose an exclusive remedy in the event of a breach only if both sides are represented by an attorney.
E)   Usage of trade may impose an exclusive remedy in the event of a breach only if a contract signed by both parties specifically provides as such.F) A) and E)
G) B) and D)

Question 8

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

Question 9

Which of the following is true of lemon laws in Canada?

Accepted Answer

A)   They are generally the same as lemon laws in the U.S.
B)   They allow for replacement of defective parts but not a new car unless the plaintiff agrees to pay the difference between the amount received for the used car when sold and the amount charged for the new car.
C)   They guarantee a buyer of a lemon a new car.
D)   They guarantee the buyer of a lemon a return of all consideration.
E)   Canada does not have a lemon law such as is known in the U.S. Instead, an arbitration program is run through which a buyer may lodge complaints.F) A) and E)
G) A) and B)

Question 10

Which of the following is true regarding Roland's claim that Selina had no right to withhold his furniture?

Accepted Answer

A)   Roland is correct. Selina was required to deliver the furniture, but she retained the right to sue him for any deficiency.
B)   Roland is correct but only because of the special UCC exception for consumer goods.
C)   Roland is incorrect. Selina had a right to withhold the furniture.
D)   Roland is incorrect but only if Selina can prove that she had no reason to believe that he was a credit risk prior to signing the contract of sale.
E)   Roland is correct because of federal consumer protection laws.F) A) and D)
G) All of the above

Question 11

Which of the following is true regarding revocation of accepted nonconforming goods?

Accepted Answer

A)   Once goods have been accepted, they may not be rejected.
B)   A buyer has an absolute right within 10 days after delivery in which to revoke acceptance of nonconforming goods.
C)   A buyer has an absolute right within 48 hours after delivery in which to revoke acceptance of nonconforming goods.
D)   A buyer has an absolute right within 30 days after delivery in which to revoke acceptance of nonconforming goods.
E)   While there is no set time limit, the UCC sometimes allows a buyer to revoke acceptance of nonconforming goods.F) A) and B)
G) A) and E)

Question 12

Which of the following provide remedies to buyers of defective cars?

Accepted Answer

A)   Apple laws
B)   Lemon laws
C)   Clunker laws
D)   Roadside laws
E)   Peach lawsF) A) and D)
G) A) and C)

Question 13

Which of the following is true regarding Roland's claim that Selina had no right to sell the furniture he initially purchased?

Accepted Answer

A)   Roland is correct. Selina had no right to sell the furniture, but she retained the right to sue him for any deficiency.
B)   Roland is correct but only because of the special UCC exception for consumer goods.
C)   Roland is incorrect. Selina had a right to resell the furniture.
D)   Roland is incorrect but only if Selina can prove that she had no reason to believe that he was a credit risk prior to signing the contract of sale.
E)   Roland is correct because of federal consumer protection laws.F) A) and C)
G) B) and D)

Question 14

Which of the following is the preferred remedy for nonbreaching sellers when buyers fail to pay and pick up goods?

Accepted Answer

A)   Suit for incidental damages
B)   Cover
C)   Liquidated damages
D)   Resale
E)   Suit for consequential damagesF) A) and B)
G) A) and C)

Question 15

Which of the following is true regarding when the UCC allows buyers and lessees to seek the remedy of specific performance?

Accepted Answer

A)   The UCC only allows buyers and lessees to seek the remedy of specific performance when goods are unique.
B)   The UCC only allows buyers and lessees to seek the remedy of specific performance when a remedy at law is inadequate.
C)   The UCC only allows buyers and lessees to seek the remedy of specific performance when goods are worth more than $500.
D)   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.
E)   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, but not because the goods are worth more than $500.F) C) and D)
G) A) and B)

Question 16

The case of Hill v.Gateway,discussed in the text,ruled that in order to be effective,a contract must be verbally read to a consumer who purchases a computer over the telephone.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following was the result on appeal in Detroit Radiant Products Company v.BSH Home Appliances Corporation,the case in the text in which the plaintiff,a seller of gas-fired infrared heaters,sought to recover lost profits based on the defendants breach of contract?

Accepted Answer

A)   The court awarded the plaintiff lost profits based on the fact that lost profits are the default measure of damages under Article 2 of the UCC.
B)   The court awarded the plaintiff the difference between the contract price less the market price plus incidental damages based on the fact that such damages were the default measure of damages under Article 2 of the UCC.
C)   The court awarded the plaintiff lost profits in addition to the difference between the contract price less the market price plus incidental damages based on the fact that all such damages were the default measure of damages under Article 2 of the UCC.
D)   The court awarded the plaintiff the value of the unsellable inventory it had due to the defendant's breach and also lost profits because the default measure (the difference between the contract price less the market price plus incidental damages)  did not make the plaintiff whole.
E)   The court awarded the plaintiff lost profits and also the value of the unsellable inventory it had due to the defendant's breach because the default measure (lost profits)  did not make the plaintiff whole.F) B) and D)
G) D) and E)

Question 18

Which of the following was the result in Almetals Inc.,v.Wickeder Westfalenstahl,GMBH,the case in the text involving the sale of a specialty metal in which the plaintiff sued the defendant for breach of contract seeking specific performance?

Accepted Answer

A)   That specific performance was unavailable because real estate was not involved.
B)   That specific performance was unavailable because a foreign defendant was involved and jurisdiction for specific performance was, therefore, lacking.
C)   That specific performance was unavailable because the goods at issue were scarce.
D)   That specific performance was unavailable because a requirements contract was involved.
E)   That specific performance was the appropriate remedy because the goods at issue were unique with no known alternative sources of supply.F) A) and C)
G) A) and D)

Question 19

Which of the following is true regarding how the obligations of sellers/lessors and buyers/lessees are determined?

Accepted Answer

A)   Obligations of parties are determined by the terms the parties outline in agreements, but not by custom or rules outlined by the UCC.
B)   Obligations of parties are determined by the rules outlined by the UCC, but not by terms the parties outline in agreements or by custom.
C)   Obligations of parties are determined by terms the parties outline in agreements and rules outlined by the Uniform Commercial Code, but not by custom.
D)   Obligations of parties are determined by the rules outlined by the UCC and by custom, but not by terms the parties outline in agreements.
E)   Obligations of parties are determined by the terms the parties outline in agreements, custom, and rules outlined by the UCC.F) None of the above
G) B) and C)

Question 20

Under which of the following circumstances will a court refuse to uphold modifications or limitations to remedies agreed upon by the parties?

Accepted Answer

A)   When they seem to give one side a benefit.
B)   When one party is a corporation.
C)   When neither party is a corporation.
D)   When one side was not represented by an attorney.
E)   When the remedies fail in their essential purpose.F) None of the above
G) B) and C)

Exam 24: Remedies for Breach of Sales and Lease Contracts

Which of the following is true of lemon laws in Canada?

Correct AnswerverifiedShow Answer

Which of the following was the result on appeal in Detroit Radiant Products Company v.BSH Home Appliances Corporation,the case in the text in which the plaintiff,a seller of gas-fired infrared heaters,sought to recover lost profits based on the defendants breach of contract?

Correct AnswerverifiedShow Answer

Which of the following are damages identified before the breach occurs?

Correct AnswerverifiedShow Answer

Which of the following is true regarding revocation of accepted nonconforming goods?

Correct AnswerverifiedShow Answer

Under which of the following circumstances will a court refuse to uphold modifications or limitations to remedies agreed upon by the parties?

Correct AnswerverifiedShow Answer

Which of the following is the preferred remedy for nonbreaching sellers when buyers fail to pay and pick up goods?

Correct AnswerverifiedShow Answer

If a buyer accepts nonconforming goods,the buyer may not also seek damages.

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

The case of Hill v.Gateway,discussed in the text,ruled that in order to be effective,a contract must be verbally read to a consumer who purchases a computer over the telephone.

Correct AnswerverifiedShow Answer

Which of the following provide remedies to buyers of defective cars?

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether usage of trade may impose a remedy in the event of a breach?

Correct AnswerverifiedShow Answer

Which of the following is true regarding when the UCC allows buyers and lessees to seek the remedy of specific performance?

Correct AnswerverifiedShow Answer

Which of the following was the result in Almetals Inc.,v.Wickeder Westfalenstahl,GMBH,the case in the text involving the sale of a specialty metal in which the plaintiff sued the defendant for breach of contract seeking specific performance?

Correct AnswerverifiedShow Answer

Which of the following is true regarding Roland's claim that Selina had no right to withhold his furniture?

Correct AnswerverifiedShow Answer

Define punitive damages,set forth how the UCC handles the issue of punitive damages,and discuss whether you believe they should be available in breach of contract actions.

Correct AnswerverifiedPunitive damages are awarded typically i...View AnswerShow Answer

The UCC does not allow a seller to cancel a contract if the buyer is in breach.

Correct AnswerverifiedShow Answer

The UCC adopts several common law principles.

Correct AnswerverifiedShow Answer

Which of the following is true regarding Roland's claim that Selina had no right to sell the furniture he initially purchased?

Correct AnswerverifiedShow Answer

Which of the following is true regarding how the obligations of sellers/lessors and buyers/lessees are determined?

Correct AnswerverifiedShow Answer

Is Trudy likely correct in that she owes Theresa no obligation?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Punitive damages are awarded typically i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified