Exam 24: Remedies for Breach of Sales and Lease Contracts

A) She has no options in regard to recovery from the seller because she retained the pontoon boat knowing that the seller refused to grant relief.
B) She has only 90 days in which to return the pontoon boat and seek either specific performance or monetary damages to give her the benefit of the bargain.
C) She has only one year in which to return the pontoon boat and seek specific performance, but she cannot sue for damages.
D) She has only one year in which to return the pontoon boat and seek monetary damages to give her the benefit of the bargain, but she may not seek specific performance.
E) She may keep the pontoon boat and seek monetary damages to give her the benefit of the bargain.

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A) Swap
B) Rearrange
C) Cover
D) Shift
E) Reallocate

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A) Sellers may cancel the contract, withhold delivery of goods, sell undelivered goods to another buyer, and put a lien on property of the buyer.
B) Sellers may cancel the contract and withhold delivery of goods; but sellers may not sell undelivered goods to another buyer nor may sellers may put a lien on property of the buyer.
C) Sellers may cancel the contract; but sellers may not withhold delivery of goods, sell undelivered goods to another buyer, or put a lien on property of the buyer.
D) Sellers may cancel the contract and put a lien on property of the buyer; but sellers may not withhold delivery of goods or sell undelivered goods to another buyer.
E) Sellers may cancel the contract, withhold delivery of goods, and sell the goods to another buyer; but sellers may not put a lien on any property of the buyer.

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A) Parties to a commercial sales agreement may provide for remedies in addition to those provided by the UCC.
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 sides are represented by an attorney.
D) Parties to a commercial sales agreement may provide for remedies in addition to those provided by the UCC only if both parties are merchants.
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.

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A) Incidental damages but not consequential damages or remedial damages
B) Consequential damages but not incidental damages or remedial damages
C) Remedial damages but not consequential damages or incidental damages
D) Incidental damages and consequential damages, but not remedial damages
E) Incidental damages, consequential damages, and remedial damages

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A) Buyers and lessees are allowed to do so in order to receive the benefit of the bargain, but they must give the seller/lessor reasonable notice of the defect.
B) Buyers and lessees are allowed to do so in order to receive the benefit of the bargain, and there is no requirement that they give the seller/lessor prior notice of the defect.
C) Buyers may do so in order to receive the benefit of the bargain so long as reasonable notice of the defect is given, but lessees may not.
D) Lessors may do so in order to receive the benefit of the bargain so long as reasonable notice of the defect is given, but sellers may not.
E) Buyers and lessees may do so only if the seller/lessor agrees to the retention of the nonconforming goods and does not request their return.

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A) The UCC does not recognize any concept called a right to cover.
B) The UCC recognizes that sellers have a right to cover and find substitute buyers in the event of a breach of contract.
C) The UCC recognizes the right of cover in regard to the right of sellers to cover transactions involving installment sales with financing statements.
D) The UCC recognizes the right of buyers to cover, or substitute, goods for those due under a sales agreement.
E) The UCC recognizes the right of sellers to resell goods to other buyers in order to cover contractual obligations.

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A) To effectuate the expectations of the parties to an agreement
B) To promote commerce
C) To promote economic growth
D) To promote interstate commerce
E) To encourage a free-market society and greater financial security for the parties

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A) The carrier may stop delivery on the entire shipment.
B) The carrier may stop delivery only if the quantity shipped is a large shipment such as a carload or truckload.
C) The carrier may stop delivery only if a signed writing exists by which the buyer agreed to the remedy of stopping shipment.
D) The carrier may stop delivery only if ordered to do so by the bankruptcy judge.
E) The carrier may not stop delivery under any circumstances.

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A) Reject the goods only
B) Obtain cover only
C) Cancel the contract only
D) Reject the goods, and then obtain cover or cancel the contract
E) Reject the goods and obtain cover, but the buyer may not cancel the contract

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A) Absolute order
B) Absolute performance
C) Specific performance
D) Specific order
E) True performance

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A) A lessor may seek incidental damages only if the lessee agreed in writing to pay them.
B) A lessor may seek incidental damages only if the lessee agreed orally or in writing to pay them.
C) A lessor may seek incidental damages only if the damages are in an amount over $500.
D) A lessor may seek incidental damages only if the damages are in an amount over $1,000.
E) A lessor may seek incidental damages.

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The manager is incorrect because while u...

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A) She is entitled to recover the damages only if she can show that Roland agreed to pay such damages in his contract with her.
B) She is not entitled to recover the damages because she had no right to resell the furniture.
C) She is entitled to recover the damages only if she can show that Roland has a history of breaching contracts of sale.
D) She cannot recover the damages because consumer goods are involved.
E) Selina will be able to recover the damages so long as they were reasonably incurred because of Roland's breach.

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In obtaining cover,the buyer must (1)dem...

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A) It is known as a liquidated damages provision which will be enforced by a court so long as it is not so far out of reasonable range as to be punitive in nature.
B) It is known as a penalty provision which will be enforced by a court so long as the plaintiff can establish proof of compensatory damages in at least the amount of recovery requested.
C) It is known as a punitive damages provision which will be enforced by a court only if wrongdoing or fraud on the part of the defendant can be established.
D) It is known as a consequential damages provision which will be enforced by a court only if incidental damages can be established.
E) It is known as an invalid provision which will not be enforced.

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A) Roland is not entitled to any deduction because he was the breaching party.
B) Roland is entitled to a deduction for the delivery expenses only if he can show that Selina agreed in writing to deduct those in the event of a breach.
C) Roland is entitled to a deduction for the delivery expenses only if he can establish that Selina either knew or should have known that he would be unable to pay for the furniture.
D) Roland is entitled to a deduction for the delivery expenses because that was a savings to Selina.
E) Roland is entitled to a deduction for the delivery expenses because Selina breached the contract by not delivering the furniture to him and then pursuing an action for damages.

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