Question 1

When a lessee in possession of the goods is in breach,when may a lessor reclaim goods according to UCC 2A-5252) ?

Accepted Answer

A)  When the lessee fails to make payments according to the lease terms
B)  When the lessor discovers a significant reduction in the lessee's credit score
C)  When the lessor discovers the lessee is insolvent
D)  When the lessee has received at least 10 days prior notification of reclamation
E)  When the lessor can establish a valid contract for actual purchase of the goodsF) A) and B)
G) A) and C)

Question 2

Which of the following may occur if a solvent buyer has breached a contract by not paying for goods that are in transit?

Accepted Answer

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

Question 3

What does the UCC say regarding a limitation of consequential damages for commercial losses?

Accepted Answer

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

Question 4

The term "cover" refers to buyers' or lessees' substitution of goods for those due under a sales or lease agreement.

Accepted Answer

A) True 
 B)False

Question 5

The UCC outlaws a statute of limitations for bringing a lawsuit arising under a breach of contract for a sale of goods.

Accepted Answer

A) True 
 B)False

Question 6

When may a lessor seek incidental damages in the event of a breach by a lessee of goods?

Accepted Answer

A)  A lessor may seek incidental damages only if the lessee agreed orally or in writing to pay them.
B)  A lessor may seek incidental damages whenever the lease is breached.
C)  A lessor may seek incidental damages only if the lessee agreed in writing to pay them.
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 only if the damages are in an amount over $500.F) B) and C)
G) A) and D)

Question 7

List the various options discussed in the text that may be available to a buyer/lessee when the seller/lessor is in breach.

Accepted Answer

When the seller/lessor is in b...

Question 8

Assuming proper proof,which of the following represents damages a buyer or lessee may recover in the event of a breach?

Accepted Answer

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

Question 9

[Refused Furniture] Maya arranged to sell furniture from her furniture store to Luke for $3,000.Luke was required to give Maya a $500 deposit on February 1 and pay the remainder in monthly installments.Maya was to deliver the furniture by February 7.Luke did not pay Maya the deposit as promised on February 1.He asked her to wait until March 1,but she refused.She told him that the contract was canceled,and she refused to deliver the furniture at all.Due to a downturn in the economy,Maya was able to sell the furniture for only$2,500.Luke told Maya that she had no right to withhold or sell his furniture to another buyer,and that he was going to file suit.Maya also incurred $100 in additional advertising costs to advertise the furniture that Luke initially purchased.Maya saved $40 in delivery costs because she did not have to deliver the furniture to Luke and the subsequent purchaser picked up her own furniture.
-Which of the following statements is true regarding Luke's claim that Maya had no right to withhold his furniture?

Accepted Answer

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

Question 10

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 neither party is a corporation.
B)  When the remedies fail in their essential purpose.
C)  When they seem to give one side a benefit.
D)  When one party is a corporation.
E)  When one side was not represented by an attorney.F) A) and E)
G) A) and D)

Question 11

What is the statute of limitations for bringing a lawsuit arising under a breach of contract for the sale of goods?

Accepted Answer

A)  One year
B)  Five years
C)  Three years
D)  Four years
E)  Two yearsF) A) and D)
G) A) and C)

Question 12

What if a liquidated damage clause is punitive in nature?

Accepted Answer

A)  The UCC allows punitive liquidated damages as long as the parties negotiated in good faith to include a liquidated damages clause.
B)  The UCC allows punitive liquidated damages if there were lost profits.
C)  The UCC allows punitive liquidated damage clauses but common law does not.
D)  The UCC allows punitive liquidated damages only in contracts for sale,but not lease contracts.
E)  Courts will not enforce the liquidated damage clause if it is punitive in nature.F) A) and B)
G) C) and E)

Question 13

Discuss the steps that may be taken when a buyer or lessee is in breach and the goods have not yet been delivered.Also discuss the damages a seller and lessor may recover.

Accepted Answer

Sellers or lessors are allowed to sell t...

Question 14

If the parties do not agree to liquidated damages,does the UCC provide for them?

Accepted Answer

A)  Yes,the non-breaching seller may claim against a breaching buyer 20 percent of the purchase price or $500,whichever is less,as liquidated damages.
B)  Yes,the non-breaching seller may claim against a breaching buyer 20 percent of the purchase price or $500,whichever is more,as liquidated damages.
C)  No,because liquidated damages are unavailable under the UCC unless the parties have expressly agreed to them.
D)  Yes,the non-breaching seller may claim against a breaching buyer 30 percent of the purchase price or $1,000,whichever is more,as liquidated damages.
E)  Yes,the non-breaching seller may claim against a breaching buyer 30 percent of the purchase price or $1,000,whichever is less,as liquidated damages.F) C) and D)
G) B) and C)

Question 15

Tort law is primarily designed to vindicate social policy,while contract actions are created to enforce the intentions of the parties to the agreement.

Accepted Answer

A) True 
 B)False

Question 16

If the seller or lessor has delivered goods to a carrier or bailee,but the carrier or bailee has not yet turned the goods over to the buyer,the goods are said to be "in transit."

Accepted Answer

A) True 
 B)False

Question 17

Assuming a buyer that is insolvent has breached a contract by not paying for goods that are in transit,which of the following may occur?

Accepted Answer

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

Question 18

The UCC adopted some common law principles.

Accepted Answer

A) True 
 B)False

Question 19

A buyer may not seek damages if the buyer has accepted nonconforming goods.

Accepted Answer

A) True 
 B)False

Question 20

If the buyer fails to pay according to the terms of the agreement,which of the following remedies is available to the seller without court action?

Accepted Answer

A)  sellers may cancel the contract and withhold delivery of goods;but sellers may not sell undelivered goods to another buyer or sue for damages.
B)  Sellers may cancel the contract,withhold delivery of goods,or sell the goods to another buyer.
C)  Sellers withhold delivery of goods or sell undelivered goods to another buyer but cannot cancel the contract.
D)  Sellers may cancel the contract as their only remedy.
E)  Sellers may cancel the contract;but sellers may not withhold delivery of goods or sell undelivered goods to another buyer.F) A) and E)
G) C) and E)

Exam 24: Remedies for Breach of Sales and Lease Contracts

If the parties do not agree to liquidated damages,does the UCC provide for them?

Correct Answer
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Tort law is primarily designed to vindicate social policy,while contract actions are created to enforce the intentions of the parties to the agreement.

Correct Answer
verified

List the various options discussed in the text that may be available to a buyer/lessee when the seller/lessor is in breach.

Correct Answer
verified
When the seller/lessor is in b...
View Answer

Assuming a buyer that is insolvent has breached a contract by not paying for goods that are in transit,which of the following may occur?

Correct Answer
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Correct Answer
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When a lessee in possession of the goods is in breach,when may a lessor reclaim goods according to UCC 2A-5252) ?

Correct Answer
verified

Which of the following may occur if a solvent buyer has breached a contract by not paying for goods that are in transit?

Correct Answer
verified

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

Correct Answer
verified

The term "cover" refers to buyers' or lessees' substitution of goods for those due under a sales or lease agreement.

Correct Answer
verified

Discuss the steps that may be taken when a buyer or lessee is in breach and the goods have not yet been delivered.Also discuss the damages a seller and lessor may recover.

Correct Answer
verified
Sellers or lessors are allowed to sell t...
View Answer

Assuming proper proof,which of the following represents damages a buyer or lessee may recover in the event of a breach?

Correct Answer
verified

What if a liquidated damage clause is punitive in nature?

Correct Answer
verified

If the seller or lessor has delivered goods to a carrier or bailee,but the carrier or bailee has not yet turned the goods over to the buyer,the goods are said to be "in transit."

Correct Answer
verified

A buyer may not seek damages if the buyer has accepted nonconforming goods.

Correct Answer
verified

What does the UCC say regarding a limitation of consequential damages for commercial losses?

Correct Answer
verified

If the buyer fails to pay according to the terms of the agreement,which of the following remedies is available to the seller without court action?

Correct Answer
verified

The UCC outlaws a statute of limitations for bringing a lawsuit arising under a breach of contract for a sale of goods.

Correct Answer
verified

What is the statute of limitations for bringing a lawsuit arising under a breach of contract for the sale of goods?

Correct Answer
verified

The UCC adopted some common law principles.

Correct Answer
verified

When may a lessor seek incidental damages in the event of a breach by a lessee of goods?

Correct Answer
verified

Exam 24: Remedies for Breach of Sales and Lease Contracts

If the parties do not agree to liquidated damages,does the UCC provide for them?

Correct AnswerverifiedShow Answer

Tort law is primarily designed to vindicate social policy,while contract actions are created to enforce the intentions of the parties to the agreement.

Correct AnswerverifiedShow Answer

List the various options discussed in the text that may be available to a buyer/lessee when the seller/lessor is in breach.

Correct AnswerverifiedWhen the seller/lessor is in b...View AnswerShow Answer

Assuming a buyer that is insolvent has breached a contract by not paying for goods that are in transit,which of the following may occur?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When a lessee in possession of the goods is in breach,when may a lessor reclaim goods according to UCC 2A-5252) ?

Correct AnswerverifiedShow Answer

Which of the following may occur if a solvent buyer has breached a contract by not paying for goods that are in transit?

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

The term "cover" refers to buyers' or lessees' substitution of goods for those due under a sales or lease agreement.

Correct AnswerverifiedShow Answer

Discuss the steps that may be taken when a buyer or lessee is in breach and the goods have not yet been delivered.Also discuss the damages a seller and lessor may recover.

Correct AnswerverifiedSellers or lessors are allowed to sell t...View AnswerShow Answer

Assuming proper proof,which of the following represents damages a buyer or lessee may recover in the event of a breach?

Correct AnswerverifiedShow Answer

What if a liquidated damage clause is punitive in nature?

Correct AnswerverifiedShow Answer

If the seller or lessor has delivered goods to a carrier or bailee,but the carrier or bailee has not yet turned the goods over to the buyer,the goods are said to be "in transit."

Correct AnswerverifiedShow Answer

A buyer may not seek damages if the buyer has accepted nonconforming goods.

Correct AnswerverifiedShow Answer

What does the UCC say regarding a limitation of consequential damages for commercial losses?

Correct AnswerverifiedShow Answer

If the buyer fails to pay according to the terms of the agreement,which of the following remedies is available to the seller without court action?

Correct AnswerverifiedShow Answer

The UCC outlaws a statute of limitations for bringing a lawsuit arising under a breach of contract for a sale of goods.

Correct AnswerverifiedShow Answer

What is the statute of limitations for bringing a lawsuit arising under a breach of contract for the sale of goods?

Correct AnswerverifiedShow Answer

The UCC adopted some common law principles.

Correct AnswerverifiedShow Answer

When may a lessor seek incidental damages in the event of a breach by a lessee of goods?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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When the seller/lessor is in b...
View Answer

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Sellers or lessors are allowed to sell t...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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