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218. In Lee v. R&K Marine, where a boat that Lee bought became unusable after only three years when it fell apart,
and the seller had expressly disclaimed all warranties, the court held:
a. Lee had no case because all the warranties on the boat expired after 2 years
b. Lee had no case because boats are one of the types of goods not covered by warranties
c. Lee had a case because the defective boat endangered his life
d. Lee had a case because the retailer's disclaimer did not meet all the UCC requirements
e. none of the other choices are correct
219. The UCC's remedies for breaches of contract for the sale of goods are intended to:
a. place the breaching party in the same position as if the contract had been performed according to its terms
b. place the nonbreaching party in the same position as if the contract had been performed according to its
terms
c. place both parties in the same position as if the contract had been performed according to its terms
d. improve the position of the nonbreaching party beyond what it would have been if the contract had been
performed according to its terms
e. degrade the position of the breaching party
220. The UCC's remedies for breaches of contract for the sale of goods are intended to:
a. place the breaching party in the same position as if the contract had been performed according to its terms
b. degrade the position of the breaching party
c. place both parties in the same position as if the contract had been performed according to its terms
d. improve the position of the nonbreaching party beyond what it would have been if the contract had been
performed according to its terms
e. none of the other choices are correct
221. Which of the following is a way in which the buyer may default on contractual obligations:
a. rejecting a tender of goods that conform to the contract
b. wrongfully revoking an acceptance
c. repudiating the contract
d. failing to make a payment
e. all of the other specific choices are correct
222. Which of the following is a way in which the buyer may default on contractual obligations:
a. rejecting a tender of goods that conform to the contract
b. wrongfully revoking an acceptance
c. both choices a and b are correct
d. slandering the name of the seller
e. none of the other specific choices are correct
223. If the buyer breaches a UCC contract while the goods are still in the possession of the seller, the seller is authorized
to:
a. cancel the contract
b. salvage the goods
c. stop delivery of the goods
d. none of the other choices
e. all of the other specific choices are possible
224. When reclaiming and reselling goods does not fully compensate a seller for a buyer's breach of contract, damages
are the remedy. Damages are to put the seller in as good a position as if the buyer had fulfilled its obligations. The
seller is also allowed to seek incidental damages for recovery of costs resulting from the breach. Those costs may
include expenses for:
a. stopping delivery, transporting and handling the goods after the breach
b. returning or reselling the goods
c. reasonable attorney fees in bringing the action for damages against the buyer
d. stopping delivery, transporting and handling the goods after the breach or returning or reselling the goods
e. stopping delivery, transporting and handling the goods after the breach or returning or reselling the goods and
reasonable attorney fees in bringing the action for damages
225. UCC's damage measures are designed to put the seller in:
a. as good a position as if the buyer had performed contractual obligations
b. a better position than if the buyer had performed contractual obligations
c. a worse position than if the buyer had performed contractual obligations
d. there are no damage measure to compensate sellers in the UCC
e. none of the other choices are correct
226. Incidental damages awarded to a seller after a buyer's breach of contract can include compensation for which of
the following:
a. stopping delivery
b. transporting and taking care of the goods after the breach
c. returning or reselling the goods
d. all of the other specific choices are correct
e. none of the other specific choices are correct
227. After a breach of contract by a buyer, expenses associated with stopping delivery, transporting and taking care of
the goods after the breach, returning or reselling the goods are all examples of:
a. incidental damages
b. explicit damages
c. punitive damages
d. cost damages
e. breach damages
228. After a breach of contract by a buyer, expenses associated with stopping delivery, transporting and taking care of
the goods after the breach, returning or reselling the goods are all examples of:
a. breach damages
b. explicit damages
c. punitive damages
d. cost damages
e. none of the other choices are correct
229. A seller can breach a sales contract in which of the following ways:
a. the seller repudiates the contract before tendering the goods
b. the seller fails to make a scheduled delivery on time
c. the seller delivers nonconforming goods
d. all of the other specific choices are correct
e. none of the other specific choices are correct
230. The buyer's damage provisions under the UCC are designed:
a. to allow the buyer to profit
b. to allow the seller a way to cure the breach
c. to put the buyer in as good a position as if the seller had performed according to the contract
d. to put the buyer in a better position than if the seller had performed according to the contract
e. to prevent the buyer from losing more than half of his principle capital
231. The buyer's damage provisions under the UCC are designed:
a. to allow the buyer to profit
b. to allow the seller a way to cure the breach
c. to prevent the buyer from losing more than half of his principle capital
d. to put the buyer in a better position than if the seller had performed according to the contract
e. none of the other choices are correct
232. The (higher) price paid by a buyer for substitute goods in the event of a breach by a seller is called:
a. consequential damages
b. incidental damages
c. expectancy damages
d. cover
e. none of the other choices
233. The (higher) price paid by a buyer for substitute goods in the event of a breach by a seller is called:
a. consequential damages
b. incidental damages
c. expectancy damages
d. punitive damages
e. none of the other choices
234. When a seller fails to deliver goods, either by being too late to be useful or because the goods are nonconforming,
the buyer is entitled:
a. to nothing
b. to a compensatory payment of $1000
c. to buy substitute goods and recover the price difference
d. to require the seller to find deliver new goods
e. to sue for breach of confidentiality
235. When a seller fails to deliver goods, either by being too late to be useful or because the goods are nonconforming,
the buyer is entitled:
a. to nothing
b. to a compensatory payment of $1000
c. to sue for breach of confidentiality
d. to require the seller to find deliver new goods
e. none of the other choices are correct
236. The is what is paid for the substitute goods when a seller fails to deliver goods as specified by a contract.
a. extra price
b. market price
c. compensatory price
d. cover price
e. total price
237. The is what is paid for the substitute goods when a seller fails to deliver goods as specified by a contract.
a. extra price
b. market price
c. compensatory price
d. total price
e. none of the other choices are correct
238. In the event of a breach by the seller for shipping improper goods, and assuming the buyer correctly rejected the
delivery of the goods, the buyer's incidental damages may include:
a. the reasonable costs of inspecting, transporting, and caring for goods while in buyer's possession
b. the value of lost sales
c. distress suffered by personnel due to having to work with nonconforming products
d. all of the other specific choices
e. none of the other choices
239. Under the UCC, a buyer's damages are to put the buyer in as good a position as if the seller had performed the
contract. The buyer is allowed to seek incidental damages for recovery of those costs resulting from the breach.
Incidental damages include:
a. foreseeable, although not necessarily foreseen, damages that result from the seller's breach
b. injuries to people or property that are (proximately) caused by the seller's breach of any warranty
c. reasonable costs of inspecting, transporting, and caring for goods while in her possession
d. all of the other choices
e. none of the other choices
240. Under the UCC, a buyer's damages are to put the buyer in as good a position as if the seller had performed the
contract. The buyer is allowed to seek incidental damages for recovery of costs resulting from the breach.
Incidental damages include:
a. foreseeable, although not necessarily foreseen, damages that result from the seller's breach
b. reasonable costs of inspecting, transporting, and caring for goods while in the buyer's possession
c. punitive damages for willful non-compliance by the seller
d. all of the other choices
e. none of the other choices
241. In the event of a breach of sales contract by the seller, all reasonable costs or direct expenses associated with the
delay in receiving the goods or in tracking down substitute goods are included in the:
a. incidental damages
b. exemplary damages
c. consequential damages
d. inconsequential damages
e. total damages
242. In the event of a breach of sales contract by the seller, all reasonable costs or direct expenses associated with the
delay in receiving the goods or in tracking down substitute goods are included in the:
a. total damages
b. exemplary damages
c. consequential damages
d. inconsequential damages
e. none of the other choices are correct
243. are foreseeable damages that result from a seller's breach.
a. Incidental damages
b. Total damages
c. Consequential damages
d. Inconsequential damages
e. Punitive damages
244. are foreseeable damages that result from a seller's breach.
a. Incidental damages
b. Total damages
c. Punitive damages
d. Inconsequential damages
e. none of the other choices are correct
245. A California winery shipped its Rotgut Red wine to the House of Wines. The wine was improperly bottled, causing
the wine to blow its corks and spew wine all over Wines' carpeting. In Wines' suit against the winery, the damages
to the carpet will be considered:
a. incidental damages
b. consequential damages
c. exemplary (punitive) damages
d. part of any of the other choices
e. none of the other choices
246. Bill's Beer is brewed in Arkansas. The brewery was sold to another company which stopped payment on a
contract with Yakima Hops (Bill's hops supplier). Hops had just shipped a large quantity of hops to Bill's. In
response to the new owner's action, Hops may:
a. do nothing because its client no longer exists
b. must wait until Bill's rejects the goods before it can do anything
c. view the contract as breached, stop delivery of the goods if not yet received by the buyer, and sue for
damages
d. elect to cancel the contract, resell the goods, or withhold or stop deliveries
e. view the contract as breached, stop delivery of the goods if not yet received by the buyer, and sue for
damages or elect to cancel the contract, resell the goods, or withhold or stop deliveries
247. Ordan's agreed to sell olives to Vic's. The goods were shipped Monday for Friday delivery. On Wednesday, while
the goods were in transit, Vic's canceled the contract. Ordan's may:
a. minimize losses by reselling the goods to another buyer
b. refuse to resell the goods to another buyer
c. refuse to salvage the goods
d. sue for infliction of emotional distress only
e. force Vic's to accept the goods
248. Ordan's agreed to sell olives to Vic's. The goods were shipped Monday for Friday delivery. On Wednesday, while
the goods were in transit, Vic's canceled the contract. Ordan's may:
a. minimize losses by reselling the goods to another buyer
b. refuse to resell the goods to another buyer
c. force Vic's to accept the goods
d. sue for punitive damages only
e. none of the other choices
249. In October, Ashton Co. ordered machines from Ross Tool to secure propellers onto airplanes. Delivery was set for
December. In November, Clyde told Ashton that its propeller supplier could not ship propellers that would fit the
Ross machines. Ashton told Ross that it was canceling the contract for the machines. Ross may sue:
a. Clyde for breach to recover additional expenses not compensated by a resale or salvage
b. Clyde for breach to recover additional expenses not compensated by a resale or salvage—but only if the
contract is governed by the CISG
c. Ashton for breach to recover additional expenses not covered by the resale or the salvage
d. Ashton for punitive damages only
e. but will get nothing, it's stuck
250. In October, Ashton Co. ordered machines from Ross Tool to secure propellers onto airplanes. Delivery was set for
December. In November, Clyde told Ashton that its propeller supplier could not ship propellers that would fit the
Ross machines. Ashton told Ross that it was canceling the contract for the machines. Ross may sue:
a. Clyde for breach to recover additional expenses not compensated by a resale or salvage
b. Clyde for breach to recover additional expenses not compensated by a resale or salvage⎯but only if the
contract is governed by the CISG
c. Ashton for punitive damages only
d. Ashton, but it has no claim under the UCC
e. none of the other choices
251. Jill's ordered 1,000 boxes of white paper for use in copying machines. The Paper Company delivered 1,000 boxes
of orange paper. Jill's rejected the order but had to put the boxes in storage for two weeks until Paper could get the
paper and deliver the right paper. Jill's lost sales to Kingaroos while waiting for the right paper. Suing Paper, Jill's
may recover:
a. the reasonable costs of inspecting the goods
b. the reasonable costs of storing the paper
c. the value of lost sales
d. none of the other choices would be covered
e. all of the other specific choices would be possible
252. Jill's ordered 1,000 boxes of white paper for use in copying machines. The Paper Company delivered 1,000 boxes
of orange paper. Jill's rejected the order but had to put the boxes in storage for two weeks until Paper could get the
paper and deliver the right paper. Jill's lost sales to Kingaroos while waiting for the right paper. Suing Paper, Jill's
may recover:
a. the reasonable costs of inspecting the goods
b. the reasonable costs of storing the paper
c. punitive damages
d. the reasonable costs of inspecting the goods and of storing the paper
e. all of the other choices would be possible
