Chapter 25 - Chapter 25Sales Remedies TRUE/FALSE 1. The...

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Chapter 25—Sales Remedies TRUE/FALSE 1. The Code's remedies are cumulative, therefore, a seller may both withhold delivery of the goods and identify goods to the contract. ANS: T PTS: 1 2. A company may be considered insolvent under the Code if it is unable to pay its debts as they come due. ANS: T PTS: 1 3. If the buyer is insolvent and has not paid for goods received, the seller may reclaim the goods. ANS: T PTS: 1 4. Under the Code, damages have to be “calculable with mathematical precision.” ANS: F PTS: 1 5. A seller who sues for the price may resell the goods prior to the collection of the judgment and credit the net proceeds to the buyer. ANS: T PTS: 1 6. Robert paid William $1,000 for a rare first edition of an Edgar Allen Poe novel. The sales contract states that the book is to be delivered within ten days. William, however, refused to deliver the book as promised. In order to sue for the UCC remedy of specific performance, Robert must prove that money damages will not be adequate compensation for his loss. ANS: F PTS: 1 7. Dual purposes of remedies for breach of a contract for the sale of goods under the Code are compensa- tion and deterrence of wrongdoing; therefore, compensatory and punitive damages are common rem- edies. ANS: F PTS: 1 8. Under Article 2A a lessor may recover compensation for loss to his residual interest in the goods caused by the lessee's default. ANS: T PTS: 1 9. Under the CISG, the aggrieved party in a breach of contract has no duty to mitigate the loss. ANS: F PTS: 1 10. A buyer who has rightfully rejected or justifiably revoked acceptance of goods that remain in her pos- session or control has a security interest in these goods to the extent any payment of the price has been made.
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ANS: T PTS: 1 11. A buyer may not recover consequential damages that could have been prevented by cover. ANS: T PTS: 1 12. One hundred crystal flower vases have been identified to the contract and a down payment of $1,000 of the $10,000 purchase price has been paid. If the seller becomes insolvent, the buyer may still pay $9,000 and get the goods. ANS: T PTS: 1 13. Al agrees to sell goods to Betty for a contract price of $3,000 due on delivery. Betty wrongfully rejects the goods and refuses to pay anything. Al resells the goods in strict compliance with the Code for $2,000. He incurs incidental damages for sales commissions of $200 but saves $150 in expenses be- cause of the resale. Al is entitled to recover $1,050 from Betty. ANS: T PTS: 1 14. Code remedies are available together with remedies expressly stated in the contract if the contract does not expressly limit the remedies. ANS: T PTS: 1 15. Contract remedies provided as exclusive will not preclude Code remedies if circumstances cause the remedy to fail in its essential purpose.
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Chapter 25 - Chapter 25Sales Remedies TRUE/FALSE 1. The...

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