Business Law 2, Chapter 21-22 quiz

Sam agrees to sell Bob 10,000 widgets at a price of $1.00 per widget. After Bob breaches the contract by refusing to accept delivery, Sam resells the widgets for $.90 per widget. This cost Sam an additional $100 in sales commissions too. What amount can Sam recover from Bob if he sues for recovery?

$1100

Wonder Widgets agrees to sell Bill Buyer 10,000 of its "Grade A" widgets at a price of $3.00 per widget. After Wonder breaches the contract by failing to deliver, Bill buys substitute widgets at a price of $3.20 per widget. Bill also incurs $200 in reasonable expenses assoicated with the purchase. Bill then sues Wonder for $2200. What if anything can Bill actually recover?

$2200

A buyer can accept goods by

All of the above

In general, which of the following remedies is available to a seller who discovers that his buyer is insolvent? Don't consider the technicalities concerning when each remedy actually applies.

All of the above

Article 2's requirement of good faith only applies to merchants and no one else.

False

Liquidated damages provisions are not enforced in cases governed by Article 2 of the UCC.

False

Once a buyer has accepted goods from the seller, she waives all her legal remedies for any defects or nonconformities in the goods.

False

Once a buyer has accepted goods, he cannot revoke that acceptance.

False

Under Article 2 of the UCC, consideration is necessary for the modification of a contract.

False

Pete contracts to sell Jill 100 widgets. The 100 widgets are located at Pete's business. The contract does not state a place of delivery. The place of delivery is:

Pete's place of business

A buyer usually can inspect goods before payment, except when:

Shipped COD

Which of the following is true about the seller's right to reclaim goods he discovers were received by the buyer when the buyer was insolvent?

The seller must make a demand for the goods within 10 days of thei receipt by the buyer.

If the seller is in the process of manufacturing the goods when the buyer breaches the contract, one of the seller's options is to complete manufacture of the goods

True

If there is a conflict between the express terms of a contract for the sale of goods and the past course of dealings between the parties, the express terms of the contract will prevail.

True

The buyer can recover all consequential damages actually caused by the seller's breach of the contract, whether those damages were foreseeable or not.

True

Under the UCC, what theory usually is used to excuse a failure to perform that is justified by unforeseen and unforeseeable events?

commercial impracticability

Article 2's requirement of good faith:

means honesty in fact

In the case of a conflict between the parties, which of the following defeats the express terms of a contrac

nothing defeats the express terms of a contract unless that term has been waived

If goods are shipped to the buyer cash on delivery (COD), the buyer must pay for the goods before inspecting them unless they are marked "Inspection Allowed".

true

If the seller fails to deliver goods as required by the contract, the buyer can purchase substitute goods, and recover the difference between the contract price and the cost of the substitute goods.

true

One way that a buyer might breach a contract for the sale of goods is by wrongfully refusing to accept them.

true

Where the seller delivers the buyer defective goods, the buyer can recover the value of the goods as warranted minus the value of the goods as received.

true