Business Law 24

C

Courts allow modifications or limitations to remedies unless the remedies fail in their: _______. A. elementary rationale B. subordinate rationale C. essential purpose D. superficial purpose

limitations

According to the UCC, 4 years is the statute of ______ for a plaintiff to file suit for breach of contract once a cause of action accrues.

A

According to the Uniform Commercial Code, how long does a plaintiff have to sue for breach of contract once the cause of action accrues? A. Four years B. Three months C. Three years D. Six months

B,D

Buyers and lessees are entitled to ______ and ______ damages for breach of contract. A. compensatory B. incidental C. punitive D. consequential

D

Contract law is primarily designed to: _______. A. punish the responsible tortfeasor B. vindicate social policy C. promote equity D. enforce the intentions of contracting parties

essential

Courts allow modifications to remedies unless the remedies fail in their ________ purpose(s).

A,C,B

If buyer is in breach, UCC 2-706 allows the seller to recover the difference between the _______ price and the _______ price, plus _______ damages and minus expenses saved. (Check ALL that apply) A. resale B. incidental C. contract D. punitive

A,B

In obtaining cover, the buyer must demonstrate ______ in obtaining the ______ goods. A. good faith B. substitute C. reasonableness D. specific

c

In obtaining cover, the buyer must pay a _______ amount for the substitute goods. a. recovery of the goods b. specific performance c. fair market

benefit

In trying to give the seller or lessor the ______ of the bargain, and nothing more, courts often grant damages to recover the purchase price or lease payments due.

a,d

In trying to give the seller the benefit of the bargain, courts will -- in some cases -- award lost ______ to the seller, especially if the goods cannot be _______ in the usual course of business. a. profits b. delivered c. sales d. resold

cover; cancel

Once a buyer rightfully rejects goods, the buyer may then obtain ______ or ______ the contract.

D,A

The basic premise of ______ law is to effectuate the _______ of the parties to the agreement. (Choose TWO correct answers) A. expectations B. performance C. restatement of the D. common

A,C

The basic premise of contract law is to give the parties to the agreement the "______ of the ______" they struck when they entered into the agreement. (Choose TWO correct answers) A. benefit B. custom C. bargain D. trade

B

The obligations of sellers, lessors, buyers and lessees are determined by all of the following except: _______. A. rules outlined by the Uniform Commercial Code B. parity C. custom D. terms the parties outline in agreements

B

The obligations of sellers, lessors, buyers and lessees are determined in part by which of the following? A. Retribution B. Customs C. Parity D. Equivocation

A

UCC Section 2-502 allows a buyer to recover the goods identified in the contract if the seller becomes insolvent within ______ after receiving the first payment due under the agreement. A. 10 days B. 1 month C. 3 months D. 14 days

B

UCC Section 2-608 sometimes allows the buyer to ______ acceptance of nonconforming goods. A. reject B. revoke C. renounce D. reformulate

C

UCC Section 2-702(2) allows a seller to ______ goods when it discovers the buyer is insolvent. A. remunerate B. renovate C. reclaim D. rehabilitate

breach

UCC Section 2-725(1) states that 4 years is the time frame for a plaintiff to file suit for _______ of contract once a cause of action accrues.

B,A

UCC Section 2A-522 allows a lessee to _______ the goods identified in the contract if the lessor becomes ______ within ten days after receiving the first payment due under the agreement. A. insolvent B. recover C. revoke acceptance of D. incapacitated

in transit

UCC Section 2A-526(1) allows a lessor to stop delivery of goods that are ____ _____.

B,C

UCC Sections 2-608 and 2A-517 sometimes allow the buyer or lessee to ______ OR _____ acceptance of goods. (Choose TWO best answers) A. specific B. revoke C. reject D. conforming

lessee

UCC Sections 2-703(a) and 2A-523(1)(c) allow sellers or lessors to withhold delivery of goods when the buyer or _______ is in breach. (Choose TWO correct answers)

resale

Under UCC 2-706 although the buyer is liable for damages, the seller gets to keep any profits it makes on the _______.

incidental

Under UCC 2A-527(2) the lessor is allowed to lease the goods to another party and recover unpaid lease payments and any deficiency between the lease payments due under the original lease contract and those due under the new contract, plus _______ damages.

monetary

Under UCC Sections 2-607, 2-714, and 2A-519, buyers or lessees are allowed to accept nonconforming goods and then seek ______ damages to give them the benefit of the bargain.

A,B

Under UCC Sections 2-712 and 2A-518, buyers and lessees are allowed to ______, or _______ goods for those due under the sales or lease agreement. A. substitute B. cover C. cancel D. reject

notice

Under the UCC, if a buyer accepts nonconforming goods and elects to seek monetary damages, the buyer must give the seller reasonable ______ of the defect.

D

Under which of the following circumstances does the UCC allow buyers and lessees to seek the remedy of specific performance? A. The goods identified in the contract are common. B. A remedy at law is preferable. C. A legal remedy is adequate. D. The goods identified in the contract are unique.

D,B

Uniform Commercial Code Section 2A-525(2) allows a lessor to ______ goods when the lessee _________ according to the lease terms. A. revoke B. fails to make lease payments C. accepts nonconforming goods D. reclaim

B,C,D

Uniform Commercial Code Sections 2-703(f) and 2A-523(1)(a) allow a seller or lessor to ______ the contract if the buyer or lessee is in breach. (Check ALL that apply) A. enforce B. cancel C. rescind D. revoke

seller; lessor

Uniform Commercial Code Sections 2-703(f) and 2A-523(1)(a) allow a(n) ______ or ______ to cancel the contract if the buyer or lessee is in breach.

A,C

Uniform Commercial Code Sections 2-703(f) and 2A-523(1)(a) allow a(n) ______ or ______ to cancel the contract if the buyer or lessee is in breach. A. lessor B. carrier C. seller D. owners

C

Which of the following is a buyer not required or allowed to do in order to rightfully cover? A. Purchase goods that are reasonable substitutes. B. Demonstrate good faith in obtaining substitute goods. C. Pay more than fair market value for substitute goods. D. Act without unreasonable delay in purchasing substitute goods.

B

Which of the following is a contract remedy available to buyers and lessees under the Uniform Commercial Code? A. Recover punitive damages. B. Reject nonconforming goods. C. Seek an equitable injunction. D. Remunerate acceptance.

D

Which of the following is a potential contract remedy available to a seller or lessor if the buyer is in breach? A. Recover putative damages. B. Recover incendiary damages. C. Recover exemplary damages. D. Recover liquidated damages.

A

Which of the following is not a contract remedy available to buyers and lessees under the Uniform Commercial Code? A. Seek an equitable injunction. B. Obtain specific performance. C. Reject nonconforming goods. D. Recover the goods.

A

Which of the following is not a potential contract remedy available to a seller or lessor if the buyer or seller is in breach? A. Recover incendiary damages. B. Dispose of the goods. C. Sue to receive the benefit of the bargain. D. Stop delivery.

B

Which of the following is not a potential contract remedy available to a seller or lessor if the buyer or seller is in breach? A. Resell the goods. B. Recover putative damages. C. Cancel the contract. D. Withhold delivery of the goods.

D

Which of the following is not a section of the Uniform Commercial Code that would allow a buyer or a lessee to accept nonconforming goods and then seek monetary damages to give them the benefit of the bargain? A. 2A-519 B. 2-714 C. 2-607 D. 2A-626

B

Which of the following terms refers to a buyer's right to substitute goods for those due under a sales agreement? A. Subversion B. Cover C. Capitulation D. Submersion

B

Which section of the UCC allows a buyer, when a seller fails to deliver the goods and is in breach, to cancel the contract and then seek remedies that give the buyer the benefit of the bargain? A. 2A-608(1)(a) B. 2-711(1) C. 2A-408(1)(a) D. 2-511(1)

A

Which section of the UCC allows a lessee to cover, or substitute, goods for those due under a lease agreement? A. 2A-518 B. 3A-418 C. 3A-618 D. 2A-718

a

Which section of the UCC allows a lessee to reject goods? a. 2A-519 b. 2-501 c. 2-701 d. 2-719(a)

B

Which section of the UCC allows a lessee, after a lessor fails to deliver the goods and is in breach, to cancel the contract and then seek remedies that give the lessee the benefit of the bargain? A. 2A-708(1)(a) B. 2A-508(1)(a) C. 2-811(1) D. 2-611(1)

D

Which section of the UCC allows parties to create agreements that make it clear the remedies outlined in the agreement are exclusive remedies? A. 2A-519 B. 2-519 C. 2-719 D. 2A-719

A

Which section of the Uniform Commercial Code allows lessors to withhold delivery of goods when the lessee is in breach? A. 2A-523(1)(c) B. 1A-703(a) C. 1A-523(1)(c) D. 2A-723(a)

Specific performance

______ ______ usually requires that the seller or lessor deliver the particular goods identified in the contract.

b,c

______ usually requires that the seller or lessor deliver the particular goods _______ in the contract. (Choose TWO correct answers) a. Resold b. Specific performance c. Identified d. Rejection of acceptance

consequential

_______ damages give the injured buyer or lessee the benefit of the bargain.