_____ is the preferred remedy for nonbreaching sellers as it provides an easy means to determine damages in breach of sales contract by
Suing to get benefit of the bargain
Revocation of contract
Resale of goods
When the buyer in a sales contract is in breach, sellers are allowed to sell the goods to another buyer or dispose of the goods under the
Uniform Commercial Code (UCC). Which of the following is true of the liability of the buyer under these circumstances?
UCC allows the seller to recover the difference between the resale price and the contract price, plus incidental damages and
minus expenses saved.
UCC allows the seller to claim the difference between the original contract price and the profits made through resale.
UCC allows the seller to recover the difference between the resale price and the contract price, minus the profits the seller
makes from the resale.
UCC allows the seller to recover only the incidental damages.
_____ occurs in certain situations where the contract between the original parties would be void but the goods have already
been sold to a third party.
According to the Uniform Commercial Code (UCC), which of the following is the remedy of last resort available to sellers and lessors in the
case of breach of sales contract by the buyer or lessee?
Claiming liquidated damages as per the contract
Withholding delivery of goods
Canceling the contract
Reselling the goods
A person who purchases stolen goods, knowingly or unknowingly, has _____ over the goods.
Under common law, _____ occurs when all the material elements of a contract are satisfied even if some nonmaterial requirements may not be
Sections 2-601 and 2A-509 of the Uniform Commercial Code (UCC) indicate that if goods or tender of delivery fail in any respect to conform to
the contract, the buyer/lessee has the right to:
revoke the contract even if the industry expects such failures to be part of the dealings.
accept part and reject part of the goods.
accept the goods without payment.
claim damages for breach of contract even if the seller offers to cure the problems with the nonconforming goods.
According to the Section 2-725(1) of the Uniform Commercial Code (UCC), the time frame for a plaintiff to file suit once a cause of action
accrues in contracts involving the sale of goods is:
The perfect tender rule:
is usually substituted by the doctrine of substantial performance under the Uniform Commercial Code (UCC).
is interpreted both in light of what is expected in an industry and within the context of past dealings between the parties to
recognizes the distinction between material and immaterial contractual requirements.
requires a lesser standard of contractual performance from sellers in comparison with the doctrine of substantial performance.
Sections 2-502 and 2a-522 under the Uniform Commercial Code (UCC) allows buyers and lessees to recover the goods identified in the
contract if the seller or lessor becomes insolvent:
immediately after a year from receiving the first payment due under the agreement.
15 days before receiving the first payment due under the agreement.
within 30 days after receiving the first payment due under the agreement.
within 10 days after receiving the first payment due under the agreement.
Identify the true statement about the transfer of title, risk of loss, and insurable interest in a simple delivery contract.
Insurable interest is created in the buyer after the goods are delivered to the buyer.
If the seller is a merchant, the risk of loss passes to the buyer under the rule of tender of delivery.
Title transfers to the buyer on the goods being identified to the contract, that is, when the contract is executed.
If the seller is not a merchant, the risk of loss remains with the seller until the goods are actually delivered to the
When a change in government regulation that neither party to a contract of sale contemplated forbids the import or export of a particular item
the parties had agreed would be shipped, nonperformance is excused on the grounds of:
mistake of fact.