BAILEY EXAM 2 Studyguide CH25 28 CHAPTER 25 Studyguide The Code s remedies are cumulative therefore a seller may both withhold delivery of the goods and identify goods to the contract TRUE A company may be considered insolvent under the Code if it is unable to pay its debts as they come due TRUE If the buyer is insolvent and has not paid for goods received the seller may reclaim the goods TRUE Under the Code damages have to be calculable with mathematical precision FALSE Damages do not have to be calculated with mathematical precision but only need to be proved with whatever definiteness and accuracy the facts permit Punitive punishment damages are generally not given The Code defines cancellation as one party s ending a contract by that party s breach FALSE The Code defines cancellation as one party s putting an end to the contract by reason of breach by the other 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 FALSE Dual purposes of remedies for breach of a contract for the sale of goods under the Code are compensation and deterrence of wrongdoing therefore compensatory and punitive damages are common remedies FALSE Punitive punishment damages are generally not given Remedies for breach are cumulative and whether one remedy bars another depends on each case Under Article 2A a lessor may recover compensation for loss to his residual interest in the goods caused by the lessee s default TRUE Under the CISG the aggrieved party in a breach of contract has no duty to mitigate the loss FALSE A buyer who has rightfully rejected or justifiably revoked acceptance of goods that remain in her possession or control has a security interest in these goods to the extent any payment of the price has been made TRUE A buyer may not recover consequential damages that could have been prevented by cover TRUE 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 TRUE 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 because of the resale Al is entitled to recover 1 050 from Betty TRUE A contract between the seller and buyer may not provide for remedies in addition to or instead of those provided in the Code FALSE The contract may expressly provide for remedies in addition to or instead of those provided in the Code and may limit or change the measure of damages recoverable in the event of breach Contract remedies provided as exclusive will not preclude Code remedies if circumstances cause the remedy to fail in its essential purpose TRUE Under the CISG if the seller fails to perform any of his obligations under the contract or the CISG the buyer may require the seller to perform or may fix an additional reasonable period of time for the seller to perform TRUE Breach of one installment of an installment contract is never considered to impair the value of the whole contract FALSE If the contract has installments any breach of an installment that impairs the value of the entire contract allows the seller to withhold the entire undelivered balance of the goods Upon the seller s breach the buyer must protect himself by obtaining cover or he is barred from any other remedy under the Code FALSE The aggrieved buyer may protect himself by obtaining cover Cover means that the buyer may in good faith and without reasonable delay proceed to purchase needed goods or make a contract to purchase such goods in substitution for those due under the contract from the seller In a lease the lessee may purchase or lease substituting goods If making a reasonable contract of cover the buyer may recover from the seller the difference between the contract of cover and the contract price plus any incidental and consequential damages less expenses saved due to the seller s breach The buyer is not required to obtain cover and his failure to do so does NOT bar him from other remedies that the Code provides The buyer cannot however recover consequential damages that he could have prevented by obtaining cover Under the CISG if the contract is avoided and the seller has resold the goods in a reasonable manner he may recover the difference between the contract and resale prices TRUE Replevin is an action at law to recover specific goods in the possession of the defendant which are being unlawfully withheld from the plaintiff TRUE Upon rightful rejection or justifiable revocation of acceptance the buyer loses all property interest in the goods FALSE If existing goods are identified to the contract the buyer acquires a special property interest in the goods This interest exists even though the goods are non conforming and the buyer has the right to return or reject them Specific performance is a remedy at law which seeks to compel the party in breach to perform the contract according to its terms FALSE Specific performance is an equitable remedy compelling the party in breach to perform according to its terms A seller may default in three different ways and the Code provides remedies each of which is available for any type of default FALSE When a buyer defaults in performing any of his contractual obligations the seller may sue for remedies against the buyer A default can consist of wrongfully rejecting the goods wrongfully revoking acceptance of the goods failing to make a payment due on or before delivery or repudiating the contract in whole or in part In Article 2A it states that a lessor may recover compensation for any loss of or damage to the lessor s residual interest in the goods caused by the lessee s default The contract between the buyer and the seller may expressly limit or exclude consequential damages so long as the contract is not unconscionable TRUE Exclusion of consequential damages for personal injuries resulting from breach of warranty in the sale of consumer goods is prima facie unconscionable The right of the