1 - Under the UCC, a remedy limitation blocking recovery of personal injury caused by consumer goods is almost always unconscionable

True

False

2 - Edna Boyle contracts with The Melonville Times to advertise her garage sale to be held this Saturday. The ad is to run in the Friday and Saturday morning edition. If the ad does not run on time, The Melonville Times agrees to pay Edna $50. This liquidated damages clause is most likely enforceable.

True

False

3 - MC Qu. 01 The parties to a contract agree on a reasonable amount...

The parties to a contract agree on a reasonable amount of damages that will be paid to the injured party if there is a breach of the contract. This amount is known as _____

A.unenforceable damages.

B.punitive damages.

C.liquidated damages.

D.unconscionable damages.

4 - If a buyer breaches a contract, the seller is accountable to the buyer for any profit that the seller makes on a resale.

True

False

5 - If a seller fails to deliver goods called for in the contract, the buyer may purchase substitute goods. This is known as _____.

A.cover.

B.action for the price.

C.specific performance.

D.incidental damages.

6 - The objective of the UCC in regards to remedies for contract breach is to punish the offending party.

True

False

7 - Sue delivers defective widgets to Boz. The widgets were not as warranted. In seeking to recover damages from Sue, Boz

A.cannot recover because he accepted the goods.

B.

would never be entitled to consequential or incidental damages.

C.of the goods as warranted.

D.does not have to give Sue notice of the defect.

8 - Any attempt to limit consequential damages for injury caused to a person by consumer goods is considered_____.

A.reasonable.

B.punitive.

C.unconscionable

D.satisfactory.

9 - In which of the following transactions is the buyer most likely to be entitled to specific performance of the contract?

A.A contract for purchasing a rare Babe Ruth baseball card.

B.A contract for purchasing 75 shovels.

C.A contract for purchasing 50,000 boxes of crayons.

D.A contract for purchasing 60 bushels of tomatoes

10 - In the case of nondelivery, instead of covering, the buyer can get the difference between the contract price of the goods and their market price at the time he learns of the seller's breach.

True

False