If the seller resells the goods after the buyer breaches a contract, it may keep any profit from the difference between the resale price and the contract price.

true

* false

Hearth Depot contracted to purchase 50 fireplaces from Flame Co.

Three days before delivery, Hearth Depot notified Flame Co. it wanted to cancel the contract because it was overstocked with fireplaces.

Under these circumstances, what remedies are available to Flame Co?

Flame Co. must attempt delivery of the goods before it can sue Hearth Depot for damages.

Flame Co. must attempt to resell the goods to another buyer before it can recover damages from Hearth Depot.

*Flame Co. may recover the difference between the contract price of the fireplaces and the current market price at which the fireplaces are selling.

Trent purchased a new tablet that was warranted to be free from manufacturing defects or defects in workmanship for a period of six years.

Five years after Trent purchased the tablet, he was burned when it spontaneously caught fire as a result of a manufacturing defect.

Under these circumstances, select the most correct statement.

Trent is entitled to recover the difference between the price of the defective tablet and its value as warranted,buthe cannot recover damages for personal injuries unless the contract expressly provided for such recovery.

*Trent can recover damages for loss in value of the tablet,andhe can recover damages for personal injury as consequential damages for breach of warranty.

Trent is entitled to recover damages for personal injury as consequential damages,buthe cannot recover damages for the loss in value of the tablet.

In general, a buyer can recover damages from a seller for the difference between the value of goods received and the value of goods as warranted.

*True

false

If a seller fails to deliver goods, the buyer is required to cover.

*True

False

A seller's attempt to contract away its liability for personal injury resulting from the sale of defective consumer goods will be unenforceable under the doctrine of unconscionability.

True

*False

Select the contract provision that is most likely to be enforced.

A clause which limits the seller's liability for personal injury to the purchaser of consumer goods

*A clause in a commercial contract limiting the seller's liability for a buyer's lost profits

A $5,000 liquidated damages clause in the sale of a $500 television

If the buyer is insolvent and cannot pay for goods it has ordered, the seller is required under the UCC to hold the goods and the buyer has five (5) business days to claim the goods and pay for them.

True

*false

If the goods are in the buyer's possession when the buyer breaches the contract, the seller may recover the purchase price.

True

False

When a buyer covers, s/he can recover from the seller: ___ .

The difference between the contract price and the cost of the substitute goods

The reasonable value of the goods

The difference between the contract price and the market price

When a buyer breaches a contract, a seller has a duty to mitigate damages.

*True

False