Which of the following is not a remedy of the buyer? Incidental Damages are costs and expenses incurred by the non-breaching party to avoid other direct and consequential losses caused by the breach. Select one: a. d. All of the above All of the above Consequential Damages: A breaching party is liable for all damages that were reasonably foreseeable or "within the contemplation of the parties" at the time of contract formation. a. Ralph entered into a supply contract with the Canasta and the events manager told a lending officer at the bank where Ralph got his construction mortgage for the business expansion that the Canasta would be sending all of its business to Ralph. Direct damages refer to legal damages that are directly associated with, or related to, the wrongful act (e.g., breach of contract). Example. The type of clause would not be enforced by the courts. b. making calls to obtain replacement goods. Incidental damages include: c. can take up to 75 percent of the debtor's wages. \text { Parent } 13.50\% & 12.08 & 11.66 & 11.46 c. do not have the three-day rescission rights since there are no monthly installment payments over a period of one year. She took it back to the repair shop and they stated they didn't know what happened but they would refund her $250. Incidental damages include all reasonable expenses incurred because of a breach of contract. d. $1,100. b. d. All of the above are true. d. none of the above. Promised Position- Position after wrong = ? 2-710. a. may be goods oriented, money oriented, or obligation oriented. Seller's Incidental Damages. Paddock installed the wrong trim on the pool. b. a collection agency with one exclusive client The Code provides that a lawsuit for breach of a sales contract must be filed within four years after the breach occurs. Article 2A authorizes liquidated damages payable by either party for default or any other act or omission. e. Receipt of cash refund from overpayment of taxes. c. The buyer may have the right to obtain specific performance. Cover, incidental and consequential damages. b. are protected by their three-day rescission rights under Regulation Z. They decide to purchase in the West Brook subdivision and soon after signing the papers, they discover that a large part of the neighborhood is being re-zoned to make room for a new airport. d. Krieg agreements are void. a. need not pay for the cabin because of this material breach. The former owner has been convicted of drug charges. b. incidental damages only. a. the difference between the contract price and the resale price. Which of the following is true about a line of credit secured by the equity in the debtor's home? Bethany Tolson had a contract to supply ice to Jake's Creamery. The buyer has the right to stop delivery of the goods. Consequential damages can be awarded based on a variety of consequences, which can lead to significant amounts of money awarded to a plaintiff. What was the holding in Hadley v. Baxendale ? The Kellmans: Such covenants are: (Round earnings per share figures to the nearest cent. b. What I have found interesting over the last several months is that contractors, surety brokers and even surety underwriters really . Demrow Co., which contracted to buy 400 fishing poles from Royal Industries, anticipatorily breached the contract. a. d. none of the above. Alie is outraged when she hears that a company is offering insurance against being attacked by zombies: "Zombies aren't even real! The party has conferred a benefit on the other party. Plains Manufacturing experienced a flood at its plant in Iowa City and lost all goods in production. Incidental damages are associated costs a company incurs because of a party's breach like added labor costs. In Yale V. Fountain, the primary contract was between the medical provider and..? Big Box indicates that it is happy to take the return on the computer and credit Sandy's account, but that it has no further liability. What are the buyer's damages for breach of warranty? When things did not go well in working with the two, Akon sought to set aside the contract on the grounds of misrepresentation. Loss of irreplaceable items. \hline \text { Property } & \text { Appraiser 1 } & \text { Appraiser 2 } \\ If the breach by the seller concerns the whole contract, the buyer may cancel the entire contract. The Canasta Resort was a large hotel located near Ralph that was not satisfied with its current catering company's ice sculptures and its events manager liked Ralph's work. b. a creditor who has a signed credit application from the consumer debtor a. the ability to return the contract consideration. . d. Andy is entitled to the return, but no additional damages. b. Courts generally order reformation when either (1) fraud/misrepresentation or (2) mutual mistake is present. a. can allow Paula to declare bankruptcy because she has debts. The representatives of Fun-in-the-Sun Pool arrange a meeting at the Windsor's home to discuss the price and draw up plans. A buyer who does not cover is precluded from consequential damages that could have been prevented if the buyer did obtain cover. . b. Plains does not owe any damages to Tristan because of impracticability. c. a hospital collecting a debt from a patient \hline 2 & 195000 & 190000 \\ 10 & 2,800 & 95 & 3 & 0 & 6 \\ What are compensatory damages and its two types? Material has just sold the business to Phil Forma. Stop delivery of the goods by the carrier. Medical bills. The Canasta then began to rethink its events focus and marketing and decided to cut back on ice sculptures. Under what circumstances may the buyer seek the remedy of replevin? Delegation is the transfer of contractual duties and obligations, assignment is the third-party contract rights that are brought forward afterwards, Compensatory: direct damages as result of breach (car promised was sold to someone else) Liquidated Damages 7 IV. Incidental damages: These are expenses incurred by a buyer in connection with rejection of . d. All of the above. amount to be purchased. Which of the following remedies are mutually exclusive and could not be obtained simultaneously? Angela: c. serve to shift the risk of unforeseen events. \text { Family } \\ Van resells the goods in compliance with the Code for $1,700, incurring $200 in sales commissions but saving $250 in shipping costs. What result? Plains Manufacturing experienced a flood at its plant in Iowa City and lost all goods in production. Or B? They are often . Is there an implied-in-fact contract here? c. have no remedy because neither sellers nor brokers are required to disclose psychological issues with Recast the income statement in multistep form, including allocating income taxes to appropriate items (assume a 30 percent She told the shop that the computer seemed to have a virus and asked them to remove any viruses they found and to install new virus protection software. c. a condition precedent. The result was that the Kellman's had a half-closet there instead of a full-length closet that was open to the The seller of a dry cleaning business has agreed not to open another dry cleaning business for two years within a one-mile radius of the sold business. - not from special circumstances. After moving in, the Telfords learned that the home had been owned formerly by a couple that was indicted for drug trafficking. c. Akon can have the contract rescinded on the grounds of misrepresentation. c. Plains is not in breach if there is advance notification that it cannot deliver. a. b. Jessica is going to work as a lifeguard at Big River Water Park. Rose, a minor, purchased a new car from Sheehan Buick for $5,000. b. have a remedy of damages or rescission if this information was withheld from them. Under the CISG, avoidance of a contract cancels any provision for settlement of disputes. 1. a. only at a public sale. Compensatory damages are paid to compensate the plaintiff for loss, injury or harm suffered. d. can be compensated under the doctrine of substantial performance. After she purchased the home, she learned that the home had been the residence of a long-time drug dealer. \hline 1 & 2,240 & 60.8 & 2 & 0 & 4 \\ The Canasta then began to rethink its events focus and marketing and decided to cut back on ice sculptures. 1. damages (legal damages) a. compensatory damages b. consequential damages c. Punitive damages d. Nominal damages e liquidated damages 2. equitable remedies a. rescission and restitution b. reformation c. specific performance 3. mitigation of damages Compensatory Damage Actual loss suffered Examples Medical Bills Time loss from work What is the value of A? d. None of the above is covered under the FDCPA. a. the lost profits from a contract to sell the bean crop. The realtor is guilty of duress. b. liquidated damages. The Hoffmans were having their home remodeled by All-Right Contractors. d. The buyer may have the right to recover incidental and consequential damages. Which of the following is not a remedy of the buyer? c. Payment for reasonable value for necessities HUMBENZ: a. Study with Quizlet and memorize flashcards containing terms like The Code's remedies are cumulative, therefore, a seller may both withhold delivery of the goods and identify goods to the contract., A company may be considered insolvent under the Code only if it is unable to pay its debts as they are due., If the buyer is insolvent and has not paid for goods it has received, the seller may . a. can ask to have it eliminated A buyer's right to purchase, in good faith and without unreasonable delay, substituted goods from Seller B when Seller A breaches a sales contract is: Gainondisposalofdiscontinuedoperations, Arthur Getis, Daniel Montello, Mark Bjelland, Information Technology Project Management: Providing Measurable Organizational Value, The Cultural Landscape: An Introduction to Human Geography, AP Edition. a. make a written objection. The Windsors sign a contract for the pool for a price of $12,000 with payments of $3000 each month for the next four months while the pool is under construction. a. Misrepresentation c. has violated the FDCPA. Anne was shopping for a used washing machine. The events manager approached Ralph and indicated the Canasta would like to have an ongoing supply contract but that its needs would require Ralph to expand his business, both with additional space and 3 new employees. a. When Evan turns on the stove, it catches fire, burning Evan severely. c. Cost to initially ship the widgets to buyer. \hspace{50pt} & \textbf{20} & \textbf{25} & \textbf{30} \\ Dana has become uncomfortable with the visitors and the surveillance. The Jericho National Bank is willing to loan Max Glenn $80,000 at 12.50% for 20 years on the purchase of a home. Which of the following is correct? b. contacting the debtor at his/her place of employment d. failure of conditions. Gary agrees to pay $3,000 upon completion of the work; you purchase window washing supplies at a total cost of $1,000. b. Big Box did not disclose to her that the computer was a return item. a. d. Cost to reload widgets onto seller's truck at buyer's city. How much of the $x is Dan responsible for paying? A contract with a person declared mentally incompetent. d. Both (a) and (c). Incidental refers to something that happens by chance. Angela, age 17, is injured in a car accident and receives $5,200 in medical treatment at the emergency room. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Tristan has to purchase the 10 refrigerators from another plant at a cost of $3,000 each. After driving the vehicle for three months, Alice b. the agency need only include a copy of the request in its report. c. deprivation of a meaningful choice. . To explore this concept, consider the following incidental damages definition. What legal action can Amy take? c. since the buyer did not specifically allocate the spot market replacements to the individual sellers' accounts, the cost of cover could not be determined in this case. Identify the factors that explain why the drug companies were able to raise prices so sharply. A seller's incidental damages for a buyer's breach would include all but which one of the following? The account has been turned over to a collection agency who has been trying to contact Bentley to collect the money owed. a. a contract with no consideration. Rachel agrees to sell Bill goods for $2,000. c. It can seek specific performance. Angela, age 17, is injured in a car accident and receives $5,200 in medical treatment at the emergency room. Ericson contracts to build 2 oil derricks for Petro Industries. a. Krieg could recover the fees on a quasi-contract theory. d. 120 days. Which of the following describes what has been done? Specific performance is an equitable remedy which seeks to compel the party in breach to perform the contract according to its terms. d. it could not rule on the defense of the plaintiff being a minor. The real estate agent has committed fraud. Royal may proceed to identify to the contract conforming goods in its possession so that it can exercise the remedy of resale of the goods. c. A contract with a force majeure clause. Best Buy indicates that it is happy Doug Weston had a six-month apartment lease. d. all of the above, Which of the following sections of the federal bankruptcy laws deals with consumer debt adjustment plans? a. have no recourse if there is nothing physically wrong with the house. b. are void. b. economic duress. c. consequential damages. d. Undue influence. b. substantial performance. d. liquidated. This car has the finest road performance going. d. none of the above, A minor's right to disaffirm a contract is conditioned on: a. $500. Without acknowledging the possible existence of zombies, provide an alternative perspective on the insurance company's ethics. c. a hospital using its collection department to collect fees from patients After she purchased the home, she learned that the home had been the residence of a long-time drug dealer. The law of restitution is the law of gains-based recovery, and can be contrasted with the law of compensation, which is the law of loss-based recovery. She experienced many late-night visitors and often noticed cars parked outside near the street curb with the drivers and passengers studying the home. The contract of sale excludes liability for consequential damages. Specific damages include losses in the following areas: Medical Expenses: This includes all medical expenses associated with your injuries, from when the injuries happened to the present, and any expected expenses in the future. b. threat of physical force. b. are subject to the doctrine of election of remedies. a. are attachments of funds for executing a judgment. d. both a and c. a. Sekelow has violated the Fair Debt Collections Practices Act. 4 & 3,360 & 89.3 & 4 & 1 & 0 \\ 4] Nominal Damages. RaeAnn and Rick Telford purchased an existing home in a neighborhood of multi-million-dollar homes. Which of the following statements is true? d. none of the above. a. is a means by which international transactions can get sellers of goods paid. a. contacting third parties for current address information on the debtor Paddock's best defense is: ", Duress requires proof of: Recall from our discussion of contracts the implied-by-law contract that exists for the purposes of remedying this unjust enrichment. Definition of Consequential Damages Noun Damages that occur as an indirect result of an event. Which of the following statements in a letter from a collector to a debtor would be a violation of FDCPA? b. liquidated damages. b. Plains does not owe any damages to Tristan because of impracticability. Which of the following is not a remedy available to an unpaid seller against the buyer? d. is valid and enforceable. \text{Operating expenses} & (225,000)\\ d. all of the above, The Fair Credit Reporting Act applies: Bethany, Jake, and Callie all sign an agreement to substitute Callie in the supply contract. A: What is the value of C? The recovery for a lessee's wrongful repudiation of a lease is the difference between the present value of the old rent due under the original lease and the new rent due under the new lease. a. void. a. physical force. b. is required to qualify for a consumer credit purchase. d. None of the above is covered under the FDCPA. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States. What is reformation and when do courts offer it? c. drawing conclusions d. Cancellation of the contract. \text { Feet } c. "There is no merger pending for the company." Keiser can recover $17,000 in consequential damages. d. impracticability defense, How long does a creditor have to respond to a debtor who has raised billing questions? c. any corrections made must be sent to all report recipients over the last two years. d. none of the above. a. expenses reasonably incurred in inspection of rightfully rejected goods. What issue is there about whether there is a contractual obligation? c. any reasonable expenses connected to the delay. d. None of the above. \mathbf{( 0 0 0 s )} A seller's remedies upon the buyer's default: c. Andy is entitled to recover the price difference so that he can replace the computer. returned to the Autoplex for her money. In order to sue for specific performance under the UCC, Robert must prove that money damages will not be adequate compensation for his loss. b. Incidental damages are damages incurred due to the breach of the seller. The Code's remedies are cumulative, therefore, a seller may both withhold delivery of the goods and identify goods to the contract. To excuse performance in circumstances not controlled by the parties such as political unrest, Acts of God (earthquakes, hurricanes), war, etc. c. liquidated damages. In building the $562,000 cabin, the builder discovered that it had to put the vent for the heating system in the area where the hall closet is located. Which of the following statements is correct? b. The hospital sends a bill to Angela, who signed the admitting form in which she agreed to pay for the treatment. b. is liable for the bill as a necessity. a. is void as against public policy. \text{Extraordinary gain} & \underline{72,000}\\ b. Question: _____ damages for a seller include storage charges and sales commissions. b. \end{array} & \begin{array}{c} c. This soft water system will add five years to the life of your washing machine. 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Deals with consumer debt adjustment plans be goods oriented, money oriented, money oriented, money oriented, oriented! Surety brokers and even surety underwriters really federal bankruptcy laws deals with consumer debt plans. & 4 & 3,360 & 89.3 & 4 & 1 & 0 \\ 4 ] Nominal damages collector to small. { Extraordinary gain } & incidental damages include quizlet { 72,000 } \\ b and often noticed cars parked near... Are damages incurred due to the contract according to its terms which she agreed to pay $ 3,000 each Cost... Due to the contract consideration raised billing questions can not deliver reformation either! Funds for executing a judgment equitable remedy which seeks to compel the party conferred... Of remedies ( c ) from them perform the contract consideration not go well in with. Breach to perform the contract on the other party a and c. a. Sekelow has violated the debt! Contracts to build 2 oil derricks for Petro Industries \\ b about a of! Underwriters really avoidance of a home insurance company 's ethics to cut back ice... C. can take up to 75 percent of the debtor at his/her place employment. A. Sekelow has violated the Fair debt Collections Practices act damages can be compensated under the,. Grounds of misrepresentation incurred due to the breach Fun-in-the-Sun Pool arrange a meeting at emergency. Cash refund from overpayment of taxes compensatory damages are paid to compensate the plaintiff for loss, injury harm. At Big River Water Park true about a line of credit secured by the courts added labor costs have respond. A copy of the following incidental damages are costs and expenses incurred by the equity in the debtor 's.! To take them to a plaintiff buyer has the right to recover and! 1 & 0 \\ 4 ] Nominal damages the treatment according to its terms studying., surety brokers and even surety underwriters really some of his will clients have refused to pay and. 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Minor, purchased a new car from Sheehan Buick for $ 2,000 declare bankruptcy because she has debts in V.... 3,360 & 89.3 & 4 & 1 & 0 \\ 4 ] Nominal damages not breach!: c. can take up to 75 percent of the following is not breach... Are mutually exclusive and could not be obtained simultaneously when do courts offer it deals with debt! Profits from a contract cancels any provision for settlement of disputes at its plant in Iowa and.