MGTreview2.docxVIP

MULTIPLE CHOICE 1. The right of the seller to stop delivery of the goods ceases when: a. a negotiable document of title covering the goods is negotiated to the buyer. b. the buyer receives the goods. c. Either (a) or (b) occurs. d. Neither (a) nor (b) occurs. ANS: C PTS: 1 2.The seller may recover the full contract price when: a. there is no ready market available for the resale of the goods identified to the contract. b. the buyer has accepted the goods. c. conforming goods have been lost or damaged after the risk of loss passed to the buyer. d. Any of the above occurs. ANS: D PTS: 1 3. Which of the following is not a remedy of the buyer? a. The buyer has the right of cover and to receive damages. b. The buyer may have the right to obtain specific performance. c. The buyer may have the right to recover incidental and consequential damages. d. All of the above may be remedies of the buyer. ANS: D PTS: 1 4. The seller may resell the goods identified to a contract: a. only at a public sale. b. only at a private sale. c. at a public or private sale. d. at a public sale only if notice is given to the buyer. ANS: C PTS: 1 5. Which of the following would not be a remedy available to the seller on account of buyers breach? a. Stop delivery of the goods by the carrier b. Require the financially sound buyer to return the goods c. Recover the price d. Cancel the contract ANS: B PTS: 1 6. Taylor agrees to sell Pedro goods for $2,000. The value of the goods accepted is $1,500. If the goods had been as warranted, their value would have been $2,600. What are the buyers damages for breach of warranty? a. $500 b. $600 c. $1,100 d. Damages cannot be determined in this case because they are not calculable with mathematical precision. ANS: C PTS: 1 7. Which of the following is correct with respect to consequential damages under the Code? a. Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods. b. Consequential damages incl