R6 Sales 3 (F)

Question 0

Buyer’s Right to Sue for Damages for Accepting Nonconforming Goods

Answer 0

The damages are usualy the difference between the value of the conforming goods and the value of the goods as delivered plus incidental and consequential damages

Question 1

Buyer’s Right to Inspect Before Payment

Answer 1

The buyer usualy has the right to inspect the goods before payment. However, the buyer may not inspect the goods prior to payment on a Cash on Delivery (COD) sale

Question 2

Buyer’s Right to Sue for Damages for Rejected or Undelivered Goods

Answer 2

If the goods undelivered or the buyer rightfully rejects, the buyer may

Cover (the buyer can purchase comparable goods (cover) and sue the seler for the difference between the contract price and the cost of the cover)

Sue for the difference between the market price and the contract price plus any incidental or consequential damages

Question 3

Replevin

Answer 3

The right to recover goods wrongfully in the hands of the seller

Question 4

Transferring Title of Stolen Goods

Answer 4

The general rule is that the seller cannot transfer any better title than the seller has. A thief who has no title, has no power to transfer good title to stolen goods, unless the goods are entrusted or contain a voidable title

Question 5

Entrusting

Answer 5

If the owner of goods entrusts them to a merchant who deals in goods of kind sold, and the merchant sels them in the ordinary course of business to a bona fide purchaser for value, the purchaser gets good title event though the merchant did not have good title

Question 6

Voidable Title

Answer 6

If the owner of goods is defrauded into giving a thief title, the owner can ordinarily rescind the contract and recover the goods from the defrauder.

However, if the defrauder has since sold the goods to a bona fide purchaser for value, the purchaser gets good title.

The defrauded former owner can no longer recover the goods. A suit against the defrauder for damages is the only remedy