Remedies Flashcards
Eagle Corporation solicited bids for various parts it uses in the manufacture of jet engines. Eagle received six offers and selected the offer of Sky Corporation. The written contract specified a price for 100,000 units, delivery on June 1 at Sky’s plant, with payment on July 1.
On June 1, Sky had completed a 200,000 unit run of parts similar to those under contract for Eagle and various other customers. Sky had not identified the parts to specific contracts. When Eagle’s truck arrived to pick up the parts on June 1, Sky refused to deliver claiming the contract price was too low. Eagle was unable to cover in a reasonable time. Its production lines were in danger of shutdown because the parts were not delivered.
Eagle would probably
A. Have as its only remedy the right of replevin.
B. Have the right of replevin only if Eagle tendered the purchase price on June 1.
C. Have as its only remedy the right to recover dollar damages.
D. Have the right to obtain specific performance.
C. Have as its only remedy the right to recover dollar damages.
Money damages are always available when a contract is breached. The remedies of replevin and specific performance are not available here because the units were not identified to the contract, nor are the units unique (200,000 run included units for various other customers).
A. Have as its only remedy the right of replevin.
The right of replevin has to do with recovering identified property that is being improperly held by the seller when the buyer cannot find another seller. Eagle cannot use the remedy of replevin because the units were not identified to the contract with Eagle
Under the Sales Article of the UCC, which of the following statements regarding liquidated damages is(are) correct?
I. The injured party may collect any amount of liquidated damages provided for in the contract.
II. The seller may retain a deposit of up to $500 when a buyer defaults even if there is no liquidated damages provision in the contract.
A. I only.
B. II only.
Where the seller justifiably withholds delivery of goods and the buyer has made a deposit or payment and there is no liquidated damage clause, the seller may keep $500 or 20% of the purchase price, whichever is less.
C. Both I and II.
D. Neither I nor II.
B. II only.
Where the seller justifiably withholds delivery of goods and the buyer has made a deposit or payment and there is no liquidated damage clause, the seller may keep $500 or 20% of the purchase price, whichever is less.
Wrong Answer
C. Both I and II.
Liquidated damages clauses are valid only if they are reasonable in terms of the actual loss caused and the actual losses accused would be difficult to estimate. If there is no liquidated damage clause and the buyer has made a deposit or payment, the seller may keep $500 or 20% of the purchase price, whichever is less.
In an action for breach of contract, the statute of limitations time period would be computed from the date of the
A. Breach of the contract.
B. Signing of the contract.
C. Negotiation of the contract.
D. Commencement of the action.
In a sale of goods, a statute of limitations limits to four years the amount of time a plaintiff may bring a lawsuit in a breach of contract case. Except for breach of warranty, this time period starts at the time the contract is breached.
A. Breach of the contract.
In a sale of goods, a statute of limitations limits to four years the amount of time a plaintiff may bring a lawsuit in a breach of contract case. Except for breach of warranty, this time period starts at the time the contract is breached.
Wrong Answer
D. Commencement of the action.
In a sale of goods, a statute of limitations limits to four years the amount of time a plaintiff may bring a lawsuit in a breach of contract case. Except for breach of warranty, this time period starts at the time the contract is breached.
