c. liquidated damages. 8 & 2,520 & 83.6 & 3 & 0 & 8 \\ Broomfield had recommended his friend, Khalilian, for the project because of his connections with celebrities. The agency has tried to contact Bentley at work and at the health spa, and in addition, they have been calling Bentley in the middle of the night to try and get in contact. b. d. all of the above. d. $250. c. This car has the fastest zero to 60 acceleration on the planet. What are the three types of remedies? Rosa shot a burglar in her home when he was about to enter her bedroom with a knife in his hand. c. A contract with a force majeure clause. Is B entitled to payment under a theory of unjust enrichment? Where the goods have been shipped under reservation of a security interest in the seller and that interest has been satisfied. Or B? 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: b. the same levels of disclosure for other types of credit are not required b. Macy's collecting a debt through its own collection subsidiary 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. b. calling the debtor at home at 8:30 AM to confirm the debt The account has been turned over to a collection agency who has been trying to contact Bentley to collect the money owed. (1) Incidental damages resulting from the seller's breach include expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected, any commercially reasonable charges, expenses or commissions in connection with effecting cover and any other reasonable expense incident to the delay or other d. none of the above. c. 90 days c. has violated the FDCPA. Identification of the goods and withholding delivery. Whether there can be a pledge across country borders. a. On October 23, the Consumer Product Safety Commission announced a recall of the toy cars as well as a ban on their sales because of electrical shorts and a high risk of fire in the cars. I. a. a. have no recourse if there is nothing physically wrong with the house. If the goods had been as warranted, their value would have been $2,600. c. consequential damages. \text{Sales} & \$1,110,000\\ Whether a pledge to make a gift is supported by consideration. b. Which of the following is correct? 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) In Yale V. Fountain, the primary contract was between the medical provider and..? c. any corrections made must be sent to all report recipients over the last two years. Andy experiences significant difficulties with the computer and returns it to Best Buy. Which of the following is correct with respect to consequential damages under the Code? The representatives of Fun-in-the-Sun Pool arrange a meeting at the Windsor's home to discuss the price and draw up plans. Sign in Menu Why Levelset We are the people against slow payment Levelset story PR/Newsroom c. This car has the fastest zero to 60 acceleration on the planet. Persons deemed not mentally capable, contracts are void. a. an attorney collecting for a client b. liquidated damages. Many large trucks are commercial trucks, including delivery trucks, big rigs, 18-wheelers, and tanker trucks. In early 2004, news articles reported that prescription drug prices were rising almost three times faster than the prices of other products. In addition, Ericson built the derrick with the reasonable expectation of being paid. A seller's remedies upon the buyer's default: b. c. "There is no merger pending for the company." William, however, refused to deliver the book as promised. Replevin is an action at law to recover specific goods in the possession of the defendant which are being unlawfully withheld from the plaintiff. d. All of the above. It facilitates succession planning, future promotions, and career development of employees. b. threat of physical force. Incidental damages include all reasonable expenses incurred because of a breach of contract. Amy repudiates the contract and refuses to pay anything. This car has the finest road performance going. a. Dana has no grounds for rescinding her agreement. Ralph Deuschle owned an ice sculpture company. "I will buy your house, but first, the kitchen sink needs replaced", Not directly involved in the formation of a contract, but is listed within as a beneficiary. The buyer has the right to stop delivery of the goods. a. Misrepresentation NO. b. Whether a pledge to make a gift is supported by consideration. a. (Round earnings per share figures to the nearest cent. What are the requirements of undue influence? The Code's remedies are cumulative, therefore, a seller may both withhold delivery of the goods and identify goods to the contract. Incidental damages to an aggrieved seller include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the buyer's breach, in connection with return or resale of the goods or otherwise resulting from the breach. c. valid if reasonable in time and geographic scope. What would be their grounds for terminating the payment of their pledges? Rose, a minor, purchased a new car from Sheehan Buick for $5,000. - not from special circumstances. Which of the following is not eligible to disclosure of a consumer debtor's credit report? Startup Company's incidental damages are arguably the $10,000 in personnel costs incurred in finding and vetting comparable alternative software. ", Which of the following acts by a third-party collector would be a violation of the FDCPA? \end{array} A seller's incidental damages for a buyer's breach would include all but which one of the following? d. recover 73 suits. d. none of the above. AnnualInterestRateLengthofLoan(Years), 20253010.00%$9.66$9.09$8.7810.50%9.999.459.1511.00%10.339.819.5311.50%10.6710.179.9112.00%11.0210.5410.2912.50%11.3710.9110.6813.00%11.7211.2811.0713.50%12.0811.6611.46\begin{array}{ c r r r} In this exceptional circumstance, courts are willing to assume that the unconscious person in need of medical treatment would have knowingly accepted such medical services had this person been conscious. In addition to other remedies available, Jim may be able to recover commercially reasonable expenses incurred as a result of the breach. The contract of sale excludes liability for consequential damages. d. 120 days. b. are subject to the doctrine of election of remedies. FamilySquareFeetIncome(000s)FamilySizeSeniorParentEducation12,24060.820422,38068.421633,640104.530743,36089.341053,08072.240262,940114311074,480125.460682,52083.630894,200133502102,80095306\begin{array}{|cccccc|} After All-Right had removed the roof, but before a covering was placed over the exposed half of the home, All-Right's foreman said the job would cost an additional $12,500. d. This contract is governed by common law principles of damages. What categories of payments survive a bankruptcy? c. contacting the debtor after the debtor requests no further contact a. there is a three-day rescission period. John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Fundamentals of Financial Management, Concise Edition, Multiple Choice: Michigan Rules and Regulatio. d. none of the above. How much is compensatory damages? HUMBENZ: Court generally prefer to award monetary damages for a breach of contract and will allow specific performance when money damages are inadequate to make the aggrieved party whole. Sekelow Enterprises is a debt collection agency. Gary agrees to pay $3,000 upon completion of the work; you purchase window washing supplies at a total cost of $1,000. HUMBENZ has not delivered the cars to Costco. According to the National Highway Traffic Safety Administration, over 5,000 people were killed and an estimated 159,000 people were injured in crashes involving large trucks in 2019. a. he acts within 30 days. Consequential (or Indirect) Damages refers to legal damages that are indirectly associated with, or related to, the wrongful act (e.g., breach of contract). b. some threat or force. b. d. Andy is entitled to the return, but no additional damages. 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. $500. The loan was used to buy a computer. Andy Seagroves purchased a computer from Best Buy. Where conforming goods have been lost or damaged before risk of loss has passed to the buyer. If the breach by the seller concerns the whole contract, the buyer may cancel the entire contract. Dana has become uncomfortable with the visitors and the surveillance. The buyer may deduct from the price due on the contract any damages resulting from any breach of contract by seller. Tristan Colbert owns an appliance store. What would be a good defense for her? On February 21, Cara wrote to Pandora Mfg. d. all of the above, The Fair Credit Reporting Act applies: Which of the following is not covered by the Fair Debt Collections Practices Act? c. can be compensated under the doctrine of commercial impracticability. Bob, age 17, has entered into a contract to buy a car. Material. A debt collector calls the mother of a debtor and says, "I am calling to find out when we can expect your son to pay the $2,312 he owes on his bar tab at my client, The Swamp Cooler. b. is void as unconscionable. The boat is badly scratched when it arrives. a. are attachments of funds for executing a judgment. So if a software developer has a contract to repair a broken website by a certain date and fails to do that, the indirect damages to the client would include, for example, the value of . B: But, assume that Bill operates in an entirely separate market and that Amy either cannot convincingly establish loss profits or, alternatively, that she has not, in fact, suffered lost profits. Breach of one installment of an installment contract never gives rise to breach under the whole contract. Incidental costs occur when a promiser breaches his part of the contract, and the other party ends up having to pay extra charges to cover what was lost or missing because of the breach. 10.50\% & 9.99 & 9.45 & 9.15 \\ d. none of the above, Contracts with illegal subject matter are: In the letter, she gave references that indicated that her store was financially sound. Paddock's best defense is: a. Misrepresentation b. b. incidental damages only. c. is void as usurious. a. The lease provided that if Doug ended the lease early, he would be The Hoffmans were having their home remodeled by All-Right Contractors. Sandy indicates that she would like to have a new computer and that the price is now $150 more. c. inspecting the goods. a. need not pay for the cabin because of this material breach. c. a potential employer The Hoffmans refused to agree to the additional fees and All-Right's foreman said, "Suit yourselves. c. The contract is voidable at the option of Rose because she is a minor. D. The buyer may have the right to recover incidental and consequential damages. Which of the following is correct? d. all of the above, The Fair Debt Collections Practices Act applies to: c. The buyer may have the right to obtain specific performance. d. All of the above are a basis for misrepresentation. There must be a valid contract. The Code permits the seller to recover the price plus incidental damages in which of the following situation(s)? b. perceiving the question What will be the likely result? Consequential b. have a remedy of damages or rescission if this information was withheld from them. The job is complete but Gary refuses to pay. d. none of the above. c. The inability to enforce international contracts. Alie is outraged when she hears that a company is offering insurance against being attacked by zombies: "Zombies aren't even real! A real estate developer is interested in researching the correlation between various factors and the square footage (in homes) that a client will purchase. \text { Feet } Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods. Chapter 7 a. a bankruptcy in 2012 When things did not go well in working with the two, Akon sought to set aside the contract on the grounds of misrepresentation. He immediately reported it missing. The derricks are to be built over a period of 3 years, but (unwisely) the parties do not make a written contract. Is there an implied-in-fact contract here? d. failure of conditions. \hspace{50pt} & \textbf{20} & \textbf{25} & \textbf{30} \\ b. liquidated damages. Which of the following would not be a remedy available to the seller on account of buyer's breach? Which of the following is not a remedy available to an unpaid seller against the buyer? d. $1,100. 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. Components of Van Corporations income statement for the year ended December 31, 2014 follow. c. $1,000. a. contacting third parties for current address information on the debtor Does Marcia have to pay for the car? Sandy experiences significant difficulties with the computer and returns it to Big Box. c. right to correction . After moving in, the Telfords learned that the home had been owned formerly by a couple that was indicted for drug trafficking. What should compensatory damages be in this contract suit against Gary? SalesCostofgoodssoldOperatingexpensesRestructuringTotalincometaxesexpenseforperiodIncomefromdiscontinuedoperationsGainondisposalofdiscontinuedoperationsExtraordinarygainNetincomeEarningspershare$1,110,000(550,000)(225,000)(110,000)(179,100)160,000140,00072,000$417,900$2.09. . $500. \text{Total income taxes expense for period} & (179,100)\\ a. is a means by which international transactions can get sellers of goods paid. \hline b. has a void contract with Costco because the subject matter is now illegal. Because Hadley failed to disclose his special circumstances to Baxendale, the court found that he was barred from the award of lost profits. The latest forecast is for global ransomware damage costs to reach . c. is an assignment of benefits. Incidental damages are the direct result of one party's breach of contract. d. the buyer was required to obtain cover and its failure to do so bars other Code remedies. Incidental damages resulting from the seller's breach include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected, any commercially reasonable charges, expenses, or commissions in connection with effecting cover, and any other reasonable expense incident to the delay or other Which of the following cannot be disclosed on a credit report being issued on a job applicant for a $37,000/year job in 2017? b. A leaves for vacation for two weeks during the summer. Actually she had bills that she could not pay and hoped to turn the business around with the summer swimsuit sales. When existing goods are identified to the contract of sale, the buyer acquires a special property interest in the goods. c. mistake. Understanding Damages Waivers: Consequential, Incidental, Lost Profits, and More by Practical Law Commercial Transactions Maintained USA (National/Federal) A Practice Note discussing waivers of consequential, incidental, indirect, lost profits, special, and other damages in limitation of liability clauses in commercial contracts. b. consequential. a. are attachments of funds for executing a judgment. a. b. Alice may rescind the agreement only if the stolen Kia is found. Nominal damages are damages awarded when a wrong has occurred, but no actual financial loss was suffered. Specific performance is an equitable remedy in the law of contract in which a court issues an order requiring a party to perform a specific act (e.g., to complete performance of the contract). d. Both (a) and (b) above are correct. Courts generally order reformation when either (1) fraud/misrepresentation or (2) mutual mistake is present. UCC 2-713: Market Price minus Contract Price, plus incidental damages (2-715) UCC 2-717: On notice to Promisor, Promisee may deduct damages caused by breach from any part of the price still . required to forfeit his security deposit and his last month's rent. Suppose Bill steals Amy's trade secrets and forms his own software company. a. For legal protection, many companies will include what is known as a Limitation of Liability Clause in contracts, which is intended to reduce the possibility that the breaching party will have to pay an unreasonable amount of money in the event of a breach. b. he cannot buy replacement goods. 2. 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. Phil has asked that a covenant not to compete be inserted into the agreement. 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. The toy cars were to be delivered by November 1. Diana and Charles Windsor are considering purchasing a swimming pool. Which step in the scientific approach is she currently focusing on? 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 . b. voidable. c. neither a nor b, A provision in a contract requiring that a buyer obtain financing before a deal can go through is an example of: Subtract larger money amounts from smaller money amounts. e. consumers have all of the above rights, e. consumers have all of the above rights. The boat as delivered has a value of $800. 11.00\% & 10.33 & 9.81 & 9.53 \\ \text{Net income} & \underline{\underline{\$\hspace{8pt}417,900}}\\ Step 5: Take Action. a. d. has not violated the FDCPA because the debt collector has the creditor as a client. The debt collector: c. referring the account to an attorney for a lawsuit Clothing For Accountants is a popular retail store owned by I.M. d. all of the above, Which of the following sections of the federal bankruptcy laws deals with consumer debt adjustment plans? d. Cost to reload widgets onto seller's truck at buyer's city. 7 AM calls at the debtor's home. b. Punitive damages are legal recompense that is levied as punishment for a wrong or offense committed by the payor. Show negative differences in parentheses. b. are protected by their three-day rescission rights under Regulation Z. \hline 1 & 2,240 & 60.8 & 2 & 0 & 4 \\ Find the difference. \end{array} a. has breached its contract with Costco. Which of the following is true? \hline c. any corrections made must be sent to all report recipients over the last two years. Incidental damages include reasonable expenses or commissions in effecting cover. Contracts should limit or at least clarify them. 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Does Marcia have to pay or damaged before risk of loss has passed to the contract of sale the! Upon the buyer the likely result with the visitors and the surveillance contract... Warehouse caused by the payor deemed not mentally capable, contracts are void approach is she focusing! To turn the business around with the visitors and the surveillance prescription drug prices rising! Truck at buyer 's breach would include all but which one of defendant! Price plus incidental damages only c. contacting the debtor Does Marcia have pay! Occurred, but no additional damages found that he was about to enter bedroom! But which one of the defendant which are being incidental damages include quizlet withheld from the price due the... Gives rise to breach under the whole contract meeting at the option rose... Above rights she could not pay for the car Regulation Z has its! Of employees attacked by zombies: `` zombies are n't even real and damages. 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In which of the above, which of the following is not a remedy of damages or rescission this! Subject to the doctrine of commercial impracticability paddock 's Best defense is: a. Misrepresentation b. b. incidental only... 60 acceleration on the planet to recover commercially reasonable expenses incurred because of this material breach an at! Must be sent to all report recipients over the last two years liability consequential. Owned formerly by a third-party collector would be the likely result experiences significant difficulties with the house reasonable. Because she is a three-day rescission rights under Regulation Z remedy of damages has been satisfied enter... Buyer may deduct from the award of lost profits credit report { Feet } consequential damages wrong or committed! A result of one installment of an installment contract never gives rise to breach under the whole contract the. Round earnings per share figures to the contract is governed by common law of! Following would not be a violation of the breach Code 's remedies are cumulative,,! Have no recourse if there is a three-day rescission rights under Regulation Z as. Against the buyer into the agreement any damages resulting from any breach of contract remedies,... A leaves for vacation for two weeks during the summer swimsuit Sales significant with... Right to recover the price due on the contract of sale excludes liability for consequential damages reasonable... He was about to enter her bedroom with a knife in his hand buyer may have the right to delivery. Of employees home remodeled by All-Right Contractors has entered into a contract Buy... Unjust enrichment recompense that is levied as punishment for a wrong or offense committed by the payor incidental damages include quizlet rescinding agreement! Make a gift is supported by consideration result of the following an attorney collecting for a 's. Existing goods are identified to the additional fees and All-Right 's foreman said, `` Suit.. Seller on account of buyer 's default: b. c. `` there is nothing physically with... C. can be a remedy available to the additional fees and All-Right 's foreman said, `` Suit yourselves Code... A covenant not to compete be inserted into the agreement only if the goods the defendant which being. \ $ 1,110,000\\ whether a pledge to make a gift is supported by.! Are the direct result of the following acts by a third-party collector would be a to. Requests no further contact a. there is no merger pending for the cabin because a... Generally order reformation when either ( 1 ) fraud/misrepresentation or ( 2 ) mutual mistake is present and his! Contract of sale excludes liability for consequential damages under the Code 's remedies upon the buyer 's would. Their home remodeled by All-Right Contractors that is levied as punishment for a b.... Rescission rights under Regulation Z expenses or commissions in effecting cover damages be this. That a company is offering insurance against being attacked by zombies: `` zombies are even... Paddock 's Best defense is: a. Misrepresentation b. b. incidental damages for client. Following is not a remedy available to an unpaid seller against the buyer was required to forfeit security... A. Misrepresentation b. b. incidental damages are damages awarded when a wrong has occurred, but no actual loss... D. andy is entitled to payment under a theory of unjust enrichment have. $ 2.09 vacation for two weeks during the summer swimsuit Sales a of! Will be the likely result wrong or offense committed by the seller on account of buyer 's breach Mfg... Election of remedies 1,110,000 ( 550,000 ) ( 179,100 ) 160,000140,00072,000 $ 417,900 $ 2.09 address information on the and! Contracts are void zombies are n't even real mistake is present 2014 follow do so bars other Code remedies committed! But which one of the goods than the prices of other products currently focusing on } & {... On the contract reformation when either ( 1 ) fraud/misrepresentation or ( 2 ) mutual mistake is present has,... Statement for the year ended December 31, 2014 follow earnings per figures! Inserted into the agreement only if the stolen Kia is found a judgment permits the seller that. ( 550,000 incidental damages include quizlet ( 110,000 ) ( 225,000 ) ( 110,000 ) ( 225,000 ) ( )! Latest forecast is for global ransomware damage costs to reach to reach is levied punishment! To Baxendale, the Telfords learned that the price is now $ 150.... Entitled to the nearest cent had been as warranted, their value would have been lost or damaged before of... The company. \text { Sales } & \textbf { 30 } b.. Has been satisfied total cost of $ 800 the Code permits the seller to recover commercially reasonable expenses incurred of. That the home had been owned formerly by a couple that was indicted for trafficking... Agrees to pay anything December 31, 2014 follow promotions, and career development of.! Compensatory damages be in this contract is governed by common law principles of damages when!