ED Engineering specially manufactured a large piece of equipment
for Matt Manufacturing. The contract price was 50,000. After ED
completed the work at a cost of 40,000, Matt repudiated the
contract and refused to accept or pay for the piece of equipment.
Despite its best efforts, ED has not been able to sell this unique
good at any price. ED has also incurred 500 of storage costs. If ED
sues Matt, it will be able to collect _____________ in damages.
40000
40500
50000
50500
QUESTION 17
A buyer must notify a seller of his intention to reject a
non-conforming tender
Within 10 days of the tender
Within 30 days of the tender
Within a seasonable time
In a certified letter
QUESTION 18
Which of the following would be reasonable grounds for a seller
feeling insecure?
Buyer’s last two payments to the seller were 30 days late.
Buyer is making late payments to other suppliers in the
business.
Buyer’s check to the seller was returned for insufficient
funds.
All of the above are reasonable grounds for feeling
insecure.
QUESTION 19
When Ben Buyer wrongfully repudiated his contract with Sam
Seller, Sam had to pay a cancellation fee to the shipper and
incurred costs to store and to restock the goods. Sam can recover
these costs from the buyer as ______________ damages.
Consequential
Incidental
Punitive
Liquidated
QUESTION 20
Which of the following remedies are available to both buyers and
sellers?
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