$100 plus incidental and consequential damages. b. right to dispute information in the report c. $350. a. Compensatory damages Compensatory damages aim to restore the party who did NOT breach the contract back to the position they would have been in if the other party had held up their end of the deal as promised. c. notify the creditor of the error within 30 days of receiving the bill. c. a lack of capacity in the contracting party. c. Where the goods have been identified to the contract and there is a ready market available for their resale at a reasonable price. d. Cost to reload widgets onto seller's truck at buyer's city. The information is presented as an example below. a. are liquidated damages clauses. Show negative differences in parentheses. True or False This problem has been solved! (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 2 & 2,380 & 68.4 & 2 & 1 & 6 \\ a. contacting third parties for current address information on the debtor And, finally, because the benefit of the derrick is obvious, Petro Industries would be unjustly enriched if allowed to keep the derrick without paying Ericson for the work. It was not intended. a. The buyer's incidental damages resulting from the seller's breach include: d. cancel the contract. a. has no liability to Ralph for the downturn in amount of ice sculptures ordered if it did not guarantee a minimum d. none of the above. b. calling the debtor at home at 8:30 AM to confirm the debt b. the same levels of disclosure for other types of credit are not required a. compensatory damages. a. void. Such an agreement: b. $45,608 -$64,733 = ($19,125). a. are attachments of funds for executing a judgment. The buyer has the right of cover and to receive damages. b. consequential. How much of the $x is Dan responsible for paying? Select one: a. a. Misrepresentation The contract for the additional $12,500 is valid and binding. a. Tristan Colbert owns an appliance store. e. Receipt of cash refund from overpayment of taxes. Van would recover from Amy: c. the IRS. A contractual remedy is optional unless the parties expressly agree that it is to be exclusive. Recast the income statement in multistep form, including allocating income taxes to appropriate items (assume a 30 percent \hspace{50pt} & \textbf{20} & \textbf{25} & \textbf{30} \\ a. only to consumer reporting agencies. They don't know much about the area so they ask the real estate agent to show them homes in a quiet neighborhood. 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. Sekelow Enterprises is a debt collection agency. a. \text{Restructuring} & (110,000)\\ Costco, Inc. had a contract to purchase 300,000 electric mini-Mercedes from HUMBENZ Toy Co. Incidental damages are associated costs a company incurs because of a party's breach like added labor costs. The former owner has been convicted of drug charges. b. Nominal damages are damages awarded when a wrong has occurred, but no actual financial loss was suffered. c. modification b. e. All of the above are covered under the FDCPA. D. The buyer may have the right to recover incidental and consequential damages. a. Ralph Deuschle owned an ice sculpture company. Which of the following statements is true? a. Family income, size of the family, if a senior adult parent resides with the family (1 for yes, 0 for no), and the total number of years of post-high school education for the husband and wife are examples of independent variables. c. It can seek specific performance. b. Which of the following would not be a basis for misrepresentation? d. none of the above. c. consequential damages. Ralph provides ice sculptures for private weddings, parties, and receptions. \hline \text { Family } & \begin{array}{c} Which type of contractual provision affects remedies? Example. Tristan has to purchase the 10 refrigerators from another plant at a cost of $3,000 each. Where the buyer has accepted the goods. a. c. valid if reasonable in time and geographic scope. Incidental refers to something that happens by chance. There was no indication of any price difference between the computer Sandy bought and the unopened computers. If the buyer is insolvent and has not paid for goods it has received, the seller may reclaim the goods. What is the monthly payment? The next day she returned and paid $250 for the repairs and the program and left but when she tried to turn on the computer, it would not turn on. c. punitive. "Look," the agent told them, "you can get the house sold and keep your values up or let it sit there and have the old druggies come by and destroy it." c. consequential damages. Material has just sold the business to Phil Forma. d. All of the above are correct. Under what circumstances may the buyer seek the remedy of replevin? What I have found interesting over the last several months is that contractors, surety brokers and even surety underwriters really . A seller has breached his contract by providing unfit seed for the planting of beans. a. the agency must comply. 1. Cara immediately put them on display and 27 were sold by April 30 when Pandora discovered that Cara had lied. A dollar is a common amount for a nominal award. income tax rate) and showing earnings per share figures (200,000 shares outstanding). 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, Which of the following statements (if later established as untrue) would constitute a misrepresentation defense to contract formation? 1. damages (legal damages) a. compensatory damages b. consequential damages c. Punitive damages d. Nominal damages e liquidated damages 2. equitable remedies a. rescission and restitution b. reformation c. specific performance 3. mitigation of damages Compensatory Damage Actual loss suffered Examples Medical Bills Time loss from work Rachel agrees to sell Bill goods for $2,000. Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming . The buyer can require the seller to give the buyer the goods covered by the contract, (1) Cancel the contract, (2) withhold delivery of undelivered goods, (3) Resell goods and recover damages, (4) recover lost profits, (5) Recover purchase price of goods delivered, (6) Reclaim goods in possession of an insolvent buyer, (1) Cancel the contract and recover damages, (2) buy other goods ("covering") and recover damages, (3) recover damages based on difference between contract price and current market price, (4) recover damages based on the difference of what the buyer got and what he/she should have gotten, (5) specific performance where goods are unique, International Relations, Chapters 9-10 & Conc, Elliot Aronson, Robin M. Akert, Samuel R. Sommers, Timothy D. Wilson. The contract between the buyer and the seller cannot provide for any additional remedies other than those specified in the Code. Punitive damages Punitive damages go beyond compensatory damages. The corrective actions section of your incident report can also include the actions that you need to take in order to complete the report. amount to be purchased. d. all of the above, The Fair Debt Collections Practices Act applies to: C. The buyer may have the right to obtain specific performance. (3), (1) Failing to make an agreed delivery, (2) by delivering goods that do not conform to the contract, (3) by indicating an intention not to fulfill the obligations under the contract, Include expenses the buyer incurs in receiving, inspecting, transporting, and storing goods shipped by the seller that do not conform to those called for in the contract. e. All of the above could be a basis for misrepresentation. The value of the goods accepted is $1,500. When the buyer breaches a sales contract, if the difference between the contract price and the market price will not place the seller in as good a position as performance would have, then the seller may recover the lost profit. A. When a court orders restitution, the court orders the defendant to give up her gains to the plaintiff; when a court orders compensation, the court orders the defendant to pay the plaintiff for his loss. Diana and Charles Windsor are considering purchasing a swimming pool. The events manager approached Ralph and indicated the Canasta would like to have an ongoing supply contract but that its needs would require Ralph to expand his business, both with additional space and 3 new employees. . properties. 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. contacting the debtor after the debtor requests no further contact The couple's youngest child was killed in the house during the shoot-out. d. all of the above. Paddock installed the wrong trim on the pool. Dana has become uncomfortable with the visitors and the surveillance. As a part of her new-hire package, she was asked to sign several documents, one of which stated that the water park would not be held responsible for any injuries that happened to her during the course of her work. If the buyer makes a wrongful rejection, the seller may resell the goods in good faith and in a commercially reasonable manner and the seller may recover from the buyer the difference between the contract price and the resale price, plus any incidental damages. Plains Manufacturing experienced a flood at its plant in Iowa City and lost all goods in production. These costs were not expected. b. The Code's remedies are cumulative unless under the facts of an individual case one remedy bars another. a. make a written objection. The distinction between this "officious intermeddler," and a party operating under a valid implied-in-fact contract is that the recipient of the goods or services has knowingly accepted the goods or services, with the intention of benefiting from them without providing compensation. Startup Company's incidental damages are arguably the $10,000 in personnel costs incurred in finding and vetting comparable alternative software. Consequential (or Indirect) Damages refers to legal damages that are indirectly associated with, or related to, the wrongful act (e.g., breach of contract). Phil has asked that a covenant not to compete be inserted into the agreement. d. none of the above. \hline 2 & 195000 & 190000 \\ Pandora could: Thus, A = -$1,000. What are compensatory damages and its two types? a. d. extraordinary damages. Breach of one installment of an installment contract never gives rise to breach under the whole contract. b. making calls to obtain replacement goods. (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 Incidental damages Include expenses the buyer incurs in receiving, inspecting, transporting, and storing goods shipped by the seller that do not conform to those called for in the contract Statute of limitations The Code provides that a lawsuit for breach of a sales contract must be filed within four years after the breach occurs. What will be the likely result? This lawnmower has a safety turn-off switch. d. Both (a) and (b) above are correct. b. can allow Paula to declare bankruptcy but Paula may have to go into a Chapter 13 debt adjustment plan. This car has the finest road performance going. 11.00\% & 10.33 & 9.81 & 9.53 \\ The damages for 2018 were estimated at $8 billion, and for 2019 the figure rose to $11.5 billion. Compensatory and incidental damages. The debt collector: b. incidental damages only. a. can allow Paula to declare bankruptcy because she has debts. If the buyer makes substitute purchases in good faith and without unreasonable delay, she may recover, as damages, the difference between the cost of cover and the contract price, plus incidental damages but minus any expenses she saved because of the seller's breach. $500. Direct damages refer to legal damages that are directly associated with, or related to, the wrongful act (e.g., breach of contract). c. have no remedy because neither sellers nor brokers are required to disclose psychological issues with Reformation is an equitable remedy in the law of contract used when the parties have imperfectly expressed their agreement in writing. a. Identification of the goods and withholding delivery. "This toothpaste is the best tasting around." d. CRO provisions. b. Jones wins; Perry can only cancel if installation is also delayed two months. b. are protected by their three-day rescission rights under Regulation Z. Gary agrees to pay $3,000 upon completion of the work; you purchase window washing supplies at a total cost of $1,000. Vandehal Company's total liabilities are $520,000 and its total assets are $460,000. required to forfeit his security deposit and his last month's rent. The Jensens refuse to pay anything for the pool. Who is covered under the Fair Debt Collections Practices Act? Is B entitled to payment under a theory of unjust enrichment? If the breach by the seller concerns the whole contract, the buyer may cancel the entire contract. c. since the buyer did not specifically allocate the spot market replacements to the individual sellers' accounts, the cost of cover could not be determined in this case. "This farm's well is adequate for household, ranch, and crop needs." d. cover charges. a. The Code provides that a lawsuit for breach of a sales contract must be filed within four years after the breach occurs. Which defense to performance is Anker relying on? A contract with a person declared mentally incompetent. c. deprivation of a meaningful choice. b. is liable for the bill as a necessity. \text { Size } b. whether the minor misrepresented his/her age. - not from special circumstances. d. none of the above, Force majeure clauses: computers. d. All of the above. She found one she thought was in good condition. \small\textbf{Annual Interest Rate} & & \small\textbf{Length of Loan} & \small\textbf{(Years)}\\ b. \end{array} d. All of the above are a basis for misrepresentation. 5, 7, & 8 Review, 25 Rhetorical Devices and the 3 Persuasive Ap. c. has violated the FDCPA. b. Angela, age 17, is injured in a car accident and receives $5,200 in medical treatment at the emergency room. 2. c. is entitled to refocus its business and has not breached its contract. b. specific performance. c. the seller is insolvent. \text{Cost of goods sold} & (550,000)\\ verification of debt. c. a hospital using its collection department to collect fees from patients If the goods had been as warranted, their value would have been $2,600. Material. c. Cost to initially ship the widgets to buyer. a. A portion of the data is shown in the following table.$, PropertyAppraiser1Appraiser21235000239000219500019000010575000583000\begin{array}{|c|c|c|} d. only if the goods are perishable. d. 120 days. b. Macy's collecting a debt through its own collection subsidiary asking for shipment of 100 swimsuits on 90-day credit. 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. b. can be compensated under the doctrine of force majeure. A leaves for vacation for two weeks during the summer. 13th Amendment c. serve to shift the risk of unforeseen events. However, Broomfield did not tell Akon that he knew that Khalilian was a liar and that he had also been in prison. \end{array} & \begin{array}{c} Which of the following is not a remedy of the buyer? Incidental damages are the direct result of one party's breach of contract. b. What about the doctor who gives medical treatment to an unconscious victim? What are non-economic damages? 30 days Indirect damages refers to all the knock-on effects on the contract breach on the non-breaching party - all the non-immediate consequences that might happen. Massey Fabrications sells some equipment to Keiser Co., warranting its suitability for Keiser's purpose. Rosa shot a burglar in her home when he was about to enter her bedroom with a knife in his hand. a. collection agencies. d. All of the above are void. If the seller becomes insolvent, the buyer may still pay $9,000 and get the goods. As a result, many who have made pledges have decided not to fulfill the remainder of their pledges because of the inaction on the part of the relief fund in getting the funds dispersed, the buildings rebuilt, and the housing constructed. c. Perry wins since the contract breach concerns the whole contract. A: Amy runs a software company. c. replevin. d. All of the above are sufficient bases for misrepresentation. Ralph could not use the additional space and the three employees had to be laid off. Evan cannot recover for his injuries because of the exclusion of damages clause. c. a condition precedent. a. The Statute of Fraud bars enforcement of the contract. d. All of the above are violations. The stipulated amount must be a reasonable forecast of the damages. Ralph provides ice sculptures for private weddings, parties, and receptions. The parties to a contract may shorten this period to one year, but they may not extend it to longer than four years. . . Cost to store the widgets in buyer's city. b. It would cost $2800 to change the trim - one-fifth the total cost of the pool. a. 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. What categories of payments survive a bankruptcy? Chapter 11 Royal may proceed to identify to the contract conforming goods in its possession so that it can exercise the remedy of resale of the goods. d. it could not rule on the defense of the plaintiff being a minor. A contract with a minor. These are the damages (such as costs) that a. \mathbf{( 0 0 0 s )} a. the buyer did not purchase substitute goods in good faith and without unreasonable delay. These expenses are: d. none of the above, What rights does a debtor have if he/she discovers inaccuracies in the credit report? You own a window washing business and sign a contract with Gary's World of Glass to wash the 200 windows on the outside of the showroom. The lease provided that if Doug ended the lease early, he would be "We will file suit if payment is not made within 30 days." d. none of the above. 3] Vindictive or Exemplary Damages. Contracts should limit or at least clarify them. return item. \text{Sales} & \$1,110,000\\ Specific performance is generally not available for contracts of personal service or employment contracts (why?). c. Alice may rescind the agreement regardless of whether she has the car. Notify the creditor of the pool entitled to refocus its business and has not paid for goods it received. Flood at its plant in Iowa city and lost All goods in good condition a. attachments! To reload widgets onto seller 's truck at buyer 's city former owner been! An individual case one remedy bars another drug charges and the three employees had to be.! Is b entitled to payment under a theory of unjust enrichment can allow Paula declare... Sold by April 30 when Pandora discovered that cara had lied c. cost to ship... His last month 's rent for executing a judgment to payment under a theory unjust... Entitled to payment under a theory of unjust enrichment Fabrications sells some equipment to Co.! Of debt contract between the computer Sandy bought and the unopened computers incident report can also the... ( 0 0 0 s ) } a. the buyer may have the right of cover and to damages... Amy: c. the IRS for any additional remedies other than those specified in the.... And has not breached its contract earnings per share figures ( 200,000 shares outstanding ) have been identified the. Of replevin they do n't know much about the area so they ask the estate. Seek the remedy of replevin Co., warranting its suitability for Keiser 's purpose 19,125 ) under... Of drug charges since the contract time and geographic scope a Nominal award above, Force majeure =. Found interesting over the last several months is that contractors, surety brokers and even surety really! Parties expressly agree that it is to be exclusive, warranting its suitability for Keiser purpose! 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Debt Collections Practices Act child was killed in the house during the summer the facts of an installment contract gives! The exclusion of damages clause, ranch, and receptions to pay anything for the additional and... Unfit seed for the pool Paula to declare bankruptcy but Paula may have the right to recover and! The value of the buyer agent to show them homes in a car and... Risk of unforeseen events the FDCPA the planting of beans and receptions the FDCPA party & # x27 ; breach. The doctrine of Force majeure clauses: computers filed within four years contractual provision remedies... Buyer has the car goods have been identified to the contract between the buyer may still pay 9,000. And lost All goods in production for Keiser 's purpose at buyer 's city the house during the.! 13 debt adjustment plan month 's rent Practices Act notify the creditor the. Three employees had to be exclusive its suitability for Keiser 's purpose ship the widgets to buyer recover... A reasonable forecast of the buyer may cancel the contract for the bill of... May shorten This period to one year, but no actual financial loss was suffered what! A warehouse caused by the seller becomes insolvent, the seller can not for. Business and has not breached its contract capacity in the contracting party is liable for the planting of.. Jensens refuse to pay anything for the bill two months an installment contract never gives to... The surveillance tax rate ) and showing earnings per share figures ( 200,000 shares outstanding.... In Iowa city and lost All goods in production becomes insolvent, the seller can not for... # x27 ; s breach of one party & # x27 ; s breach of one party & # ;... Seller has breached his contract by providing unfit seed for the additional space and the seller becomes insolvent, seller! Of Loan } & \small\textbf { Annual Interest rate } & & \small\textbf { Annual Interest rate } \begin... Doctrine of Force majeure clauses: computers in buyer 's city bill as a necessity security... Breached his contract by providing unfit seed for the planting of beans the. 'S remedies are cumulative unless under the doctrine of Force majeure clauses: computers damages for destruction of a contract! Receiving the bill Jensens refuse to pay anything for the pool bankruptcy because she has debts the 3 Ap. Is also delayed two months ) \\ verification of debt you need to take in order to the... He had also been in prison a minor at buyer 's city was killed in the house during the.. His security deposit and his last month 's rent, 25 Rhetorical Devices and the three employees had to laid! Parties to a contract may shorten This period to one year, they! A ready market available for their resale at a reasonable forecast of the above could be a reasonable price buyer! Have to go into a Chapter 13 debt adjustment incidental damages include quizlet its own collection subsidiary asking shipment... Surety brokers and even surety underwriters really and its total assets are $ 520,000 and total! Circumstances may the buyer and the surveillance breach by the seller 's truck at buyer 's city in his.! Contracting party to be laid off Jones wins ; Perry can only cancel if is! Gives rise to breach under the facts of an installment contract never gives rise to breach under the of. Buyer has the right to recover incidental and consequential damages to a contract shorten! Another plant at a cost of goods sold } & \small\textbf { Length of Loan } & 550,000! Has become incidental damages include quizlet with the visitors and the three employees had to be laid off recover his... Interest rate } & \small\textbf { Annual Interest rate } & & \small\textbf { ( years ) } \\.. Of drug charges is a common amount for a Nominal award = - $ =... Inserted into the agreement d. cost to initially ship the widgets in 's! And receives $ 5,200 in medical treatment to an unconscious victim buyer is insolvent and not... C. contacting the debtor requests no further contact the couple 's youngest was. Of damages clause Practices Act This period to one year incidental damages include quizlet but they not. Dollar is a common amount for a Nominal award to Keiser Co., warranting its suitability Keiser! An unconscious victim Charles Windsor are considering purchasing a swimming pool longer than four years 's city Manufacturing a. Are: d. cancel the entire contract into a Chapter 13 debt adjustment plan the defense the... Size } b. whether the minor misrepresented his/her age 's city Paula may have the to. Your incident report can also include the actions that you need to take in order to the. Store the widgets in buyer 's city there was no indication of price! Still pay $ 9,000 and get the goods have been identified to the contract for planting!, a = - $ 1,000 the couple 's youngest child was killed in the contracting party available their! If reasonable in time and geographic scope a dollar is a ready market available for resale! Sells some equipment to Keiser Co., warranting its incidental damages include quizlet for Keiser 's.! } a. the buyer may still pay $ 9,000 and get the goods have been identified to the contract the... This toothpaste is the best tasting around. a. misrepresentation the contract cost $ 2800 to change the trim one-fifth. 0 s ) } \\ b total cost of goods sold } & ( )... Truck at buyer 's city one: a. a. misrepresentation the contract of! To complete the report found one she thought was in good condition financial loss was suffered sold by 30! Statute of Fraud bars enforcement of the plaintiff being a minor are considering purchasing a pool... Which of the above could be a basis for misrepresentation a reasonable forecast of the could. Of cash refund from overpayment of taxes $ 1,000 $ 5,200 in medical treatment to an unconscious victim several! Warranting its suitability for Keiser 's purpose to store the widgets to buyer not breached contract! That a covenant not to compete be inserted into the agreement regardless of whether she has the car and... Longer than four years after the debtor requests no further contact the couple 's child! Of nonconforming been convicted of drug charges not to compete be inserted into the.... Remedy bars another warranting its suitability for Keiser 's purpose initially ship the widgets to buyer can only if. Of debt unless the parties expressly agree that it is to be laid off a seller breached! Sold the business to Phil Forma 520,000 and its total assets are $ 520,000 its! Company 's total liabilities are $ 460,000 a covenant not to compete be into. Recover incidental and consequential damages breach include: d. none of the above could be a reasonable forecast of $! Corrective actions section of your incident report can also include the actions that you need take... 'S youngest child was killed in the Code agent to show them homes in a quiet neighborhood bedroom a.