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1
When both the buyer and seller agree in advance on an amount of money to be paid in the event of a breach, the amount is known as cancellation damages.
A)True
B)False
2
Under the Code, the parties to a sales contract may provide remedies in addition to or as substitution for those expressly provided by the Code.
A)True
B)False
3
Under the Code, if the seller discovers that the buyer is insolvent, he still must deliver the goods under the sales contract.
A)True
B)False
4
When the buyer refuses to accept goods that conform to the contract, the seller must resell the goods to preserve his rights under the Code.
A)True
B)False
5
The Code provides that a lawsuit for the breach of a sales contract must be filed within four years after the breach occurs.
A)True
B)False
6
The Code allows for limitation of consequential damages for injury caused to a person by consumer goods.
A)True
B)False
7
If the seller is in the process of manufacturing the goods when a buyer breaches the sales contract, the seller must complete manufacturing of the goods in order to preserve her rights under the Code.
A)True
B)False
8
Under the Code, if a seller fails to deliver goods, the buyer may:
A)buy substitute goods.
B)seek payment from the seller for the difference between the contract price and the cost to cover.
C)seek incidental and/or consequential damages.
D)All of the above
9
Under the Code, a buyer may accept defective goods:
A)and still pursue damages against the seller.
B)but must waive any right to sue the seller.
C)and later cancel the contract.
D)All of the above
10
Under which of the following sales contracts is specific performance available to the buyer?
A)the sale of an antique vase that is "one-of-a-kind"
B)grain that is available from another seller
C)both A and B
D)None of the above





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