c. Perry wins since the contract breach concerns the whole contract. Consequential damages result from the breach and are often unique to the business circumstances of the non-breaching partyfor example, lost profits and delay damages. Pandora could: d. only if the goods are perishable. c. Krieg agreements are voidable. b. have a remedy of damages or rescission if this information was withheld from them. Which of the following contracts would be void? c. a hospital using its collection department to collect fees from patients b. The damages for 2018 were estimated at $8 billion, and for 2019 the figure rose to $11.5 billion. Thus, A = -$1,000. c. can rescind the agreement. Akon entered into an agreement with Broomfield for his help in building the site and Khalilian to help with marketing. Evan cannot recover for his injuries because of the exclusion of damages clause. Cover and sue for damages. b. b. may be liable to Ralph under a theory of a lack of good faith. Which of the following is correct? d. $200 plus incidental and consequential damages. Tristan ordered the refrigerators in anticipation of an order he was going to receive from a custom-home builder. On Monday, Marcia agreed to buy Joey's car for $8,000 when she gets paid on Friday. Definition of Consequential Damages Noun Damages that occur as an indirect result of an event. a. c. modification 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. d. $250. b. Parol evidence After she purchased the home, she learned that the home had been the residence of a long-time drug dealer. 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. Specific damages include losses in the following areas: Medical Expenses: This includes all medical expenses associated with your injuries, from when the injuries happened to the present, and any expected expenses in the future. 9 & 4,200 & 133 & 5 & 0 & 2 \\ \mathbf{( 0 0 0 s )} Which of the following is true? b. are subject to the doctrine of election of remedies. The buyer may deduct from the price due on the contract any damages resulting from any breach of contract by seller. a. compensatory damages. c. is entitled to refocus its business and has not breached its contract. c. punitive. Paula Sanford has filed a voluntary petition in bankruptcy. b. incidental damages only. a. testing a hypothesis Alice, age 17, purchased a 2005 Kia auto at the Tempe Autoplex. 1] Ordinary damages. 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. After driving the vehicle for three months, Alice These expenses are: a. need not pay for the cabin because of this material breach. When approving borrowers for mortgages, it is imperative that the appraisers value the same types of properties consistently. The Windsors: If the damaged boat is a breach of warranty by the seller, the buyer may recover from the seller: Identification of the goods and withholding delivery. Amy repudiates the contract and refuses to pay anything. Is the sellers statement a misrepresentation? a. credit contracts in which a security interest in the home is given. HUMBENZ: Incidental damages: These are expenses incurred by a buyer in connection with rejection of . A bank employs two appraisers. Which of the following describes what has been done? d. is valid and enforceable. Liquidated Damages 7 IV. Is B entitled to payment under a theory of unjust enrichment? To make sure that this is the case, the bank asks the appraisers to value 10 different properties (in $). \text{Gain on disposal of discontinued operations} & 140,000\\ a. is void as against public policy. 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. Cost to store the widgets in buyer's city. d. reclamation. Incidental damages are the direct result of one party's breach of contract. Personal injury damages can mostly be grouped as either "general" (also called "non-economic") or "special" (often called "economic"). Step-by-step explanation. 2. Economic damages compensate the plaintiff for the quantifiable monetary losses suffered, including, for example, repair or replacement of damaged property, lost earnings, medical bills, and so forth. 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. If Carson contracts to buy a forklift from Yoshie but their contract mistakenly refers to a crane, a mutual mistake has occurred; accordingly, a court can reform the contract such that the contract conforms to the parties' intentions and accurately refers to the forklift being sold. What would be a good defense for her? d. $1,100. b. is liable for the bill as a necessity. Which of the following statements is true? d. failure of conditions. It would cost $2800 to change the trim - one-fifth the total cost of the pool. The Windsors sign a contract for the pool for a price of $12,000 with payments of $3000 each month for the next four months while the pool is under construction. The Code permits the seller to recover the price plus incidental damages in which of the following situation(s)? d. This contract is governed by common law principles of damages. Incidental Damages are costs and expenses incurred by the non-breaching party to avoid other direct and consequential losses caused by the breach. The cap applies regardless of how serious the injury is or the number of defendants there are. a. have no recourse if there is nothing physically wrong with the house. (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. b. any commercially reasonable charges or commissions in connection with obtaining cover. d. none of the above. 2] Special Damages. d. none of the above. What is the purpose of a force majeure clause? b. he cannot buy replacement goods. It facilitates succession planning, future promotions, and career development of employees. Anker had sent a letter to Allegheny in 2006 claiming physical difficulties at the mine and a change in the enforcement of regulations relating to coal mining near gas wells hampered their ability to extract coal from the mine. d. Cancel the contract. c. The contract was not valid because of duress, but the Hoffmans signed anyway - so there is a valid and enforceable agreement. 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. c. 7 AM calls at the debtor's parents' home. Consequential Damages Can Create Extensive Liability for Construction Businesses Left unchecked, consequential damages could create extensive liability for construction businesses. RaeAnn and Rick: Costs associated with repairing or replacing damaged property. a. there is a three-day rescission period RaeAnn and Rick Telford purchased an existing home in a neighborhood of multi-million-dollar homes. HUMBENZ has not delivered the cars to Costco. c. Alice may rescind the agreement regardless of whether she has the car. b. economic duress. Under the CISG, if the contract is avoided and the seller has resold the goods in a reasonable manner and within a reasonable time after avoidance, the seller may recover: . Cindy's contract with Bob is: The Morrisons are about to purchase their first home in a new town. ", Which of the following acts by a third-party collector would be a violation of the FDCPA? The toy cars were to be delivered by November 1. Looks like rain for the next day or two," and left. c. is void as usurious. The name "Sekelow Enterprises" and the company address appear on the postcards used along with: "VERY IMPORTANT: PLEASE CONTACT US ABOUT YOUR DILLARD'S DEBT." ", If entered into by a minor, which of the following contractual situations may be enforceable against the minor? Punitive damages Punitive damages go beyond compensatory damages. 7 AM calls at the debtor's place of employment. It was not intended. c. Where the goods have been identified to the contract and there is a ready market available for their resale at a reasonable price. If the seller becomes insolvent, the buyer may still pay $9,000 and get the goods. b. may be liable to Ralph under a theory of a lack of good faith. b. b. the same levels of disclosure for other types of credit are not required Seller's Incidental Damages. Which of the following is correct? To explore this concept, consider the following incidental damages definition. d. All of the above can be disclosed. Replevin is an action at law to recover specific goods in the possession of the defendant which are being unlawfully withheld from the plaintiff. Dana Riley purchased a home in the Brentwood area of Los Angeles. Medical bills. 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. b. calling the debtor at home at 8:30 AM to confirm the debt A contractual remedy is optional unless the parties expressly agree that it is to be exclusive. \hline \text { Family } & \begin{array}{c} The Canasta then began to rethink its events focus and marketing and decided to cut back on ice sculptures. a. Alice may not rescind the agreement. 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. In such contexts, (a) incidental damages are costs and expenses incurred by the non-breaching party to avoid other direct and consequential losses caused by the breach, and (b) consequential damages are damages that (i) are neither incidental nor direct damages and (i) normally and necessarily arise from the specific nature of either the d. none of the above. What are the requirements of undue influence? b. The Code's remedies are cumulative, therefore, a seller may both withhold delivery of the goods and identify goods to the contract. Select one: a. Incidental damages include: \end{array} Credit counselors are regulated under: c. is void in the United States. b. Plains does not owe any damages to Tristan because of impracticability. d. filing suit without first contacting the debtor, a. sending the debtor a postcard that reads: "Don't let this bill affect your excellent credit rating". a. the difference between the contract price and the resale price. 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 Subtract larger money amounts from smaller money amounts. It includes corrective actions that will eliminate recurrence of the incident. By Andrew Richards, Chair, Construction Law Practice Group and Co-Managing Partner of the Kaufman Dolowich & Voluck Long Island Office. They were unable to deliver the refrigerators to Tristan and notified him immediately of the problem. Paula has a job but admits that she is in over her head on credit card debt. There was no indication of any price difference between the computer Andy bought and the unopened Recovery of the price. d. Cost to reload widgets onto seller's truck at buyer's city. c. This car has the fastest zero to 60 acceleration on the planet. b. consequential. c. mistake. Compensatory and incidental damages. Van resells the goods in compliance with the Code for $1,700, incurring $200 in sales commissions but saving $250 in shipping costs. C - A = $2,000 - (-$1,000) = $ 3,000. b. The representatives of Fun-in-the-Sun Pool arrange a meeting at the Windsor's home to discuss the price and draw up plans. a. the lost profits from a contract to sell the bean crop. a. incidental damages. When questioned by the realtor, he admitted that he did know about the re-zoning but it would probably be years before the project started so he was not obligated to tell them about it. Clothing For Accountants is a popular retail store owned by I.M. What is the value of A? d. both a and c. a. Sekelow has violated the Fair Debt Collections Practices Act. a. collection agencies. 2. Perry is building his house and orders a hot water heater from Jones Co. to be installed by them. d. None of the above. c. The contract is voidable at the option of Rose because she is a minor. Must have a relationship based on trust and confidence, with an abuse of the trust (attorneys/clients, elderly parents/children, spouses). Massey Fabrications sells some equipment to Keiser Co., warranting its suitability for Keiser's purpose. a. He has ordered 10 Subzero refrigerators for his store at a cost of $2,500 each from Plains Manufacturing. Vandehal Company's total liabilities are $520,000 and its total assets are $460,000. Because Hadley failed to disclose his special circumstances to Baxendale, the court found that he was barred from the award of lost profits. a. he acts within 30 days. Rosa shot a burglar in her home when he was about to enter her bedroom with a knife in his hand. b. threat of physical force. b. punitive damages. A: Amy runs a software company. J's Marina, however, accepts the shipment and notifies the seller of the defect. c. may be regarded as a penalty. c. Particular needs of the buyer need to be made known to the seller before the seller can be held responsible for consequential damages relating to those needs. e. None of the above. She also requested a full refund of the purchase price. Which of the following statements is true? d. The buyer may have the right to recover incidental and consequential damages. 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. Bob, age 17, has entered into a contract to buy a car. B: What are reliance damages here? returned to the Autoplex for her money. c. right to correction 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. there is a three-day rescission period. They have signed a written agreement with the terms that she will pay him $100 per week until the car is paid for. c. $350. "We will file suit if payment is not made within 30 days." 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. d. none of the above. Damages would include: Which of the following is true? \end{array} Which of the following statements is true? Under the CISG, avoidance of a contract cancels any provision for settlement of disputes. False Under the rule in Hadley v. d. banks. Without acknowledging the possible existence of zombies, provide an alternative perspective on the insurance company's ethics. The Hoffmans called All-Right and agreed to pay the $12,500 extra and went in to sign the paperwork. . a. c. Andy is entitled to recover the price difference so that he can replace the computer. Consequential Damage and Incidental Loss. a. withhold delivery. c. any reasonable expenses connected to the delay. a. is void as against public policy. A portion of the data is shown in the following table.$, PropertyAppraiser1Appraiser21235000239000219500019000010575000583000\begin{array}{|c|c|c|} This lawnmower has a safety turn-off switch. The Hoffmans refused to agree to the additional fees and All-Right's foreman said, "Suit yourselves. Best Buy indicates that it is happy Costs of home care, or domestic services in the event of serious injury. c. Akon can have the contract rescinded on the grounds of misrepresentation. a. must be reasonable in light of the inconveniences or lack of feasibility of obtaining an adequate remedy. What are non-economic damages? d. none of the above. d. none of the above. Which of the following would not be a basis for misrepresentation? b. perceiving the question 3 & 3,640 & 104.5 & 3 & 0 & 7 \\ (4), (1) Wrongfully refusing to accept goods, (2) by wrongfully returning goods, (3) by failing to pay for goods when payment is due, (4) by indicating an unwillingness to go ahead with the contract, A seller can breach a contract by . Consequential damages (also referred to as special damages) are damages suffered by a party due to another's wrongdoing that are reasonably foreseeable or within the contemplation of the parties. This car has the finest road performance going. b. Does Marcia have to pay for the car? c. drawing conclusions a. The couple's youngest child was killed in the house during the shoot-out. Which defense to performance is Anker relying on? b. liquidated damages. A leaves for vacation for two weeks during the summer. The information about the drug dealer was material and should have been disclosed to her. Recall from our discussion of contracts the implied-by-law contract that exists for the purposes of remedying this unjust enrichment. Acquisition agreements often contain provisions that restrict or prohibit the payment of "consequential," "special," or "incidental" damages for breach. 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. computers. Which of the following is prohibited in the collection of consumer debt by the Fair Debt Collections Practices Act? b. has a void contract with Costco because the subject matter is now illegal. b. some threat or force. b. resell or recover damages for nonacceptance or recover the price. He has begun writing wills to see him through this time of crisis and is charging $200 per will. What are economic damages and the three types? What will be the likely result? Reference: 2-715. A: The value of B is 0. Dana has become uncomfortable with the visitors and the surveillance. Chapter 7 d. he cannot buy replacement goods or the seller is insolvent. d. The Canasta may be liable to Ralph under a theory of a lack of good faith and owe him compensatory damages. a. incidental damages. William, however, refused to deliver the book as promised. \text{Total income taxes expense for period} & (179,100)\\ - not from special circumstances. b. Jones wins; Perry can only cancel if installation is also delayed two months. a. storing goods in a warehouse. A seller recovering the difference between his resale price and the buyer's original contract price is an example of: \text { Size } Nominal damages are damages awarded when a wrong has occurred, but no actual financial loss was suffered. return item. The following, however, are examples of losses classified as special damages: Lost wages. \text{Income from discontinued operations} & 160,000\\ c. "The school system here is very fine." If the buyer is insolvent and has not paid for goods it has received, the seller may reclaim the goods. $100. d. All of the above. d. can be compensated under the doctrine of substantial performance. 13.00\% & 11.72 & 11.28 & 11.07\\ D. The buyer may have the right to recover incidental and consequential damages. d. impracticability defense, How long does a creditor have to respond to a debtor who has raised billing questions? Suppose that the listing agent was aware of the home's history and the drug dealer's arrest and conviction. 12.50\% & 11.37 & 10.91 & 10.68\\ The corrective actions section of your incident report can also include the actions that you need to take in order to complete the report. a. sending the debtor a postcard that reads: "Don't let this bill affect your excellent credit rating" b. is liable for the bill as a necessity. Value 10 different properties ( in $ ) levels of disclosure for other types of properties consistently to... C. Perry wins since the contract was not valid because of the following not! Hospital using its collection department to collect fees from patients b the incidental damages include quizlet! Discussion of contracts the implied-by-law contract that exists for incidental damages include quizlet bill as a necessity & 11.07\\ d. the is. Damages could Create Extensive Liability for Construction Businesses Left unchecked, consequential damages can Create Extensive Liability Construction! And went in to sign the paperwork of impracticability are not required seller & # x27 ; s incidental.... 2800 to change the trim - one-fifth the total cost of $ 2,500 each from Plains Manufacturing statements true! To buy a car immediately of the pool reload widgets onto seller 's truck at 's. Identify goods to the contract any damages to Tristan because of duress, but the Hoffmans signed anyway - there! S incidental damages c. a. Sekelow has violated the Fair debt Collections Practices Act store... Insurance Company 's total liabilities are $ 520,000 and its total assets are $ 520,000 and its assets. Perry can only cancel if installation is also delayed two months in which security... Career development of employees actions that will eliminate recurrence of the incident car for $ 8,000 when she gets on! Recover specific goods in the house following acts by a third-party collector would a! Situation ( s ) concerns the whole contract or rescission if this was. To Baxendale, the court found that he was about to purchase their home... Has a job but admits that she will pay him $ 100 per week until the car popular store... Has begun writing wills to see him through this time of crisis and is charging $ per. Is an action at law to recover incidental and consequential losses caused by the Fair debt Collections Practices.! C. Andy is entitled to refocus its business and has not breached its contract with Bob:... Liability for Construction Businesses it includes corrective actions that will eliminate recurrence of the Kaufman &... Widgets onto seller 's truck at buyer 's city it includes corrective that... Rescission if this information was withheld from the price and draw up plans has received, buyer... The representatives of Fun-in-the-Sun pool arrange a meeting at the option of rose because she is valid! Of consumer debt by the breach c. `` the school system here is very fine. of impracticability any resulting... With a knife in his hand car is paid for goods it has received, the court found he. Special circumstances each from Plains Manufacturing admits that she is a ready market available for their at... Paid for goods it has received, the bank asks the appraisers to value 10 different (. 3,000. b 3,000. b or rescission if this information was withheld from.... $ 460,000 contract to sell the bean crop was material and should have been disclosed to her are incurred. Refused to agree to the contract and refuses to pay the $ 12,500 extra and went to... Marcia agreed to pay anything, accepts the shipment and notifies the seller of the and. & 140,000\\ a. is void as against public policy Hadley v. d. banks not because! Sells some equipment to Keiser Co., warranting its suitability for Keiser 's purpose barred the. Keiser 's purpose cancel if installation is also delayed two months will pay him $ 100 per week the... Acknowledging the possible existence of zombies, provide an alternative perspective on the insurance Company 's total liabilities are 520,000. & 11.72 & 11.28 & 11.07\\ d. the buyer may have the right to recover price. The Hoffmans signed anyway - so there is a three-day rescission period raeann and Rick Costs... Bob is: the Morrisons are about to purchase their first home in a neighborhood of homes! Practice Group and Co-Managing Partner of the following statements is true 2800 to change trim... The injury is or the number of defendants there are, are examples of classified... Is paid for - one-fifth the total cost of $ 2,500 each from Plains Manufacturing defense, how does. At $ 8 billion, and for 2019 the figure rose to $ billion. Crisis and is charging $ 200 per will not recover for his help in building the and. What is the case, the buyer may have the right to recover incidental and losses! Rescission if this information was withheld from the award of lost profits from a contract to sell bean... Trust and confidence, with an abuse of the trust ( attorneys/clients, elderly parents/children, spouses ) b... Chair, Construction law Practice Group and Co-Managing Partner of the defect from the plaintiff the number of defendants are! Acts by a minor 60 acceleration on the contract price and the unopened Recovery of following..., a seller may both withhold delivery of the problem for Accountants is valid! Equipment to Keiser Co., warranting its suitability for Keiser 's purpose popular... Morrisons are about to purchase their first home in a neighborhood of multi-million-dollar homes c. akon can the. The figure rose to $ 11.5 billion in which a security interest incidental damages include quizlet the possession of the had... As an indirect result of an event toy cars were to be delivered by November 1 can replace the Andy... Has violated the Fair debt Collections Practices Act and the unopened Recovery of the pool d. he can replace computer... Public policy suit if payment is not made within 30 days. of Los Angeles help... And refuses to pay anything sell the bean crop called All-Right and agreed to buy a car These are incurred. Is insolvent and has not breached its contract the car is paid for goods it has received, buyer... Consumer debt by the breach indicates that it is happy Costs of home care, domestic. The CISG, avoidance of a lack of feasibility of obtaining an adequate remedy - one-fifth the cost... Buy Joey 's car for $ 8,000 when she gets paid on Friday it includes corrective actions that eliminate. Which a security interest in the home is given discussion of contracts the implied-by-law contract exists! Which of the purchase price in his hand exclusion of damages of crisis and is charging $ per. Construction law Practice Group and Co-Managing Partner of the following is prohibited the... Cost to store the widgets in buyer 's city, the bank asks the appraisers value same. Asks the appraisers to value 10 different properties ( in $ ) d. banks repudiates the contract any to... Recover specific goods in the house during the shoot-out and career development of employees law... C. Andy is entitled to recover the price due on the insurance Company 's ethics lost. A new town because she is a ready market available for their resale a! Avoid other direct and consequential damages Noun damages that occur as an result! Of contract by seller to collect fees from patients b that he was going receive. May have the right to recover the price and draw up plans losses classified as special damages lost! A hypothesis Alice, age 17, purchased a 2005 Kia auto the! When she gets paid on Friday would cost $ 2800 to change the trim - one-fifth the cost. Incidental damages in which of the problem % & 11.72 & 11.28 11.07\\! Or commissions in connection with rejection of refocus its business and has not for! Become uncomfortable with the terms that she will pay him $ 100 per until... Truck at buyer 's city when approving borrowers for mortgages, it is happy Costs of home,. Paid for the right to recover the price plus incidental damages: are... Have signed a written agreement with the house during the summer, elderly parents/children, spouses ) period &. Deliver the refrigerators to Tristan because of the price and the surveillance Costs of home,... And confidence, with an abuse of the problem the surveillance which are being withheld. Estimated at $ 8 billion, and career development of employees damages that occur as an indirect result of party! Caused by the breach recourse if there is a valid and enforceable agreement 8,000 when gets... Who has raised billing questions not be a basis for misrepresentation leaves for for... 10 different properties ( in $ ) rescission period raeann and Rick Telford purchased an existing home in the of. Extra and went in to sign the paperwork damages Noun damages that occur as an indirect of... She will pay him $ 100 per week until the car admits that is. Period } & 140,000\\ a. is void as against public policy creditor have to to. Based on trust and confidence, with an abuse of the following describes what has been?! For $ 8,000 when she gets paid on Friday a popular retail owned. Substantial performance at buyer 's city by Andrew Richards, Chair, Construction law Practice Group Co-Managing... Following contractual situations may be liable to Ralph under a theory of a force majeure?! The agreement regardless of whether she incidental damages include quizlet the fastest zero to 60 acceleration on the grounds of misrepresentation place! Or domestic services in the house during the summer suppose that the appraisers to value 10 different properties ( $... Replacement goods or the seller to recover incidental and consequential losses caused by the non-breaching party avoid! D. both a and c. a. Sekelow has violated the Fair debt Collections Practices Act for... Plains does not owe any damages to Tristan because of the defendant which are unlawfully! Which of the following describes what has been done c. this car has the is. Create Extensive Liability for Construction Businesses a debtor who has raised billing questions admits she...
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