Under the UCC, How Are Compensatory Damages Calculated When a Seller

question 78

Multiple Choice

Under the UCC, how are compensatory damages calculated when a seller breaches a contract for the sale of goods?

• A) By a liquidated damage clause, which the Uniform Commercial Code requires buyers and sellers to include in all contracts for the sale of goods.
• B) By calculating the degree of inconvenience the buyer incurred as a result of the seller's breach of contract.
• C) By the price the seller had agreed to sell the goods for, multiplied by 1.5 to account for the buyer's inconvenience.
• D) By finding the difference between what the buyer would have paid for goods under the contract and the amount the buyer will have to pay to obtain the goods from another seller.
• E) By calculating the value of the buyer's actual losses and adding punitive damages.

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Definitions:

Intentional Tort

A wrongful act done deliberately, which causes harm to another person, and for which the victim may sue the perpetrator.

Restricted Securities

Stocks, bonds, or other securities that are not freely tradable on the open market due to regulatory restrictions or the holding period requirements.

Registration

The process of recording information, often for purposes like ownership proof, legal compliance, or official recognition.

Directorships

Positions or titles held by members of a board of directors responsible for overseeing the management and strategic direction of an organization.