The UCC Permits a Seller to Limit or Modify the Buyer's

question 66

Multiple Choice

The UCC permits a seller to limit or modify the buyer's remedies for breach of warranty:

• A) in all cases.
• B) except for unconscionable limitations or exclusions of consequential damages.
• C) in no cases, as this would be contrary to public policy.
• D) except when the seller seeks to limit the time within which the warranty is effective.

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Definitions:

Opportunity Cost

The expense incurred by not choosing the next most favorable option when a decision is made or one possibility is selected over another.

Transaction Costs

The time, effort, and other resources needed to search out, negotiate, and complete an exchange.

Price Ceiling

A legally established maximum price for goods or services, intended to protect consumers from excessively high prices.

Market Equilibrium

A condition in which market supply equals market demand, and the price of the good or service stabilizes.