Which of the Following Is True of Damages Incurred by the Seller

question 17

Multiple Choice

Which of the following is true of damages incurred by the seller when a buyer repudiates a contract?

• A) The buyer is not liable for the difference between the contract price and the market price at which the goods are currently selling.
• B) The only way the seller can recover damages is by reselling the goods.
• C) The seller can only recover incidental damages and not the lost revenue.
• D) The seller can recover lost profit and overheads along with incidental expenses.

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Definitions:

World Trade Organization

An international organization that regulates trade between nations to ensure that trade flows as smoothly, predictably, and freely as possible.

International Trade Agreements

Treaties in which a country promises to engage in less trade protection against the exports of other countries in return for a promise by other countries to do the same for its own exports.

Autarky

An economic condition or system in which a country is self-sufficient and does not engage in international trade.

Consumer Surplus

The gap between the maximum sum consumers are ready to pay for a product or service and the sum they ultimately spend.