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

question 83

Multiple Choice

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

• A)By calculating the value of the buyer's actual losses and adding punitive damages.
• B)By the price the seller had agreed to sell the goods for,multiplied by 1.5 to account for the buyer's inconvenience.
• C)By the liquidated damage clause,which the Uniform Commercial Code requires buyers and sellers must include in all contracts for the sale of goods.
• D)By calculating the degree of inconvenience the buyer incurred as a result of the seller's breach of contract.
• E)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.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Profit

The financial gain that results when the revenues generated from business activities exceed the expenses, taxes, and costs incurred.

Competitive Market

A market structure characterized by many buyers and sellers, where all entities have little to no power to influence prices or market conditions.

Transaction Costs

Transaction costs are expenses incurred when buying or selling goods or services, including the costs of searching for information, negotiations, and enforcement of contracts.