Tom Enters a Coffee Shop in Which He Has an Open

question 34

Multiple Choice

Tom enters a coffee shop in which he has an open account, fills a cup of coffee, holds it so the cashier can see it, acknowledges the cashier's nod, and walks out with the coffee, knowing that he will be billed for it at the end of the month. Tom has formed

• A) an express contract.
• B) an implied-in-fact contract.
• C) an implied-in-law contract.
• D) a quasi contract.

Identify the remedies available to sellers and buyers under the Uniform Commercial Code (UCC) when a contract breach occurs.

Understand the statutes of limitation for contracts for the sale of goods under the UCC.

Calculate damages and apply remedies in situations of contract breaches involving the sale of goods.

Recognize the conditions under which specific performance and cover can be employed as remedies.

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Definitions:

Real Value

The value of an object, service, or currency adjusted for inflation, representing its purchasing power.

Nominal Dollars

Nominal dollars refer to the amount of money expressed in current values, without adjustment for inflation, representing the "face value" of currency.

Fixed Incomes

Fixed incomes refer to types of investment that pay regular interest or dividends to investors and have the principal amount returned at maturity.

Nominal Interest Rate

The interest rate before adjustments for inflation, representing the face value of borrowing costs or investment returns.