Question

Business Law for Accountants

Precious Stones, Inc, and Sparkling Jewelry stores enter into a contract for a sale of gemstones. Precious Stones does not deliver. The buyer can normally recover as damages the difference between...

Any loss avoided and any profit gained.

The contract price and the market price.

The current prices in the parties locations.

The actual and the hopes for price.

Which of the following would the UCC not have application?

Contract for the sale of equipment owned by a corporation

Contract for the sale of fruit crops that are still growing and have not yet been picked

Contract for the sale of a business in which the primary value of the business is based upon the value of the equipment and machinery

Contract for the sale of shares of stock in a corporation

Answer 1

Question 1

Precious Stones, Inc, and Sparkling Jewelry stores enter into a contract for a sale of gemstones. Precious Stones does not deliver. The buyer can normally recover as damages the difference between...

Ans. Option A = The contract price and the market price.

The buyer may recover the difference between the market price at the time the buyer learned of the breach and the contract price, together with any incidental and consequential damages, less expenses saved

Question 2

Which of the following would the UCC not have application?

Ans. Option C = Contract for the sale of a business in which the primary value of the business is based upon the value of the equipment and machinery?

Goods are "all things which are moveable. Goods includes stock and shares, growing crops, grass, and things attached to or forming part of the land.

The UCC does not apply to any transaction to buy or sell the real estate or business

Goods includes the unborn young of animals and growing crops and other identified things attached to realty as described in the section on goods to be severed from realty.

Note: Answered based on Uniform Commercial Code

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