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Which of the following is an example of a purchase money security interest in co

ID: 442255 • Letter: W

Question

Which of the following is an example of a purchase money security interest in consumer goods?

               a.            A doctor purchasing an exercise bike for his employees to use over the lunch hour

b.          A doctor purchasing on credit a blood glucose monitor to check his own blood sugar levels

               c.            A doctor purchasing a TV/VCR unit on credit to place in her office waiting room

               d.            A doctor purchasing a computer on credit to create a Webpage to make services and         information available to her patients

Expectation interest can best be described as money spent in reliance upon the agreement.

True

False

The UCC is federal legislation enacted by Congress.

True

False

The goal of expectation interest is to

               a.            award damages under the UCC when the sale of goods is the subject of the contract.

               b.            put the non-breaching party in the position it would have been in had the contract never been formed.

               c.            put the non-breaching party in the position it would have been in if the contract hadn't been breached.

               d.            serve as a penalty for breaching a contract.

If a buyer does not receive goods by the contract deadline, remedies available include all of the following EXCEPT

               a.            cure.

               b.            incidental and consequential damages.

               c.            damages for non-delivery.

               d.            cover.

Explanation / Answer

1.D. A doctor purchasing a computer on credit to create a Webpage to make services and         information available to her patients.

2.Expectation interest can best be described as money spent in reliance upon the agreement. FALSE

3.The UCC is federal legislation enacted by Congress. FALSE

4. D. serve as a penalty for breaching a contract.

5. a.            cure.

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