1. Buyer entered into a contract to purchase a custom made bed from Sleep is Us (SU) company. The agreed price was $3,000. SU would make a profit on this transaction of $1,000. However, one week later Buyer changed her mind and repudiated the contract. SU had not yet begun construction or purchased any materials for the bed. If SU sues, how much money will it be entitled to as damages? (Ignore any incidental expenses or cost savings.)
A. Nothing, since it is no worse off than if the contract had never been made
B. Nominal damages only
C. The lost profits ($1,000)
D. The contract price ($3,000)
2. In order to recover for breach of an express warranty, a plaintiff must show that:
A. the warranty was part of the basis of the bargain.
B. the seller gave a sample or model of the goods.
C. the warranty was in writing.
D. the warranty used the words "warranty" or "guarantee."
3. Sheila desperately needed money, so she took her ring (which was worth $1000) to Paul's Pawn Shop. The Pawn Shop and Sheila signed an agreement, and the essential terms stated that Sheila received from the Pawn Shop $500 cash for a 60-day period. If Sheila returned within 60 days with $750, she would receive her ring back. If she did not, the Pawn Shop would be free to sell the ring after 60 days. Within the 60-day period, Sheila returned to the Pawn Shop to exchange $750 for her ring. However, the Pawn Shop had already sold the ring to Fred's Fine Antique Jewelry for $1000. Fred’s Jewelry is a retail establishment that regularly sells rings and other fine old jewelry. Fred's had no knowledge of the agreement between Sheila and Paul’s Pawn Shop. Sheila sues Fred's for return of her ring. Under these facts:
A. Fred's will likely be able to keep the ring, because it bought it in good faith and without knowledge of Sheila’s ownership.
B. Fred's will likely be able to keep the ring, because it buys jewelry in the regular course of business.
C. Fred's will likely be able to keep the ring, because Sheila has no legal recourse against Paul's Pawn Shop; therefore, she has no legal recourse against Fred's.
D. Both A and B.
E. All of the above.