TRUE/FALSE

1. The owners of a corporation are the shareholders.

2. If a party uses fraud or negligent misrepresentation to induce another party to enter into a contract, the innocent party would potentially have a contract remedy of rescission or a tort remedy of damages.

3. An agent with express authority from a principal to sell real property at a non-judicial foreclosure sale for a stated minimum amount will still bind the principal to a sale of that real property for a lower amount, if the agent mistakenly opened the bids for sale of the property at that lower amount, and the buyer could have reasonably relied upon the agent's apparent authority to sell the property for the lower amount.

4. If the seller delivers nonconforming goods, like Christmas trees with brown needles, which the buyer rejects, the seller owns the goods after rejection, but the buyer must hold the goods with reasonable care at the seller's disposition, for a time sufficient to permit the seller to remove them.

MULTIPLE CHOICE

5. A buyer's remedies for a seller's breach of a contract for the sale of goods might include, but are not limited to,

A. Compensatory damages for non-delivery or repudiation of the goods.

B. The buyer's procurement of substitute goods.

C. The buyer's incidental and consequential damages.

D. Any of the above remedies, if applicable to the contract breach.