buyer remedies Flashcards
How do you properly reject?
notify S of rejection in reasonable time
notify S of the defect
hold goods for reasonable time
perfect tender rule?
if goods or delivery fail to conform to k, buyer may reject or accept and sue for breach
what is the exception to the perfect tender rule for installment contracts
may reject the INSTALLMENT if nonconformity substantially impairs value of that shipment
when can an installment k be fully cancelled?
if nonconformity substantially impairs value of entire k
B responsibilities after rejection if he has a security interest in the goods?
may sell them in commercially reasonable manner in good faith
give excess over secured interest to S
B responsibilities after rejection if B is unsecured
may hold goods w/ reasonable care for time sufficient to let S remove them
if S doesn’t give B instructions, B may store the goods, reship them to S, or resell them for S
seller’s right to cure?
By notice + new tender w/n time for performance
S has reasonable grounds to believe goods would be acceptable
B’s damages for accepting nonconforming goods?
compensatory damages - amount lost based on defect
B’s options if S fails perfect tender rule?
reject or accept
How may B accept the goods?
Express acceptance
Using the goods
Failing to reject
When may B revoke acceptance?
defect substantially impairs value to B and either
(1) B accepted goods on reasonable belief B would cure defect but didnt OR
(2) B accepted goods w/o discovering defect and acceptance reasonable b/c latent defect or S assurances
What must B do to properly revoke acceptance?
notify S of decision w/n reasonable time
stop using goods
hold goods in reasonable care
What are B’s remedies for rejection or revoking acceptance?
cancel k
k price - mkt price
incidental damages
foreseeable consequential damages
Does a buyer have to reject all of the goods?
no, may reject some and keep the others.
you must inform the seller in rejection which ones you are keeping.
what happens if the buyer sells the nonconforming goods after rejecting them?
conversion
liable for fmv at time of conversion
