Buyer & Seller's Remedies

Question 1

What is the goal of all remedy provisions under UCC 1-305(a)?

Answer 1

To put the aggrieved party in as good a position as if the other party had fully performed

Question 2

Are consequential damages allowed under the UCC?

Answer 2

Not allowed unless there is a specific provision made for them in the Code

Question 3

List ways a buyer might breach the contract according to UCC 2-703.

Answer 3

• Wrongfully reject goods
• Wrongfully revoke acceptance
• Fail to make a due payment
• Anticipatory repudiation

Question 4

What remedies might a seller pursue if the buyer breaches the contract?

Answer 4

• Withhold delivery
• Stop delivery by any bailee
• Identify goods to the contract in case of anticipatory repudiation
• Resell and recover damages
  Recover contract-market Damages
  Sue for Contract Price
  Cancel the Contract

Question 5

What is the formula under UCC 2-706(1) for calculating damages owed? (Re-sell and Recover)

Answer 5

K Price - Resell Price + Incidental Damages - Expenses

Question 6

What are the conditions under which a seller can sue for the price under UCC 2-709?

Answer 6

• Buyer has accepted the goods
• Conforming goods, accepted or not, have been lost or damaged within a commercially reasonable time after their risk passed to the buyer
• Seller has identified goods to the contract and there is no reasonable prospect of reselling to a third party for a reasonable price

Question 7

What defines a Lost-Volume Seller?

Answer 7

The ultimate sale to a third party would have occurred even if the buyer did not breach

Question 8

What is the calculation for special remedies under UCC 2-708(2)?

Answer 8

KP - (CD + ID) = Remedy

Contract Price - (Circumstantial + Incidental Damages) = Remedy

Question 9

What types of sellers can be classified as Lost-Profit Sellers?

Answer 9

• Standard Price Sellers
• Jobbers (middlemen)
• Component-Parts Manufacturers

Question 10

Under UCC 2-704(2), what options does an aggrieved seller have for unfinished goods?

Answer 10

1. ** Complete the manufacture** and wholly identify the goods to the contract
2. Cease manufacture and resell for scrap or salvage value
3. Proceed in any other reasonable manner

Question 11

What is the formula for breach of warranty under UCC 2-714?

Answer 11

VCG - VNCG + ID + CD

Value Conforming Goods - Value Non-Conforming Goods

Question 12

What happens if the exclusive remedy fails its essential purpose under UCC 2-714?

Answer 12

Other remedies are available

Question 13

What can a buyer do following rejection or revocation under UCC 2-711?

Answer 13

Hold the goods as security for repayment, or sell the goods to recover its damages