Contracts

Question 0

UCC > Damages > Breach of Warranty

Answer 0

Consequential damages result from the sellers breach and include injury to a person or property proximately resulting from any breach of warranty

Question 1

“Goods” > Definition > UCC

Answer 1

Goods are defined broadly under the UC see to mean any movable item.

Question 2

Non-Conforming Goods

Answer 2

When the supplier shipped the 300 high-density disks and the 200 regular floppy disks, a contract was simultaneously formed and breached. Under UCC Section 2-206(b), an order or other offer to buy goods “for prompt or current shipment” will permit acceptance either by a prompt promise to ship or prompt shipment of conforming or nonconforming goods. If the seller ships nonconforming goods as a means of acceptance under UCC Section 2-206(b), the shipment will be considered both an acceptance and a breach of the contract. In order for a seller or shipper to avoid being held in breach, the shipment of nonconforming goods will not constitute an acceptance if the seller or shipper “seasonably” notifies the buyer that the shipment is offered only as an accommodation to the buyer