Essay ID890, Pauls Car Flashcards
When can a buyer revoke acceptance of goods under the UCC?
A buyer may revoke acceptance if the defect substantially impairs the value of the goods, and the buyer accepted them based on the reasonable belief that the seller would cure the defect or due to difficulty in discovering the non-conformity.
How soon must a buyer notify the seller after discovering a defect to revoke acceptance?
The buyer must notify the seller within a reasonable time after discovering the defect or when the defect should have been discovered.
What remedies are available to a buyer after revoking acceptance?
The buyer may seek benefit of the bargain damages, cover, incidental damages, and consequential damages after revoking acceptance.
What is the remedy of “cover” under UCC?
“Cover” allows the buyer to purchase substitute goods, with the remedy being the difference between the contract price and the cover price. The cover must be reasonable and timely.
What are incidental damages in the context of revoking acceptance?
Incidental damages are costs incurred by the buyer due to the seller’s failure to perform, such as inspection, transportation, and storage costs.
What are consequential damages under UCC?
Consequential damages are losses resulting from the seller’s breach that were foreseeable at the time of the contract formation.
What is required for a buyer to properly revoke acceptance under UCC?
A buyer must stop using the goods to properly revoke acceptance. Continuing to use the goods may suggest that the buyer has accepted them.
What is the buyer’s duty after rejecting or revoking acceptance of goods under UCC?
The buyer must hold the rejected or revoked goods with reasonable care until the seller provides instructions, such as storing, reshipping, or reselling the goods.
Can a buyer revoke acceptance if the goods have substantially changed in condition?
No, if the goods have changed substantially and not due to the defect, the buyer may be prevented from revoking acceptance.
Can Paul revoke acceptance of the SUV in this case?
Yes, Paul is likely entitled to revoke acceptance of the SUV due to the substantial defects, the inability to discover the defects at the time of purchase, and the seller’s failure to fix the issues after multiple attempts.
Does Paul’s continued use of the SUV affect his ability to revoke acceptance?
Yes, Paul’s continued use of the SUV after notifying the seller may weaken his revocation argument because the UCC requires the buyer to stop using the goods in order to revoke acceptance.
How does Paul’s notification to the seller about the defect affect his revocation of acceptance?
Paul’s timely notification to the seller and multiple attempts to fix the issues show that he acted within a reasonable time, supporting his right to revoke acceptance.
What does the implied warranty of merchantability under the UCC entail?
The warranty of merchantability means that goods sold by a merchant must be fit for ordinary use and conform to the contract description.
How are damages measured when there is a breach of the warranty of merchantability?
Damages are measured by the difference between the value of the goods as accepted and the value they would have had if they had been as warranted.
What is the measure of damages for a breach of warranty under the UCC?
The measure of damages is the difference at the time and place of acceptance between the value of the goods accepted and the value they would have had if they were as warranted.
