Restricting Remedies (Sales)

Question 1

With a restriction, the seller is typically providing that there will be no recovery except for ONE OF THE THREE “R’s

Answer 1

repair, replace, or a refund of the purchase price.

Question 2

If the agreement fails to say the specific remedy is the exclusive remedy

Answer 2

then it is merely optional.

Question 3

A restriction will not be enforceable if

Answer 3

it would fail its essential purpose.

Question 4

Consequential damages could involve

Answer 4

(i) personal injuries; or (ii) lost profits (especially if the goods were purchased for resale); or (iii) damage to other property (when there is a fire or explosion, etc.).

Question 5

In the absence of a restriction, a buyer can recover consequential damages that were

Answer 5

foreseeable by the seller when the contract was made. (Hadley v. Baxendale)

Question 6

Specifically under the UCC (UCC 2-715(2)(a)), the buyer may be expected

Answer 6

to minimize damages by purchasing substitute goods, in other words exercising the right to cover

Question 7

On a sale of consumer goods, can the seller exclude consequential damages for personal injuries?

Answer 7

No