UCC

Question 1

Is a buyer entitled to revocation of acceptance and compensatory damages in the same lawsuit?

Answer 1

Under the UCC, a buyer who justifiably revokes acceptance is entitled to various remedies. In addition to the cancellation of the contract and refund of the purchase price, the buyer may also be awarded compensatory damages based on the difference between market price or the replacement cost of the goods and the contract price for the goods.

Question 2

How does a buyer accept goods under the UCC?

Answer 2

The buyer accepts goods but expressly stating acceptance, using the goods, or failing to reject the goods.

Question 3

When can a buyer revoke an acceptance of goods?

Answer 3

A buyer may revoke acceptance if there is a nonconformity of the goods that substantially impairs their value to the buyer and the buyer wither accepted the goods on reasonable belief the seller would cure the nonconformity OR the buyer accepted the goods without discovery of the nonconformity and was reasonable based or difficult to discover

Note: Buyer must inform the seller of its decision to revoke within a reasonable time after the nonconformity is discovered or should have been discovered.

Question 4

Does a seller have a right to cure a defective tender?

Answer 4

A seller MAY have the right to cure a defective tender, even after the time for performance under the contract has passed if the seller had reasonable grounds to believe that the buyer would accept despite the nonconformity.

Note: Within a reasonable time

Question 5

What must the Buyer refrain from doing after revocation of acceptance?

Answer 5

Once the buyer revokes acceptance, the buyer generally cannot exercise ownership over the goods for which acceptance was revoked, but instead the buyer is obligated to hold the rejected goods with reasonable care until seller can remove them.

Note: A failure to do so is wrongful and can prevent the buyer from canceling the contract unless such exercise is commercially reasonable (have to prove by preponderance of the evidence)

Question 6

Standard for SOF and UCC

Answer 6

Under the statute of frauds, a contract for the sale of goods for a price of $500 or more must be in writing in order to be enforceable.

Exceptions: Payment has been made and accepted; specially manufactured goods.

Question 7

What are the breach of K theories?

Answer 7

Express warranty
Implied warranty of merchantability
Implied warranty of fitness for a particular purpose
Nonconforming tender

Question 8

Punitive damages in a contract action

Answer 8

Punitive damages are rarely available in a contract action. Punitive damages are not recoverable in a contract action unless compensatory damages are awarded and the sellers conduct constitutes a willful, independent tort.