UCC - Buyer/Seller Remedies

Question 1

UCC - Buyer’s Remedies

Answer 1

1. Damages
2. Cover
3. Specific Performance for Unique Goods
4. Replevin

Question 2

Buyer’s Remedies - Damages

Answer 2

When a seller fails to perform or makes a nonconforming tender

• Damages = Market price - K price + incidental & consequential
• Market Price is price that existed at the time of the breach at the place where tender was to occur under the k

Question 3

Buyer’s Remedies - Cover

Answer 3

Buyer can purchase similar goods elsewhere

• and recover the replacement price - K price

Question 4

Buyer’s Remedies - Specific Performance

Answer 4

Buyer may demand SP for unique goods

Question 5

Buyer’s Remedies - Replevin

Answer 5

When buyer has made at least partial payment for identified goods, he can obtain the undelivered goods form the seller if:

1. Seller becomes insolvent within 10 days of getting the 1st payment from the buyer or
2. the goods were for family, personal or household purposes and the seller has repudiated or failed to deliver the goods as required by the K

OR

the buyer is unable to effect cover

Question 6

Buyer’s rights if Nonconforming Tender

Answer 6

Buyer has right to accept or reject all or part of the goods (and right to inspect b/f making that decision)

Question 7

Rejection

Answer 7

• Buyer can reject goods if he:
  
  • gives notice to seller
  • w/in reas. time and
  • b/f acceptance
• Is then entitled to a return of any payments made OR
• to seek same remedies as if no tender was made

Question 8

Acceptance of Goods

Answer 8

Buyer accepts goods by:

1. expressly stating acceptance,
2. using the goods, or
3. failing to reject the goods

Question 9

Seller’s right to cure

Answer 9

• Seller has right to cure defective tender if time of perf. under the K has not yet elapsed OR
• Seller had reas. grounds to believe that buyer would accept despite the nonconformity

Seller must give notice of intent to cure & make new tender of conforming goods

Question 10

What are the buyer’s damages if they accept non conforming goods?

Answer 10

Buyer entitled to recover the difference b/w the value of the goods contracted for and the value of the goods received

Question 11

Revocation of Acceptance of Goods

Answer 11

Buyer can revoke an acceptance of goods if the defect subst. impairs their value to the buyer and:

1. Buyer accepted the goods on reas. belief the seller would cure the defect, but the seller has failed to do so OR
2. Buyer accepted goods w/out discovery of the nonconformity
   
   • and such acceptance was reas. induced by the difficulty of discovering the nonconformity b/f acceptance or b/c seller gave assurances that th goods were conforming

Buyer must inform seller of its decision to revoke w/in reas. time after discovering the nonconfom. or should have been discovered

Question 12

What are Seller’s Remedies ?

Answer 12

1. Right to price
2. Right to reclaim goods
3. Stoppage of goods in trainsit
4. Wrongful rejection by buyer

Question 13

What are the UCC seller’s remedies?

Answer 13

1. Profit
2. Incidental damages

Question 14

Seller’s Remedies - Right to Price

Answer 14

When buyer has accepted the goods and fails to pay the price when it becomes due Seller can sue for price

• Seller can seek to recover full K price plus any incidental damages

Question 15

What is the seller’s remedy if goods have not been delivered to & accepted by the buyer, but the seller has resold the goods?

Answer 15

The contract price for the goods - the gain from the resale

Question 16

What is the seller’s remedy if goods have not beed delivered to and accepted by the buyer if the seller has not resold?

Answer 16

The K price for the goods - market price for the goods

Question 17

What is the only remedy for lost volume sellers ?

Answer 17

The profit they would have made on the lost sale

Question 18

Define lost volume seller

Answer 18

One whose supply of goods exceeds the demand for the same

Question 19

What is a seller of goods always entitled to if a buyer breaches?

Answer 19

Incidental damages

• Storage costs assoc. with getting stuck with the goods
• Plus the cost of resale
• minus expenses avoided on account of the breach

Question 20

What are incidental damages for a buyer of goods?

Answer 20

The cost of securing cover

Question 21

What are the consequential damages for a buyer of goods ?

Answer 21

Foreseeable costs arising to the buyer b/c of a particular need or use of the goods in question (e.g. lost profits)

Question 22

Seller’s Remedies - Right to reclaim goods

Answer 22

when insolvent buyer gets goods on credit & seller learns tht buyer is insolvent

• S can reclaim the goods if a demand is made w/in 10 days after buyer receives the goods

If buyer pays with check that is dishonored, S can reclaim goods following a demand made within reas. time

Question 23

Stoppage of Goods in Transit

Answer 23

S can stop the goods in transit b/c of buyer’s breach, only if shipped in large sized lots. S can’t stop goods in transit once the:

1. Buyer has received the goods
2. Carrier or warehouseman has acknowledged the buyer’s rights
3. Goods have been reshippedby the carrier or
4. Title has been given to or negotiated with the buyer

OR if buyer becomes insolvent b/f delivery of the goods, can stop and refuse delivery except for cash

Question 24

What is the effect of buyer wrongfully rejects the goods?

Answer 24

Seller can:

1. collect damages
2. Resell the goods or
3. Recover the price