UCC Remedies

Question 1

Remedies

Answer 1

Remedies provided by the UCC are mean to put the aggrieved party in as good a position as if the other party had fully performed

Question 2

Cover (Procurement of Substitute Goods)

Answer 2

After a breach by the seller the buyer may cover by making a reasonable purchase of substitute goods on the open market. The buyer must act in good faith and without unreasonable delay. Time pressures and the avoidance of consequential damages might make purchasing better goods, at a higher price, reasonable.
1) Cover bases damages on the actual cost of acquiring goods from a substitute source. Thus, the buyer may recover the difference between the contract price and the cost of over plus any incidental or consequential damages.

Question 3

Incidental Damages

Answer 3

Incidental damages are damages that occur naturally from the breach. Usually, they consist of the out of pocket expenses the buyer incurs in the course of attempting to mitigate her harm.
1) Incidental damages include expenses incurred inspecting, receiving, transporting, returning, and storing the goods following their rejection. They also include any reasonable costs incurred attempting to purchase substitute goods, such as a broker’s commission, expedited shipping costs, and other similar expenses.

Question 4

Consequential Damages

Answer 4

Consequential damages include any loss resulting from the buyer’s particular need which the seller, at the time of contracting, had reason to know. Consequential damages must be foreseeable and frequently consist of “lost profits” suffered as a result of the inability of the buyer to resell the goods or use them in connection with its business.
1) They also include injury to person or property proximately resulting from any breach of warranty.

Question 5

Duty to Mitigate Damages

Answer 5

An injured party may NOT recover damages that she could have reasonably avoided. Failure to mitigate prevents the injured party from recovering damages that would NOT have occurred if had taken reasonable steps to mitigate her harm. Essentially, the  is NOT permitted to run up her damages against the defendant.