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10 Cards in this Set
- Front
- Back
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UCC, Damages
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The type of damages recoverable in a UCC, sale-of-goods contract depends on who the plaintiff is: buyer or seller.
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UCC, Damages, Buyer
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The damages the buyer can receive depend on whether any goods are in his possession. (1) Goods Rejected or Not Received (Buyer does NOT have goods) (2) Nonconforming Good Accepted. (Buyer has goods)
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UCC, Damages, Buyer, Goods Rejected or Not Received
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When a seller does not deliver goods, or a buyer lawfully rejects them, the basic damages are: the difference between the contract price and either the market price OR cost of buying replacement goods ("cover price”), plus incidental and consequential damages. (where applicable). Subtracted from this amount are any savings the plaintiff has benefitted from as a result of the breach.
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UCC, Damages, Buyer, Nonconforming Good Accepted
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If the buyer accepts goods that breach one of the seller's warranties, the buyer can recover any loss resulting in the normal course of events from the breach. The basic measure of damages is the value of the original conforming goods minus the value of the actual goods delivered, plus incidental and consequential damages.
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UCC, Damages, Buyer, Nonconforming Good Accepted, Notice Requirement
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In the case of nonconforming goods, the buyer must, within a reasonable time after she discovers or should have discovered the defect, notify the seller in order to recover damages.
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UCC, Damages, Buyer, Incidental Damages
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In contracts for the sale of goods, a buyer can get expenses reasonably incurred for inspection, receipt, transportation, care, and custody of goods rightfully rejected, and other expenses reasonably incident to the seller's breach.
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UCC, Damages, Seller, Buyer Repudiates or Refuses Goods
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When a buyer repudiates the contract, or refuses to accept conforming goods, the seller can recover the (1) difference between the contract price and the market price, or (2) the difference between the contract price and the resale of the goods, plus incidental damages only, less any expenses saved as a result of the breach.
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UCC, Damages, Seller, Buyer Repudiates or Refuses Goods, Duty to Mitigate for Resale Price
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Under UCC section 2-706, the seller is required to use good faith to secure a commercially reasonable sale for the rejected goods.
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UCC, Damages, Seller, Buyer Repudiates or Refuses Goods, Exception for Lost Profits in Volume Sales
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When the typical measure of damages does not adequately compensate the seller, or the seller is in engaged in a "volume" business, the seller can obtain, as damages, the contract price with the breaching buyer minus the cost to the seller.
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UCC, Damages, Seller, Incidental Damages
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In contracts for the sale of goods, a seller can recover expenses for storing, shipping, returning, and reselling the goods as a result of the buyer's breach.
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