UCC: Buyer’s Remedies Has Buyer ever received goods? Did buyer “accept” the goods after receiving them? Yes Yes Has buyer properly revoked the acceptance? No No Are the goods defective? No Yes Yes Was Seller’s failure to deiver a breach of the K? No No Yes No Damages are recoverable Did buyer COVER (buy susbsitite goods)? Did Buyer properly reject the goods? Before answering yes, check whether the seller has a right to cure the defective performance (which will have if the time for performance has not yet expired, or in a few other circumstances.) If there is a right to cure, treat the answer to this box as yes only if seller has failed to make a prompt cure. Buyer is not entitled to any remedy for non-conforming goods. Did buyer give seller prompt notice of the defect? See UCC §2-607(3)(a) However buyer may be entitled to damages for reason other than the goods’ nonconformity (e.g. late delivery) (buyer must notify seller promptly of breach or be barred from all remedy) No Yes Yes Buyer is entitled to damages approproate for one who never received the goods. No YES Buyer may collect damages for breach of express or implied warrenty, calculated as the difference betwee the value of the goods as warrented and their value as reciveved. See UCC §2-714(2) Buyer can collect the difference between the K price and the cost of cover. See UCC §2-712(1) Note that a buyer who actually covers probably cannot elect to receive the “K price minus market price” measure of damages. Most courts use the K price to determine the value the goods would have been tendered as warranted. Buyer can collect the difference between the K price and the market price at the time the buyer learned of the breach See UCC §2-713(1) Add incidential1 and consequential2 damages if appropriate, then subtract expenses saved as a result of Seller’s breach. 1 See UCC §2-715(1) 2 See UCC §2-715(2) These can include profits Buyer could have made by reselling the goods. Consequential damages must be proved with reasonable certainty, and their occurrence must have been reasonably foreseeable to one in the Buyer is entitled to damages approproate for a buyer who has accepted goods. Damages inlcude “the loss resulting in the ordinary course...as determined in any manner which is reasonable.” See UCC §2-714(1) Buyer may also collect incidental and consequential damages where appropriate (e.g. damages for delay, or for seller’s failure to repair.) Add incidential1 and consequential2 damages if appropriate, then subtract expenses saved as a result of Seller’s breach. 1 See UCC §2-715(1) 2 See UCC §2-715(2) These can include profits Buyer could have made by reselling the goods. Consequential damages must be proved with reasonable certainty, and their occurrence must have been reasonably If the goods are “unique,” buyer may be entitled to specific performance See UCC §2-716(1) SP is rare in sale of goods cases, but will be granted where goods are unique or other proper circumstance.