Question

Under the UCC, when a contract for the sale of goods is breached by the seller for failure to tender conforming goods to the buyer; after the buyer has had an opportunity to inspect the goods:

(1) What are the buyer's options in terms of accepting or rejecting the nonconforming goods?

(2) What opportunity must the seller be given if the time for performance has not expired?

(3) What is deemed to have occurred if the buyer fails to reject the non-conforming goods?

(4) If the buyer fails to reject the nonconforming goods what are the buyer's potential remedies?; and

(5) If the buyer sues the seller for damages what type of damages is the buyer most likely to recover?

Answer 1

Uniform Commercial Code.

UCC means Uniform Commercial Code. It is a book contains certain uniform acts. It provide remedies for trade transactions issues. It was published in 1952.

1.) What are the buyer's options in terms of accepting or rejecting the nonconforming goods?

If a person is being delivered non-confirming goods, he has the option to :-

• reject the goods
• receive the goods
• Partial acceptance and partial rejection
• Revocation of an acceptance.

If accepted, he has to pay for that. If rejected, there is no need for payment.

Also, he can suit an injection only combined with a breach of contract.

2.) What opportunity must the seller be given if the time for performance has not expired?

As per Section 2-508, seller can notify the buyer about his willingness to deliver the goods as per the contract and if the buyer have still the intention to receive the goods, then the seller can deliver the goods within the stipulated time.

3.) What is deemed to have occurred if the buyer fails to reject the non-conforming goods?

If the buyer did not reject the goods, it is deemed to be the acceptance of the goods on part of the buyer. Buyer should buy the goods whether he is in need of that or not.

4.) If the buyer fails to reject the nonconforming goods what are the buyer's potential remedies?

As per UCC, acceptance of goods will be confirmed only when:-

• Buyer behaves unpredictable regarding ownership of the seller.
• Buyer should get an opportunity to inspect the goods.

Hence, in this case, deemed acceptance of buyer can be waived because of the reason that he did not get an opportunity to inspect the goods.

(5) If the buyer sues the seller for damages what type of damages is the buyer most likely to recover?

Buyer can get ordinary damages for the total loss incurred by him because of the breach of the contract.