Remedies under the UCC - Next Generation Bar Exam

1. Under UCC 2-712, what is the measure of a buyer's damages after reasonable cover?

   The cover price minus the contract price, plus incidental and consequential damages, minus expenses saved. Cover must be made in good faith and without unreasonable delay.

2. Under UCC 2-716, when may a buyer obtain specific performance?

   When the goods are unique or in other proper circumstances. Inability to cover is strong evidence of other proper circumstances.

3. Under UCC 2-709, when may a seller recover the full contract price?

   When the buyer accepted the goods, conforming goods were lost after risk passed, or identified goods cannot reasonably be resold. In other cases the seller is limited to resale, market, or lost-profit damages.

4. Under UCC 2-716(3), when may a buyer replevy identified goods?

   When the buyer is unable to effect cover after reasonable effort. Replevin is also available when goods were shipped under reservation and the security interest has been satisfied.

5. Under UCC 2-725, what is the limitations period for breach of a sales contract?

   Four years from accrual of the cause of action. A breach of warranty claim accrues on tender of delivery, unless the warranty explicitly extends to future performance.

6. Under UCC 2-708(1), what is the measure of a seller's damages when it does not resell?

   The contract price minus the market price at the time and place for tender, plus incidental damages. Expenses saved because of the buyer's breach are deducted.

7. A seller fails to deliver goods priced at $10,000. The buyer reasonably covers for $13,000 and incurs $500 in incidental costs. What are the buyer's damages?

   $3,500. Cover damages equal the $3,000 difference between cover and contract price, plus $500 incidental damages.

8. Under UCC 2-714, what is the measure of damages for accepted goods that breach a warranty?

   The value of the goods as warranted minus their value as accepted, measured at the time and place of acceptance. Incidental and consequential damages may also be recovered.

9. Which aggrieved party under Article 2 may recover consequential damages?

   The buyer. An aggrieved seller is limited to incidental damages, plus lost profit where applicable.

10. Under UCC 2-713, what is the measure of a buyer's damages for nondelivery when it does not cover?

    The market price when the buyer learned of the breach minus the contract price, plus incidental and consequential damages. Market price is measured at the place for tender, or the place of arrival if goods were rejected.

11. Under UCC 2-706, what is the measure of a seller's damages after a proper resale?

    The contract price minus the resale price, plus incidental damages, minus expenses saved. The resale must be made in good faith and in a commercially reasonable manner.

12. Under UCC 2-719(2), what remedies become available when an exclusive limited remedy fails of its essential purpose?

    The general remedies provided by the UCC. For example, a repair-or-replace remedy fails when the seller cannot or will not make repairs.

13. Under UCC 2-708(2), what may a lost-volume seller recover?

    Its lost profit, including reasonable overhead. Market or resale damages would not put a seller who could have made both sales in as good a position as performance.

14. Under UCC 2-719(3), how is a limitation of consequential damages for personal injury from consumer goods treated?

    As prima facie unconscionable. Limitations of consequential damages for commercial loss are not presumed unconscionable.

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