Ronco, a retailer of toys, rejected a shipment of dolls from Jasper, a wholesaler, because they were not the original ones that were ordered. Suppose that the original contract price of each doll was $20.00 and that the price from the other seller Ronco finally purchased the dolls from was $22.00 each. If Ronco had originally ordered 2,500 dolls, what damages would he (Ronco) be entitled to recover from Jasper if he purchased the same number of dolls from the other seller?

Question

Quizplus · Accepted Answer

Ronco would be entitled to recover the difference between the contract price and the price paid to the other seller, which is $2.00 per doll. For 2,500 dolls, this amounts to 2,500 * $2.00 = $5,000.

Ronco, a Retailer of Toys, Rejected a Shipment of Dolls