Under the UCC, how are compensatory damages calculated when a seller breaches a contract for the sale of goods?
A) By a liquidated damage clause, which the Uniform Commercial Code requires buyers and sellers to include in all contracts for the sale of goods.
B) By calculating the degree of inconvenience the buyer incurred as a result of the seller's breach of contract.
C) By the price the seller had agreed to sell the goods for, multiplied by 1.5 to account for the buyer's inconvenience.
D) By finding the difference between what the buyer would have paid for goods under the contract and the amount the buyer will have to pay to obtain the goods from another seller.
E) By calculating the value of the buyer's actual losses and adding punitive damages.

Question

Quizplus · Accepted Answer

The correct method for calculating compensatory damages under the UCC when a seller breaches a contract for the sale of goods is to find the difference between the contract price and the market price at the time the buyer learns of the breach. This approach compensates the buyer for the additional cost they incur to obtain the goods from another source.

Under the UCC, How Are Compensatory Damages Calculated When a Seller