Asked by Wendy Reynoso on Jul 11, 2024

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If the buyer makes a wrongful rejection, the seller may resell the goods in good faith and in a commercially reasonable manner and the seller may recover from the buyer the difference between the contract price and the resale price, plus any incidental damages, minus expenses saved.

Wrongful Rejection

The unjustified refusal to accept the delivery of goods or services as per the terms of a contract, which can lead to a breach of contract lawsuit.

Resale Price

The price at which an item is sold after the first sale, from retailer to consumer.

Incidental Damages

Incidental damages refer to the costs incurred by one party due to another's breach of contract, including expenses directly resulting from the breach, such as costs to find a replacement.

  • Appreciate the implications and available remedies following a breach of a sales contract by a buyer or seller.
  • Ascertain the legal repercussions and corrective measures for improper rejection or denial of goods.
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SA
Shrooq AlshamsJul 13, 2024
Final Answer :
True
Explanation :
Under the Uniform Commercial Code (UCC), if a buyer wrongfully rejects goods, the seller has the right to resell the goods in a commercially reasonable manner. The seller can then recover from the buyer the difference between the contract price and the resale price, in addition to any incidental damages, while deducting any expenses saved due to the buyer's breach.