Which of the following is NOT correct with respect to consequential damages under the Code?

A) Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods.
B) Consequential damages include damages for lost profits from a contract to resell goods which the seller never delivers.
C) Particular needs of the buyer need to be made known to the seller before the seller can be held responsible for consequential damages relating to those needs.
D) The buyer is not required to obtain cover, so his failure to do so does not bar him from recovering consequential damages that he could have prevented by cover.

Question

yanetsy yglesias · Accepted Answer

Final Answer : D, Explanation :  Consequential damages under the Uniform Commercial Code (UCC) can indeed be recovered by the buyer, but the buyer is generally expected to mitigate damages where reasonably possible, including obtaining cover (substitute goods) if the failure to do so would result in unnecessary additional damages. Therefore, the statement that a buyer's failure to obtain cover does not bar him from recovering consequential damages he could have prevented by cover is not correct.

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