Asked by
Sherell Denmark
on Nov 21, 2024
Verified
In the text case, Detroit Radiant Products Company v. BSH Home Appliances Corporation, the plaintiff, a seller of gas-fired infrared heaters, sought to recover lost profits based on the defendant's breach of contract. Which of the following was the result on appeal?
A) The court awarded the plaintiff lost profits based on the fact that lost profits are the default measure of damages under Article 2 of the UCC.
B) The court awarded the plaintiff the difference between the contract price less the market price plus incidental damages based on the fact that such damages were the default measure of damages under Article 2 of the UCC.
C) The court awarded the plaintiff lost profits in addition to the difference between the contract price less the market price plus incidental damages based on the fact that all such damages were the default measure of damages under Article 2 of the UCC.
D) The court awarded the plaintiff the value of the unsellable inventory it had due to the defendant's breach and also lost profits because the default measure (the difference between the contract price less the market price plus incidental damages) did not make the plaintiff whole.
E) The court awarded the plaintiff lost profits and also the value of the unsellable inventory it had due to the defendant's breach because the default measure (lost profits) did not make the plaintiff whole.
Lost Profits
Financial gains that could have been earned but were not because of a specific event or action that prevented such earnings.
Incidental Damages
Incidental damages refer to reasonable expenses incurred by a party as a result of another party’s breach of contract, including costs to mitigate damages.
- Determine and fathom the compensatory measures set forth by the Uniform Commercial Code for infringements of contracts.
Verified Answer
PH
Learning Objectives
- Determine and fathom the compensatory measures set forth by the Uniform Commercial Code for infringements of contracts.