UCC § 2-714

Definition

UCC § 2-714 is a section of the Uniform Commercial Code (UCC) that outlines the remedies available to a buyer who has accepted goods that do not conform to the contract. It provides guidelines for the buyer to recover damages for the non-conforming goods.

5 Must Know Facts For Your Next Test

1. UCC § 2-714 allows the buyer to recover damages for any non-conformity in the goods, even if the buyer has accepted the goods.
2. The measure of damages under UCC § 2-714 is the difference between the value of the goods accepted and the value they would have had if they had been as warranted.
3. Buyers can also recover incidental and consequential damages under UCC § 2-714, such as costs associated with the non-conformity or lost profits.
4. The buyer's right to recover damages under UCC § 2-714 is subject to the limitations and defenses outlined in the UCC, such as the duty to mitigate damages.
5. UCC § 2-714 is an important remedy for buyers who have accepted non-conforming goods and need to recover damages, rather than rejecting the goods.

Review Questions

• Explain the purpose of UCC § 2-714 and how it relates to warranties and sales contracts.
  • The purpose of UCC § 2-714 is to provide a remedy for buyers who have accepted goods that do not conform to the contract. It allows the buyer to recover damages for the non-conformity, even if the buyer has already accepted the goods. This is an important provision in the context of warranties and sales contracts, as it ensures that buyers have a legal recourse if the goods they receive do not match the promises or representations made by the seller. UCC § 2-714 helps to balance the interests of both parties and promote fairness in commercial transactions.
• Describe the measure of damages that a buyer can recover under UCC § 2-714 and explain the rationale behind this approach.
  • Under UCC § 2-714, the measure of damages for a buyer who has accepted non-conforming goods is the difference between the value of the goods as accepted and the value they would have had if they had been as warranted. This approach is designed to put the buyer in the same position they would have been in if the goods had conformed to the contract. By allowing the buyer to recover the difference in value, UCC § 2-714 ensures that the buyer is not left bearing the cost of the seller's breach of warranty or failure to deliver conforming goods. This helps to incentivize sellers to provide goods that meet the terms of the sales contract and promotes the overall fairness and efficiency of commercial transactions.
• Analyze the role of UCC § 2-714 in the broader context of the Uniform Commercial Code and its impact on the rights and obligations of buyers and sellers in sales contracts.
  • UCC § 2-714 is a crucial component of the Uniform Commercial Code's comprehensive framework for governing commercial transactions, including the sale of goods. By providing a clear and predictable remedy for buyers who have accepted non-conforming goods, UCC § 2-714 helps to balance the rights and obligations of both buyers and sellers. It ensures that buyers have a legal recourse if the goods they receive do not match the promises made by the seller, while also protecting sellers from the burden of having to accept the return of goods that have already been accepted by the buyer. This balance helps to promote trust and confidence in commercial transactions, as both parties know their rights and responsibilities under the law. The impact of UCC § 2-714 extends beyond individual sales contracts, as it contributes to the overall efficiency and fairness of the commercial system as a whole.

Related terms

Uniform Commercial Code (UCC): A comprehensive set of laws governing commercial transactions in the United States, including the sale of goods, negotiable instruments, and secured transactions.

Buyer's Remedies: The legal options available to a buyer when the seller fails to deliver goods that conform to the contract.

Acceptance of Goods: The act of a buyer taking possession of goods and acknowledging that they conform to the contract, thereby waiving the right to reject them.