Question

Under the UCC, if a seller of goods breaches the contract, the buyer

a. must "cover."
b. may receive only the current market value of the goods.
c. may "cover" and then receive the difference between the original contract price and the "cover" price.
d. will be awarded the difference between the original contract price and the market value of the goods if the buyer chooses to "cover."

Answer 1

Under the UCC, if a seller breaches the contract, the buyer can 'cover' and recover the price difference.

Step-by-step explanation:

Under the UCC (Uniform Commercial Code), if a seller of goods breaches the contract, the buyer has the option to 'cover' the breach.

This means that the buyer can purchase replacement goods from another seller and then recover the difference between the original contract price and the 'cover' price from the breaching seller.

So, the correct answer is c. may 'cover' and then receive the difference between the original contract price and the 'cover' price.