Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces. Miguel fails to pay and Fred's Fireplaces sells the fireplaces to Phillips Outdoor Store instead. Did Fred's Fireplaces act appropriately?
A) No because selling goods to another buyer is never appropriate.
B) No because filing a lawsuit is required before selling goods to another buyer.
C) No because selling goods to another buyer is appropriate in the event of breach only if the contract is for at least 50 units of goods.
D) No, because the UCC requires sellers to notify buyers within 100 days of selling goods to another buyer in the event of a breach.
E) Yes, because the UCC allows a seller to sell the goods to someone else if the buyer breaches the contract before the seller has delivered the goods.

Question

Quizplus · Accepted Answer

The Uniform Commercial Code (UCC) permits a seller to resell goods to another buyer if the original buyer breaches the contract, provided that the goods have not yet been delivered to the original buyer. This action is considered a remedy for the seller's damages caused by the buyer's breach.

Fred's Fireplaces Enters into a Contract with Miguel's Patio Supply