1. Buyer, with a place of business in Missouri, agreed on July 10th to purchase from Seller, with a place of business in Texas, 5,000 gallons of a certain fuel at $2/gallon with delivery at Buyer's place of business on September 15th. After July 10th, the price for fuel began a steady rise. On

August 10th, Seller sent Buyer an email stating that it would not perform the contract under any circumstances. On August 10th, the price of fuel had risen to $3/gallon in Oklahoma and $3.25/gallon in Missouri. By September 15th, the price of fuel had risen to $4/gallon in Oklahoma and $4.25 in Missouri. On October 10th, Buyer entered into a different contract with a different Seller for 10,000 gallons of similar fuel at $4/gallon to be delivered to Buyer's place of business on October 25th. If Buyer had purchased only 5,000 gallons, the price would have been $4.25/gallon.

a. Assume that Buyer's purchase on October 10th was made in good faith and without unreasonable delay and that the fuel was a substitute for the fuel that was the subject of the July 10th contract. What are Buyer's damages? Support your answer with reference to the appropriate section(s) of the UCC.

b. In the prior situation, Buyer asserts as an "incidental" damage that it saved the Seller $1,250 by purchasing 10,000 gallons, instead of only 5,000 gallons, and that it would be a windfall to the Seller unless it paid the Buyer an additional $1,250. Is Buyer correct? Support your answer with reference to the appropriate section(s) of the UCC.

c. Assume that Buyer's purchase on October 10th was neither timely nor a proper substitute for the fuel covered by the July 10th contract. Does Buyer still have a damage remedy? If so, what are Buyer's damages? Support your answer with reference to the appropriate section(s) of the UCC.

2. Buyer and Seller contracted for the sale of goods. Buyer made a $2,000 down payment. After the goods were delivered on time to Buyer, Buyer examined the goods and found serious non-conformities. Buyer notified Seller that it rejected the goods and requested Seller pick up the rejected goods. Seller ignored Buyer, so several months later, Buyer exercised its security interest in the goods by conducting a commercially reasonable sale of the goods, which still had value for parts or for scrap, and obtained $3,000.

Buyer calculates it had costs of $150 to inspect the goods, $100 to store the goods, $500 for sale expenses, $150 for additional property insurance expenses (Buyer has a general insurance policy that assesses monthly charges based partly on a formula that measures the value of goods in Buyer's custody), and $1,000 in legal fees to defend against a judgment creditor that tried to attach the goods covered by the security interest.

What are Buyer's allowable damages under the UCC? How much, if any, of the $3,000 must Buyer return to Seller? Support your answer with reference to the appropriate section(s) of the UCC.

3. Buyer, a broker of goods, failed to reject non-conforming goods or to revoke acceptance of them, but the non-conformity breached both a warranty of merchantability and a warranty of fitness for a particular purpose. The sale price of the goods was $15,000. One of Buyer's other

regular customers offered to buy the rejected goods. Instead, Buyer had the goods repaired quickly at a cost of $1,500. Buyer sold the repaired goods only a month after delivery in a rising market for $20,000. Buyer sues Seller for breach of warranty. If you were the judge in this case,

what additional fact(s) would help you decide Buyer's damage claim? Explain your answer with reference to appropriate section(s) of the UCC.