Question
1.The judge hearing a contract dispute brought by Seller for breach of contract by Buyer for repudiation prior to delivery has determined that UCC 2-708(2)
1.The judge hearing a contract dispute brought by Seller for breach of contract by Buyer for repudiation prior to delivery has determined that UCC 2-708(2) applies because neither the resale or market approaches to a remedy are "adequate to put the seller in as good a position as performance would have done."This decision is based on the unique nature of the goods ordered by the Buyer and the lack of any other potential customers or market for the goods.(This is not a "volume seller" situation.)The Seller testifies that the contract price was $100,000; the actual direct costs in producing the goods for sale were $80,000; total overhead costs for all of Seller's business for the applicable period were $50,000; the $100,000 contract price represents 5% of the Seller's cumulative contract business for the applicable period; the cost of testing the market in the search for potential buyers was $1,000; and the sale of the unique goods for scrap reaped $2,000.Buyer offered testimony that under terms of agreement between Seller and Seller's outside sales representative, delivery of the goods would have triggered a commission of $500 from Seller to the sales representative.Buyer also testifies that it had made a down payment of $1,000.Assume that all testimony is factually correct.What are Seller's damages, if any?Support your answer by calculations following the formula in UCC 2-708(2).
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