Florida Company signs a contract with Fan Manufacturers, Inc. to purchase 1,000 battery powered fans at $100 each. Florida Company plans to use these fans in a product it is developing for hurricane relief. Florida Company has pre-sales from customers for 1,000 of its hurricane-relief product. Florida Company receives the fans, but they are defective. Fan Manufacturers, Inc. offers to replace the fans but they won't be delivered until after the start of hurricane season and Florida Company has promised its customers the product would be ready before the start of hurricane season. Florida Company purchases replacement fans from another company at a purchase price of $120 each. In the meantime, Florida Company incurred expenses in going to other companies to try to procure the replacement fans and incurred expedited shipping costs in order to get the replacement fans there sooner. Florida Company also lost orders from 2 big clients because Florida Company could not deliver on time. The loss of those clients cost Florida Company $5,000 in profit.

Florida Company decides to file a breach of contract lawsuit against Fan Manufacturers, Inc. Please discuss what damages Florida Company may be able to recover in the lawsuit. What if Florida Company had not been able to find replacement fans, what damages should Florida Company seek in that circumstance? Could Florida Company recover punitive damages? Please discuss what proof Florida Company will need to show in court in order to recover the different elements of damages. Finally, which provisions of the UCC may be relevant here?