Problem 23.3 Answer

a) Buyer contracts with Manufacturer for the production and delivery of 10,000 Texas Rangers jerseys which will be sold in Buyer's store as part of a special promotion. The contract price is $150,000, and Buyer has paid $75,000 in advance. The jerseys will retail for $30 each; Buyer expects to gross $300,000 on them. When the jerseys arrive on the specified day, Buyer is surprised to see that they say "Ringers," not "Rangers." Buyer rejects the shipment and is not able to find another supplier in time, so it cancels its special promotion. Buyer demands that Manufacturer return its deposit and take back the "Ringers" jerseys. Manufacturer refuses. The jerseys sit in Buyer's loading area for six months without being picked up. Finally, frustrated Buyer sells the 10,000 jerseys for $30,000 to a novelty and joke store. Buyer eventually sues for breach of contract. What damages, if any, would either party be able to recover from the other?

(b) Same facts, except that the jerseys are not misprinted and conform exactly to the contract requirements. Buyer, however, has decided to cancel its promotion, so it no longer wants the jerseys and refuses to take them. Seller, at a cost of $1,500, sends a truck to retrieve the jerseys. Seller makes several attempts to sell the shirts, spending about 20 hours of time at $30 an hour and running up a long-distance phone tab of $150. Seller ultimately sells the whole lot to a discount sporting goods store, Sports-4-Less, a discount store, for $60,000. Seller sues Buyer for breach of contract. What damages, if any, would either party be able to recover from the other?