Cengage Advantage Books: Essentials of Business Law 5th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 4

Review the section "Damages for Non-Acceptance." In that section's example, Refinery refused Oilko's shipment on November 1, when the oil was worth $99 per barrel. Oilko waited three months to resell the oil, and at that time, it received only $92 per barrel. In such a case, the UCC allows Oilko to receive only $1 per barrel in damages rather than the $8-per-barrel reduction in price it actually received. Is this fair Would it be more sensible to allow a company like Oilko to receive $8 per barrel in damages