Full access allows:
- Solve all tests online without limits;
- Remove all advertisements on website;
- Adding questions to favorite list;
- Save learning progress;
- Save results of practice exams;
- Watching all wrong answered questions.
32. In an action by the collector against the gallery owner for damages, which of the following awards is most likely?
An art collector paid a gallery $1,000 to purchase a framed drawing from the gallery's collection. The price included shipping by the gallery to the collector's home. The gallery's owner used inadequate materials to wrap the drawing. The frame broke during shipment and scratched the drawing, reducing the drawing's value to $300. The collector complained to the gallery owner, who told the collector to take the drawing to a specific art restorer to have the drawing repaired. The collector paid the restorer $400 to repair the drawing, but not all of the scratches could be fixed. The drawing, after being repaired, was worth $700. The gallery owner subsequently refused to pay either for the repairs or for the damage to the drawing.
Comments (0)
There are no comments at the moment. If you found an error or think question is incorrect, tell everyone about it
Only signed in users can write comments
Signin
A is incorrect. The gallery's use of inadequate materials to wrap the drawing constituted a breach of warranty. Therefore, the collector is entitled to be placed in the position he would have been in but for the gallery's breach. Awarding the collector nothing would violate the expectation damages principle. Under UCC § 2-714(2), the generally applicable standard for measuring the collector's resulting damages would be the difference between the value of the drawing as accepted and the value of the drawing if it had been as warranted. Repair costs often are used to determine this difference in value, but when repairs fail to restore the goods to their value as warranted, an adjustment is required. The collector is entitled to recover the repair costs ($400) plus the difference between the value of the drawing if it had been as warranted and its value after the repairs ($1,000 — $700 = $300). Accordingly, the collector should recover $700.
B is incorrect. The gallery's use of inadequate materials to wrap the drawing constituted a breach of warranty. Therefore, the collector is entitled to be placed in the position he would have been in but for the gallery's breach. Awarding the collector $300 would violate the expectation damages principle. Under UCC § 2-714(2), the generally applicable standard for measuring the collector's resulting damages would be the difference between the value of the drawing as accepted and the value of the drawing if it had been as warranted. Repair costs often are used to determine this difference in value, but when repairs fail to restore the goods to their value as warranted, an adjustment is required. The collector is entitled to recover the repair costs ($400) plus the difference between the value of the drawing if it had been as warranted and its value after the repairs ($1,000 — $700 = $300). Accordingly, the collector should recover $700.
C is incorrect. The gallery's use of inadequate materials to wrap the drawing constituted a breach of warranty. Therefore, the collector is entitled to be placed in the position he would have been in but for the gallery's breach. Awarding the collector $400 would violate the expectation damages principle. Under UCC § 2-714(2), the generally applicable standard for measuring the collector's resulting damages would be the difference between the value of the drawing as accepted and the value of the drawing if it had been as warranted. Repair costs often are used to determine this difference in value, but when repairs fail to restore the goods to their value as warranted, an adjustment is required. The collector is entitled to recover the repair costs ($400) plus the difference between the value of the drawing if it had been as warranted and its value after the repairs ($1,000 — $700 = $300). Accordingly, the collector should recover $700.