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The answer to the question was "C," which neither Thomas nor Cara (nor many of you on Twitter!) got correct.  That means Thomas is now 33-for-58 (56.9%) and Cara is 0-for-1 on bar prep questions.

Cara actually analyzed this question perfectly on the show:  the question boils down to how best to calculate the damages for breach of contract.

The standard measure of damages recoverable by a seller of goods is the difference between the unpaid price agreed to by the breaching purchaser and the market price at the time the goods are resold, plus any incidental expenses.

That would suggest (B) -- which both Cara and Thomas picked.  However, in cases where the standard measure is inadequate to compensate the seller, the Uniform Commercial Code (§ 2-708(2)) permits a seller to recover lost profits instead.  

Here, the standard measure would result in damages of zero (plus incidentals), and that doesn't sufficiently compensate the seller who -- had Bueller not reneged on the contract -- would have sold a Walk-n-Talkman to both Bueller and Calistoga.  Thus, the seller is entitled to lost profits ($1,000) minus the down payment already tendered by Bueller ($300), or $700 in total.  That's choice (C).

Choice (D) is incorrect because the seller would be awarded the entire contract price ($2,500) without deducting for the seller's marginal cost in buying another Walk-n-Talkman.

Choice (A) is incorrect because this contract is plainly not "unconscionable," even if it was a contract of adhesion (meaning that Bueller had no opportunity to negotiate its terms).

Cara can take some solace in that almost none of our listeners got this one right, either.

Comments

Anonymous

Thank you