Buyer's Remedies in General; Buyer's Security Interest in Rejected Goods

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  1. Where the seller fails to make delivery or repudiates or the buyer rightfully rejects or justifiably revokes acceptance then with respect to any goods involved, and with respect to the whole if the breach goes to the whole contract (Code Section 11-2-612), the buyer may cancel and whether or not he has done so may in addition to recovering so much of the price as has been paid:
  1. "Cover" and have damages under Code Section 11-2-712 as to all the goods affected whether or not they have been identified to the contract; or
  2. Recover damages for nondelivery as provided in this article (Code Section 11-2-713).

Where the seller fails to deliver or repudiates the buyer may also:

If the goods have been identified recover them as provided in this article (Code Section 11-2-502); or

In a proper case obtain specific performance or replevy the goods as provided in this article (Code Section 11-2-716).

On rightful rejection or justifiable revocation of acceptance a buyer has a security interest in goods in his possession or control for any payments made on their price and any expenses reasonably incurred in their inspection, receipt, transportation, care, and custody and may hold such goods and resell them in like manner as an aggrieved seller (Code Section 11-2-706).

(Code 1933, § 109A-2 - 711, enacted by Ga. L. 1962, p. 156, § 1.)

Law reviews.

- For article discussing the applicability of warranty provisions under the Uniform Commercial Code to domestic solar energy devices, see 30 Mercer L. Rev. 547 (1979). For comment, "Damage Awards and Computer Systems - Trends," see 35 Emory L.J. 255 (1986).

JUDICIAL DECISIONS

Editor's notes.

- In light of the similarity of the issues dealt with under the provisions, decisions under former Code 1933, § 96-306 are included in the annotations for this section.

Right to return purchase price.

- Upon cancellation, buyer is entitled under O.C.G.A. § 11-2-711(1), to return of purchase price. Jacobs v. Metro Chrysler-Plymouth, Inc., 125 Ga. App. 462, 188 S.E.2d 250 (1972).

Election between revocation and damages for breach.

- A buyer is no longer required to elect between revocation and damages for breach, but this does not mean that the buyer cannot elect if the buyer so chooses. Jacobs v. Metro Chrysler-Plymouth, Inc., 125 Ga. App. 462, 188 S.E.2d 250 (1972).

Revocation of acceptance does not constitute a cancellation of a contract. Poultry Health Serv. of Ga., Inc. v. Moxley, 538 F. Supp. 276 (S.D. Ga. 1982).

Cancellation is merely a remedy for the revoking buyer and not an unavoidable result of revocation. Poultry Health Serv. of Ga., Inc. v. Moxley, 538 F. Supp. 276 (S.D. Ga. 1982).

Reacceptance of goods.

- A buyer who has attempted to reject rather than to accept goods may nonetheless accept them by virtue of buyer's post-rejection conduct with respect to them. Likewise, a buyer who purports to revoke acceptance of goods may be found to have reaccepted them if, after such revocation, the buyer performs acts which are inconsistent with the seller's ownership of the goods. Griffith v. Stovall Tire & Marine, Inc., 174 Ga. App. 137, 329 S.E.2d 234 (1985).

Recovery of automobile's purchase price and interest.

- Cause of action for breach of implied warranty that automobile was reasonably suited for purpose intended, permitted recovery of total purchase price paid plus interest only in event the merchandise was completely worthless. Brown v. Moore, 103 Ga. App. 111, 118 S.E.2d 591 (1961)(decided under former Code 1933, § 96-306).

Issues of fact.

- Issues such as whether an effective revocation of acceptance was made, whether reasonable notification of revocation was given to the seller, and whether the value of the goods was substantially impaired are ordinarily matters for determination by the trier of fact, even where the buyer has continued to use nonconforming goods after an alleged revocation of acceptance. Griffith v. Stovall Tire & Marine, Inc., 174 Ga. App. 137, 329 S.E.2d 234 (1985).

Whether plaintiff-buyer has made cover purchases in reasonable manner poses classic jury issue. American Carpet Mills v. Gunny Corp., 649 F.2d 1056 (5th Cir. 1981).

Instructions.

- Where the court fully instructed the jury as to the determinative contract and warranty principles involved in the case, and the charge was adjusted to the evidence, it is not reversible error to fail to charge the precise language of UCC provisions outlining rules and recourses for buyers and sellers. Teledyne Indus., Inc. v. Patron Aviation, Inc., 161 Ga. App. 596, 288 S.E.2d 911 (1982).

Cited in Byrd v. Moore Ford Co., 116 Ga. App. 292, 157 S.E.2d 41 (1967); Systems Consultants v. Eng Enters., Inc., 123 Ga. App. 641, 182 S.E.2d 188 (1971); Swift Textiles, Inc. v. Lawson, 135 Ga. App. 799, 219 S.E.2d 167 (1975); Duval & Co. v. Malcom, 233 Ga. 784, 214 S.E.2d 356 (1975); Solomon Refrigeration, Inc. v. Osburn, 148 Ga. App. 772, 252 S.E.2d 686 (1979); Bigelow-Sanford, Inc. v. Gunny Corp., 649 F.2d 1060 (5th Cir. 1981); Hill Aircraft & Leasing Corp. v. Planes, Inc., 169 Ga. App. 161, 312 S.E.2d 119 (1983); Hudson v. Gaines, 199 Ga. App. 70, 403 S.E.2d 852 (1991); Mauk v. Pioneer Ford Mercury, 308 Ga. App. 864, 709 S.E.2d 353 (2011).

RESEARCH REFERENCES

Am. Jur. 2d.

- 67A Am. Jur. 2d, Sales, §§ 1164-1166.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:726.

C.J.S.

- 77A C.J.S., Sales, §§ 121 et seq., 278 et seq., 375, 389, 395, 406.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-711.

ALR.

- Duty of purchaser on credit to accept seller's offer to deliver for cash, 1 A.L.R. 436; 46 A.L.R. 1192.

Remedy of contractor, who has partially performed before discovering fraud, as to character or amount of work, 2 A.L.R. 1396.

Rights and remedies of purchaser under seller's agreement to assist him in reselling the goods, 29 A.L.R. 666.

Acceptance of instalment of goods as affecting buyer's right to rescind because of defects in that instalment, 29 A.L.R. 1517.

Rights of parties to a timber contract upon failure of purchaser to remove timber within time fixed or within a reasonable time, 31 A.L.R. 944; 42 A.L.R. 641; 71 A.L.R. 143; 164 A.L.R. 423.

Loss of anticipated profits as damages for breach of seller's contract as to machine for buyer's use, 32 A.L.R. 120.

Anticipatory repudiation of contract for sale of goods by buyer as affecting time as of which damages are to be computed, 34 A.L.R. 114.

Time for rescission by purchaser of chattel for fraud or breach of warranty, 72 A.L.R. 726.

Sufficiency of buyer's attempt to rescind as affected by his apparent recognition of or insistence upon continuance of seller's obligation under the contract, 118 A.L.R. 530.

Abandonment of possession as prerequisite to vendee's suit to obtain a rescission or to recover back money paid, 142 A.L.R. 582.

Vendor's willingness and ability to perform contract which does not satisfy statute of frauds as precluding purchaser's recovery back of payments made thereon, 169 A.L.R. 187.

Necessity that buyer, relying on market price as measure of damages for seller's breach of sale contract, show that goods in question were available for market at price shown, 20 A.L.R.2d 819.

Purchaser's use or attempted use of articles known to be defective as affecting damages recoverable for breach of warranty, 33 A.L.R.2d 511.

Measure and elements of recovery of buyer rescinding sale of domestic animal for seller's breach of warranty, 35 A.L.R.2d 1273.

Use of article by buyer as waiver of right to rescind for fraud, breach of warranty, or failure of goods to comply with contract, 41 A.L.R.2d 1173.

Allegation of buyer's ability and willingness to perform, in action for damages for failure to deliver goods purchased, 94 A.L.R.2d 1215.

Measure and elements of buyer's recovery upon revocation of acceptance of goods under UCC § 2-608(1), 65 A.L.R.3d 388.

Extent of liability of seller of livestock infected with communicable disease, 14 A.L.R.4th 1096.


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