If a buyer accepts goods that breach a warranty, what is the basic measure of damages?

The basic measure of damages when a buyer accepts goods that breach a warranty is the difference in value between the accepted goods and the goods as ordered. This principle is rooted in the Uniform Commercial Code (UCC), which seeks to put the aggrieved party—the buyer in this case—in the position they would have been in had the warranty not been breached.

When goods that are warranted do not meet the specified standards, the buyer has a right to claim damages reflecting the economic loss incurred due to the defect or non-conformance, rather than simply the cost of the goods or the price paid. This difference in value approach allows the buyer to recover the loss attributable to the breach while still acknowledging that the goods were accepted despite the breach.

For instance, if a buyer orders high-quality merchandise and receives a lower-quality product, the difference in value measure quantifies the economic harm suffered due to the breach of warranty. This is more precise and aligns with the purpose of warranty protections, which are designed to ensure that buyers receive what they are rightfully entitled to based on their contractual agreement.

The other choices do not accurately reflect the proper measure of damages under these circumstances. The cost of the goods as delivered does not account for the loss in value from the