What is a buyer allowed to do when they reject goods and seek cover from another seller?

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When a buyer rejects goods due to nonconformity, they are permitted to seek cover by making a reasonable purchase of substitute goods. This principle is rooted in the Uniform Commercial Code (UCC), which gives buyers the right to mitigate their losses by obtaining substitute goods when the original seller fails to deliver conforming products.

The key aspect of seeking cover is that the buyer's actions should be reasonable. This means the buyer can buy substitute goods that serve the same purpose and are comparable in quality. The buyer can then seek to recover any difference in price or other consequential damages from the original seller, as long as the cover purchase aligns with what is considered reasonable in that circumstance.

This right to cover helps ensure that buyers are not unduly harmed by a seller's failure to deliver the agreed-upon goods and reinforces the expectation of fair dealings in commercial transactions. The ability to purchase substitute goods allows buyers to maintain their business operations despite the breach of contract by the original seller.

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