Most if not all states have adopted, with certain
amendments, the Uniform Commercial Code. Section 2715 allows a buyer to
recover (1) "expenses incurred in inspection, receipt, transportation and
care of goods rightfully rejected, any commercially reasonable charges,
expenses or commissions in connection with cover and any other reasonable
expense incident to the delay or other breach", (2) "any loss resulting from
general or particular requirements and needs of which the seller at the time
of contracting had reason to know and which could not be reasonably
prevented by cover or otherwise", and (3) "injury to person or property
proximately resulting from any breach of warranty." Suppose, for example, a
board manufacturer contracts to deliver certain quantities of a board with
certain specifications for installation in a computer, doesn't, and the
computer manufacturer cannot find a substitute supplier in time to meet its
order. As a result, it goes out of business. The board manufacturer can be
sued for the value of the computer manufacturer. There may be other laws and
facts that impact the situation, but in case you have not noticed, there is
a surplus of lawyers in the United States ready to assert any kind of claim
at the drop of a hat. Therefore, it is very important that a seller have a
contract with its customers that limits the scope of its responsibilities
and liabilities. There are other provisions that a lawyer may recommend: a
liquidated damages provision, arbitration where the seller does business, an
attorney's fee provision. Many companies survive forever without such
contracts and without any problems, yet there are many companies that have
gone out of business simply because they could not afford to defend a
lawsuit against them. For these reasons, it is also a good idea to review
your liability insurance policy.

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