Reference no: EM133247066

Harris Appliance Repair has entered into a contract with Lawndale Apartment Corp, to build  and sell to Lawndale 100 Washing Machines. Based upon the contract with Lawndale Apartment, Harris will make a profit of $700 on each machine sold. Lawndale Apartment requires that the Washing Machines  perform at a high volume and high capacity. Harris Appliance Repair contacts Maytag, and tells the sales representative of the requirements for the Washing Machines that he is building for Lawndale Apartment. Maytag advises him that he will need a ¾ horsepower motor for the machines. Harris advises the Maytag  sales rep that he is under a contractual deadline with Lawndale Apartment and therefore he must have 100 of the ¾ horsepower motors  no later than July 1 in order to finish building the Washing Machines in time to satisfy her contractual obligations to Lawndale Apartment. The sales rep agrees to the terms.

Harris received 100 of the 3/4 Horsepower motors from Maytag on June 29. The contract contains a valid disclaimer of all express warranties. Harris put the motors into the Washing Machines that he built for Lawndale Apartment.  Harris delivered the Washing Machines  to Lawndale Apartment. Lawndale Apartment contacted Harris three weeks later and advised him that the washing machine motors were not powerful enough to handle the volume or capacity needed and that Lawndale Apartment was returning the Washing Machines and not going to pay Harris for the Washing Machines.

ANSWER THE FOLLOWING QUESTIONS:

QUESTION 1. Identify and explain two provisions of the Uniform Commercial Code that would best support Harris' claim for lost profits against Maytag.

QUESTION 2: State whether Harris should win in a lawsuit seeking lost profits pursuant to the UCC provisions that you have identified.