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50 U. Miami L. Rev. 779 (1995-1996)
The Lost Volume Seller and Lost Profits under U.C.C. 2-708(2): A Conceptual and Linguistic Critique

handle is hein.journals/umialr50 and id is 789 raw text is: The Lost Volume Seller and Lost Profits Under
U.C.C. § 2-708(2): A Conceptual and
Linguistic Critique
JOHN M. BREEN*
I.  INTRODUCTION  .........................................................  780
II. THE LOST VOLUME SELLER THESIS IN DETAIL ...............................  792
A.  The Lost Volume Seller Defined  ......................................  793
B. The Unavailability or Inadequacy of Other Code Remedies ...............  796
1. ACTION FOR THE PRICE .............................................. 796
2.  DIFFERENCE  MONEY  DAMAGES  .....................................  798
3.  LOST  PROFIT  DAMAGES  ...........................................  800
C. Avoiding the Due Allowance and Due Credit Language ..............  804
1.  IGNORING  THE  STATUTORY  TEXT  ...................................  806
2. USING CODE-DRAFTING HISTORY TO LIMIT APPLICATION OF THE STATUTORY
TE XT  ..........................................................  806
a. An Overview of the Code-Drafting Process ......................  807
b. Supplement No. 1 and the Limited Application of the Due
Allowance and Due Credit Language .........................  812
c. Components Sellers and Jobber Sellers ................. ...  814
i.  Applying the Entire Damage Formula .........................  816
II. CONCEPTUAL CRITIQUE OF THE LOST VOLUME SELLER ........................  818
A.  The  Counter-Hypothetical  ...........................................  818
1. THE DUTY TO MITIGATE AND THE IMPOSSIBILITY OF MITIGATION .........  819
2. THE ESSENCE OF THE LOST VOLUME SELLER'S CLAIM ...................  822
a.  Neither Restitution nor Reliance Damages ........................  822
b. The Lost Volume Seller's Unprotected and Unprotectable
Expectation  Interest .........................................  823
3. THE PROFIT REMEDY OVERCOMPENSATES VOLUME SELLERS ..............  827
4. THE INTERPRETIVE IMPLICATIONS OF THE CONCEPTUAL CRITIQUE .........  830
B. Three Criticisms of the Counter-Hypothetical and Three Replies ...........  831
I. RECOVERING THE COST OF RESELLING AS INCIDENTAL DAMAGES .........  833
2. MATTER OF RIGHT VS. MATTER OF PROOF ............................  835
* Assistant Professor, Loyola University of Chicago School of Law; B.A., University of
Notre Dame, 1985; J.D., Harvard University, 1988. I prepared this article while I was Visiting
Associate Professor at the Detroit College of Law at Michigan State University. I wish to thank
my colleagues there for their support, especially Susan H. Bitensky and Robert A. McCormick. I
also wish to thank Lory A. Barsdate, Mark B. Blocker, Liam C. Brennan, Linton J. Childs, John
M. Czarnetsky, Robert E. Easton, David B. Johnson, Robert R. Kimball, Andrew R. Klein,
Vincent D. Rougeau, and Andrew C. Spiropoulos for reviewing prior drafts of this article. I also
greatly appreciate Krystal D. Wills for her hard work and dedication in preparing the manuscript
and Thomas L. Kent for his very able research assistance. All errors that remain are of course
mine.
I also wish to thank Richard H. Fallon, Jr., Mary Ann Glendon, Michael Crowe, and Walter
Nicgorski for encouraging my interest in scholarship and teaching, and Boyce F. Martin, Jr.,
Thomas A. Morsch, and James A. Hardgrove for teaching me to muddle through the details and
see the big picture at the same time. Most of all I wish to thank Susan Nelligan Breen, whose
guidance, encouragement, and patience enabled me to complete this project. This article is
dedicated in loving memory to Professor Stephen J. Rogers.

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