If a seller recoups the full price of goods under UCC mitigation rules, what is the buyer entitled to?

Under UCC mitigation rules, when a seller successfully recoups the full price of goods, it implies that the seller has taken appropriate actions to mitigate their losses following a buyer's breach of contract. In this context, the buyer is generally entitled to recover certain amounts under specific conditions, even after the seller has recouped their costs.

The correct answer reflects the provision under UCC that allows the buyer a refund, but it includes a penalty clause which is time-sensitive. Specifically, the refund amount is reduced by either a 20% penalty of the contract price or a maximum of $500, whichever is smaller. This reflects a legal principle where buyers are granted a degree of relief while also protecting sellers from excessive losses due to buyer defaults.

The other options address scenarios that are inaccurate under the UCC provisions. A full refund of any down payment does not account for the agreed penalties for breach, which are recognized under the statutory framework. Similarly, a refund minus contractually liquidated damages is not applicable unless those damages are specified and provable within the contract, which is not a streamlined application in all cases. Lastly, the claim that nothing is owed because the sale is final misunderstands the UCC rules that allow for certain buyer protections even after