1. Seller Alison and Buyer Brad enter into a contract for the sale of goods. The contract price between the parties requires that Buyer Brad will pay $4,000 for the goods. Buyer Brad breaches the contract. As a result, Seller Alison has to store the goods, which costs Alison $500. The market price of the goods at the time of tender is $2,000. Alison is able to find a second buyer for the goods after the breach, which is Buyer Christy. The contract between Alison and Buyer Christy requires that Christy pay $2,500 for the goods.

Assume Alison chooses NOT to resell the goods to the replacement buyer. Calculate Seller Alison’s total recovery for Brad’s breach of contract.

Assume Alison chooses to resell the goods to Christy. Calculate Seller Alison’s total recovery for Brad’s breach of contract.

2. Kia went to Applebees after GHOE to eat dinner. She ordered the filet mignon (a small tender boneless cut of beef) and a side salad on her parents’ credit card. As she was chewing her steak she cracked her tooth on a piece of bone. She called the waiter to take the steak back to the kitchen. As she waited for a new steak, she took a bite of her salad. She discovered a dead roach in her salad. The waiter said it was a raisin. What warranties, if any, will Kia argue that Applebee’s has breached:

Regarding the bone in the steak.

Regarding the roach in the salad.