Is a seller liable to a buyer for loss of profit under section 2715 of the California Code of Civil Procedure if the buyer is in the business of selling goods to the seller?

California, United States of America


The following excerpt is from Sun-Maid Raisin Growers v. Victor Packing Co., 146 Cal.App.3d 787, 194 Cal.Rptr. 612 (Cal. App. 1983):

Furthermore, comment 6 to section 2715 provides that if the seller knows that the buyer is in the business of reselling the goods, the seller is charged with knowledge that the buyer will be selling the goods in anticipation of a profit. "Absent a contractual provision against consequential damages a [146 Cal.App.3d 792] seller in breach [will] therefore always be liable for the buyer's resulting loss of profit." (I Cal. Commercial Law, supra, 12.20, p. 568, citing Stott v. Johnston (1951) 36 Cal.2d 864, 229 P.2d 348.)

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