Kunststoffwerk Alfred Huber, Alfred Ziegler, Substituted v. R. J. Dick, Inc.

OPINION OF THE COURT

WEIS, Circuit Judge.

In this diversity case, the district court concluded that under the Uniform Commercial Code the buyer has the burden of establishing that the seller agreed to pay consequential damages when goods proved defective. We hold that to avoid such liability the seller must prove an agreement that limits damages, and, in this instance, the course of dealing between the parties was not adequate to demonstrate such an understanding. Accordingly, we modify a judgment in favor of the plaintiff-seller for goods sold to allow credits for losses on resale incurred by…