Wullschleger & Co. v. Jenny Fashions, Inc.

Jenny Fashions (defendant) bought 37,500 yards of fabric from Wullschleger (plaintiff) to make circle skirts, after testing samples and receiving Wullschleger's representation that the fabric was 'first quality.' A large portion turned out defectively skewed, causing the finished skirts to distort after pressing; Jenny couldn't find replacement fabric and had to cancel orders from eight customers. Wullschleger, having delivered 23,577 of the 37,500 yards, sued Jenny for the unpaid balance; Jenny counterclaimed for breach of express and implied warranties, seeking consequential damages for the cancelled orders.

Whether, under UCC section 2-715, a buyer may recover consequential damages resulting from a seller's breach of warranty if the buyer suffered a loss resulting from general or particular needs the seller had reason to know of at the time of contracting, that could not reasonably be prevented by cover.