How to Prove a Case to Recover Cost of Goods Sold Under NY Law
So, you've provided goods to a buyer, and you've invoiced them numerous times, but you get no response.
Or, in response to your invoices, they finally call you back, only to tell you they don't have the money, and try to work out a payment plan. The only problem is, the buyer then fails to honor the payment plan.
Once you've decided that enough is enough, you want to sue to recover what you're owed. But in order to succeed on your claim, you first need to know what you need to do to prove your claim to recover the price for the goods you provided. (Naturally, it behooves you to make sure you know this before it ever becomes a problem so you're not scrambling around trying to fix it later).
Fortunately, New York's courts and legislature have laid out the elements needed for these claims, and how to prove them, in a relatively clear fashion:
"Section 2-709 of the N.Y. U.C.C. provides that a seller of goods may recover against a buyer, "in an action for price," the price of the goods accepted "together with any incidental damages." N.Y. U.C.C. §2-709(1)(a). Under the N.Y. U.C.C., acceptance of goods occurs where the buyer: (1) has a reasonable opportunity to inspect goods and "signifies to the seller that the goods are conforming or that he will take or retain them in spite of their non-conformity"; (2) does not effectively reject the goods; or (3) "does any act inconsistent with the seller's ownership." N.Y. U.C.C §2-606(a)-(c). To recover in an action for price under N.Y. U.C.C. §2-709(1)(a), plaintiffs must demonstrate that: "1) they had a contract; 2) the buyer failed to pay the purchase price; and 3) the buyer accepted the goods." Weil v. Murray, 161 F.Supp. 2d 250, 254-55 (S.D.N.Y. 2001); see also Hyosung Am., Inc. v. Sumagh Textile Co., 137 F.3d 75, 79 n.1 (2d Cir. 1998)."