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A buyer accepted a machine that the seller warranted would produce 1,000 units per hour. The machine produced only 700 units per hour. The buyer timely notified the seller of the defect and kept the machine. The machine as warranted was worth $50,000; as accepted, it was worth $38,000.
Which statement best describes the buyer's ordinary damages measure?

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For accepted nonconforming goods, the buyer may recover the difference between the value as warranted and the value as accepted, plus proper incidental and consequential damages, after giving required notice. The buyer may recover only if the seller admits bad faith. The buyer may recover only if it rejected the goods before inspection. For accepted nonconforming goods, the buyer automatically recovers the entire contract price.

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