400.2-704. (1) An aggrieved seller under section 400.2-703may
(a) identify to the contract conforming goods not alreadyidentified if at the time he learned of the breach they are inhis possession or control;
(b) treat as the subject of resale goods which havedemonstrably been intended for the particular contract eventhough those goods are unfinished.
(2) Where the goods are unfinished an aggrieved seller mayin the exercise of reasonable commercial judgment for thepurposes of avoiding loss and of effective realization eithercomplete the manufacture and wholly identify the goods to thecontract or cease manufacture and resell for scrap or salvagevalue or proceed in any other reasonable manner.
(L. 1963 p. 503 ยง 2-704)