Reference no: EM133424544

Questions:

1. How does this case falls under the Sales of Goods Act? Explain.

2. Does the passage of the title come into play in this case? Explain briefly.

3. What rights does Sam have under the Sales of Goods Act?

4. What are Eric's obligations and Sam's rights in this case?

5. Render a decision in this case.

Case: Sam Oakes runs a sole proprietorship known as "Oaks by Oakes." Sam produces turned oak spindles for staircases. A number of people had approached him to do oak baseboards and trim for custom homes, and he decided to enter this ?eld as well. Sam spoke to his friend George who produced this line of products in pine and asked him what to do about the equipment. George toid him Eric of "Eric's Tool Shop" had sold him a Model 5590 table router made by Carsoncraft Tools, as being "just the ticket for baseboard and trim." Sam approached Eric, told him he had spoken with George "about the 5390," and told him that he was interested in making baseboard and trim. Eric said he remembered a sale to George 3 year ago. and said, "If you want to do up baseboard and trim, the 90 series is the best on the market. I hear George does about 5,000 feet a year. Would you do more?" Sam said that he would produce only about 4,000 feet of trim a year. "Then this will do you ?ne," said Eric. The shop phone rang. and while Eric was on the line, Sam wrote out a company cheque in the amount on the tag. Eric returned, and Sam handed him the cheque. Eric looked at the amount and pocketed it. He said. "I can deliver to you by the end of the month." "Done deal then," said Sam, and he left. Sam immediately entered into a contract to produce oak trim over the month to follow the delivery of his router. The router was delivered on time, and Sam began work. The machine laboured through the wood but progressively slowed. Suddenly. smoke poured out of the motor, and the machine quit working altogether. Sam complained to Eric. Eric was astonished that Sam used oak stock to make the baseboard and trim. "Nobody makes that anymore. I assumed when you said you spoke to George that you were going to use pine. The 5590 is for soft stock, if you were going to use hardwoods, you would need the H590. I will go to bat for you. replace it with an HS machine, and see if I can get credit from the manufacturer. HS machines are special-order items, though, and they cost more. Ifyou pay the difference on it, I will put in the order. It should arrive within a couple of months." Sam protested. "lfl don't have the trim done in two weeks, my purchaser will sue me because the homes he is building won't be finished on time." Eric said, "Look, I'm being more than fair, you asked for that machine, and then you wrecked it. There's nothing more I can do. Do you want the H5 or not?