Reference no: EM132248233
After completing the learning activities in this module, you should have a sense of some of the issues that occur in the sale of goods, and how the UCC operates to provide clarity when the terms of the contract are ambiguous or lacking.
In this assignment, you will have an opportunity to analyze situations surrounding the sale of goods.
For each of the following (A, B, and C), read through the scenario and then answer each of the questions that follow as completely as possible:
Legendary Homes, a home builder, purchased various appliances from Ron Mead T.V. & Appliance, a retail merchant selling home appliances. They were intended to be installed in one of Legendary Homes’ houses and were to be delivered on February 1. At 5:00 on that day, the appliances had not been delivered. Legendary Homes’s employees closed the home and left. Sometime between 5:00 and 6:30, Ron Mead delivered the appliances. No one was at the home so the deliveryman put the appliances in the garage. During the night Shifty Sam stole the appliances. Shifty Sam subsequently sold the appliances, and Rosie purchased the appliances at a re-sale appliance shop. Legendary Homes denied it was responsible for the loss and refused to pay Ron Mead for the appliances. Ron Mead brought suit for the purchase price.
When did risk of loss on the appliance pass to the buyer in this scenario? Explain how you came to your conclusion.
Based on your answer above, will Ron recover compensation in his lawsuit?
What type of title does Rosie have in the appliances? Explain your answer.
Walters, a grower of Christmas trees, contracted to supply Traynor with “top-quality trees.” When the shipment arrived and was inspected, Traynor discovered that some of the trees were not top quality. Within 24 hours, Traynor notified Walters that he was rejecting the trees that were not top quality. Walters did not have a place of business or an agent in the town where Traynor was. Christmas was only a short time away. The trees were perishable and would decline in value to zero by Christmas Eve. Walters did not give Traynor any instructions, so Traynor sold the trees for Walter’s account. Traynor then tried to recover from Walters the expense he incurred in caring for and selling the trees.
When is a buyer entitled to reject a shipment? Did Traynor have the right to reject the trees?
What are a buyer’s duties after rejecting goods? Did Traynor comply with the rules for merchants?
Dubrow, a widower, was engaged to be married. In October, he placed a large order with a furniture store for delivery the following January. The order included rugs cut to special sizes for the prospective couple’s new house and many pieces of furniture for various rooms in the house. One week later, Dubrow died. When the order was delivered, his only heir, his daughter, refused to take the furniture and carpeting. The furniture store then sued the estate to recover the full purchase price. It had not tried to resell the furniture and carpeting to anyone else.
What are the remedies available to a seller when a buyer breaches the contract?
Which remedy should the furniture store pursue here? Are they likely to win? Explain the factors that went into your decision.
What if Dubrow had not died, but rather the furniture store delivered the rugs cut to the wrong size? What would Dubrow’s (the buyer’s) remedies be in this situation?