Sales and Leases - A Problem-based Approach, 2016a

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12.7.2. Under § 2-602(2)(b), if the buyer has not paid for the goods and is in possession of the goods at the time of rejection, he must hold the rejected goods with reasonable care at the seller’s disposition for a time sufficient to permit the seller to remove them. “Reasonable care” and “sufficient time” are questions of fact, determined, in part by the nature of the goods. For example, vegetables should not be left to sit in the hot sun if the buyer has refrigerated storage available. If the buyer has paid any portion of the price, the buyer has a security interest in the goods and has certain remedies, such as the right to resell the goods, as set forth in § 2-711. 12.7.3. Section 2-603 imposes additional requirements on a merchant buyer in possession of rejected goods. 12.7.3.1. If the seller has no agent or place of business at the market of rejection, a merchant buyer is under a duty after rejection of goods in his possession to follow any reasonable instructions of the seller with respect to the goods. 12.7.3.2. In the absence of such instructions, the merchant buyer must make reasonable efforts to sell the rejected goods for the seller if they are perishable or threaten to decline in value speedily. 12.7.3.3. The merchant buyer who sells goods is entitled to reimbursement from the seller or out of the sales proceeds for reasonable expenses of caring for and selling the goods, including a reasonable commission not to exceed 10% of the gross proceeds. 12.7.4. Under § 2-604, even if the goods are not perishable, if the seller gives no reasonable instructions as to the disposition of the rejected goods, the buyer may store the rejected goods for the seller’s account or reship them to the seller or resell them for the seller’s account, with reimbursement for reasonable expenses. This section is not limited to merchant buyers. 12.7.5. Section 2-602 states that a rejection “is ineffective unless the buyer seasonably notifies the seller.” Additional notice requirements are set forth at § 2-605. This section requires that the buyer identify the particular defect upon which the rejection is based. 12.7.5.1. Failure to provide notice of a particular defect precludes the buyer from relying on the unstated defect to justify rejection or to establish a breach, if the seller could have seasonably cured the defect. 12.7.5.2. Between merchants, if the seller has made a request in writing for a “full and final written statement of all defects” on which the buyer proposes to rely, and 185
the buyer fails to provide such statement, the buyer is precluded from relying on the unstated defects to justify rejection or to establish a breach. 12.8. Summary: The Code Scheme for Delivery Seller tenders the goods (§ 2-601). Buyer inspects for non-conformity (§§ 2-513(1), 2-606(1)(b)). If a non-conformity is discovered: Buyer rejects (§ 2-602), subject to seller’s right to cure (§ 2-508), or Buyer accepts on the assumption it will be cured (§ 2-608(1)), or Buyer accepts. If no non-conformity is discovered: Buyer accepts (§ 2-606) and pays contract price (§ 2-607). If a non-conformity is discovered after acceptance: Buyer revokes acceptance (§ 2-608), or Buyer recovers for breach of contract or breach of warranty (§§ 2-607, 2-714, 2-717). Chapter 12 Additional Sources. Scott J. Burnham, Glannon Guide to Sales: Learning Sales Through Multiple-Choice Questions and Analysis (Wolters Kluwer 2d ed., 2012), Chapter 12 James J. White and Robert S. Summers, Uniform Commercial Code (West 6th ed., 2010), Chapter 9 186
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SALES AND LEASES: A Problem-based A
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About CALI eLangdell Press The Cent
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Table of Contents About the Authors
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5.1. Statute of Frauds - the Genera
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8.3.4. Remote Sellers under UCC §
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12.3. Qualifications to the Perfect
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16.4. Buyer’s Remedy of “Cover.
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Chapter 1. Introduction to the Unif
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asserted in the Code itself (see [
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(4) The requirement in § 2-511 tha
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unfair that a court refuses enforce
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(1) What factors should the consume
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Problem 1-8. Number from 1 through
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Was the court correct to distinguis
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Chapter 2. Introduction to UCC Arti
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the sale of goods, such as the stat
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714 (Mich. App. 1981) (court held t
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Advent filed a complaint in the dis
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That a computer program may be copy
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and available in the marketplace.
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having knowledge or skill peculiar
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2.4.5.2. Section 2-207(2) regarding
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Chapter 3. Formation of a Contract
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3.2.4.2. Quantity. Section § 2-204
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common law). The provision probably
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3.3.5.3. Section 2-206(1)(b) provid
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Commercial Code. Whether there are
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Case Notes: 1. Although UCC § 2-20
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a website and a little box pops up
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4.2.1. Section 2-207(1) requires a
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4.3. Second Step: Look for Language
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(2) the additional term materially
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522 U.S. 808 (1997) (arbitration pr
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eached orally . . . and is followed
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Terms. Accord Brown Machine, 770 S.
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Section 2-207(2) is silent on the t
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the approach. On the contrary, at l
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offered terms. And if there is nego
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Problem 5-1. Would the following co
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noted a 10 per cent discount on the
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All that is required is that the wr
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We do not mean to [imply] that term
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Problem 5-3. On July 10, 2014, Jack
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A more difficult question is whethe
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Chapter 6. Warranties Implied by La
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6.3.1 If a buyer provides specifica
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particular model of toaster would b
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etween the chowder and crackers whi
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unwholesomeness of the food itself,
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extent beyond that which would be c
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One of the purchasers asks for Joan
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Chapter 7. Express Warranties and W
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5. A picture of a watch with a face
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sorghum seed, but it didn’t grow.
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gets home. When the DVR breaks ten
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7.3.1.5.1. In any event, Home Appli
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merchantability is extended to thos
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court's reason for abolishing the p
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(e) in sales of any seed for planti
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the surrounding text of the same si
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does not claim title in himself (su
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(b) the purchase by a celebrity of
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Problem 8-9. Read § 108. What, if
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8.3.3. Alternatives. After receivin
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8.3.3.1. Under Alternative A, famil
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Problem 8-14. Jump High Inc. manufa
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of a consistent additional term to
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BUTZNER, Circuit Judge …. Columbi
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whether the buyer has in fact defau
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Problem 9-3. Betty owns a building
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Id. at 644. defendant for the lira,
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clauses such as this one are strong
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(1) Can the parties agree on a deli
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(2) Does your answer to the precedi
Page 150 and 151: Chapter 10. Delivery Terms and Titl
Page 152 and 153: 10.1.2.3.2. So where do we go for g
Page 154 and 155: 10.1.4. Common Carrier Contracts. W
Page 156 and 157: Rheinberg-Kellerei GMBH v. Vineyard
Page 158 and 159: Ted asks Outdoor Sporting Goods to
Page 160 and 161: 10.2.2. Transferor’s Title. Secti
Page 162 and 163: levied on the car on behalf of Butl
Page 164 and 165: Id. at 266. contends its ownership
Page 166 and 167: Hollis v. Chamberlin, 419 S.W.2d 11
Page 168 and 169: Chapter 11. Impracticability (Excus
Page 170 and 171: 11.3. Failure of Basic Assumption.
Page 172 and 173: (4) the promisor seasonably notifie
Page 174 and 175: [The court also rejected Bobby Murr
Page 176 and 177: performance has become commercially
Page 178 and 179: Transatlantic Financing Corp. v. Un
Page 180 and 181: 4. See Lee Russ, Annotation, Imprac
Page 182 and 183: The facts are that the parties ente
Page 184 and 185: Watson Labs., Inc. v. Rhone-Poulenc
Page 186 and 187: preclude performance under the cont
Page 188 and 189: 2. RPR's express obligation under P
Page 190 and 191: 12.3.1. Section 2-602 sets out rule
Page 192 and 193: delivery or tender. It is ineffecti
Page 194 and 195: easonable time for rejection, U.C.C
Page 196 and 197: nor refused the offer. No mention w
Page 198 and 199: uyer can reject the entire contract
Page 202 and 203: Chapter 13. Acceptance; Revocation
Page 204 and 205: 13.2.4. After acceptance, the burde
Page 206 and 207: 13.3.2.2. Another important factor
Page 208 and 209: attempted repairs sufficient to kee
Page 210 and 211: miles after revocation was found to
Page 212 and 213: Problem 13-4. Whoopie Cereals purch
Page 214 and 215: Problem 14-3. Sally has agreed to p
Page 216 and 217: constitute reasonable grounds which
Page 218 and 219: On May 1, 1969, AMF met with McDona
Page 220 and 221: Case Notes: 1. When did someone fir
Page 222 and 223: 14.6.2. An effective retraction rei
Page 224 and 225: Chapter 15. Common Law Remedy Princ
Page 226 and 227: end that the aggrieved party may be
Page 228 and 229: 15.1.4.4. The terms “general dama
Page 230 and 231: in certain circumstances, the right
Page 232 and 233: Problem 15-11. Dollar Store decides
Page 234 and 235: everse. Kenco buys mobile homes fro
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Page 238 and 239: Chapter 16. Buyer Remedies under th
Page 240 and 241: Schroeder v. Barth, Inc. 969 F.2d 4
Page 242 and 243: e.g., Indiana Ins. Co. v. Plummer P
Page 244 and 245: a condition precedent to any recove
Page 246 and 247: the manufacturer under the particul
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"We first turn our attention to the
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severe loss. Therefore, the actual
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At first blush, the result reached
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Chapter 17. Limitation of Remedies
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April and October, while almost not
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Pa. Super. 470, 473, 168 A.2d 750,
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California Civil Code § 1671. Vali
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Problem 17-7. An 18-year old high s
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In May, 1976, plaintiff LeVon Schle
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limitations governing the elected t
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18.4. Suits against Manufacturers a
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Spanierman prepared an invoice that
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exception, the warranty explicitly
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state a specific time period, such
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opinions from other jurisdictions a
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and the tailor says, “I’m kind
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Section 9-406.” The problem is th
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elevant to this appeal. First, each
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its intellectual property and trade
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“[t]o reveal the intent necessary
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University of Michigan. At the same
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20.3. Lease or Security Interest? S
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2. You cannot cancel the lease duri
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lessee acquires ownership, and that
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Note that incidental damages under
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