Exam 14: Sales Contracts Rights, Duties, Breach, and Warranties

If a seller offers to cure an improper delivery of goods, he or she must always do so before the contractual time for performance expires.

Gino, a used car salesman, tells BillyBob while test driving a restored '64 Mustang, "BillyBob, this car is a chick magnet!" So BillyBob buys the Mustang, but later is not satisfied because no girls want to go riding with BillyBob. BillyBob threatens to sue Gino. What result?

Toy Distributors, Inc. had a swing set constructed for customers to examine. It was anchored to the ground with 20-inch steel pins. Gina purchased one for installation in her backyard by Toy, but Toy anchored it with 6-inch steel pins that pulled out of the ground, causing the swing set to tip over and injure Gina's child who was playing on the swing. Discuss if any warranties have been violated by Toy.

Which of the following is true of an exclusion of the implied warranty of fitness for a particular purpose?

The Garden Club orders 40 T-shirts from Shirt City, Inc. to be printed with the club name and motto for a total price of $400. The Garden Club breaches the contract, and Shirt City discovers that the resale value of the shirts is $1 each. Shirt City may sue the Garden Club for the order price of the T-shirts.

Jan, a nonmerchant buyer, receives nonconforming goods from Zoe, a merchant seller. Jan is so upset that she places the goods outside next to the trash collection bin and tells Zoe to come get her "trash." Rain damages some of the goods before Zoe picks them up the next day. Discuss Jan's duties and Zoe's rights.

Garcia purchases a used shotgun from Andy, who had purchased it from Jane, who purchased it from Maria, who had stolen it from Songhee. Only Maria has broken the warranty of title.

Tang went into a bicycle shop to purchase a bike rack. He asked the salesperson for help in picking out a rack that would fit his bike. While the salesperson was helping another customer, Tang went ahead and chose one he wanted. The salesperson then told Tang that the rack was a good one. After Tang put the rack on his bike, it did not fit properly and damaged his gear shift. Explain whether Tang can rightfully claim that the salesperson committed a breach of warranty of fitness for a particular purpose.

To be in a position to bring suit on a sales contract, the seller of goods must make tender of delivery.

Nicholas entered into a written contract with Mondo Choco, Inc., agreeing to pay Mondo Choco $700 for several hundred assortments of holiday chocolates for the employees of his corporation. Mondo Choco failed to deliver the chocolates by the date set in the contract. Nicholas then told Mondo Choco that he would cover the sale. Discuss.

In August 2014, Zano orders 10 guitars from Music Retailers for his class which is scheduled to start in January, 2015. After two months, Music Retailers notifies him that it cannot fill his order by the start of his class. This notification is an anticipatory breach of contract.

Bridget contracts with Hunter to purchase $30,000 worth of goods for her store. Hunter wants a clause in the contract stating that neither party will sue the other after one year from the date of breach of contract. Which of the following is true of this situation?

The implied warranty of merchantability provides that whenever a merchant sells goods, the merchant warrants that the goods are merchantable-that is, that they are reasonably fit for the purpose for which they are sold.

Lori went into an electronics store that had a sign posted on the wall declaring "All sales final!" She told the salesperson that she was looking for an iPod with Pandora, so that she could listen to streaming music while working out in her wifi-enabled health club. The salesperson selected a wifi-capable iPod and told Lori that she could receive Pandora as long as the fitness center had wifi. The next day, when Lori tried to use the iPod at the fitness center with wifi, she found that she could only hear static. Which of the following is true of this situation?

Gerald orders 1,000 cupcakes from Haddock Bakers for a Christmas Eve party. However, Haddock fails to deliver the cupcakes as per the schedule mentioned in the contract, and does not send any notification to Gerald. Gerald orders the cupcakes from Marlene's Cakes that evening. Gerald's order from Marlene's Cakes is called a ____________.

Jess buys a microwave oven with a manufacturer's full one-year written warranty. If Jess discovers that the microwave oven does not work properly during this time, the manufacturer is obligated to:

Cassandra purchased a truck at a Middleburg police auction of abandoned property. The truck, in fact, had been stolen and the original owner, Ariel, subsequently asserted a claim to it. Discuss if Cassandra has any claims against Middleburg or Ariel.

Westdress, Inc. entered into a contract with Salvo, Inc. to supply them with specified goods by June 15^th. Salvo, Inc. shipped the goods, which were delivered to Westdress, Inc. on May 30^th. Westdress inspected the goods, found 50% of the goods to be nonconforming to their order, but kept them without notifying the seller of the discrepancy. In the meantime, Salvo, Inc. realized its error and contacted Westdress to replace the goods, but Westdress refused the offer. Discuss the case.

____________ damages are reasonable expenses that indirectly result from the breach, such as expenses incurred in stopping delivery of goods, transporting goods, and caring for goods after the buyer's breach.

In a c.o.d. shipment, the buyer has paid for what turns out to be defective goods. It means the buyer has made a binding acceptance of the goods.