Exam 11: Domestic and International Sales

In Lee v. R&K Marine, where a boat that Lee bought became unusable after only three years when it fell apart, and the seller had expressly disclaimed all warranties, the court held:

A warranty of title means:

In October, Ashton Co. ordered machines from Ross Tool to secure propellers onto airplanes. Delivery was set for December. In November, Clyde told Ashton that its propeller supplier could not ship propellers that would fit the Ross machines. Ashton told Ross that it was canceling the contract for the machines. Ross may sue:

Under the UCC, a buyer's damages are to put the buyer in as good a position as if the seller had performed the contract. The buyer is allowed to seek incidental damages for recovery of costs resulting from the breach. Incidental damages include:

With respect to warranty disclaimers, under the UCC a seller:

The seller's basic obligation under the UCC does not include:

The ____ is what is paid for the substitute goods when a seller fails to deliver goods as specified by a contract.

Under Article 2, a seller can exclude any express or implied warranty, as long as those limits follow the rules of Article 2.

A(n) ____ is a statement or representation made by a seller that goods conform to certain standards of quality, safety, performance, and title.

The buyer's payment for the goods under Article 2 is due when the goods leave the seller's facilities.

Venable bought a car from a dealer. SunTrust financed the purchase. Venable promised to make 75 monthly payments; the car could be taken by SunTrust is she failed to pay. After five years, SunTrust seized the car and sold it at auction. It sued Venable for the remainder owed on the debt. She argued that SunTrust acted improperly because there is a four-year statute of limitations under Article 2 of the USS. SunTrust argued that the six-year statute of limitation that applied to common-law contracts applied to the matter. The trial court agreed with SunTrust. The appeals court held that:

Under the UCC, a merchant is not one who:

"Cover" is the profit a buyer expected to earn from the sale of merchandise.

In Orkal Industries v. Array Connector, where Orkal bought parts from Array by sending an order form, but Array confirmed with its own form that contained different terms. Orkal did not object to the different terms until litigation arose later at which point the added terms mattered. The courts held that under the UCC:

If a buyer rejects a shipment of goods as not conforming, the seller has the right to cure the defect, which includes which condition(s):

A warranty may be generally defined as:

The UCC's remedies for breaches of contract for the sale of goods are intended to:

Article 2 of the UCC covers the sale of:

____ means that the good "must be of a quality comparable to that generally acceptable in that line or trade."

QD representatives met with EDS managers. They discussed plans for a conference room with Persian carpets, quality furniture and nice art. The parties agreed that the job would be done for $100,000, the final bill to be subject to review. QD delivered a room with ordinary carpet and furniture and posters of dogs. They sent a bill for $85,000. EDS sues QD: