Problems And Materials On Commercial Law

by WHALEY DOUGLAS J.

• ISBN13: 9780735550681
• ISBN10: 0735550689
• Edition: 8th
• Format: Hardcover
• Copyright: 2005-03-21
• Publisher: Wolters Kluwer

Summary

How does Professor of Law Emeritus Douglas J. Whaley continue to attract new users for his commercial law casebook, edition after edition? By keeping his problem-based book straightforward, accessible, and practical. Problems and Materials on Commercial Law, Eighth Edition, covers the most recent case and statutory developments in all fundamentals areas, including sales, payment systems, and secured transactions. The casebook retains the strengths that gained it such enduring popularity: a complete, direct examination of all relevant statutes and major cases in commercial law, including materials and problems on sales, payment systems, and secured transactions up-to-date coverage of the latest changes in -- and cases relating to -- U.C.C. Articles 2, 3, 4, and 9, As well as other relevant laws and cases interesting, well-crafted problems with the distinctive Whaley touch; progressing from easy to more complex, The problems sharpen students' skills and enable them to Understand The complexities of the field And The difficult statutory language clear and lucid writing style sensible organization, taking a modular approach that follows the order of the U.C.C. And allows greater teaching flexibility concise, efficient, and effective format in a manageable length Notice these important changes in the Eighth Edition: coverage of extensive Article 2 changes, with a focus on the traditional version, but considering the 2003 rewrite of the Article in detail throughout the Sales section. Instructors will be able to choose whether students concentrate on the 2003 version or the original fuller incorporation of 2002 amendments to Articles 3 and 4 on payment law issues updated rules pertaining to Check 21 (Check Collection in the 21st Century) allowing banks to use photographic images of checks in lieu of the checks themselves new cases and complete updating of all retained cases new and updated problems revised and updated Teacher's Manual with answers to problems Please visit the new companion website to learn more about this book. Website: http://www.aspenlawschool.com/whaley_commerciallaw8

Table of Contents

Preface	xxvii
Part 1 SALE AND LEASE OF GOODS	1	(356)
Basic Concepts	3	(38)
Introduction	3	(3)
The Basics of Article 1	3	(1)
The Basics of Article 2	4	(1)
The Official Comments	5	(1)
Scope of Article 2	6	(30)
``Transactions in Goods''	6	(1)
Milau Associates, Inc. v. North Avenue Development Corp.	7	(7)
Analysts Intern. Corp. v. Recycled Paper Products, Inc.	14	(6)
Anthony Pools v. Sheehan	20	(10)
Merchants	30	(1)
Siemen v. Alden	30	(6)
Scope of Article 2A	36	(3)
International Sales	39	(2)
Contract Formation	41	(58)
The Statute of Frauds	41	(12)
St. Ansgar Mills, Inc. v. Streit	43	(10)
The Parol Evidence Rule	53	(7)
Columbia Nitrogen Corp. v. Royster Co.	54	(6)
Offer and Acceptance	60	(39)
General Rules	60	(1)
The Battle of the Forms	61	(1)
The Original Version of §2-207	61	(3)
Diamond Fruit Growers, Inc. v. Krack Corp.	64	(7)
Bayway Refining Co. v. Oxygenated Marketing and Trading A.G.	71	(10)
Leonard Pevar Co. v. Evans Products Co.	81	(7)
Klocek v. Gateway, Inc.	88	(8)
The 2003 Version of §2-207	96	(3)
Warranties	99	(116)
The Warranty of Title	99	(5)
Moore v. Pro Team Corvette Sales, Inc.	101	(3)
Warranties of Quality	104	(111)
Express Warranties	104	(4)
Implied Warranties	108	(1)
Merchantability	108	(1)
Shaffer v. Victoria Station, Inc.	109	(5)
Daniell v. Ford Motor Co.	114	(4)
Fitness for a Particular Purpose	118	(1)
Webster v. Blue Ship Tea Room, Inc.	119	(5)
Warranty Disclaimers and Limitations	124	(1)
Disclaiming Express Warranties	124	(1)
Bell Sports, Inc. v. Yarusso	125	(9)
Disclaiming Implied Warranties	134	(1)
Cate v. Dover Corp.	134	(10)
Bowdoin v. Showell Growers, Inc.	144	(5)
Rinaldi v. Iomega Corp.	149	(6)
Limitations on the Warranty	155	(1)
Wilson Trading Corp. v. David Ferguson, Ltd.	155	(7)
Pierce v. Catalina Yachts, Inc.	162	(7)
Defenses in Warranty Actions	169	(1)
Notice	169	(2)
Privity	171	(2)
Reed v. City of Chicago	173	(3)
A Note on Strict Products Liability	176	(2)
East River Steamship Corp. v. Transamerica Delaval, Inc.	178	(11)
UCC Warranties and the Magnuson-Moss Act	189	(2)
Ventura v. Ford Motor Corp.	191	(13)
Warranties and Article 2A	204	(1)
Colonial Pacific Leasing Corp. v. McNatt Datronic Rental Corp.	204	(9)
Warranties in International Sales	213	(2)
Terms of the Contract	215	(24)
Filling in the Gaps	215	(6)
Landrum v. Devenport	216	(5)
Unconscionability	221	(2)
Identification of the Goods	223	(1)
Risk of Loss: No Breach	224	(15)
General Rules	224	(2)
Delivery Terms	226	(2)
Cook Specialty Co. v. Schrlock	228	(4)
Rheinberg-Kellerei GmbH v. Vineyard Wine Co.	232	(7)
Performance of the Contract	239	(66)
Installment Sales	240	(4)
Cherwell-Ralli, Inc. v. Rytman Grain Co.	241	(3)
The Perfect Tender Rule	244	(1)
Cure	245	(5)
Wilson v. Scampoli	246	(4)
Rejection and Acceptance	250	(16)
Ramirez v. Autosport	251	(10)
Plateq Corp. of North Haven v. Machlett Laboratories, Inc.	261	(5)
Revocation of Acceptance	266	(15)
Rester v. Morrow	267	(11)
Note: Lemon Laws	278	(3)
Risk of Loss: Breach	281	(5)
Jakowski v. Carole Chevrolet, Inc.	281	(5)
Impossibility of Performance	286	(19)
Arabian Score v. Lasma Arabian Ltd.	287	(5)
Louisiana Power & Light Co. v. Allegheny Ludlum Industries, Inc.	292	(13)
Remedies	305	(52)
Special Remedies	305	(2)
Remedies on Insolvency	305	(1)
Liquidated Damages	306	(1)
The Breaching Buyer's Restitution	307	(1)
Seller's Remedies	307	(12)
Accepted Goods	308	(1)
Unaccepted Goods	309	(1)
Teradyne, Inc. v. Teledyne Industries, Inc.	310	(9)
Buyer's Remedies	319	(23)
Accepted Goods	320	(2)
Unaccepted Goods	322	(2)
Hughes Communications Galaxy, Inc. v. U.S.	324	(10)
Tongish v. Thomas	334	(8)
Anticipatory Repudiation	342	(2)
The Statute of Limitations	344	(13)
Poli v. DaimlerChrysler Corp.	345	(12)
Part 2 PAYMENT	357	(414)
Negotiability	359	(28)
Introduction	359	(1)
Types of Negotiable Instruments	360	(3)
The Negotiability Concept	363	(24)
``Writing''	364	(1)
``Signed''	365	(1)
``Unconditional Promise or Order''	365	(1)
Implied Conditions	366	(1)
Triffin v. Dillabough	366	(10)
Consideration Stated	376	(1)
``Fixed Amount of Money''	377	(1)
``Courier without Luggage'' Requirement	378	(1)
Woodworth v. The Richmond Indiana Venture	379	(3)
``Payable on Demand or at a Definite Time''	382	(1)
``Payable to Bearer or to Order''	383	(2)
Consumer Notes	385	(2)
Negotiation	387	(8)
Some Technical Terms	387	(1)
Parties	387	(1)
Negotiability vs. Negotiation	388	(1)
Transfer and Negotiation	388	(1)
Special and Blank Indorsement	389	(3)
Forgery of the Payee's Name	392	(3)
Holders in Due Course	395	(84)
Acquiring Holder in Due Course Status	395	(48)
``Holder''	396	(1)
``Value''	397	(2)
Falls Church Bank v. Wesley Heights Realty, Inc.	399	(1)
``Good Faith'' and ``Notice''	400	(1)
General Investment Corp. v. Angelini	401	(5)
Any Kind Checks Cashed, Inc. v. Talcott	406	(10)
Winter & Hirsch, Inc. v. Passarelli	416	(7)
Jones v. Approved Bancredit Corp.	423	(8)
Sullivan v. United Dealers Corp.	431	(3)
The Shelter Rule	434	(2)
Triffin v. Somerset Valley Bank	436	(7)
Real and Personal Defenses/Claims	443	(36)
Defenses Against a Holder in Due Course	443	(1)
Federal Deposit Insurance Corp. v. Culver	444	(8)
Sea Air Support, Inc. v. Herrmann	452	(2)
Kedzie & 103rd Currency Exchange, Inc. v. Hodge	454	(10)
A Special Note on Forgery	464	(1)
Procedural Issues	465	(1)
Virginia National Bank v. Holt	466	(3)
Defenses Against a Non-Holder in Due Course	469	(1)
Herzog Contracting Corp. v. McGowen Corp.	469	(7)
Jus Tertii	476	(1)
Conclusion	477	(2)
The Nature of Liability	479	(70)
The Underlying Obligation	480	(7)
Ward v. Federal Kemper Insurance Co.	482	(5)
Liability on the Instrument	487	(59)
The Maker's Obligation	488	(1)
The Indorser's Obligation	489	(3)
The Surety's Obligation	492	(2)
Exoneration	494	(1)
Subrogation	494	(1)
Contribution	495	(1)
Strictissimi Juris	495	(2)
The Accommodation Party	497	(2)
Floor v. Melvin	499	(5)
Tender of Payment	504	(1)
Section 3-605 --- Strictissimi Juris Again	505	(1)
Chemical Bank v. Pic Motors Corp.	506	(8)
London Leasing Corp. v. Interfina, Inc.	514	(2)
New Notes for Old	516	(1)
The Drawer's Obligation	517	(1)
Presentment and Dishonor	518	(1)
Messing v. Bank of America, N.A.	519	(7)
Notice of Dishonor	526	(1)
Protest	526	(1)
Excuse	526	(2)
Makel Textiles, Inc. v. Dolly Originals, Inc.	528	(2)
The Drawee's Obligation	530	(1)
The Non-Bank Acceptor	531	(1)
Norton v. Knapp	531	(3)
Checks	534	(1)
Galyen Petroleum Co. v. Hixson	534	(3)
Certification	537	(1)
Signature by an Agent	538	(1)
Mundaca Investment Corp. v. Febba	539	(4)
Nichols v. Seale	543	(3)
Other Theories of Liability	546	(3)
Banks and Their Customers	549	(86)
The Checking Account	550	(39)
``Properly Payable'' Rule	550	(4)
Wrongful Dishonor	554	(1)
Twin City Bank v. Isaacs	554	(6)
Death or Incompetence of Customer	560	(1)
Bank's Right of Setoff	560	(2)
Walter v. National City Bank of Cleveland	562	(5)
Customer's Right to Stop Payment	567	(1)
Ordinary Checks	567	(1)
Parr v. Security National Bank	567	(5)
Canty v. Vermont National Bank	572	(5)
Cashiers, Tellers, and Certified Checks	577	(1)
Patriot Bank v. Navy Federal Credit Union	578	(8)
Bank Statements	586	(3)
Bank Collection	589	(46)
Funds Availability	590	(1)
Cash	590	(1)
Checks	591	(1)
Across the Counter Presentments	591	(1)
``On Us'' Items	591	(1)
``Transit'' Items	592	(4)
The Federal Availability Rules	596	(7)
Check Truncation	603	(1)
Introduction	603	(1)
Creating the Image and the Substitute Check	603	(2)
Legal Equivalence	605	(1)
Warranty Liability	605	(1)
Indemnity Liability	606	(1)
Expedited Recredit for Consumer	607	(2)
Expedited Recredit for Banks	609	(1)
Final Payment	609	(4)
Rock Island Auction Sales, Inc. v. Empire Packing Co.	613	(3)
First National Bank of Chicago v. Standard Bank & Trust	616	(8)
Check Return	624	(1)
Charge Back	625	(2)
Undoing Final Payment	627	(2)
Delays	629	(1)
Restrictive Indorsements and Banks	630	(1)
Priorities in the Bank Account: The Four Legals	631	(4)
Wrongdoing and Error	635	(62)
Forgery of the Payee's Name	636	(13)
Some Basic Ideas	636	(2)
Warranty Liability	638	(3)
Conversion Liability	641	(3)
Leeds v. Chase Manhattan Bank, N.A.	644	(5)
Forgery of the Drawer's Name	649	(10)
Price v. Neal	650	(4)
Decibel Credit Union v. Pueblo Bank & Trust Co.	654	(5)
Validation of the Forgery	659	(35)
Common Law Validation	661	(1)
Hutzler v. Hertz Corp.	661	(6)
The Impostor Rule	667	(2)
The Employee Indorsement Rule	669	(2)
The Negligence Rule	671	(2)
The Bank/First Citizens Bank v. Citizens and Associates	673	(9)
The Bank Statement Rule	682	(1)
Falk v. Northern Trust Co.	683	(11)
Alteration	694	(3)
Electronic Banking	697	(48)
The Electronic Fund Transfer Act	698	(9)
Credit Cards	699	(1)
Asserting Defenses Against the Credit Card Issuer	699	(2)
Billing Errors	701	(1)
Electronic Fund Transfers and the Consumer	701	(6)
Wire Transfers	707	(38)
Scope of Article 4A	710	(2)
Acceptance of Payment Orders	712	(2)
Transmission Errors	714	(1)
Grain Traders, Inc. v. Citibank, N.A.	715	(12)
Corfan Banco Asuncion Paraguay v. Ocean Bank	727	(7)
Bank of America N.T.S.A. v. Sanati	734	(8)
Conclusion	742	(3)
Investment Securities	745	(26)
Terminology	746	(3)
Overissue	749	(1)
The Issuer and the Holder	750	(4)
First American National Bank v. Christian Foundation Life Insurance Co.	750	(4)
Transfers Between Purchasers	754	(2)
Registration	756	(8)
Jennie Clarkson Home for Children v. Missouri, Kansas & Texas Railway	757	(7)
Security Entitlements	764	(7)
Powers v. American Express Fin. Advisors, Inc.	765	(6)
Part 3 PAYMENT IN DOCUMENTED SALES	771	(92)
Documents of Title	773	(58)
Warehouse Receipts	774	(11)
Form	774	(2)
Basic Bailment Law	776	(1)
Procter & Gamble Distributing Co. v. Lawrence American Field Warehouse Corp.	776	(4)
Dunfee v. Blue Rock Van & Storage, Inc.	780	(2)
Bailee's Lien	782	(1)
Delivery Orders	783	(2)
Terminology: The Issuer	785	(1)
Bills of Lading	785	(21)
Federal Law	786	(1)
The Basic Idea	786	(1)
BII Finance Co. v. U-States Forwarding Services Corp.	787	(10)
Form	797	(1)
Negotiable	797	(1)
Non-Negotiable	797	(3)
Misdescription	800	(1)
GAC Commercial Corp. v. Wilson	801	(5)
Due Negotiation	806	(15)
The Basic Concept	806	(1)
Cleveland v. McNabb	807	(4)
The Section 7-503(1) Owner	811	(2)
Agricredit Acceptance, LLC v. Hendrix	813	(7)
Other Transfers	820	(1)
Collection Through Banks	821	(10)
``Payment Against Documents''	821	(4)
Liability of the Collecting Bank	825	(1)
Rheinberg Kellerei GmbH v. Brooksfield National Bank of Commerce	825	(6)
Letters of Credit	831	(32)
The Basic Problem	832	(4)
Definitions and Scope of Article 5	836	(1)
The Issuer --- Duties and Rights	837	(15)
Voest-Alpine Trading Co. v. Bank of China	839	(13)
Fraud	852	(7)
Sztejn v. J. Henry Schroder Bank Corp.	852	(4)
Intrinsic Values Corp. v. Superintendencia De Administracion Tributaria	856	(3)
Assignment	859	(1)
Subrogation	860	(3)
Part 4 SECURED TRANSACTIONS	863	(328)
Introduction to Secured Transactions	865	(16)
Bankruptcy	868	(2)
Pre-Code Security Devices	870	(11)
Benedict v. Ratner	870	(6)
Pledge	876	(1)
Chattel Mortgage	876	(1)
Conditional Sale	877	(1)
Trust Receipt	878	(1)
Factor's Lien	878	(1)
Field Warehousing	879	(2)
The Scope of Article 9	881	(30)
Security Interest Defined	881	(1)
Consignments	882	(5)
In re Fabers, Inc.	884	(3)
Leases	887	(12)
In re Architectural Millwork of Virginia, Inc.	890	(9)
Other Transactions	899	(1)
Exclusions from Article 9	900	(11)
Federal Statutes	900	(1)
Philko Aviation, Inc. v. Shacket	901	(5)
Landlord's Lien and Other Statutory Liens	906	(1)
Wage Assignments	907	(1)
Non-Financing Assignments	907	(1)
Real Estate	908	(1)
Other Exclusions	908	(3)
The Creation of a Security Interest	911	(34)
Classifying the Collateral	911	(10)
In re Morton	914	(4)
Morgan County Feeders, Inc. v. McCormick	918	(3)
Technical Validity of the Forms	921	(13)
The Security Agreement	922	(1)
The Financing Statement	923	(1)
The Debtor's Identity	924	(2)
Description of the Collateral	926	(1)
In re Grabowski	927	(7)
Attachment of the Security Interest	934	(11)
Thrift, Inc. v. A.D.E., Inc.	935	(5)
In re Howell Enterprises, Inc.	940	(5)
Perfection of the Security Interest	945	(36)
Perfection by Possession (Pledge)	946	(2)
Automatic Perfection	948	(28)
Purchase Money Security Interest in Consumer Goods	948	(2)
In re Short	950	(10)
General Electric Capital Commercial Automotive Finance, Inc. v. Spartan Motors, Ltd.	960	(10)
Certain Accounts and Other Intangibles	970	(1)
In re Wood	971	(5)
Perfection by Filing	976	(3)
The Mechanics of Filing	976	(1)
Other Filings	977	(2)
Perfection by Control	979	(2)
Multi-State Transactions	981	(6)
General Choice of Law Rules	981	(3)
Certificates of Title	984	(3)
Priority	987	(124)
Simple Disputes	987	(11)
In re Wollin	991	(7)
Purchase Money Security Interests	998	(19)
The Basic Rule	998	(1)
Galleon Industries, Inc. v. Lewyn Machinery Co.	999	(4)
Inventory and Livestock	1003	(1)
Kunkel v. Sprague National Bank	1004	(13)
Control and Priority	1017	(4)
Control Over Investment Property	1018	(1)
Control Over Deposit Accounts	1019	(1)
Control Over Letters of Credit Rights	1020	(1)
Buyers	1021	(32)
International Harvester Co. v. Glendenning	1023	(6)
First National Bank and Trust Co. of El Dorado v. Ford Motor Credit Co.	1029	(9)
Clovis National Bank v. Thomas	1038	(9)
Farm Credit Bank of St. Paul v. F & A Dairy	1047	(6)
Leases	1053	(2)
Article 2 Claimants	1055	(12)
In re Arlco, Inc.	1057	(10)
Statutory Lien Holders	1067	(1)
Fixtures	1068	(18)
George v. Commercial Credit Corp.	1069	(5)
Lewiston Bottled Gas Co. v. Key Bank of Maine	1074	(5)
Maplewood Bank & Trust v. Sears, Roebuck & Co.	1079	(7)
Accessions and Commingling	1086	(1)
Federal Priorities for Debts and Taxes	1086	(25)
The Federal Priority Statute	1086	(2)
Tax Liens---Basic Priority	1088	(1)
United States v. Estate of Romani	1088	(11)
Tax Liens and After-Acquired Property	1099	(1)
Plymouth Savings Bank v. U.S. I.R.S.	1100	(8)
Tax Liens and Future Advances	1108	(3)
Bankruptcy and Article 9	1111	(20)
The Trustee's Status	1111	(2)
Preferences	1113	(6)
The Floating Lien in Bankruptcy	1119	(10)
In re Smith's Home Furnishings, Inc.	1120	(9)
Fraudulent Transfers	1129	(1)
Non-Consensual Liens and the Trustee	1130	(1)
Proceeds	1131	(20)
The Meaning of Proceeds	1131	(5)
Farmers Cooperative Elevator Co. v. Union State Bank	1132	(4)
Priorities in Proceeds	1136	(15)
HCC Credit Corp. v. Springs Valley Bank & Trust Co.	1137	(14)
Default	1151	(40)
Pre-Default Duties of the Secured Party	1151	(2)
Default	1153	(11)
State Bank of Piper City v. A-Way, Inc.	1153	(6)
Klingbiel v. Commercial Credit Corp.	1159	(5)
Repossession and Resale	1164	(20)
Williamson v. Fowler Toyota, Inc.	1165	(9)
Hillman v. Cobado	1174	(10)
Redemption and Strict Foreclosure	1184	(7)
Reeves v. Foutz & Tanner, Inc.	1186	(5)
Table of Cases	1191	(12)
Table of Statutes	1203	(14)
Index	1217